The Family Home Guarantee Scheme (Updated for 2024)

The federal government initiative allows single parents to take out a home loan with a deposit of as little as 2% (subject to being able to service home loan repayments). Here we explore what's involved in this scheme and if you could be eligible.

What is the Family Home Guarantee Scheme?

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.

 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 . Of course 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.

5,000 places available per year (until 30 June 2025) to eligible single parents who are looking to build a new home or purchase an existing home.

Eligibility for the Family Home Guarantee

To be eligible for the Family Home Guarantee scheme you will need to meet these basic conditions2

  • Be a single parent with at least one dependent. You will need to demonstrate that as a single parent you are legally responsible for the day-to-day care, welfare and development of your child and that they are in your care. Depending on your situation and terms of any shared custody arrangement, both single mother and father of a child may be able to separately access the Family Home Guarantee as individuals.
  • Australian citizen, at least 18 years of age. From July 1 2023, the scheme will also be available to eligible borrowers who are Australian Permanent Residents.
  • With an annual taxable income of $125,000 or less for the previous financial year (Child support payments are not included as income for the purpose of the income cap) Please note to apply for a place in this scheme from 1 July 2021 to 30 June 2022, you will need to provide the relevant Notice of Assessment from the ATO for the previous financial year..
  • As a single parent, you must be the sole applicant listed on the loan and certificate of title.
  • You must live in the property you intend to purchase.
  • Although this does not need to be your first home to be eligible for this scheme, you will not be eligible if you do currently own a home, including commercial property, investment property, owning land or a company title interest in land in Australia.

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 FY 2022-23


Capital city/regional centre 

 Rest of state 

























Jervis Bay Territory & Norfolk Island



Christmas Island & Cocos (Keeling) Island



Source: National Housing Finance and Investment Corporation3 - For previous financial years' price caps visit NHFIC here. 

How do I apply for the scheme?

The scheme will be administered by the National Housing Finance and Investment Corporation, and applications will need to be made through a FHLDS participating lender or through a mortgage broker. There are currently 27 participating lenders across Australia offering places under the Family Home Guarantee Scheme.

Applications are now opened as of 1 July 2021. 

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

Start Date: 1 July 2021

Minimum Deposit Required: 2%

Administering Body: National Housing Finance and Investment Corporation (NHFIC)

Other ways to help pay for a new home

If you do not qualify for the scheme there are other ways to help you still get your foot in the property market.

Other federal government home guarantees include the First Home Guarantee and the Regional First Home Buyer Guarantee.

First Home Owner Grants are subsidies that are set up by individual states and territories to help you buy your first home through a once-off lump sum payment. Be aware though, each state has different rules and restrictions and even amounts available to borrowers. You can read more about First Home Owner Grants here.

Don't miss out, places in the scheme are limited! To find out how you can apply contact your local Mortgage Choice broker today.

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Family Home Guarantee Scheme explained

If you're a single parent with hopes of buying your home for you and your family, you may be eligible to access the Family Home Guarantee.

In this Mortgage Minute Emma explains the Family Home Guarantee scheme, which allows you to buy a home with as little as a 2% deposit. Watch now to find out more.


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This article was originally published on 24 May 2021, and has since been updated.