Family Home Guarantee Scheme

father playing with child in a living room

Similar to the First Home Guarantee, The Family Home Guarantee (FHG) Scheme is an Australian Government initiative to support eligible single parents with at least one dependent child, purchase or construct their new family home with reduced savings.

The scheme allows first home buyers with less than a 20% deposit, purchase a property and avoid paying lenders mortgage insurance (LMI). It enables clients to complete the transaction with as little as a 2% deposit.

Under this Scheme, National Housing Finance and Investment Corporation (NHFIC) will secure a portion of the home loan that is approved through a participating lender. The list of approved lenders can be found here.

Any guarantee of the home loan is for up to a maximum amount of 18% of the value of the property (as assessed by the eligible lender). This guarantee is not a cash payment or a deposit.

5,000 Family Home Guarantee Scheme places will be available from 1 July 2024 to 30 June 2025. There are some requirements:

Applicants must be a single parent with at least one dependent child - single, divorced or widowed is acceptable, however applicants who are married, de facto or separated are not eligible.
There are property purchase thresholds for different states and locations across Australia, this can be checked here.
Applicants must be an Australian citizen at the time they enter the loan.
Applicants must earn no more than $125,000 per year.
The property must be resided in by the applicants (owner occupied).

The scheme also allows applicants access to other government programs – like the First Home Super Saver Scheme or First Home Owner Grant.