Quick Answer: The First Home Guarantee scheme for 2027-28 typically offers 35,000 places to help first home buyers purchase with a deposit as low as 5 per cent without paying lenders mortgage insurance. Applications open on 1 July 2027 and are allocated first-come, first-served through participating lenders. Popular markets can fill spots within weeks, so getting pre-approval and applying early in the financial year gives you the best chance of securing a place.

The First Home Guarantee (part of the broader Home Guarantee Scheme) remains one of the most valuable supports for Australians entering the property market. With places allocated annually and strong demand in metro areas, understanding the timeline and application process for 2027-28 can mean the difference between securing a guarantee or missing out entirely.

How Many Places Are Available for 2027-28

The Australian government typically allocates 35,000 First Home Guarantee places each financial year, though this number is subject to change based on Budget announcements and housing policy priorities. The final allocation for 2027-28 will be confirmed in the May 2027 Federal Budget.

According to the National Housing Finance and Investment Corporation (NHFIC), places are distributed nationally but are not quarantined by state or territory. This means applicants in high-demand markets such as Sydney, Melbourne and Brisbane compete for the same pool, and those areas historically see places fill faster than regional locations.

Previous years have shown that metro markets can exhaust their local allocation within the first quarter of the financial year, particularly when property price growth is strong and buyer confidence is high.

When Applications Open and Why Timing Matters

Applications for the 2027-28 First Home Guarantee open on 1 July 2027, the first day of the new financial year. The scheme operates on a first-come, first-served basis until all 35,000 places are allocated or 30 June 2028 arrives, whichever comes first.

While places technically remain open for the full 12 months, practical experience shows that acting early is critical. In past years, certain lenders and regions have seen their allocations filled within weeks during periods of high demand. If you are targeting a competitive market or a participating lender with limited spots, delaying your application until later in the year significantly reduces your chances.

Who Is Eligible and What You Need

The First Home Guarantee is designed for Australian citizens and permanent residents purchasing their first home. Key eligibility criteria include:

  • You must be a first home buyer (you and any co-applicants have never owned property in Australia).
  • Your taxable income must not exceed A$125,000 for an individual or A$200,000 for a couple.
  • The property price must fall under the regional cap for your area (caps vary by location and are updated annually).
  • You must occupy the property as your principal place of residence within 12 months of settlement.
  • Your deposit must be at least 5 per cent of the purchase price.

The guarantee allows you to borrow up to 95 per cent of the property value without paying lenders mortgage insurance, which typically costs thousands of dollars when your deposit is below 20 per cent. The Commonwealth government guarantees 15 per cent of the loan value, reducing the lender’s risk and removing the LMI requirement.

Read also: First Home Guarantee: How to Buy With a 5 Percent Deposit in Australia

How to Apply Before Places Fill Up

The First Home Guarantee is not a direct government application. You apply through a participating lender when you arrange your home loan. Major banks such as Commonwealth Bank, NAB and Westpac participate, along with many regional lenders and non-bank institutions.

To maximise your chances of securing a 2027-28 place:

  1. Get pre-approval now. Start conversations with participating lenders in the months leading up to July 2027. Pre-approval gives you a clear borrowing capacity and positions you to act immediately when applications open.
  2. Confirm your lender participates. Not all lenders join the scheme, and some have limited allocations. Ask your lender directly about their 2027-28 participation and internal spot limits.
  3. Check current eligibility. Income caps and property price caps are reviewed annually. Verify that your circumstances and target property fall within the published limits for 2027-28 once they are confirmed.
  4. Apply on or shortly after 1 July 2027. The earlier you submit a complete application, the better your position in the queue.

For detailed eligibility criteria and a list of participating lenders, consult the Housing Australia website and the ASIC MoneySmart home loans guide.

What Happens If Places Run Out

If the 35,000 places for 2027-28 are exhausted before you apply, you have several options. You can wait for the 2028-29 allocation to open on 1 July 2028, explore other government schemes such as the Regional First Home Buyer Guarantee (if you are purchasing outside a capital city), or proceed with a standard home loan and pay lenders mortgage insurance if your deposit is below 20 per cent.

Some first home buyers also choose to delay their purchase and save a larger deposit to avoid LMI entirely, though this extends the timeline to ownership.

General Advice Warning

The information in this article is general in nature and does not consider your personal objectives, financial situation or needs. Eligibility for the First Home Guarantee, income caps, property price limits and the number of places available for 2027-28 are subject to confirmation by the Australian government and may change. You should verify current program details and consult a licensed mortgage broker or lender to assess your individual circumstances before making any decisions.

Next Step: Contact a participating lender now to discuss pre-approval and confirm their allocation for 2027-28, so you are ready to apply the moment places open on 1 July 2027.