The Family Home Guarantee is a scheme that helps eligible single parents (or single legal guardians) buy their own home sooner. 5,000 places are available each financial year.
It can be used for new or existing homes and is open to first home buyers or previous owners. The program has specific price thresholds and you need to apply through a participating lender.
What is the Family Home Guarantee?
The Family Home Guarantee is an Australian Government scheme to support eligible single parents and single legal guardians get into the property market by helping them purchase a new residential property with just a 2% deposit. It’s designed to overcome the barrier that often stops single parents from buying a home – trying to save a 20% deposit while raising a child or children on one income can be very difficult.
This scheme is a similar model to the First Home Buyers Deposit Scheme (FHLDS) but will also support single parents who have previously owned their own home or even purchased a property with a partner in the past. However, as with FHLDS there are price thresholds that will limit where you can buy a property and your eligibility may be affected by other factors including your income. You can check your eligibility by speaking to a Mortgage Express broker or visiting the Family Home Guarantee website.
Who is eligible for the Family Home Guarantee?
The Family Home Guarantee scheme is open to eligible single parents or single legal guardians who are legally responsible for the care, welfare and development of at least one dependent child. It can be used to purchase an existing property, or to build a new house. Applicants can be first time buyers, or can have previously owned a property before.
The scheme is designed to help reduce the upfront costs of buying a property for eligible single parents or guardians by topping up the deposit required by lenders. This also helps avoid the need to pay Lenders Mortgage Insurance (LMI), which can add up to thousands of dollars to a home loan.
The Family Home Guarantee scheme can be used to purchase or build a residential property including house and land packages, existing houses and apartments, as well as off-the-plan apartment and townhouses. However, investment properties are not supported by the scheme. Applicants must be Australian citizens or permanent residents.
How do I apply for the Family Home Guarantee?
With property prices rising, buying a home has become more difficult for many Australians. Especially for single parents with dependent children. To make the dream of home ownership easier, the government introduced the Family Open home loans Guarantee.
It helps eligible single parents and single legal guardians buy a new or existing home with a deposit of just 2%, bypassing the need for Lenders Mortgage Insurance (LMI).
Gateway is proud to partner with the government on this initiative to support up to 5,000 loans each financial year. You can use this tool to find out if you meet the Family Home Guarantee eligibility criteria.
There are some restrictions on the type of homes that can be purchased, including property price caps. These are based on the state/territory and whether the purchaser intends to live in a capital city or a regional area (Newcastle and Lake Macquarie, Illawarra, Geelong, Gold Coast and Sunshine Coast). You will also need to meet certain income requirements.
What are the benefits of the Family Home Guarantee?
As Australia’s property prices have risen, it has become more difficult for some families to secure their first home. This is especially true for single parents with dependent children.
With the Family Home Guarantee, single parents and their eligible legal guardians can enter the market sooner by providing a 2% deposit to cover the cost of a mortgage. This enables them to avoid paying lender’s mortgage insurance, which can add up to thousands of dollars in upfront costs1.
It can be used to purchase an existing house, land package or off-the-plan apartment. The property price thresholds vary by state and territory, and also whether you are purchasing in a regional centre.
To qualify for a Family Home Guarantee, you must be a single parent or the legal guardian of a child under the age of 18, an Australian citizen or permanent resident and plan to live in the property as your primary residence. You must also commit to making scheduled repayments and not use the loan for investment purposes.
