In the 2021 Federal Budget, the government announced a new scheme known as the Family Home Guarantee. The scheme is available for eligible participants over the next four financial years, starting from 1st July 2021 and ending 30th June 2025. During that time, a total of 10,000 houses will be made available each financial year.


What is the Family Home Guarantee and How Does it Work?

The Family Home Guarantee is a new initiative from the Australian Government that aims to support single parents with dependants in buying a family home. They are not required to be a first home buyer and can enter the market sooner with only a 2% deposit and avoiding having to pay lenders mortgage insurance. 

The initiative is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the government. Eligible single parents with dependants can apply for a loan to purchase an eligible property through a participating lender. Provided the borrower meets the minimum 2% deposit, the NHFIC guarantees up to 18% of the value of the property to a lender.


Who is Eligible?

  • Australian citizens who are at least 18 years of age. Permanent residents are not eligible
  • A single parent with at least one dependent child
  • A person is considered to be single if they don’t have a spouse and/or the person does not have a de facto partner
  • The single parent must have a taxable income that does not exceed $125,000 per annum.


What is the price cap in QLD and what type of home can I buy?

In the Brisbane, Sunshine Coast and Gold Coast areas, the price cap for the Family Home Guarantee scheme has increased to $600,000 as of the 1st of July 2021. In outside regional areas of Queensland, the price cap is $450,000.

The type of home eligible under the Family Home Guarantee must be a residential property. However, there are different types of eligible residential properties, including:

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


Things to Consider When Buying a Home with a Small Deposit

While there are significant positives when purchasing property with a small deposit such as allowing you into a home faster, but you need to be aware of some disadvantages:

  • Repayments will be higher each month and can increase if rates rise
  • If property prices drop, you could be in negative equity, meaning you would owe more to the bank than your house is worth
  • You would stop receiving rental assistance. 


How Do I Apply for the Family Home Guarantee?

Eligible single parents can create an application for the scheme through the participating lenders, or their authorised representatives. You can view the whole list of participating lenders, here.


Download Family Home Guarantee Fact Sheet