How Many Times Can You Use the First Home Guarantee? | Mortgagefy
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How Many Times Can You Use the First Home Guarantee?
First Home Buyer

How Many Times Can You Use the First Home Guarantee?

By the Mortgagefy Team · Published · Last reviewed

One purchase. One guarantee. But the rules have changed — and some previous buyers can re-enter. Here's exactly what's allowed in 2026.

Mortgagefy Broker Team 15 April 2026 7 min read
1
Time the guarantee can be used (standard)
35,000
Places available nationally per year
$900K
NSW property price cap 2025–26

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The First Home Guarantee (FHBG) is widely understood to be a once-in-a-lifetime benefit. You get 5% deposit, no LMI, government backing — and that's it. But from 2024, Housing Australia updated the rules to allow certain previous applicants to re-enter the scheme under specific circumstances.

This guide covers the standard rule, the exceptions, and what options remain available if you've already used the guarantee once.

The Standard Rule: One Use Per Person

Under standard rules, the First Home Guarantee can only be used once per eligible buyer. Once you've purchased under the scheme and become the owner of a property, you are no longer a first home buyer and cannot reapply.

This applies regardless of what happens to the property afterward — whether you sell it, rent it out, or refinance. Having used the guarantee and settled, your eligibility is spent.

Key point: Even if you sell the property and no longer own it, you cannot reuse the First Home Guarantee. The scheme is tied to your status as a first home buyer at the time of purchase.

The Re-Entry Exception (From 2024)

Housing Australia introduced a "re-entry" pathway for applicants who reserved a guarantee place but did not proceed to settlement — for example, due to a failed purchase, a property falling through, or personal circumstances preventing the purchase.

Who qualifies for re-entry?

  • You were approved and reserved a guarantee place in a previous financial year
  • You did NOT proceed to settle a property under that guarantee
  • Your reserved place expired unused
  • You still meet all other first home buyer eligibility criteria (income, property type, residency)
Re-entry applicants must apply through a participating lender in the new financial year. An expired unused guarantee does not automatically carry over — you need a fresh application.

Joint Applications: Both Buyers Must Qualify

If you applied jointly (e.g., with a partner), both applicants must still be eligible first home buyers for any re-entry. If either person settled a purchase under the scheme — even under a separate application — neither can reuse it jointly.

What If You've Already Used It?

If you've already purchased under the First Home Guarantee and are looking to buy again, here are your options:

SituationOption
You own the property and want to buy a secondStandard investment loan — 20% deposit typically required to avoid LMI
You want to avoid LMI with less than 20%Professional LMI waiver (doctors, lawyers, accountants) or lender no-LMI products
You're a single parent buying a second homeFamily Home Guarantee may apply — does not require first home buyer status
Partner hasn't owned beforePartner cannot use the FHG scheme with a co-buyer who already owned property

The Family Home Guarantee: A Separate Scheme

Often confused with the First Home Guarantee, the Family Home Guarantee (FHG) is specifically for single parents and does NOT require first home buyer status. If you previously owned a home, separated, and no longer own property, you may qualify for the FHG — which requires only a 2% deposit with no LMI, backed by an 18% government guarantee.

  • Must be a single parent with at least one dependent child
  • Income up to $125,000/year
  • Must not currently own property
  • 5,000 places available per year nationally
First Home Guarantee re-entry rules Australia

What the Guarantee Does NOT Cover

  • Investment properties — owner-occupier intent required at purchase
  • Properties above the price cap ($900,000 in NSW for 2025–26)
  • Applicants above income thresholds ($125K single / $200K combined)
  • Non-citizens or non-permanent residents

Frequently Asked Questions

No. Once you have settled a purchase under the First Home Guarantee, you have used your entitlement. Selling the property does not restore eligibility.
Yes — this is the re-entry pathway introduced in 2024. If your guaranteed place was reserved but never used at settlement, you can reapply in a new financial year through a participating lender, provided you still meet all eligibility criteria.
A partner who has never owned property could potentially apply for the First Home Guarantee individually, but cannot apply jointly with someone who has already owned or used the guarantee.
No. The FHBG is a federal government scheme providing a 15% loan guarantee (no LMI, 5% deposit). The FHOG is a $10,000 NSW state government cash grant for new builds under $600,000. They are separate programs with separate eligibility rules.
If you exchanged contracts and settlement did not proceed (e.g., the vendor pulled out), contact Housing Australia. Depending on circumstances, your guarantee place may be reissued. Document everything through your lender.
Mortgagefy Broker Team
Mortgagefy Broker Team
Mortgage Broker — Mortgagefy, Sydney

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