A Home for Your
Family, Sooner.
The Australian Government's Family Home Guarantee supports eligible single parents in purchasing a home with as little as a 2% deposit — with no Lenders Mortgage Insurance. No income caps. Unlimited places.
How the Guarantee Works
The Government doesn't give you cash or take ownership. It guarantees a portion of your loan — removing the need for LMI entirely.
You contribute a minimum 2% of the property value from genuine savings.
The Government guarantees this portion to the lender on your behalf.
Standard loan — you are fully responsible for repaying 100% of the mortgage.
Built for single parents.
Saving a 20% deposit while managing childcare, education, and daily living is incredibly difficult. The FHG reduces that bar to just 2%, with the Government covering the gap so you can avoid costly LMI.
Eligibility Criteria
The October 2025 updates have removed income limits and added unlimited places, making this scheme more accessible than ever.
Who Can Apply
- ✓Australian citizens or permanent residents
- ✓At least 18 years of age
- ✓Single parent or legal guardian with at least one dependent child
- ✓Must not currently own any residential property
- ✓Previous homeowners who have sold their property may also apply
- ✓No income limits — removed October 2025
Property & Loan Requirements
- ✓Minimum 2% genuine deposit (must be less than 20%)
- ✓Property must be your principal place of residence
- ✓Must be within location-specific property price caps
- ✓Owner-occupier principal & interest loan
- ✓Maximum 30-year loan term
- ✓Must move in within 6 months of settlement or completion
What is a Dependent Child?
Qualifies as dependent:
- ✓A child under 16 who lives with you and is in your care
- ✓A person aged 16–22 who is wholly or substantially dependent on you
- ✓A person 16+ receiving a disability support pension who lives with you
May not qualify if aged 16–22:
- ✕Not in full-time education and earns above the permitted income threshold
- ✕Married or in a partner relationship with the applicant
- ✕Receives social security benefits making them financially independent
⚠ Not Eligible Under FHG
Key Benefits
The Family Home Guarantee removes the most significant financial barriers to homeownership for single-parent households.
Only 2% Deposit
Reduce your required deposit from 20% to just 2%. On a $700,000 property that means $14,000 instead of $140,000 — a transformative difference for single-income households.
Zero LMI
The Government's 18% guarantee removes the need for Lenders Mortgage Insurance. LMI can add $10,000–$30,000+ to borrowing costs. Under the FHG, you pay none of it.
Unlimited Places
From October 2025, the annual cap has been removed entirely. Eligible single parents can now apply year-round without competing for limited spots.
No Income Limit
Previously capped at $125,000 per year, the income threshold has been removed from October 2025, opening the scheme to higher-earning single parents who were previously excluded.
Higher Price Caps
Property price limits have been raised across all states and territories to reflect current market values, giving buyers access to a wider range of suitable properties.
Stability for Families
Beyond the financial savings, the scheme provides a platform for long-term housing security — helping families put down roots with the full protections of homeownership.
Important: Although the scheme allows a 2% deposit, you must still have sufficient funds to cover additional costs such as stamp duty, legal fees, conveyancing, lender charges, and other government fees associated with property transactions. Always plan for these costs before applying.
Eligible Property Types
The scheme supports a variety of residential property types — all must be owner-occupied and within the applicable price cap.
Established Homes
Existing houses, townhouses, or apartments already built and ready to move into.
Newly Built Homes
Newly constructed properties purchased directly from a developer or builder.
House & Land Packages
Buy land and enter a building contract — both must be part of the approved lending arrangement.
Off-the-Plan
Apartments or townhouses in developments still under construction.
Vacant Land + Build
Purchase vacant land and sign a building contract with a licensed builder.
Not Eligible
Investment properties, holiday homes, commercial properties, and owner-builder arrangements are not eligible under the scheme.
Property Price Caps
Effective October 2025, caps have been raised across all states and territories. Your property must fall at or below these thresholds.
| State / Territory | Metro / Capital City | Regional |
|---|---|---|
| New South Wales | Increased (Oct 2025) | Increased (Oct 2025) |
| Victoria | Higher for Melbourne & Geelong | Updated |
| Queensland | Brisbane, Gold Coast, Sunshine Coast increased | Updated |
| Western Australia | Updated Oct 2025 | Updated Oct 2025 |
| South Australia | Updated Oct 2025 | Updated Oct 2025 |
| Tasmania | Updated Oct 2025 | Updated Oct 2025 |
| ACT | Updated Oct 2025 | — |
| Northern Territory | Updated Oct 2025 | Updated Oct 2025 |
* Exact price caps vary by region. Always verify the most current thresholds at housingaustralia.gov.au before proceeding.
How to Apply
You cannot apply directly with the government. All applications go through participating lenders or an authorised mortgage broker.
Submit Home Loan Application
Apply through a participating lender. They assess your income, expenses, credit history, and borrowing capacity. If eligible, the lender requests a guarantee reservation — this typically takes around 14 days.
Receive Pre-Approval
Once your financial position is assessed, the lender may issue pre-approval. Your scheme reservation can be extended up to 90 days while you search for an eligible property.
Sign Contract of Sale
After finding a suitable property, sign the contract of sale. Immediately notify your lender — they must inform Housing Australia to extend the reservation by a further 30 days.
Loan Finalisation & Settlement
The lender completes all processing, documentation, and settlement arrangements. If requirements are satisfied within the reservation period, the loan proceeds to settlement.
Lender reviews your application and requests the guarantee reservation.
Pre-approval period — find and sign a contract on an eligible property.
After signing the contract, finalise all documentation and proceed to settlement.
Participating Lenders
More than 30 lenders are approved to offer the Family Home Guarantee, including major banks, regional banks, and credit unions.
Major Banks
Regional Banks, Credit Unions & Customer-Owned Lenders
Broker tip: Each lender has its own credit policies, income assessment rules, and documentation requirements. A mortgage broker can compare multiple participating lenders to help you find the best rate and the most flexible approval criteria for your situation — at no cost to you. For the most current lender list, visit housingaustralia.gov.au.
Frequently Asked Questions
Everything you need to know before you apply for the Family Home Guarantee.