First Home Guarantee & 5% Deposit Scheme Calculator
Check the property price cap where you're buying, the deposit you'll need and how much lenders mortgage insurance the government guarantee could save you.
Eligibility checklist
Price caps apply from 1 October 2025 (Darwin's cap rose to $750,000 from 1 July 2026). Regional centres: Central Coast, Coffs Harbour–Grafton, Illawarra, Mid North Coast, Newcastle–Lake Macquarie and Richmond–Tweed (NSW), Geelong (VIC), Gold Coast and Sunshine Coast (QLD). Confirm your postcode's cap with your lender. LMI figures are indicative estimates only.
Printed from ClearCalc (clearcalc.com.au/first-home-guarantee-calculator/). Estimates only, not financial advice.
What is the 5% Deposit Scheme?
The Australian Government 5% Deposit Scheme (formerly the Home Guarantee Scheme, including the First Home Guarantee) lets eligible buyers get a home loan with a small deposit and no lenders mortgage insurance (LMI). The government guarantees the part of your loan above 80% of the property's value, so the lender doesn't need LMI.
- First home buyers can buy with a 5% deposit, alone or with one other person.
- Single parents and legal guardians (the Family Home Guarantee) can buy with a 2% deposit, and don't have to be first home buyers.
- Since 1 October 2025 there are no income limits and no cap on the number of places.
Property price caps
| State or territory | Capital city & regional centres | Rest of state |
|---|---|---|
| NSW | $1,500,000 | $800,000 |
| Victoria | $950,000 | $650,000 |
| Queensland | $1,000,000 | $700,000 |
| Western Australia | $850,000 | $600,000 |
| South Australia | $900,000 | $500,000 |
| Tasmania | $700,000 | $550,000 |
| ACT | $1,000,000 | Same |
| Northern Territory (Darwin / rest) | $750,000 | $600,000 |
Jervis Bay Territory and Norfolk Island have a $550,000 cap, and Christmas Island and the Cocos (Keeling) Islands $400,000. From 1 July 2026 the Darwin cap rose from $600,000 to $750,000, and more NSW regional centres (Central Coast, Coffs Harbour–Grafton, Mid North Coast and Richmond–Tweed) get the higher $1.5 million cap.
How much LMI could you avoid?
Without the scheme, a 5% deposit means a 95% loan-to-value ratio, and LMI can cost 3% to 5% of the loan. On an $850,000 home, that could be $30,000 or more. The estimate above uses the same rough pricing as our LMI calculator. Bear in mind a smaller deposit means a bigger loan, more interest and higher repayments. Check them with the home loan calculator and what you can borrow with the borrowing power calculator.
Other costs to plan for
The guarantee covers the deposit gap, not the costs of buying. Budget for stamp duty (many states cut or waive it for first home buyers), conveyancing, building and pest inspections, and loan fees. You can also boost your deposit through the First Home Super Saver scheme.
Sources: First Home Buyers – Property price caps, First Home Buyers – 5% Deposit Scheme, First Home Buyers – Single parents.
Frequently asked questions
Is there an income limit for the First Home Guarantee?
No. Income limits were removed from 1 October 2025, along with the cap on the number of places each year. You still need to pass the lender's normal credit checks.
Can I use the scheme if I owned a home before?
Yes, if you haven't owned a home or land in Australia in the last 10 years. Single parents and legal guardians don't need to be first home buyers, but can't own any other property once the new home settles.
What is the price cap in Sydney and Melbourne?
$1.5 million in Sydney and NSW regional centres, and $950,000 in Melbourne and Geelong. Other parts of NSW are capped at $800,000 and the rest of Victoria at $650,000.
Can I buy an investment property with the guarantee?
No. You must live in the home as an owner-occupier, and the loan must be a principal and interest owner-occupier loan from a Participating Lender.
Official sources used for this calculator include: Moneysmart – Home loans, APRA – Australian Prudential Regulation Authority, Housing Australia – Home Guarantee Scheme. See how we calculate.
Reviewed by the ClearCalc team. Last reviewed October 2026. This calculator gives an estimate for general information only. Check important figures with the relevant government agency or a licensed professional.