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Straight Answers · First home
The contract price on the place I've just bought is over the First Home Guarantee price cap. Can I put in a bigger deposit or get a gift so the loan is smaller?
Bayley Clarke · Mortgage broker on the road · Last checked 11 November 2026 · 2 min read
The short answer
No. Your purchase price sets your eligibility for the Home Guarantee Scheme as a first home buyer. The second you're over that cap, you're no longer eligible, and it doesn't matter how big your deposit ends up being.
A bigger deposit or a gift makes the loan smaller, but the cap isn't measured against the loan. It's measured against the price on the contract. If your deposit gets big enough that you don't need the scheme at all, because you've got 20%, then don't worry about it and don't go under the scheme.
The 60 second version, filmed from the driver's seat. The rest of this page is the detail underneath it.
Why the deposit doesn't change it
People hear 'cap' and think it works like a borrowing limit, so they try to bring the loan down with more cash or a family gift. That's not how this one works. The scheme sets a maximum property price for each state and region, and the test is simply whether the price you're paying is under it.
So if the contract price is over, you're out. Not out unless you top up the deposit, just out. You cannot use the scheme on that property, full stop. The good news is that you find this out on paper before you sign, as long as you check the cap for the area first.
If you're already over, here's what's left
If you've got 20% of the price plus your costs, you don't need the scheme in the first place. Borrowing 80% or less normally means no lenders mortgage insurance anyway, so the gift or the extra savings still do their job, just outside the scheme.
If you're short of 20%, the usual paths are paying lenders mortgage insurance on a 5% to 10% deposit, or using a family guarantor whose property security stands in for the deposit. Each has a cost and a catch, and which one fits depends on your numbers and your family situation. That's worth running before you assume the place is out of reach.
The honest bit: check the cap before you fall in love
The caps are set by the government, differ by state and region, and do change. Look up the current cap for where you're buying on the official price cap tool before you start making offers, not after the contract's signed.
If a place you love is just over, it's not automatically a dead end. It just means the scheme isn't the tool for that one, and we work out which tool is.
Over the cap and not sure what's next?
A 30 minute call. We look at your deposit, whether a guarantor or mortgage insurance makes more sense, and what you can actually buy.
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Next question
What's the scheme price cap where I live?The 5% scheme caps are higher than most first home buyers think, up to $1.5M in parts of NSW.
Related answers
The full guide: The First Home Guarantee, explained What is the catch with the 5% scheme? I earn over the income cap. Can I still buy under the scheme? Guarantor loan or the government 5% scheme: which one is best? What happens if my cooling off expires before the 5% scheme gives final sign-off on the guarantee?Not your question? Book a call and ask it, or call 0437 189 939.