Guide to the Family Home Guarantee device| Savings.com.au

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Are you a single parent looking to break into the Australian property market? Here’s how the Family Home Guarantee Scheme can help.

Available until June 2025, the guarantee has 5,000 application slots up for grabs each fiscal year for single parents with as little as 2% down payment.

In this guide, you will find out everything you need to know about the diet.

What is the Family Home Guarantee scheme?

The Family Home Guarantee Scheme is an extension of the federal government’s existing Home Guarantee Scheme, designed to help eligible single parents with at least one dependent child buy a home sooner.

It is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government.

From July 2022 to June 2025, 5,000 guarantees will be made available each financial year to help single parents buy a property with as little as 2% down payment without having to pay mortgage loan insurance (LMI) from lenders. This means you can borrow up to 98% of the property value.

Eligible participants can be either a first-time homebuyer or a former homeowner and must pay principal and interest (P&I) and take out a loan no longer than 30 years.

The Family Home Guarantee can be used to build a new home or buy an existing property.

Price cap for the Family Home Guarantee

For single parents who want to take advantage of the scheme, there are house price caps to be aware of. Ultimately, the cap depends on the state or territory you live in and the regional area within the states. The table below shows how much you can spend on a first home in specific regions to qualify for the Family Home Guarantee.

State Capital and regional centers rest of state
New South Wales $900,000 $750,000
Victoria $800,000 $650,000
queensland $700,000 $550,000
Western Australia $600,000 $450,000
southern australia $600,000 $450,000
Tasmania $600,000 $450,000
Territory All the domains
Australian Capital Territory $750,000
North territory $600,000
Territory of Jervis Bay and Norfolk Island $550,000
Christmas Island and Cocos (Keeling) Islands $400,000

Source: National Housing Finance and Investment Company

*Capital price thresholds apply to regional centers with populations over 250,000 (Newcastle and Lake Macquarie, Illawarra (Wollongong), Geelong, Gold Coast and Sunshine Coast).

Family Home Guarantee Eligibility

To be eligible, single parents must prove (for the purposes of the Social Security Act 1991) that they are legally responsible for the day-to-day care, welfare and development of the dependent child, and that the dependent child is in their care.

To benefit from this federal government program, you will need to:

  • Be an Australian citizen over the age of 18. Permanent residents are not eligible.

  • Be a single parent with at least one dependent child living with you. A person is considered single if they do not have a spouse or common-law partner.

  • Have earned $125,000 or less in the last fiscal year.

  • Have at least a 2% down payment and no more than 20%.

Additionally, to be eligible you must not currently own a home in Australia and cannot use the scheme for investment property.

Eligible goods

Under the Family Home Guarantee program, a property must be a “residential property” to be considered eligible. This includes

  • an existing house, townhouse or apartment

  • a house and land complex

  • land and a separate contract for the construction of a house

  • an off-plan apartment or townhouse

Before enrolling in any of these programs, homebuyers should discuss their personal circumstances with a participating lender.


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Disclaimer

The whole market has not been taken into account in the selection of the above products. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, Savings Media Group is associated with Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.

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