You may be eligible for a Family Home Guarantee. The Family Home Guarantee is an Australian Government initiative that aims to support eligible single parents with at least one dependent child in purchasing a family home.
The Family Home Guarantee can be used to build a new home or purchase an existing home with a deposit of as little as 2 percent, regardless of whether that single parent is a first home buyer or a previous home owner.
Eligible single parents are able to apply for a loan through a participating lender. The Family Home Guarantee is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government. NHFfC guarantees to a participating lender up to 18 per cent of the value of the property, provided the borrower has a minimum 2 per cent deposit, and is eligible for the Family Home Guarantee.
For a property to be eligible under the Family Home Guarantee, it must be a residential property. This includes the following:-
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.
Who is eligible for the Scheme?
Australian citizens who are at least 18 years of age.
Must be a single parent with at least one dependent child.
The single parent must have a taxable income that does not exceed $125,000.00 per
annum for the previous financial year. NB child support payments are not included as
income.
The single parent must be the only name noted on the loan and title to the property.
The single parent must demonstrate that they are the natural or adoptive parent of a
dependent child within the meaning of s.5 of the Social Security Act 1991 (Cth).
Alternatively, the single parent must show that they are the natural or adoptive parent
of a child between 16 and 22 years of age, who receives a disability support pension
and lives with them.
The Applicant must have at least 2 per cent of the value of the property available as a
deposit.
Loans under the Family Home Guarantee require scheduled repayments of the
principal and interest of the loan for the full period of the agreement.
The Applicant must intend to be an owner/occupier.
The Applicant may be either a first home buyer or previous home buyer who does not
currently have a freehold interest in real property in Australia.
In New South Wales the property price threshold for the Family Home Guarantee is $800,000.00 in Capital Cities and regional centres and $600,000.00 for the rest of the State. Eligible single parents will be able to apply for the Family Home Guarantee through a participating lender. The full list of participating lenders is HERE.