Which lenders offer the First Home Guarantee (and why ANZ doesn’t)

By Andrew Paterson

The First Home Guarantee is one of the most useful schemes available to first home buyers right now. Buying with a 5% deposit and skipping Lenders Mortgage Insurance entirely can save you tens of thousands of dollars.

But the scheme doesn’t work with every bank. More than 30 lenders participate, and ANZ isn’t one of them. If you’ve been banking with ANZ, you’ll need to apply through a different lender.

Even among the lenders that do offer it, each one applies its own policies on top of the scheme’s rules, which can affect how much you’re approved to borrow and how smoothly the process runs.

Why ANZ doesn’t offer the First Home Guarantee

ANZ already handles its own mortgage insurance internally, so it can offer 5% deposit loans without needing the government guarantee. Joining the scheme would add extra reporting requirements without expanding what ANZ already offers.

Your everyday banking can stay with ANZ. The home loan just needs to sit with a participating lender.

That said, ANZ can still lend to you with a 5% deposit outside the scheme. You’d pay Lenders Mortgage Insurance instead, which typically runs into tens of thousands of dollars.

Which lenders participate

There are more than 30 participating lenders nationally, across major banks, mutual banks and credit unions.

This includes major banks like Commonwealth Bank, NAB and Westpac, along with Westpac group brands such as Bank of Melbourne and St. George.

A wide range of mutual banks and credit unions also participate under the First Home Guarantee, including Bank Australia, Bendigo Bank, Great Southern Bank and Newcastle Permanent.

Housing Australia publishes a list of participating lenders, though participation can change as lenders pause, cap or resume applications.

Why one lender says yes and another says no

The scheme sets the eligibility rules. Individual lenders decide how they assess your application on top of those rules.

• How much you can borrow varies significantly. The same buyer earning $115,000 with no dependants can see approved amounts differ by $70,000 or more depending on which lender they apply with.
• Credit history is treated differently between lenders. Some smaller lenders are strict enough that a forgotten utility bill from years ago can stop an application that would be approved elsewhere.
• Employment type creates similar variation. Probation periods, contract roles and casual income are all assessed differently depending on the lender.
• Processing times differ too. Some major bank pre-approvals currently run three to four weeks, while some smaller lenders have paused new applications during busy periods.

Your lender choice also has longer-term implications. While the guarantee is active, you can only switch your loan to another lender on the scheme’s panel. That restriction typically lasts 8 to 10 years, so it’s worth considering when comparing your options.

Our refinancing guide explains how this works in detail.

Each loan application is recorded on your credit history, so it’s worth narrowing down which lenders suit your situation before applying.

Building under the scheme narrows your options fast

Not all participating lenders offer construction loans under the scheme. For buyers building in suburbs like Armstrong Creek, Charlemont or parts of Lara, this limits the realistic options to roughly five to ten lenders.

In practice, restrictions often look like this:

• Some lenders only support established homes under the scheme
• Some allow house and land packages but not custom builds
• Many require fixed-price contracts with strict conditions
• Some lenders don’t offer construction loans under the scheme at all

Buyers often assume that because the scheme allows building, every lender will support it. That assumption regularly leads to delays.

If your current bank isn’t an option

You don’t need to take your home loan from the same bank you use for everyday banking. Your salary account can stay where it is. Your loan can sit elsewhere.

The bigger risk is applying to multiple lenders without a clear strategy. Each application can leave a footprint on your credit file, which can limit your options unnecessarily.

If you want context on how lenders assess applications beyond just the scheme rules, our guide to first home buyer loans explains how income, debts, and expenses are considered together.

What to do next

If you’re trying to work out which lenders actually make sense for your situation under the First Home Guarantee, it’s worth checking before assuming your current bank is the only path.

Schedule a free chat or call us on (03) 5222 7453.