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Home Guarantee Scheme to Expand from July 1

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The Australian housing market has been experiencing some significant challenges, but aspiring homebuyers have some good news to look forward to. Starting from 1 July 2023, the Home Guarantee Scheme will be expanding its eligibility criteria, enabling more people to access it. 

As a forward-thinking builder, Vogue Homes is committed to staying abreast of industry trends, including Government policy changes that could affect our clients. We’ve written this blog to go through the details of what has been announced and help our valued clients take advantage of any opportunities that may become available.| 

What is the Home Guarantee Scheme

The Home Guarantee Scheme (HGS) is an Australian Government initiative to support eligible home buyers to purchase a home sooner.

The HGS includes:  

  • The First Home Guarantee (FHBG)
    • Supporting eligible first-home buyers with a deposit of as little as 5%
  • The Regional First Home Buyer Guarantee (RFHBG)
    • Supporting eligible regional first-home buyers to buy a home in a regional area
  • The Family Home Guarantee (FHG)
    • Supporting eligible single parents with at least one dependent child to buy a home, with a deposit of as little as 2%

The Australian Government has implemented the HGS to support first-time homebuyers and aid in the recovery of the country’s economy. 

The HGS aims to make homeownership more accessible to Australians and stimulate the country’s construction industry. With the rise in property prices and difficulty in saving for a large deposit, this scheme is a significant step forward in helping individuals and families achieve their dream of owning a home. Overall, the HGS represents the government’s commitment to supporting its citizens and fostering economic growth.

What Are the Main Changes?

The Australian Government has just announced that it will be expanding the eligibility criteria for the Home Guarantee Scheme. This will mean that more Australians will be able to access the different guarantee schemes available under the program.

Under the announced changes, eligibility criteria for all elements of the scheme, including the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee, will be expanded. The main changes relate to the following:

Permanent Residents to be Eligible

Starting from July 2023, the Home Guarantee Scheme will expand its eligibility to incorporate permanent residents for all three guarantees under the program.

The inclusion of permanent residents in the scheme is a welcome move as it shows the government’s commitment to making homeownership accessible to all who call Australia their home. From July 2023, these individuals will have the same opportunity as their Australian citizen counterparts to access the three guarantees.

Joint Applicant Eligibility Expanded

The eligibility criteria for joint applications under the Home Guarantee Scheme have been broadened, opening up even more opportunities for first-home buyers with a minimum of 5 per cent deposit. 

From July 2023, eligible applicants can include friends, siblings and other family members under the First Home Guarantee and the Regional First Home Buyer Guarantee. This shared equity scheme allows those who qualify to avoid the expense of the usual lender’s mortgage insurance and instead benefit from the government’s backing for up to 15 per cent of the missing deposit.

Single Legal Guardian Expansion for Family Home Guarantee

Under the existing scheme, single natural or adoptive parents with dependents have been able to purchase a home with just a 2 per cent deposit, thanks to the government guaranteeing a maximum of 18 percent of the property’s value. 

However, the eligibility criteria are set to broaden to include single legal guardians of children such as aunts, uncles, and grandparents. This is great news for those caring for children but who may not have the same legal status as a parent. The expansion of this scheme will make homeownership more accessible to a wider range of people, helping to create stronger and more stable communities.

Previous Home Owners to be Given Access

This change will enable former homeowners to join the scheme, provided they haven’t owned a property in Australia in the last 10 years. While the scheme is currently only available to first-home buyers, this tweak aims to provide support for those who may have experienced a financial crisis or relationship breakdown and have become disconnected from home ownership. It’s a welcomed change that will bring more opportunities for those looking to enter the property market.

In all, these changes will enable a greater number of people to enter into homeownership and realise their property dreams. There will be a total of 50,000 places available per year, split into the following guarantees:

  • 35,000 under the First Home Guarantee
  • 10,000 under the Regional First Home Buyer Guarantee
  • 5,000 under the Family Home Guarantee


The Home Guarantee Scheme has always been an excellent option for first-home buyers, and with the expansion, it’s only going to get better. It’s exciting to see that the Australian government is actively helping citizens achieve their dreams of homeownership. 

The changes are planned to make it easier for people to access homes, creating a more stable and strong community for Australians. The expansion helps in bridging the gap between the dream of owning a house and the reality of owning one.

At Vogue Homes, we take pride in being at the forefront of the latest industry trends, including staying abreast of any changes in Government policy that could impact our valued clients. As your trusted partner in achieving your dreams of homeownership, we strive to provide tailored solutions that meet your unique needs. 

Please note however that Vogue Homes are not financial advisors and this blog is intended to share factual information only without advice. Vogue Home encourages our readers to do their own research with regard to their personal needs. E.g: Additional information can be found on the government’s “Support to buy a home | The National Housing Finance & Investment Corporation (NHFIC)” website

With a wealth of experience spanning 38 years in the industry, we pride ourselves on our ability to guide you through these exciting changes with our friendly and personalised approach. Whether you’re a first-time homebuyer or looking to upgrade your current residence, we’re here to help you every step of the way.

For any of your building needs, why not contact us today?