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Family Home Guarantee

The Australian Government has recently announced a new program called the Family Home Guarantee which aims to provide eligible single parents with dependants, the opportunity to purchase a family home, with a deposit of only 2 percent, subject to the applicant being able to service a home loan.

What is the Family Home Guarantee?

The Family Home Guarantee is an Australian Government initiative designed to help eligible single parent families purchase a family home.

Under the Scheme, the government provides a guarantee that will enable eligible single parents with dependants, the opportunity to purchase a new or existing home with a deposit as little as 2 percent, without the need to pay for lenders mortgage insurance.  Applicants can be first home buyers or a previous owner-occupier.

How does the scheme work?

Eligible applicants are able to obtain a loan; with a participating lender; that enables them to purchase a property with as little as 2% deposit.  Up to 18% of the value of the property, or the balance of the remaining 20% deposit, will be guaranteed by the NHFIC on behalf of the government. 

How many people can get assistance?

From July 2021, 10,000 Family Home Guarantees will be made available over four financial years.

Who is eligible?

Complete the following check list to see if you may be eligible.

  • Australian citizen
    • Applicants must be Australian citizens who are at least 18 years of age.  Permanent residents are not eligible. 
  • Family status
    • You must be a single parent with at least one dependant. 
  • Income
    • The single parent must have a taxable income that does not exceed $125,000 per annum for the previous financial year. Child support payments are not included as income for the purpose of the income cap.
  • Age
    • You must be 18 years of age or over at the time you enter into a home loan with your participating lender.
  • Existing deposit
    • The single parent must have saved a deposit equal to at least 2% (but less than 20%) of the value of an eligible property.
  • Owner-occupier
    • You must be intending to occupy the home as an owner-occupier. Investment properties are not supported by the scheme.  Applicants must be first home buyers or previous owner-occupiers who do not currently own a home.

What types of property can be purchased under the scheme?

The Family Home Guarantee can be used to build a new home or purchase a new or existing home.

For a property to be eligible it must be a ‘residential' property in Australia.  This term has a particular meaning and is consistent with the First Home Loan Deposit Scheme. Check with your lender to make sure your property complies.  Eligible residential properties generally include:

  • An existing house, townhouse or apartment
  • A house and land package
  • Land together with a separate contract to build a home
  • An off-the-plan apartment or townhouse

Is there a property price threshold?

Yes, property price thresholds have been set to ensure that the Family Home Guarantee is used to purchase modest homes.  The same property price thresholds apply to the First Home Loan Deposit Scheme. Thresholds vary between states and territories, and between capital cities and regional areas.  Visit nhfic.gov.au to find out more.

Can the scheme be used with other government incentives?

For more information about other incentives in your state you can visit:

To download the Family Home Guarantee Fact Sheet download here.

For more information about the Family Home Guarantee scheme, visit www.nhfic.gov.au



Disclaimer: *Please note, the necessary legislative changes to the NHFIC legislation, the NHFIC Investment Mandate and the Scheme Rules are not yet in force. Accordingly, the final form of the Family Home Guarantee scheme may differ from that described above. The above information has been sourced from www.nhfic.gov.au.  Interested parties should seek their own financial advice and make their own investigations as to eligibility for concessions, rebates, exemptions and grants. Information is correct as at May 2021, but is subject to change and no warranty, express or implied, is given as to its accuracy. AVJennings disclaims liability for any loss, damage or claim of whatever nature or kind (including negligence) incurred by any party which arises out of any alleged reliance on this article. ® Registered Trademark. © AVJennings Properties Limited. ABN 50 004 601 503. NSW Builders Licence 39168C, QLD Builders Licence No QBCC41712, VIC Builders Licence CDB-U 57318, SA Builders Licence BLD56537.