Everything QLD Home Buyers Need to Know About the 2024 First Home Guarantee Scheme

Here at Stapleton Finance, one of our key goals is to get more Australians into their own homes sooner. The First Home Guarantee Scheme is one of the many valuable tools we have at our fingertips to support QLD first home buyers.

But what is the First Home Guarantee Scheme and how can it help QLD residents? We’ve pulled together all the information you need to know in 2024. From what is offered to who is eligible to apply, you’ll be able to find out if the First Home Guarantee Scheme can work for you.

How the First Home Guarantee Scheme supports QLD first home buyers

You may remember us discussing the First Home Guarantee Scheme back in 2023. Fortunately, this wonderful initiative has returned for the 2024-2025 period as well, which means if you missed out then, you still have the chance to take advantage this year.

What is offered?

The First Home Guarantee Scheme aims to help eligible residents across QLD and Australia purchase their first home sooner. It does this by allowing first home buyers to buy a property with a smaller deposit than usual.

Under the scheme, home buyers can have as little as 5% deposit without paying Lenders Mortgage Insurance (LMI). In typical circumstances, anyone with less than 20% deposit would have to pay LMI.

Housing Australia essentially guarantees the remainder of the deposit – up to 15% of the value of the property. Of course, sometimes this can vary depending on your individual circumstances and the terms set by your lender.

Has anything changed in the 2024 scheme?

The First Home Guarantee Scheme has remained largely the same from 2023 into 2024. One main difference is that though it remains part of the Home Guarantee Scheme (HGS), it is now administered by Housing Australia on the federal government’s behalf. This is simply because the National Housing Finance and Investment Corporation became known as Housing Australia from 12 October, 2023.

How many places are available?

Between 1 July, 2024 and 30 June, 2025, 35,000 places will be available in the First Home Guarantee Scheme.

What are the restrictions and criteria?

1. You must use a ‘Participating Lender’.

One major condition of the scheme is that the loan must be made through a ‘Participating Lender’. Housing Australia has approved 40 major bank lenders and non-major lenders as Participating Lenders. This has increased from the 33 approved last year and that means you have even more choice!

It’s important to note that Participating Lenders may also have their own criteria. Different timeframes and conditions can also apply, depending on the type of property you have chosen.

2. There are rules about the type of property it can be used to buy.

The selected investment must be a residential property that is either:

• an existing house, townhouse or apartment,
• a house and land package,
• land and a separate contract to build a home, or
• an off-the-plan apartment or townhouse.

3. There are maximum purchase price restrictions.

There are also maximum purchase price restrictions that apply, depending on the property location. For example, a property in Brisbane, the Gold Coast and the Sunshine Coast must be purchased for $700,000 or less. Whereas a property anywhere else is QLD would be capped at $550,000.

Head to Housing Australia’s Property Price Cap Tool to view the full list of locations, or search for your postcode.

Who is eligible to apply?

You are eligible to apply for the First Home Guarantee Scheme if you are a home buyer who is:

• an Australian citizen or permanent resident at the time you enter the loan
• 18 years or older
• an individual earning $125,000 or less, or joint applicants earning a combined $200,000 or less, as shown on your Notice of Assessment from the ATO
• intending to be an owner-occupier of the property
• a first home buyer or a previous home owner who hasn’t owned or had an interest in an Australian property (including land) in the past 10 years

You can apply as an individual or as two joint applicants, such as friends, siblings or family members. If applying together, both of you must meet the eligibility criteria listed above.

How can I apply?

If you wish to apply for the First Home Guarantee Scheme to purchase property in QLD or elsewhere, you must apply directly to a Participating Lender or mortgage broker.

We strongly advise that you also seek both legal and financial expertise before applying for the scheme. Just as with all major financial decisions, it’s important that you fully understand the criteria and conditions before you apply for the First Home Guarantee Scheme.

Don’t forget to consider stamp duty concessions!

If you’re buying your first home you might also be eligible for a concession to reduce your stamp duty. In fact, there is more opportunity for help than ever before because as of 9 June 2024 the QLD government increased the cap from $500,000 to $800,000 (on a sliding scale). But if you’re buying a home less than $710,000 you can get the full amount of savings which is approximately $17,000!

Finally, keep your eye out for stamp duty waivers that may be coming down the pipeline. LNP government leader, David Crisafulli announced that the LNP plan on waiving stamp duty for first home buyers and has committed to pushing through higher stamp duty concessions for pre-existing homes. Nothing has been finalised yet, but keep an eye out for these new initiatives. It might be a great time to buy a home!

Are you a QLD resident interested in the First Home Guarantee Scheme?

If you are wondering if the First Home Guarantee Scheme could help you to buy property in QLD, we can help. As experienced Brisbane mortgage brokers, we know the local market and are across the First Home Guarantee Scheme.

Our team can assess your unique financial situation to see if the initiative is the right fit for you. We can also ensure that you and your chosen property are eligible. Don’t do it alone, we are here to help! Get in touch today.

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