The First Home
Guarantee.
Last updated 14 June 2026 · figures current as at June 2026, confirm with Housing Australia.
The First Home Guarantee is a federal scheme that lets eligible first-home buyers build or buy with a 5% deposit and no Lenders Mortgage Insurance, because the government guarantees up to 15% of the property value. From 1 October 2025 the income caps and the limit on places were removed. The Perth metro price cap is $850,000 in 2026.
What the guarantee gives you.
| Detail | 2026 position | Confidence |
|---|---|---|
| Deposit required | 5% (government guarantees up to 15%) | High |
| Lenders Mortgage Insurance | None | High |
| Income caps | Removed from 1 October 2025 | High |
| Places available | Unlimited (no waitlist) from 1 October 2025 | High |
| Perth metro price cap | $850,000 | High |
| Regional WA price cap | $600,000 | Verify current figure |
| Eligible property | New or established, house-and-land, off-the-plan, land + build | High |
| Administered by | Housing Australia, via participating lenders | High |
The regional WA price cap is verify-current. Confirm price caps and current eligibility with Housing Australia before relying on them.
The eligibility checklist.
- You are an Australian citizen or, since recent changes, an eligible permanent resident (confirm current rule).
- You are at least 18 and buying as an owner-occupier, not an investor.
- You are a first-home buyer, or have not owned property in Australia in the prior period set by the scheme.
- Your purchase price is at or under the Perth metro cap of $850,000 (or the regional WA cap).
- You have a genuine 5% deposit and meet the participating lender's normal credit and serviceability checks.
- You will live in the home as your principal place of residence.
A worked example on a new build.
On an eligible $480,000 new home in Perth, a 5% deposit is $24,000 and the First Home Guarantee removes LMI, which on a 95% loan can otherwise run into five figures. Add the $10,000 grant and nil stamp duty (the home is under the current $500,000 nil-duty threshold), and the upfront cash is far lower than a standard 20% deposit of $96,000.
| Item | Amount | Note |
|---|---|---|
| New home value | $480,000 | Under the $850,000 cap and the current $500,000 nil-duty threshold |
| Standard 20% deposit | $96,000 | For comparison |
| Deposit at 5% | $24,000 | First Home Guarantee |
| LMI | $0 | Removed by the guarantee |
| First Home Owner Grant | +$10,000 | Offsets part of the deposit |
| Transfer duty | $0 | Nil under the current $500,000 threshold |
Worked example for illustration only, not a quote or an offer of finance. This is general information only and does not take into account your objectives, financial situation or needs. It is not credit assistance or a credit quote. Consider whether it is right for you and seek advice. Finance is arranged through Central Lending Solutions, the licensed credit partner The Property Plug works with (Australian Credit Licence or credit representative number [TBC]).
Every one of The Property Plug's 46 new-home designs sits well under the $850,000 Perth cap, so the guarantee is in play across the catalogue. Designs start from low in the catalogue, which means a 5% deposit can be modest. We are paid by the builder, never by you.
- Deposit and LMI calculator - 20% vs 5% vs 2%.
- Keystart - the 2% deposit alternative.
- How much deposit do I need? - the full breakdown.
- Combine your first home incentives - stack it all.
What is the First Home Guarantee in 2026?
The First Home Guarantee is a federal scheme that lets eligible first-home buyers purchase with a 5% deposit and pay no Lenders Mortgage Insurance, because the government guarantees up to 15% of the property value. From 1 October 2025 the income caps and the cap on places were removed. Confirm current settings with Housing Australia.
Is there an income limit on the First Home Guarantee?
No. Income caps were removed from 1 October 2025, alongside the removal of limits on the number of places. You still need to meet your lender's normal credit and serviceability assessment, and the property must be at or under the price cap for your area.
What is the Perth price cap for the First Home Guarantee?
The Perth metro price cap is $850,000 in 2026, with a lower cap for regional WA. A new build at or under that cap qualifies, which covers the full Property Plug catalogue comfortably. Verify the current regional figure with Housing Australia.
Can I use the First Home Guarantee with the $10,000 grant?
Yes. The First Home Guarantee is a deposit and LMI measure, while the First Home Owner Grant and the WA stamp duty concession are separate. You can layer the guarantee, the grant and the duty concession on the same eligible new build. See our combine first home incentives guide.
First Home Guarantee or Keystart, which is better?
They are different pathways. The First Home Guarantee allows a 5% deposit with no income cap, lent through a participating bank or lender. Keystart is a WA government lender allowing a 2% deposit with no LMI but with income caps. You generally use one or the other. The right fit depends on your deposit, income and the property price.
Build with a 5% deposit
Tell us your deposit, income and where you want to build. We confirm whether the First Home Guarantee fits and match you to eligible new builds. Free to you, no obligation.