The First Home Guarantee is one of the most valuable tools available to first home buyers in South Australia. It allows eligible buyers to purchase a home with as little as 5% deposit — without paying Lenders Mortgage Insurance. Here is everything you need to know.
Under the First Home Guarantee, the federal government acts as a guarantor for up to 15% of the property's value. This means your lender sees the loan as if you have a 20% deposit — even though you only have 5% — and does not require you to pay LMI.
The guarantee is not money you receive. It is a commitment from the government to cover the lender's risk on the portion between your deposit and 20% of the purchase price. You still need to save your 5% deposit and cover upfront costs separately.
To be eligible for the First Home Guarantee you must be an Australian citizen or permanent resident, be a first home buyer (meaning you have never owned residential property in Australia), meet the income threshold ($125,000 annual taxable income for singles, $200,000 combined for couples), and intend to live in the property as your primary residence.
The property must also be within the applicable price cap. In South Australia the cap is $900,000, which covers the vast majority of properties in greater Adelaide.
The scheme covers existing properties, new builds, house and land packages, off-the-plan apartments and townhouses. The property must be in Australia and meet standard lender lending criteria. Investment properties do not qualify — the scheme is specifically for owner-occupiers.
The First Home Guarantee is accessed through participating lenders — not directly through the government. Lendology works with multiple participating lenders and manages the application as part of your home loan process. We check your eligibility, identify the participating lender offering the best terms for your situation, and submit the guarantee application alongside your loan application.
Places in the scheme are limited each financial year. Applying early and having your paperwork prepared in advance gives you the best chance of securing a place.
South Australian first home buyers may also be eligible for stamp duty concessions on top of the First Home Guarantee. These two benefits can be combined, significantly reducing the upfront cost of entering the market. Lendology confirms all available incentives for your specific situation before you apply.
The federal government allocates a set number of places each financial year. When they run out, no new applications are accepted until the next year. We check current availability and advise on timing as part of your application.
No. The scheme requires you to occupy the property as your primary place of residence. It cannot be used for investment purposes.
The guarantee is released when you sell and the loan is repaid. If at the time of sale your loan-to-value ratio has reduced below 80% (because you have paid down the mortgage or the property has increased in value), the guarantee may be released earlier.
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