In short: This calculator checks you against the First Home Guarantee rules and shows the price cap, deposit and repayment that apply. The test: an Australian citizen or permanent resident aged 18 or over, who has not owned property in Australia in the past 10 years, buying a home to live in for up to $950,000 in Melbourne or Geelong, can borrow with a 5% deposit and pay no LMI.
- Minimum 5% deposit$35,000
- Your LVR94.3%
- LMI you would avoid (est.)$30,928
- Income capNone (removed Oct 2025)
- PlacesUnlimited
Eligibility is assessed by participating lenders; other conditions apply (18+, taxable income evidence, joint applicants must both qualify). Other states have different price caps.
You look eligible: Save ≈ $30,928 LMI
That is a general estimate on standard assumptions. Every lender applies its own expense benchmarks, income shading and policy, so the real figure moves from lender to lender. Gorakh spent years as a senior credit officer deciding exactly these questions. Send him the numbers above and he will tell you what is realistic and which lenders fit — at no cost to you for home loans.
- A former senior credit officer reads itGorakh assessed loan applications on the lender side before he became a broker.
- A real office you can visit23 Astbury Crescent, Mickleham VIC 3064 · ABN 90 160 461 553
- Fees and complaints in writingRead the Credit Guide and our complaints and AFCA process before you commit to anything.
- English, Nepali and HindiInterpreters in other languages on request.
Prefer to talk first? Book a free 15-minute call 0426 403 703 Full 2-minute pre-assessment
Since October 2025 the scheme has no income caps and unlimited places, so the question is no longer "will I get a spot" but "does my property and deposit fit".
How this calculator works
The eligibility tests
The calculator runs through each criterion in the Home Guarantee Scheme rules: citizenship or permanent residency, age, property ownership in the last 10 years, owner-occupation, and the price cap of $950,000 for Melbourne and Geelong or $650,000 for the rest of Victoria. Couples and friends can apply together, but every borrower must be eligible.
Deposit and loan size
Your deposit must be at least 5% of the price. Housing Australia guarantees the portion between your deposit and 20%, which is why the lender does not charge LMI. The loan is price minus deposit, with repayments estimated using the standard amortisation formula over 30 years.
Serviceability
Even under the scheme, the lender assesses you at your rate plus the 3 percentage point APRA buffer. Test the assessed repayment against your income on our borrowing power calculator.
How to use the result
An eligible result means the property and deposit are within the rules, not that a loan is approved. Only participating lenders offer the guarantee, and each applies its own credit policy on top. Use the repayment figure to sanity-check your budget. If your deposit is under 5%, look at Help to Buy, which needs only 2% but has income caps.
Worked example
A couple buying a new $600,000 house-and-land package in Kalkallo as their first home. For illustration, at 6.00% p.a. over 30 years.
| Item | With First Home Guarantee | Without (20% deposit) |
|---|---|---|
| Purchase price | $600,000 | $600,000 |
| Deposit | $30,000 (5%) | $120,000 (20%) |
| First Home Owner Grant | $10,000 (new home) | $10,000 (new home) |
| Land transfer duty | $0 (FHB exemption to $600,000) | $0 |
| Loan amount | $570,000 | $480,000 |
| LMI | $0 (guaranteed) | $0 |
| Monthly repayment | $3,417 | $2,878 |
| Assessed repayment at 9.00% | $4,586 | $3,861 |
The guarantee gets this couple in with $90,000 less cash, at the cost of a larger loan and about $540 more each month. The $10,000 grant can go towards the deposit or the costs in our upfront costs calculator.
What this calculator doesn't include
- Lender policies on credit scores and genuine savings, which still apply. See genuine savings explained.
- The Family Home Guarantee, which has its own rules.
- Property-type restrictions (vacant land needs a building contract).
- Help to Buy, a separate shared-equity program with income caps of $100,000 single and $160,000 couple.
- Price cap changes after September 2026.
Tips to improve the outcome
- Buy new under $750,000 to stack the $10,000 First Home Owner Grant with the guarantee and the duty exemption.
- Keep the price at or under $600,000 if you can, so duty is zero rather than partially concessional.
- Save a little more than 5% so you have a buffer for conveyancing and inspections.
- Clear small consumer debts and buy-now-pay-later accounts before applying; they reduce borrowing power under the 3% buffer.
- Get pre-approval with a participating lender before you sign anything.
Frequently asked questions
Am I eligible for the First Home Guarantee in 2026?
You qualify if you are an Australian citizen or permanent resident, at least 18, have not owned residential property in Australia in the last 10 years, will live in the home, and have at least a 5% deposit. The property must be at or under $950,000 in Melbourne and Geelong or $650,000 in regional Victoria. There are no income caps and no place limits. Temporary visa holders are not eligible.
Is the 5% deposit scheme worth it?
For most buyers, yes. On a $600,000 purchase the scheme avoids LMI that would otherwise be charged on a 95% loan, and it lets you buy years earlier than saving 20%. The cost is a larger loan and higher repayments, so it suits buyers with solid income who are short on savings rather than those stretching to afford repayments. Our low-deposit home loans page compares the alternatives.
Can I use the First Home Guarantee for a house and land package?
Yes. Vacant land bought with a building contract counts, and house-and-land packages in growth suburbs like Donnybrook, Kalkallo and Wollert are popular scheme purchases. The combined land and build price must be within the $950,000 cap. Construction loans under the scheme draw down in stages, which we explain in construction loan progress payments.
What is the property price cap for the First Home Guarantee in Victoria?
At the time of writing the cap is $950,000 for Melbourne and Geelong and $650,000 for the rest of Victoria. Sunbury, Melton, Pakenham and Cranbourne all sit inside the Melbourne cap area. The caps are reviewed by the federal government, so confirm the current figure before you make an offer.
Talk to GNT Finance
GNT Finance works with the participating lenders daily and can tell you within one conversation whether the guarantee, Help to Buy or a guarantor loan is the fastest path into your first home. Speak with Gorakh Timilsina in English, Nepali or Hindi. Book a free consultation or call 0426 403 703.
This page is general information only and not legal, tax or financial advice. Laws change — confirm current rules with the State Revenue Office, the ATO or a licensed professional.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.