The Family Home Guarantee Scheme (Updated for 2025)

What is the Family Home Guarantee?

The Family Home Guarantee allows single parents to purchase a home with as little as a 2% deposit without paying Lenders Mortgage Insurance (LMI). Under the scheme, up to 18% of a single parent's home loan can be guaranteed by the Government. LMI is usually payable on home loans with deposits of less than 20%. 

The Family Home Guarantee Scheme was announced in the 2021/22 Federal Budget and was available from 1 July 2021. Based on the success of the First Home Guarantee (formerly the First Home Loan Deposit Scheme) for first home buyers, the Family Home Guarantee Scheme aims to support single parents in their journey to home ownership.

In the 2024/25 financial year, 5,000 Family Home Guarantees will be made available to eligible single parents and eligible single legal guardians of at least one dependent. This offer is subject to the individual's ability to service the loan.

Unlike the First Home Guarantee, single parents will be able to get a mortgage with a 2% deposit as opposed to the First Home Guarantee's minimum of a 5% deposit. When buying a property there are additional costs involved than just paying the deposit. Your local Mortgage Choice broker will work in your best interest and can help provide you with an estimate on what costs to expect.

How the guarantee works in action

Housing Australia guarantees up to 18% of the value of a property  to a participating lender. This is provided the borrower has the minimum 2%, and is eligible for the Family Home Guarantee.

Eligibility for the Family Home Guarantee

To be eligible for the Family Home Guarantee scheme you will need to meet these basic conditions: 

• Be an Australian citizens or permanent residents and at least 18 years of age.
• You must be a single parent or single legal guardian of at least one dependent. A parent or legal guardian is not single if they are married, in a de facto relationship, or separated but not divorced.
• You must have a taxable income that does not exceed $125,000 per annum for the previous financial year as shown on the Notice of Assessment (issued by the Australian Taxation Office). Child support payments are not included as income for the purpose of the income cap.
• You must be the only name listed on the loan and the certificate of title.
• You must be prepared to demonstrate you are the natural parent, adoptive parent or legal guardian of a dependent child within the meaning of s.5 of the Social Security Act 1991 (Cth). In a general sense, this means that the person must show that they are legally responsible (whether alone or jointly with another person) for the day-to-day care, welfare and development of the dependent child and the dependent child is in their care. Alternatively, the eligible single parent or eligible single legal guardian must show that they are the natural parent, adoptive parent or legal guardian of a person who receives a disability support pension and lives with them.
• You need to have at least 2% of the value of the property available as a deposit. If the borrower has a deposit of more than 20% after paying other home purchasing costs (e.g., stamp duty, legal costs), then the home loan cannot be covered by the Family Home Guarantee.
• Loans under the Family Home Guarantee require scheduled repayments of the principal and interest of the loan for the full period of the agreement (with limited exceptions for interest- only loans, which mainly relate to construction lending). The loan agreement must have a term of no more than 30 years.
• You must intend to be owner-occupiers of the purchased property.
• At the time of the home loan agreement, you must not hold a separate interest in property in Australia (including owning land), a lease of land in Australia with a term of 50 years (or more) or a company title interest in land in Australia, or, if they do hold such an interest at that time, either must not intend to hold that interest from settlement of the property being purchased or hold that interest as joint tenant or tenant in common in the property to which the loan relates, and intend to become the sole registered owner of the property as a result of the loan.

As the Family Home Guarantee is an extension of the First Home Loan Deposit Scheme (FHLDS) by NHFIC, not all properties will be eligible. This scheme holds the same property price limits as the FHLDS that can differ depending on your area.  You will need to check what the property price cap is in your area.

Family Home Guarantee Property Price caps (2024-25)

How do I apply for the scheme?

Eligible single parents and eligible single legal guardians will be able to apply for the Family Home Guarantee through a participating lender. The full list of participating lenders is at www.housingaustralia.gov.au

There are no costs or repayments associated with the Family Home Guarantee. 

Contact your local Mortgage Choice broker to find out if you’re eligible – and to find out which lenders are involved in the scheme.

Essential Points

Minimum Deposit Required: 2% (plus any applicable home buying fees and costs)

Administering Body: Housing Australia