Supporting eligible home buyers to buy a home sooner
The Australian Government's Home Guarantee Scheme can be a lifeline for home buyers who find it challenging to save the conventional 20% deposit required to purchase a home.
The Scheme includes three types of Guarantees below.
| First Home Guarantee*5 | Regional First Home Buyer Guarantee*5,6 | Family Home Guarantee*4 | |
| How does it work | Australian Government initiative to help eligible first home buyers. Part of the home loan will be guaranteed by Housing Australia. |
Australian Government initiative to help eligible home buyers purchase a home in a regional area. Part of the home loan will be guaranteed by Housing Australia. |
Australian Government initiative to support eligible single parents and single legal guardians with at least 1 dependent child in purchasing a home. Part of the home loan will be guaranteed by Housing Australia. |
| Australian citizens or permanent residents8 | |||
| Borrower eligibility | Individual and joint applicants.9 Either first home buyers or previous homeowners who haven’t owned a property in Australia in the last 10 years. |
Individual and joint applicants.9 Either first home buyers or previous homeowners who haven’t owned a property in Australia in the last 10 years. At least one borrower must have lived in the regional area or adjacent regional area for the previous 12 months. |
Single parents or single legal guardians of one or more dependent children who do not currently own property or won’t have any other property interest once their new home settles. |
| Income threshold | Up to $125,000 for singles and $200,000 for couples as shown on the ATO Notice of Assessment | Up to $125,000 for singles and $200,000 for couples as shown on the ATO Notice of Assessment | Up to $125,000 as shown on the ATO Notice of Assessment |
| Minimum deposit amount | 5% of Property Value | 5% of Property Value | 2% of Property Value |
| Minimum loan amount | No minimum | No minimum | No minimum |
| Maximum loan to value ratio (LVR) - no LMI | 95% | 95% | 98% |
| Fees and charges | Waived Unity Bank establishment, valuation, settlement, and legal fees* | ||
| Government fees | At cost | At cost | At cost |
| Offset account | 100% offset - variable only. Learn more about offset accounts |
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| Redraw7 | Yes | Yes | Yes |
| Additional repayments | Variable - Yes Fixed - up to $10,000 pa |
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| Ability to split between fixed and variable | Yes | Yes | Yes |
| Property price Caps | Property price caps apply. Search the property price threshold for a suburb or postcode here. | ||
"We were very pleased with the speed and personalised service we received from the team at Unity Bank in helping us purchase our first home. We also found their products to be very competitive. Unity Bank has more of a family feel to it than a corporation. We have already recommended them to others, as we are very happy with them."
Emanuel, Member
4 Family Home Guarantee is only available for eligible single natural or adoptive parents or eligible single legal guardians of at least one dependent, who do not own property on the date of loan execution. For more information click Family Home Guarantee (PDF).
5 First Home Guarantee and Regional First Home Buyer Guarantee are only available for first home buyers or previous home owners who haven’t owned a property in the ten years prior to the date they execute their home loan. For more information click First Home Guarantee (PDF) or Regional First Home Buyer Guarantee (PDF).
6 A regional area is defined as the Australian Bureau of Statistics Statistical Area Level 4 (ASGS SA4 2016). These are areas in a state or the Northern Territory that are not a capital city. Also included are Norfolk Island; the Territories of Jervis Bay, Christmas Island or Cocos (Keeling) Islands. The ACT and greater capital city areas of each state and the Northern Territory are excluded. For more information click here.
7 Minimum redraw amount is $100 and the amount to cover one (1) repayment (whether that be monthly, fortnightly or weekly) must be left in advance.
8 For Home Guarantee Scheme, permanent residents include New Zealand citizens for the purposes of citizenship applications only.
9 Joint applicants may include partners, friends, siblings, and other family members.
* Credit eligibility, Scheme eligibility, terms and conditions, additional fees & charges may apply. New loans only. Valuation fee waived for one property only. Unity Bank is authorised to offer the Australian Government’s Home Guarantee Scheme under which the Government guarantees up to 15% of the value of the property (First Home Guarantee and Regional First Home Buyer Guarantee) and up to 18% for Family Home Guarantee. The Guarantees are not cash payments or deposits for your home loan. Purchasers must be Australian citizens or permanent residents, at least 18 years of age, meet income caps and occupy the home as their principal place of residence. Target Market Determination available here. The information on this page is correct at the time of publishing but may change at any time without notice to you.
** Eligibility criteria terms and conditions apply to our Unity Bank Products and scheme eligibility applies to the Government Schemes. Fees & charges may apply. Any general advice or information on this podcast does not take into account your personal objectives, financial situation or needs and you should consider whether it is appropriate for you. Please review our Disclosure Documents before acquiring any product. For full information on these options go to www.unitybank.com.au/home-loans/affordable-home-pathways/explore-our-home-pathways/. Unity Bank Limited. ABN 72 087 650 637. AFSL/Australian Credit Licence 238311
