Back to Inspire Home


Can the Family Home Guarantee help you buy a home?

By ,| 3 min read

Last month the federal government announced the federal budget for the 2021-2022 financial year, which contained a whole host of measures designed to boost Australia’s recovery from the impacts of the COVID-19 pandemic.

One of these measures was the Family Home Guarantee (FHG), a government program to help eligible single parents with dependent children buy a home.

In this article we break down the details of the FHG, including the eligibility criteria and property price thresholds across the country.

2022 update

As outlined in the proposed 2022 federal budget, an additional 5,000 places per year will be allocated towards the Family Home Guarantee program.

How does the Family Home Guarantee work?

Under the FHG, eligible single parents with dependent children can apply for a home loan with a deposit as little as 2%, without paying Lenders Mortgage Insurance (LMI). The government then guarantees up to 18% of the home’s purchase price to the participating lender. This means that deposits of 20% or higher are not covered by the program.

Even though the government guarantees a portion of the purchase price of the property, eligible applicants are still required to show that they can service the loan. This means that participating lenders will still assess the borrower’s capacity to pay back the mortgage over the loan term.

Ultimately, the government has recognised that it can be more difficult for single parent families to get into the property market, because it can be harder to save for a deposit with only one income. So, the FHG is designed to overcome this hurdle that often stops these families from buying a home.

There are 10,000 places available in the program - 2,500 per year for the next four years, starting 1 July 2021.

Wondering how much you could borrow?

Calculate your borrowing power based on your income.

Calculate now

Who is eligible to apply for the Family Home Guarantee?

  • Single parents with a dependent child or children
  • Applicants must be legally responsible for a dependent child, whether by themselves or jointly with another person - this means that two people who were previously in a couple and have shared custody of a dependent child could apply for the FHG separately.
  • Must be over the age of 18
  • Must be an Australian citizen
  • Applicants’ annual taxable income can be no greater than $125,000 (child support payments do not count as income for the purposes of the FHG)
  • Applicants can be first home buyers OR they can have previously owned a property

What types of properties are eligible under the guarantee?

Properties covered by the FHG can only be owner-occupier and residential. This includes:

  • 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

As for the conditions of the loan taken out to pay for the property, the FHG requires loans to consist of principal and interest repayments, and a loan term of no more than 30 years. Also, the single parent must be the only name listed on the loan and the certificate of title.

Thinking of renovating your property?

Find a great cash out rate in seconds.

Find a rate now

Property price thresholds for the Family Home Guarantee

The FHG sets out the maximum prices of properties that can be purchased under the program. See the table below for the price thresholds for different locations in Australia:

StateCapital cities and regional centresRest of state
Territory-All areas

The program conditions stipulate that regional centres are those with populations over 250,000: Newcastle and Lake Macquarie and Illawarra (Wollongong) in NSW; Geelong in Victoria; and the Gold Coast and Sunshine Coast in Queensland.

How do I apply for the Family Home Guarantee?

Applications can be made directly through the lenders participating in the scheme. The National Housing Finance and Investment Corporation, the government body that oversees the scheme, does not take applications directly.

Could you get a lower rate?

Don't pay more than you need to.

Compare rates now

Which lenders are taking part in the Family Home Guarantee?

Single parents who want to apply will have to do so through the participating lenders, which are the same as the lending panel for the First Home Loan Deposit Scheme (FHLDS).

Major bank lenders

  • Commonwealth Bank
  • NAB

Non-major lenders

  • Australian Military Bank
  • Auswide Bank
  • Bank Australia
  • Bank First
  • Bank of Heritage Isle
  • Bank of us
  • Bendigo Bank
  • Beyond Bank
  • Border Bank
  • Community First Credit Union
  • Great Southern Bank (formerly CUA)
  • Defence Bank
  • Endeavour Mutual Bank
  • Firefighters Mutual Bank
  • Gateway Bank
  • G&C Mutual Bank
  • Health Professionals Bank
  • Indigenous Business Australia
  • Mortgageport
  • MyState Bank
  • People’s Choice Credit Union
  • Police Bank
  • P&N Bank
  • Queensland Country Bank
  • Regional Australia Bank
  • Sydney Mutual Bank
  • Teachers Mutual Bank
  • The Mutual Bank
  • UniBank
  • WAW

If you have questions about applying for a home loan with the Family Home Guarantee, speak to one of our friendly Home Loan Specialists at a time that suits you.

What could your home loan repayments look like?

Calculate your loan repayments


Got a home loan question? Just ask!

We're here to help. Get free expert advice at a time that suits you. Choose a time to chat with a Home Loan Specialist here

The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.

Tags: new purchase, home loan, lender, lmi (lenders mortgage insurance), first home, first home buyer, deposit, low deposit, family home, owner occupier

Check today's low rates

Tell us what you are looking for and see if you can save.

Search rates

Check today's low rates

Tell us what you are looking for and see if you can save.

Search rates
Home loan repayment saver tool

Home loan repayment saver tool

Enter a few details about your home loan and see how much you could save on your repayments

Important legal stuff
Lendi is the trading name of Lendi Pty Ltd (ACN 611 161 856), a related body corporate of Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence 442372). We will never sell your email address to any third party or send you nasty spam, promise.
# Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
Lendi is a privately owned and operated Australian business. Our mission is to change the way Australians get home loans by providing a faster, smarter and more secure home loan experience designed around the customer’s convenience and needs. Although Lendi compares over 1600 products (2,500+ products including feature and pricing variations) from more than 25 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. Lendi Group Pty Ltd, which is the ultimate holding company of the Aussie and Lendi businesses is owned by numerous shareholders including; banks such as CBA, 1835i (ANZ’s external venture capital partner) and Macquarie Bank, the Lendi founders and employees, and a number of Australian institutional investors and sophisticated investors including UniSuper.
*WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years. Fees and charges apply. All applications are subject to assessment and lender approval. Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria. Top rates include lenders who are on our panel and are then defined by the circumstances provided by the borrower.
Made with love at Circular Quay in Sydney, Australia. © 2022. All rights reserved.