AU First Home Guarantee Calculator
Calculate your LMI saving with Australia's First Home Guarantee — buy with just 5% deposit, government guarantees 15% so your lender charges no LMI. Includes income test, price cap check, and scheme comparison. AUD.
How the First Home Guarantee actually works — the mechanics behind the 5% deposit with no LMI.
FHG price caps by state and location type. Metro and regional caps differ significantly.
| State | Metro / Capital City | Regional | Your Property |
|---|---|---|---|
| New South Wales | A$900,000 ✓ | A$750,000 ✓ | Eligible (metro) |
| Victoria | A$800,000 ✓ | A$650,000 ✗ | Eligible (metro) |
| Queensland | A$700,000 ✓ | A$550,000 ✗ | Eligible (metro) |
| Western Australia | A$600,000 ✗ | A$450,000 ✗ | Over all caps |
| South Australia | A$600,000 ✗ | A$450,000 ✗ | Over all caps |
| Tasmania | A$600,000 ✗ | A$450,000 ✗ | Over all caps |
| ACT | A$750,000 ✓ | A$750,000 ✓ | Eligible (metro) |
| Northern Territory | A$600,000 ✗ | A$600,000 ✗ | Over all caps |
What Is the First Home Guarantee?
The First Home Guarantee (FHG) is a federal government scheme that allows eligible first home buyers to purchase a property with as little as a 5% deposit without paying Lender's Mortgage Insurance (LMI). The government does not give you money — instead, it guarantees 15% of the purchase price to the lender, so the lender treats your loan as if you had a 20% deposit.
With 35,000 places per year (from 1 July each financial year), the scheme is popular and spots fill quickly. The FHG replaced the First Home Loan Deposit Scheme (FHLDS) and is administered by Housing Australia through participating lenders.
How Much LMI Does the FHG Save?
Example: Priya buys in Brisbane for $650,000 with 5% deposit
| Property Price | $650,000 |
| Deposit (5%) | $32,500 |
| Loan Amount (95%) | $617,500 |
| LMI without guarantee (95% LVR) | ~$21,600 |
| LMI with FHG | $0 |
| LMI Saved | ~$21,600 |
| Monthly Payment (6.5%, 30yr) | $3,903 |
The guarantee saves Priya over $21,000 in LMI — money that would otherwise be added to her loan and charged interest on over 30 years.
FHG Price Caps by Location (2024)
| State | Capital City / Metro | Regional |
|---|---|---|
| NSW (Sydney) | $900,000 | $750,000 |
| VIC (Melbourne) | $800,000 | $650,000 |
| QLD (Brisbane) | $700,000 | $550,000 |
| WA (Perth) | $600,000 | $450,000 |
| SA (Adelaide) | $600,000 | $450,000 |
| TAS (Hobart) | $600,000 | $450,000 |
| ACT | $750,000 | $750,000 |
| NT (Darwin) | $600,000 | $600,000 |
These caps are reviewed annually. Properties above the cap are not eligible for the FHG, though you can still apply for the state FHOG or other schemes.
FHG vs FHOG vs FHSS — Which Is Which?
Three major federal and state first home buyer programs are frequently confused. They are distinct and most can be stacked together:
- FHG (First Home Guarantee): Federal. Eliminates LMI by guaranteeing 15% to the lender. No cash grant — you still borrow 95%. 35,000 places/year.
- FHOG (First Home Owner Grant): State government cash grant ($10,000–$30,000). Only for new homes. Applied at settlement.
- FHSS (First Home Super Saver): Federal. Lets you save your deposit inside superannuation at concessional tax rates. Withdraw up to $50,000 for a deposit.
You can use all three on the same purchase — FHG for no LMI, FHOG for the cash grant, and FHSS to save the deposit tax-efficiently.