Understanding the Australian Family Home Guarantee Scheme
For many single parents and guardians, buying a home can feel out of reach. Between rising property prices and the challenge of saving for a deposit, it’s easy to see why many families struggle to enter the property market. That’s where the Australian Family Home Guarantee Scheme steps in, providing eligible families with a pathway to homeownership sooner.
Here’s everything you need to know about this game-changing initiative, from eligibility criteria and deposit requirements to property price caps.
What is the Family Home Guarantee Scheme?
The Family Home Guarantee is a federal government program designed to help eligible single parents and guardians purchase a home with a deposit as low as 2%. Under the scheme, the government acts as a guarantor for up to 18% of the property’s value, eliminating the need for Lenders Mortgage Insurance (LMI).
This program makes it easier for single parents to secure a home loan and achieve the stability and security of owning their own home.
Who is Eligible for the Family Home Guarantee?
To take advantage of the Family Home Guarantee, applicants must meet the following criteria:
Single Parent or Guardian
You must be a single parent or legal guardian with at least one dependent child under the age of 18.Australian Citizenship
At the time of application, you must be an Australian citizen aged 18 years or older.Income Limit
Your taxable income must not exceed $125,000 for the financial year prior to applying. Child support payments are not included in this income cap.Owner-Occupancy
The purchased property must be used as your primary residence.First-Time or Returning Home Buyer
Unlike other schemes, the Family Home Guarantee is open to both first-time buyers and those who previously owned property but no longer do.
How Much Deposit Do You Need?
One of the key benefits of the Family Home Guarantee is its low deposit requirement. Eligible applicants can purchase a property with just 2% of the purchase price. For example, if you’re buying a home valued at $500,000, you’ll only need a $10,000 deposit.
This makes homeownership significantly more accessible, especially for those who might struggle to save a larger deposit.
Property Price Caps for the Family Home Guarantee
Property price caps for the Family Home Guarantee vary depending on the location of the home. The limits aim to reflect the median property prices across Australia:
These caps are reviewed regularly and may vary, so it’s essential to confirm the specific limits for your area before applying.
Benefits of the Family Home Guarantee Scheme
Lower Deposit Requirement
With just a 2% deposit, you can secure a home much sooner than under conventional lending requirements.No Lenders Mortgage Insurance
By covering the gap between your deposit and the typical 20% requirement, the government saves you thousands of dollars in LMI costs.Inclusive for Returning Buyers
Unlike many first-home buyer programs, this scheme is available to single parents who have previously owned property but no longer do, broadening access for more families.Pathway to Stability
Homeownership provides financial and emotional security, offering a stable environment for families to thrive.
How to Apply
The Family Home Guarantee is administered through specific participating lenders, including major banks and smaller financial institutions. Rosh Partners can help you navigate the process, confirm your eligibility, and compare loan options to find the right solution for your needs. Get in touch with us to arrange a chat.
How Rosh Partners Can Help
At Rosh Partners, we understand the unique challenges faced by single parents and guardians in securing a home loan. With over 20 years of experience in the mortgage and finance industry, we’re here to guide you through the Family Home Guarantee process.
From checking your eligibility to finding the best loan option, we’ll work closely with you to make your homeownership dream a reality.
