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Guarantor Loans vs First Home Guarantee Scheme: What’s Better?

If you’re a first home buyer, you’ve probably heard of both guarantor loans and the First Home Guarantee Scheme (FHGS). While both aim to help you enter the market sooner, they work very differently.

Guarantor Loans

  • Backed by family property
  • No income caps or property price limits
  • Often faster to arrange than waiting for FHGS spots

First Home Guarantee Scheme

  • Government-backed
  • Limited places each financial year
  • No family involvement required

For a deeper dive into guarantor loans, check out: How Guarantor Home Loans Work in Australia.

Which Is Better?

It depends on your circumstances:

  • Guarantor loans: Best if family is willing and able to support you
  • FHGS: Best if you qualify under scheme rules and don’t want to involve family

Broker Tip

We often advise clients to explore both options, then decide based on availability and long-term fit.

Confused about which is right for you? Book a consult with our Melbourne mortgage brokers and we’ll map out your options.

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