The First Home Guarantee (FHBG) is an Australian Government initiative that forms part of the Home Guarantee Scheme (HGS). Administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government, the FHBG is designed to help eligible first home buyers purchase a home sooner.-
Under the FHBG, an eligible first home buyer can receive a guarantee for part of their home loan from a Participating Lender. This means that the NHFIC will guarantee up to a maximum of 15% of the property’s value (as assessed by the lender). With the FHBG in place, first home buyers can purchase a home with as little as a 5% deposit, without having to pay Lenders Mortgage Insurance.
It’s important to note that the FHBG guarantee is not a cash payment or a deposit for a home loan. Rather, it is a guarantee that helps to make home ownership more accessible to eligible buyers.
From 1 July 2022 to 30 June 2023, there are 35,000 FHBG places available to eligible first home buyers in Australia. This limited availability means that eligible buyers should act quickly to take advantage of the FHBG while it’s still available.
In conclusion, the FHBG is an important program that provides valuable support for eligible first home buyers in Australia. By providing a guarantee for part of their home loan, the FHBG helps to make home ownership more accessible, allowing buyers to purchase a home sooner and without having to pay Lenders Mortgage Insurance.
With limited availability, eligible buyers should consider taking advantage of the FHBG before it’s too late. Contact us to find you a participating lender!