Home Guarantee Scheme

Home Guarantee Scheme Perth

Buying your first home or re-entering the property market can feel like a daunting task, especially when trying to save a standard 20% deposit. The Home Guarantee Scheme (HGS)—an Australian Government initiative administered by Housing Australia—helps eligible buyers purchase a home sooner with a deposit as low as 2% or 5%, completely avoiding the cost of Lenders Mortgage Insurance (LMI).

At Index Finance, we guide you through the various options under the Home Guarantee Scheme, check your eligibility, and secure a place with participating lenders to turn your property goals into reality.

What Is the Home Guarantee Scheme?

The Home Guarantee Scheme allows eligible home buyers to purchase a residential property with a smaller deposit without having to pay expensive Lenders Mortgage Insurance. Under the scheme, Housing Australia guarantees up to 15% to 18% of the property value to the lender on your behalf.

This means participating banks treat your loan as an 80% Loan-to-Value Ratio (LVR), saving you thousands of dollars in upfront LMI costs while helping you enter the Perth property market years faster.

Key Options Under the Scheme

• First Home Guarantee (FHBG): Purchase a home with a deposit as low as 5% for eligible first home buyers or those who haven’t owned property in 10+ years.
• Family Home Guarantee (FHG): Purchase a home with a deposit as low as 2% for eligible single parents or single legal guardians with dependants.
• Regional First Home Buyer Guarantee (RFHBG): Purchase or build a home in regional areas with a deposit as low as 5%.

Benefits of the Home Guarantee Scheme

• Buy a home much faster with a deposit as low as 2% or 5%
• Save thousands of dollars by avoiding Lenders Mortgage Insurance (LMI)
• Access competitive interest rates through participating panel lenders
• Open to individual applicants, joint applicants, friends, and family members
• Provides a clear, government-backed path to homeownership

Who Should Consider the Scheme?

The Home Guarantee Scheme is designed for Australians who have reliable income and serviceability but struggle to save a full 20% deposit in today’s fast-moving market.

• First Home Buyers
• Single Parents and Legal Guardians
• Buyers Re-entering the Property Market
• Regional Property Buyers
• Buyers Wanting to Save on Upfront LMI Costs

Our Home Guarantee Scheme Process

Step 1: Initial Eligibility Assessment

We review your income, citizenship status, deposit savings, and property goals to confirm your eligibility for the relevant guarantee stream.

Step 2: Reserve Your Scheme Place

Places under the scheme are limited each financial year. We identify participating panel lenders offering competitive rates and apply to reserve your guarantee place promptly.

Step 3: Pre-Approval Submission

We collect your documentation, structure your home loan application, and submit it for conditional pre-approval so you can search for properties within official price caps.

Step 4: Final Approval & Settlement

Once you find your ideal property, we manage the full valuation, final loan approval, and settlement process from end to end.

Why Choose Index Finance?

• Expert knowledge of Housing Australia schemes and price caps
• Access to participating tier-1 and specialist lenders
• Fast eligibility checks and place reservation guidance
• Personalised home loan structuring tailored to your budget
• Complete support from initial enquiry to key handover

Whether you’re looking to buy your first home or secure a property as a single parent, Index Finance is here to help you navigate the Home Guarantee Scheme and fast-track your path to homeownership.