What is the First Home Buyer Family Guarantee?

Saving for a 20% home deposit may feel unachievable, and the dream of buying your first home may seem to be drifting away.

But, you can now get a foot on the property ladder more easily with AMP Bank’s First Home Buyer Family Guarantee. Your parents can use equity in their own home to guarantee part of your new loan, without having to provide a cash gift or loan.

The First Home Buyer Family Guarantee reduces the loan to value ratio (LVR) to 80%, so there’s no need to pay lender’s mortgage insurance (LMI). To do this, the eligible family guarantors provide a limited guarantee, secured by their own residential property, in lieu of a deposit.

Features & benefits 

Buy your first home sooner

Without needing to save for years, with more financial freedom to choose your ideal home.

Reduce your deposit to zero

And pay only costs associated with buying a property and establishing a home loan, plus stamp duty if applicable.

Maximise your borrowing power

Maximise the amount you can borrow, up to 100% of the purchase price.

Don't pay LMI

Save money when you need it most as you won’t pay LMI.

Support your children

Parents can support their children without having to liquidate assets.

Release from the guarantee

Apply for a release from the guarantee as soon as the LVR drops below 80%...no need to wait until the loan is fully repaid.

How does it work?

You want to buy a $700,000 home but only have a $50,000 deposit after paying for expenses connected to the purchase.


Loan amount / Property value = Loan to Value Ratio (LVR)

$650,000/ $700,000 = 93%

In this case you would need to take up LMI as the LVR is greater than 80%.


Loan amount / (Property value + Family Guarantee) = Loan to Value Ratio (LVR)

$650,000/ ($700,000 + $112,500) = 80%

In this case no LMI is required as the LVR is 80%.

Am I eligible & what should I consider?


What to consider

  • Financing 100% of the property purchase via a loan means you will pay more interest than if you had a deposit for the same property.
  • The borrower remains liable to repay the loan in full, even the portion guaranteed by the parent.


  • Must be a First Home Buyer purchasing a residential property that they intend to live in. (Family guarantees are not available for investment properties.)
  • Maximum loan amount is $1M .
  • Repayment type must be principal and interest.
  • First Home Buyer Family Guarantee Program is available on Professional Package, Basic and AMP First Home Loans.


What to consider

  • The guarantor is liable to repay the full amount of the guarantee provided, plus any unpaid interest, fees and any costs to enforce the guarantee. If the guarantor is unable to honour the guarantee using other liquid assets, the property offered as security may be sold to meet the guarantee. (We ask all guarantors to obtain independent legal advice before providing the guarantee).
  • Guarantor’s borrowing ability may be negatively impacted while the guarantee is in place.


  • Must be a parent, step parent, de facto to the parent or former legal guardian of one of the borrowers.
  • Must own the property used as a guarantee, and all security holders must become guarantors (must match title deed).
  • Property must be unencumbered or already mortgaged to AMP Bank.
  • Only 1 guarantee per application.

Ready to take the next step?

Support at your fingertips

If you need assistance or have any questions, provide your details and one of our home loan specialists in Australia will get in touch.

Book a chat →

Request a call back → 

New Home Loan enquiries

Call: 1300 534 325

Email: direct_lending@ampbanking.com.au

Mon - Fri 9am - 6pm Sydney time

All other  Home Loan enquiries

Call: 13 30 30

Email: info@ampbanking.com.au

Mon - Fri  8am - 8pm
Sat & Sun 9am - 5pm Sydney time

What you need to know

The product issuer and credit provider is AMP Bank Limited ABN 15 081 596 009, AFSL and Australian credit licence 234517.

It’s important to consider your circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account. Information including interest rates is subject to change without notice.

Any application is subject to AMP Bank’s approval. Terms and conditions apply and are available at amp.com.au/bankterms or 13 30 30. Fees and charges may be payable.

This information is provided by AMP Bank Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.

AMP Bank is a member of the Australian Banking Association (ABA) and is committed to the standards in the Banking Code of Practice.