What is the First Home Guarantee (FHBG) scheme?

Formerly called the First Home Loan Deposit Scheme (FHLDS), the First Home Guarantee (FHBG) scheme is a government scheme that helps first home buyers to purchase a property with a lower deposit than is normally required by the lender.

Under this scheme, the Australian Government partially guarantees low-deposit loans, for eligible low- and middle-income earners who have saved up a deposit of as little as 5% of an eligible property’s value.

This government guarantee also removes the need for the first home buyer to take out lenders mortgage insurance, potentially saving them thousands of dollars.