First Home Guarantee (FHBG) Eligibility & Deposit Calculator
Check First Home Guarantee price caps by state and the LMI you avoid with a 5% deposit.
Last reviewed by the myCalculator Editorial Team
Input Parameters
Calculation Results
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Formula & How First Home Guarantee (FHBG) Eligibility & Deposit Calculator Works
The First Home Guarantee lets eligible first home buyers purchase with a 5% deposit while Housing Australia guarantees the portion of the loan above 80% LVR. Because the government carries that risk, no Lenders Mortgage Insurance is payable — typically saving $15,000 to $30,000 on a capital-city purchase. Eligibility is capped by property price, which varies by state and by capital-city versus regional location. Worked example: on a $700,000 purchase, a 5% deposit is $35,000, which gives a loan of $665,000 and an LVR of 95%. Under the scheme the government guarantees the part of the loan above 80% LVR, so lenders' mortgage insurance is not charged. Property price caps differ by state and by capital city or regional area, and there are income and eligibility tests, so check the current rules with Housing Australia.
- Enter Property Purchase Price ($) ($): Input your target parameter value.
- Enter Deposit Savings Available ($) ($): Input your target parameter value.
- Enter State / Territory: Input your target parameter value.
- Apply Formula: Calculate using
Eligible if Price ≤ State Cap | Deposit required = 5% × Price | Loan = Price - Deposit. - Review Results: View exact computed answers, metrics, and worked mathematical proofs.
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Frequently Asked Questions (FAQs)
Do I still pay LMI under the First Home Guarantee?
No. Housing Australia guarantees the portion of the loan above 80% LVR, so participating lenders do not charge Lenders Mortgage Insurance even with a 5% deposit.
What happens if the property price exceeds my state cap?
The purchase is ineligible for the guarantee. You would need a standard loan, which means paying LMI on anything below a 20% deposit, or choosing a property under the cap.
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Authoritative Standards & Verified Reference Citations
Calculations and mathematical logic on this page are grounded in published statutory rules, regulatory standards, and official government data published by the following bodies:
Consumer guidance on mortgage borrowing capacity, compound interest formulas, and loan fees.
Official cash rate target announcements, monetary policy statements, and national economic statistical data.
Official U.S. Federal Funds Rate and comprehensive macroeconomic time-series data.
Key Eurozone interest rates, deposit facility rates, and monetary policy operations.
Residential mortgage serviceability buffer framework (3.0% stress test hurdle rate).
Dedicated Australian home loans, borrowing capacity, mortgage repayments & refinance modeling.