Life as a single parent can present some challenging circumstances. One of the main issues facing many single parents is securing suitable housing for themselves and their children.
The Family Home Guarantee (FHG) is a new Australian government initiative, administered by the National Housing Finance and Investment Corporation (NHFIC), with an aim of supporting eligible single parents to enter or re-enter the housing market and enjoy stable living conditions sooner.
5,000 Family Home Guarantees, per year, will be made available until 30 June 2025.
With as little as 2% deposit, eligible single parents can purchase an existing home or build a new home subject to the individual’s ability to service a home loan.
Am I eligible?
- You must be:
- an Australian citizen at least 18 years of age, a single parent with at least one dependant,
- permanent residents are not eligible.
- You must meet the income eligibility requirements:
- your taxable income cannot exceed $125,000 for the previous financial year,
- child support payments are not included as income for the purposes of the income cap
- You must:
- be able to provide a deposit of at least 2% and not greater than 20% of the value of the property. If you have a deposit greater than 20%, your home loan cannot be covered by the Scheme.
- intend to be the owner-occupier of the purchased property. In the case of an active Australian Defence Force member applicant, the owner-occupier requirement may be waived after entering the loan, if they cannot meet this requirement because of their duties.
- provide your latest Notice of Assessment (NOA) from the ATO.
- You can be a first home buyer or a previous owner-occupier who does not currently own a home.
- As the single parent, yours must the only name listed on the loan and the title
- Loans under the FHG require scheduled repayments of the principal and interest for the full period of the agreement, which cannot have a term of more than 30 years.
- While there are no costs associated with applying for the FHG, eligible single parents are responsible for meeting all costs and repayments for the home loan associated with their FHG.
- You cannot apply directly for FHG places, this must be done through the lender you secure finance through.
Is the property I plan to buy eligible?
Property price thresholds apply in capital cities, large regional centres, and regional areas.
To view the maximum property purchase prices in the areas you’re interested in, click here for the NHFIC’s property price threshold cap table.
Under the FHG, home buyers can purchase a residential property, including:
- an existing house, townhouse or apartment
- a house and land package
- land and a separate contract to build a home
- an off-the-plan apartment or townhouse.
Specific timeframes and criteria may apply to the different property types, Contracts of Sale and (if applicable) eligible building contracts may need to be executed by specific dates.
Additional resources the NHFIC has released for the scheme: