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The guarantee can remove LMI
The First Home Guarantee can help eligible buyers purchase with a smaller deposit and no LMI because the government guarantees part of the loan. That can save a large upfront premium.
But a smaller deposit still means a larger loan, which can increase repayments and interest.
Compare both paths
Run one scenario with a 5% deposit and no LMI under the guarantee. Run another with a 10% deposit and LMI. Compare repayment, interest, eligibility and property price caps.
Use the LMI Calculator and Borrowing Power Calculator before relying on either path.
Sources: Housing Australia Home Guarantee Scheme guidance and ASIC Moneysmart LMI guidance. General information only.
RealEstateCalc Editorial
Property & Finance ResearchThe RealEstateCalc editorial team researches and writes about Australian property, finance, and tax topics. All content is fact-checked against official sources including the ATO, state revenue offices, ASIC Moneysmart, and the RBA.
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