Could You Be Missing Out on $30,000? How to Qualify for the Home Guarantee Scheme in Brisbane QLD
- Lachlan McKean
- 2 days ago
- 8 min read
Discover the key steps, eligibility rules, and benefits to fast-track your first home purchase with little or no deposit required.
Many first home buyers in Queensland don’t realise they could secure a property with as little as 5% deposit - thanks to the Home Guarantee Scheme. But not everyone qualifies, and applying without the right knowledge can lead to delays, frustration, or missed opportunities. In this guide, we walk you through who is eligible, what documents you’ll need, how to apply confidently, and how to combine this scheme with other grants like the First Home Owner Grant and stamp duty concessions. With the right support, you could move from dreaming to owning faster - without needing to pay lenders mortgage insurance. Let us help you unlock the door to homeownership sooner.
The Home Guarantee Scheme is a government initiative designed to help Australians, especially first home buyers, enter the property market with a smaller deposit. Starting 1 October 2025, the scheme has expanded to offer unlimited places and higher property price caps - making it easier and faster to buy a home with as little as 5% deposit and without paying Lenders Mortgage Insurance (LMI). This ultimate guide explains everything about the home guarantee scheme eligibility, qualifying criteria, income and deposit requirements, and the step-by-step application process in Australia.
Questions answered!
Who is eligible for the Home Guarantee Scheme in Queensland?
Eligible buyers must be Australian citizens or permanent residents, aged 18 or older, with a taxable income below $125,000 (individual) or $200,000 (joint). They must be first home buyers or not owned property in Australia in the past 10 years.
What documents are needed to apply for the Home Guarantee Scheme?
Applicants need proof of identity, Australian citizenship or permanent residency, income verification via ATO Notice of Assessment, evidence of saved minimum 5% deposit, and documents related to the property purchase and home loan application from a participating lender.
Can the Home Guarantee Scheme be combined with other grants?
Yes, the scheme can be combined with other benefits like the First Home Owner Grant and stamp duty concessions, helping buyers reduce upfront costs and making it easier to move into their first home faster with the right support
What is the Home Guarantee Scheme?
The Home Guarantee Scheme helps eligible home buyers secure a loan with just a 5% deposit or, in some cases, as low as 2%, depending on the guarantee type. The government acts as a guarantor for a portion of your home loan, removing the need to pay LMI — a significant upfront expense for most buyers.
The expanded scheme, effective 1 October 2025, removes caps on the number of available places and removes most income restrictions, also raising property price caps to reflect current market values. This expansion means more Australians can benefit and access a wider range of homes, cutting years off saving for a deposit and saving tens of thousands on insurance costs.
Who is Eligible for the Home Guarantee Scheme?
Basic Eligibility Criteria
To qualify for the Home Guarantee Scheme, applicants must meet several key eligibility requirements that include:
Citizenship: Must be an Australian citizen or permanent resident at the time of loan signing.
Age: Must be at least 18 years old.
Property Ownership: Must be a first home buyer or not have owned property in Australia for at least 10 years (joint applicants both meet this condition).
Income Limits: There are no income caps for the expanded scheme from October 2025 onwards, but prior rules included taxable income up to $125,000 for individuals or $200,000 for couples.
Deposit Requirements: Must have saved a minimum deposit of 5% of the property value (2% for Family Home Guarantee applicants).
Owner-occupier Requirement: The property must be intended for your principal place of residence (investment properties are not eligible).
Loan Requirements: Must be a Principal and Interest loan from a participating lender with a maximum term of 30 years (plus up to 3 years to build a home).
Property Price Caps: Purchase price must be below the location-specific property price caps released by Housing Australia to reflect current market values.
Additional Specifics
Applicants applying jointly must meet all criteria based on combined circumstances.
The scheme applies to new and established homes, with price caps adjusted per region.
Single parents with dependents may qualify under the Family Home Guarantee with a lower deposit.
What Are the Property Price Caps?
Property price caps vary by location and are set higher from October 1, 2025, to reflect median local house prices, allowing access to homes in all Australian states and territories, including high-priced markets.
Caps are updated regularly by Housing Australia.
You can check the exact price cap for your desired location by using Housing Australia's postcode search tool.
For example, a first home buyer in Brisbane can now purchase a home worth up to $1,000,000 with just a $50,000 deposit under the scheme.
What are the current property price caps in Brisbane for the Home Guarantee Scheme?
From October 1, 2025, the property price cap for Brisbane’s First Home Guarantee Scheme is $1,000,000. This increase aligns with market prices and allows buyers to access the scheme for a broader range of homes.
What are the current property price caps in Brisbane for the Home Guarantee Scheme?
From October 1, 2025, the property price cap for Brisbane’s First Home Guarantee Scheme is $1,000,000. This increase aligns with market prices and allows buyers to access the scheme for a broader range of homes.
How do property price caps affect eligibility for first home buyers under the scheme?
Property price caps set maximum home values eligible for the guarantee. Buyers must purchase a home below the cap to qualify. Higher caps expand home options, making the scheme accessible to more buyers in high-demand areas like Brisbane
How Much Deposit Do You Need?
The standard deposit requirement is 5% of the property's purchase price or value.
For the Family Home Guarantee, the minimum deposit is 2%.
You must have less than 20% of the property value saved as a deposit; if you have 20% or more, the scheme does not apply.
Funds used for the deposit cannot be artificially transferred between co-applicants to meet criteria.
What Documents Are Needed to Apply?
To apply for the Home Guarantee Scheme, you will need:
Proof of Australian citizenship or permanent residency.
Last financial year’s Australian Tax Office (ATO) Notice of Assessment showing taxable income.
Evidence demonstrating you have saved the required deposit.
Documentation confirming you meet the first home buyer status or property ownership rules.
Loan application details from your participating lender.
Signed statutory declaration confirming you meet eligibility criteria.
Step-by-Step: How to Apply for the Home Guarantee Scheme in Australia
Step 1: Check Your Eligibility
Use the Home Guarantee Scheme Eligibility Tool on the Housing Australia website for a quick check. This tool helps identify which guarantees you may be eligible for, based on personal and property details.
Step 2: Find a Participating Lender
Only loans through Housing Australia’s approved participating lenders are eligible. These lenders include major banks and some smaller lenders who can assist you through the application and pre-approval process.
Step 3: Reserve Your Guarantee Place with the Lender
Discuss your eligibility with your lender and start an application. The lender will apply to Housing Australia to reserve a spot for your guarantee, which is limited by the scheme’s annual place availability (unlimited as of 1 October 2025).
This reservation is held for a limited timeframe (usually 14 days to 90 days), giving you time to find a property and sign a sales contract.
Step 4: Apply for a Home Loan with LBK Lending's Assistance
With your guarantee place reserved, you will proceed with your home loan application. Be prepared to provide all required documents, including your ATO notice, proof of deposit savings, and property details.
The lender will assess your financial position, ability to repay, and property eligibility, before approving the loan.
Step 5: Finalise Your Home Purchase
Once your loan is approved, you’ll have access to your funds to complete the home purchase or construction.
People Also Ask (PAA) Questions About the Home Guarantee Scheme
What are the income limits for the Home Guarantee Scheme?
As of 1 October 2025, there are no income limits for first home buyers applying for the scheme. Previously, income caps were $125,000 for individuals and $200,000 for joint applicants, but these have been removed to enable broader access.
How much deposit do I need for the Home Guarantee Scheme?
You need a minimum deposit of 5% of the property value to qualify for most guarantees, except for the Family Home Guarantee which requires just 2%. The scheme supports buyers who have saved less than 20% deposit.
Can I apply for the Home Guarantee Scheme if I am not a first home buyer?
You must be a first home buyer or not have owned a property in the last 10 years for the First Home Guarantee or Regional First Home Buyer Guarantee. For the Family Home Guarantee, applicants either must not own a property currently or no longer have property interests after settlement.
How do I apply for the Home Guarantee Scheme in Australia?
Applications are made through participating lenders who have agreements with Housing Australia. The process involves reserving a guarantee place with the lender, submitting documentation, and applying for a home loan once pre-approved.
Can I buy any property with the Home Guarantee Scheme?
The property must:
Be residential and owner-occupied.
Be within the applicable property price caps for the location.
Meet lender and scheme requirements.
Investment properties are not eligible.
What if I apply jointly with a partner or friend?
Joint applications are allowed with up to two applicants. Both must meet the eligibility criteria together, including combined income caps if applicable before October 2025, and property ownership rules.
Where can I check the property price caps for my area?
You can check the specific price caps applicable to your desired property location on the Housing Australia postcode price cap tool, available via their website.
What happens if I don’t use my guaranteed place in time?
Your guarantee place is held for a limited period (often 90 days). If you don’t find and sign a contract for a home in that timeframe, you may lose the reservation. You may be able to apply for a new reservation if eligibility and schemes still apply.
What Are the Benefits of the Home Guarantee Scheme?
Lower upfront deposit required (5% or 2%), making home ownership more achievable.
No lender’s mortgage insurance (LMI) premiums payable by the buyer.
Higher property price caps mean access to a wider range of homes.
Unlimited places allow all eligible applicants to participate without waiting.
Saves years of saving and tens of thousands in LMI costs.
Helps first home buyers enter competitive housing markets sooner.
Important Tips for Applicants
Always check the latest updates and price caps on the official Housing Australia website before applying.
Be truthful and transparent in your application to avoid disqualification.
Use the eligibility tool early to understand your options.
Consult with a participating lender to discuss loan options and confirm eligibility.
Plan your finances carefully, including other buying costs like stamp duty and legal fees.
Summary
The Home Guarantee Scheme is a valuable pathway for first home buyers and eligible Australians to buy or build a home with a smaller deposit and no LMI costs. With the recent expansion providing unlimited places and removing income limits, it is more accessible than ever.
Understanding the eligibility requirements, property price caps, deposit needs, and application steps will help buyers navigate the scheme smoothly and make informed decisions. Always seek advice from a participating lender and use official resources to guide your home buying journey under this scheme.
This article covered key topics with relevant PAA questions, including:
Home Guarantee Scheme eligibility and income limits.
Deposit requirements and application process.
Property price caps and joint applications.
How to apply and documentation needed.
For up-to-date details and application, visit the official Housing Australia Home Guarantee Scheme page and consult a participating lender near you.