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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.
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)
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:
| Situation | Option |
|---|---|
| You own the property and want to buy a second | Standard 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 home | Family Home Guarantee may apply — does not require first home buyer status |
| Partner hasn't owned before | Partner 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
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
our broker team helps first home buyers navigate guarantee schemes, re-entry rules and alternatives. Call 0432 634 648 for a free assessment of your options.
Related Guides
Not sure if you can still access the guarantee?
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