Knowledge Centre

Family Home Guarantee

12/7/2021

The Family Home Guarantee aims to support eligible single parents with at least one dependent child in purchasing a family home, regardless of whether that single parent is a first home buyer or a previous home owner.

10,000 Family Home Guarantees will be made available over four financial years from 1 July 2021 to 30 June 2025.

Usually, home buyers with less than a 20% deposit need to pay lenders mortgage insurance.

Under this Scheme, part of an eligible home buyer’s home loan from a Participating Lender will be guaranteed by the National Housing Finance and Investment Corporation (NHFIC). This is aimed at enabling you to purchase your home sooner with as little as a 2% deposit.

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

You can view the Family Home Guarantee fact sheet to learn more, but some of the key takeaways include:

• Applicants can be a first or second home buyer;
• You must be a single parent with at least one dependent child – marital status must be single, divorced or widowed (applicants who are married, de facto or separated are not eligible);
• The property price thresholds are $500,000 for capital cities and regional centres, and $400,000 for the rest of the state;
• You must be an Australian citizen at the time you enter the loan;
• You must earn no more than $125,000 per year; and
• You must intend to be the owner-occupier of the purchase property.

If your home loan is covered by this Scheme, you can also access other government programs – like the Australian Government’s First Home Super Saver Scheme, Home Builder Grant or Western Australia’s First Home Owner Grant.

Am I eligible for the Family Home Guarantee?

There are a very limited number of places which are likely to be filled quickly! The placements are now open, so the best way to get started is to enquire today with The Loan Company’s team of experienced brokers to find out if you fit the eligibility criteria, and we can help you with any other queries you may have regarding these government schemes and initiatives.