Do I qualify for the First Home Guarantee scheme?

You’re likely eligible for the First Home Guarantee (the 5% Deposit Scheme) if you’re an Australian citizen or permanent resident, at least 18, buying as an owner-occupier through a lender participating in the scheme, and either a genuine first home buyer or someone who hasn’t owned property in Australia in the past 10 years — provided the property’s price is at or under the cap for its location. Each of those criteria has its own detail worth checking against your situation, covered below. This article covers eligibility only — for how the guarantee mechanism itself works, see our guide to how the 5% Deposit Scheme works, and for how much deposit you need across all your options, see our guide to how much deposit you need for a first home in Australia.

Do I need to be an Australian citizen to qualify?

You need to be an Australian citizen or permanent resident. This is a hard eligibility line, not a factor a lender weighs — if neither applies to you, the scheme itself isn’t available, regardless of how strong your deposit or income position is.

Do I have to be a first home buyer, or can I have owned property before?

Either qualifies you. The scheme is open to genuine first home buyers, and separately to anyone who hasn’t held an ownership interest in residential property in Australia in the past 10 years — so a previous owner who has been out of the market for over a decade can still use it. Ownership interest here generally means a legal or equitable interest in the property, which is why this question is worth checking carefully if your circumstances are anything other than straightforward (for example, a prior joint ownership, an inherited share, or an investment property you no longer hold).

Are there income limits for the 5% Deposit Scheme?

No. As at July 2026, there are no income caps on the 5% Deposit Scheme — this position was confirmed as part of the scheme’s 1 October 2025 expansion, which removed the income testing that applied under earlier versions of the Home Guarantee Scheme. There’s also no cap on the number of places available. If you’ve read that the scheme is means-tested, or that only a set number of places are released each year, that description predates the October 2025 changes and no longer applies.

Do I have to live in the property?

Yes. The scheme requires you to buy as an owner-occupier — the guarantee is tied to the property being your home, not an investment. Buying a property you don’t intend to live in isn’t compatible with the scheme’s eligibility criteria.

Does it matter which lender I use?

Yes. The guarantee only applies through a lender participating in the scheme — not every home loan lender takes part. The list of participating lenders is maintained on firsthomebuyers.gov.au and changes over time, so it’s worth confirming with a lender or a mortgage broker directly rather than assuming a particular bank is included.

Does the price of the property matter?

Yes — the property’s purchase price has to sit at or under the price cap set for its state, territory, and whether it’s in a capital city or a regional area. Caps differ significantly by location, so a property that qualifies in one state might exceed the cap in another. See our guide to First Home Guarantee price caps by state and territory for the full table, current as at July 2026.

What about the 2% deposit cohort for single parents?

Since 1 October 2025, the scheme has run as two cohorts: a 5% deposit place for first home buyers generally, and a 2% deposit place for single parents and legal guardians. The citizenship, age, owner-occupier, participating-lender and price-cap criteria above apply to both cohorts — the difference is the minimum deposit required, not a separate set of eligibility rules.

What if I meet some criteria but not others?

Eligibility criteria interact — a borderline case (a part-share you once held in a property, a recent change in residency status, a property right at the price cap) can turn on details a general article can’t resolve for you. A participating lender or a licensed mortgage broker can check your specific circumstances against the current rules and confirm whether a place is available, which is a more reliable answer than working from a checklist alone.