• MCW Lawyers

Are you a single parent looking to purchase an existing property or build a new home?

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.


For more information please contact Cathy Hart, Senior Associate, Licensed Conveyancer by email chart@mcwlaw.com.au or call 02 9589 6666.