Family Home Guarantee scheme
The Family Home Guarantee scheme helps eligible single parents and legal guardians buy a home with a low deposit. Backed by the Australian Government, it allows you to purchase a home with as little as 2% and avoid lenders mortgage insurance, making home ownership more accessible.
Family Home Guarantee (FHG) scheme explained
The Family Home Guarantee (FHG) scheme makes it easier for eligible single parents to buy a home sooner with a low deposit and government-backed support.
Deposit required
Buy a home with as little as a 2% deposit. The scheme helps eligible applicants avoid paying lenders mortgage insurance (LMI), reducing upfront costs.
Who it’s for
Designed for eligible single parents or single legal guardians with at least one dependent child who want to purchase a home in Australia.
Key benefit
The government guarantees part of your home loan, so you can enter the property market sooner without needing a large deposit.
Income limits
Applicants must meet income thresholds set by the Australian Government, based on the most recent notice of assessment.
Property price caps
The scheme includes property price thresholds that vary by location, including Melbourne and regional Victoria, to keep purchases within set limits.
What is the Family Home Guarantee scheme?
The Family Home Guarantee is part of the Australian Government initiative that helps eligible single parents or legal guardians buy a home sooner. With only a 2% deposit, you can purchase a home without paying the lenders mortgage insurance, reducing upfront costs.
As part of the Home Guarantee Scheme, Housing Australia guarantees a portion of your home loan, making it easier to secure finance through a participating lender. The scheme can be used to buy or build a home, subject to eligibility criteria and property price thresholds across Victoria.
How the Family Home Guarantee works
The Family Home Guarantee reduces deposit requirements and removes lenders mortgage insurance for eligible single parents.
Buy with a low deposit
Eligible applicants can purchase a home with as little as a 2% deposit, making it easier to enter the property market sooner.
Government guarantees part of your loan
Housing Australia guarantees a portion of your home loan, reducing the risk for participating lenders and improving access to finance.
No lenders mortgage insurance
Because of the government guarantee, you won’t need to pay lenders mortgage insurance, which can significantly reduce upfront costs.
Access standard home loan options
You apply through a participating lender and receive a home loan with a competitive interest rate, subject to normal lending criteria.
Choose how you buy or build
The scheme can be used to purchase an existing home, build a new home, or secure a house and land package within set price thresholds.
Who is eligible for the Family Home Guarantee?
To be eligible for the Family Home Guarantee scheme, you must meet specific criteria set by the Australian Government. These requirements ensure the program supports eligible single parents and legal guardians looking to purchase a family home with a low deposit.
Single parent or legal guardian status
The scheme is designed for eligible single parents and single legal guardians with at least one dependent child. You must be the child’s primary carer and intend to live in the home you purchase as an owner-occupier.
Income and financial requirements
Applicants must meet income thresholds based on their most recent notice of assessment. Your financial situation will be assessed by a participating lender or mortgage broker to ensure you can manage home loan repayments.
Citizenship and residency criteria
You must be an Australian citizen and at least 18 years old to apply for the family home guarantee. Permanent residents are not eligible under the current scheme eligibility requirements.
Property and purchase price limits
The property must fall within set purchase price thresholds, which vary by location, including Melbourne and regional centres. These caps ensure the scheme supports accessible home ownership opportunities.
Deposit and ownership conditions
You can purchase a property with as little as a 2% home loan deposit without paying lenders mortgage insurance. The home must be owner-occupied, and places available in the program are limited each financial year.
Benefits of the Family Home Guarantee
The Family Home Guarantee offers practical support for eligible single parents, helping reduce upfront costs and making home ownership more achievable.
- Buy sooner without saving a full 20% deposit.
- A 2% deposit means less upfront savings needed.
- No lenders mortgage insurance, saving thousands.
- Government guarantee helps you secure a home loan.
- Own your home and build long-term security.
What are the limitations of the Family Home Guarantee?
While the Family Home Guarantee offers strong support, it’s important to understand the limits of the scheme so you can plan your home purchase with confidence.
- Scheme places are capped and may fill quickly.
- You must buy within set price thresholds.
- Only eligible single parents can apply.
- A minimum 2% deposit is still needed.
- Loan approval depends on your finances.
Can the Family Home Guarantee be used to build a home?
Yes, the Family Home Guarantee can be used to build a new home, giving eligible single parents more flexibility. In addition to buying an existing home, you can build through a house and land package or on your own land.
With a home loan guaranteed under the scheme, you may be able to build with as little as a 2% deposit and avoid lenders mortgage insurance. This helps reduce upfront costs while allowing you to create a home that suits your family’s needs.
How to apply for the Family Home Guarantee
Applying for the Family Home Guarantee involves working with a participating lender or mortgage broker. They’ll guide you through eligibility checks, finance options, and securing a home loan under the scheme.
1. Check eligibility
Start by confirming you meet the eligibility requirements before applying.
2. Speak to a lender or broker
Contact a participating lender or mortgage broker to assess your financial situation and begin your home loan application.
3. Apply and secure your home loan
Once approved, you can move forward to purchase or build your home under the Family Home Guarantee.
What are the documents required?
Proof of identity
e.g., driver's licence or passport
Evidence of income
e.g., payslips, tax returns
If applicable, include Disability Support Pension or NDIS-related income evidence
Information about the property
you intend to purchase or build
Family Home Guarantee calculator
Use our Family Home Guarantee calculator to estimate how much deposit you may need and how much you could save by avoiding LMI. It’s a simple way to understand your borrowing position and plan your next steps towards home ownership with greater confidence.
Can Carlisle Homes help with the Family Home Guarantee?
Carlisle Homes supports you through your Family Home Guarantee journey. While your lender or mortgage broker handles the application, we help you choose a home that suits your budget, lifestyle, and eligibility, so you can move forward with confidence.
Find the right home solution for your family
Once you’re eligible for the Family Home Guarantee, the next step is choosing the right home. Explore Carlisle’s homes across Victoria.
Getting started with Carlisle Homes
Getting started with Carlisle Homes begins with understanding your budget, eligibility for the Family Home Guarantee, and the type of home that suits your lifestyle. Whether you’re a first home buyer or looking to build, our team is here to guide you with clear, practical advice.
From exploring home designs to reviewing house and land packages across Victoria, you’ll have access to a wide range of options. We’ll help you move forward with confidence, working alongside your lender or mortgage broker to support your home ownership journey.
Choose the right scheme for your situation
Different government schemes support home buyers in different ways. Explore your options to find the right pathway based on your deposit, financial situation, and home ownership goals.
Frequently asked questions
Can first home buyers use the Family Home Guarantee?
Yes, first home buyers can access the Family Home Guarantee if they meet the eligibility criteria. The scheme is in place to support single parents or legal guardians, including those entering the property market for the first time, in buying a home with a low deposit.
How much deposit do I need for the Family Home Guarantee?
Eligible home buyers can purchase a home with as little as a 2% deposit. This means you don’t need to save a full 20% deposit, making it easier to enter the property market sooner while still meeting standard lending requirements.
Do I have to pay lenders mortgage insurance?
No, the Family Home Guarantee allows eligible applicants to avoid the lenders mortgage insurance. The Australian Government guarantees part of the home loan, removing the need for LMI and helping reduce upfront costs.
Is the Family Home Guarantee available in Victoria?
Yes, the Family Home Guarantee is available across Australia, including Victoria. Property price thresholds vary by location, covering Melbourne and regional areas, so it’s important to check the limits before purchasing.
Can I use the scheme with any lender?
No, you must apply through a participating lender or mutual bank approved under the Home Guarantee Scheme. A lender or mortgage broker can help you understand your options and guide you through the application process.
How do I know if I meet the eligibility criteria?
Eligibility depends on factors such as your income, dependent child status, and citizenship. A lender or mortgage broker will assess your financial situation and confirm if you meet the Australian Government’s eligibility criteria before applying.
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