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Everything single parents need to know about the Family Home Guarantee scheme


Saving for a deposit is often the biggest barrier aspiring homeowners face as the amount – typically pegged at 20% of the property’s value – can easily top six figures, especially with the current surge in home prices. This endeavour is even more challenging for households living on a single income.

This is what the government’s latest state-based incentive is trying to address. Launched at the start of the month, the Family Home Guarantee scheme aims to help single parents achieve their homeownership dreams even with a low deposit.

Below is everything you need to know about this new initiative.

How does the First Home Guarantee scheme work?

The Family Home Guarantee scheme allows single parents with dependants to apply for a mortgage even with just a 2% deposit, helping fast-track their entry to the property ladder.

A total of 10,000 spots are available over four financial years or until 30 June 2025. The program is accessible not just for first home buyers, but also for single parents looking to re-enter the housing market.

The scheme is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian government. The NHFIC guarantees home loans taken out under the initiative for home buyers with between 2% and 20% deposits, allowing them to avoid paying lenders’ mortgage insurance (LMI).

Depending on their circumstances and custody arrangement, both the mother and the father can access the government incentive separately. Single parents can choose to purchase an existing home or build a new one. The initiative, however, is not available for investment properties.

What are the eligibility requirements?

The NHFIC released a fact sheet detailing the eligibility requirements of those wishing to apply for the First Home Guarantee. To be eligible, an applicant must:

  • Be a single parent with at least one dependant
  • Be an Australian citizen and at least 18 years of age
  • Demonstrate that they are legally responsible for the day-to-day care, welfare, and development of the child
  • Have an annual taxable income of $125,000 or less from the previous financial year, excluding child support payments
  • Be the sole applicant listed on the loan and certificate of title
  • Live on the home they intend to purchase
  • Not currently own an interest in a freehold property, including commercial and investment properties, land, or company title interest in land in Australia

Read more: Do you qualify for the single parent home loan scheme?

What types of properties can you purchase?

Similar to the First Home Loan Deposit Scheme (FHLDS), the Family Home Guarantee program only allows the purchase of residential properties, meaning investment properties are not covered. Eligible properties include:

  • Existing house, townhouse, or apartment unit
  • House and land package
  • Land and a contract to build a new home
  • Off-the-plan apartment unit or townhouse

Another similarity to the FHLDS is the price threshold on the properties. The table below details the price cap in each state and territory:

State/Territory

Capital city/regional centre

Rest of state

Established property

Build or newly built home

Established property

Build or newly built home

New South Wales

$800,000

$950,000

$600,000

$600,000

Victoria

$700,000

$850,000

$500,000

$550,000

Queensland

$600,000

$650,000



Read More: Everything single parents need to know about the Family Home Guarantee scheme

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