2024 Guide to the Family Home Guarantee Scheme
The Family Home Guarantee Scheme can allow eligible single parents to purchase their first home with as little as a 2% deposit without paying additional fees like Lenders Mortgage Insurance (LMI).
What is the Family Home Guarantee Scheme?
The Family Home Guarantee Scheme allows for a smaller deposit (2%) than the First Home Guarantee, which can allow eligible First Home Buyers to purchase with as little as a 5% deposit. Of course, when purchasing a property there are additional costs to consider than just paying your deposit. Your friendly mortgage broker from Australian Finance Brokerage will assist you in work- shopping the funds you’ll require for your purchase.
Who can use the Family Home guarantee?
applying as an individual
a single parent or single legal guardian of at least one dependent (see Eligible
Single Parent and Eligible Single Legal Guardian note below)
an Australian citizen or permanent resident at the time they enter the loan
at least 18 years of age
earning no more than $125,000 per year
intending to be the owner-occupier of the purchased property
NOT currently owning property, or upon settlement of the guaranteed property they’re buying, not intending to own a separate property.
What properties are eligible for the Family Home Guarantee Scheme?
The Family Home Guarantee Scheme limits the amount you’re able to purchase your property for while using the scheme. The maximum acceptable purchase price depends on the state and location of your purchase. We’ve summarised the maximum price caps for each location below:
| State/territory | Capital City/Regional Centre | Rest of state |
|---|---|---|
| NSW | $900,000 | $750,000 |
| VIC | $800,000 | $650,000 |
| QLD | $700,000 | $550,000 |
| WA | $600,000 | $450,000 |
| SA | $600,000 | $450,000 |
| TAS | $600,000 | $450,000 |
| ACT | N/A | $750,000 |
| NT | N/A | $600,000 |
| Jervis Bay Territory & Norfolk Island | N/A | $550,000 |
| Christmas Island & Cocos (Keeling) Island | N/A | $400,000 |
Source: Housing Australia Property Price Caps
Not sure which category your property falls into? Reach out to your mortgage broker at Australian Finance Brokerage who will confirm.
How do you secure a spot on the Family Home Guarantee Scheme?
Securing your spot on the Family Home Guarantee Scheme is simple by using our team at Australian Finance Brokerage. Similar to the First Home Guarantee Scheme, there are 33 lenders across Australia offering places in the Family Home Guarantee Scheme.
Your broker will help you review the lenders and secure your spot on the First Home Guarantee Scheme.
FAQ
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No, you cannot currently use any of the Federal Government Home Guarantees to purchase an investment property. Speak to one of our friendly mortgage brokers to learn what great investment loan options may be available, or to learn more about the Federal Guarantee Schemes.
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Even if you don’t qualify for your preferred Federal Guarantee Scheme, Australian Finance Brokerage may be able to match you with a great First Home Buyer offer from one of our lenders. If you’re looking for an investment property, we’ll be able to help with that as well.
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The Federal Home Guarantee Schemes were designed to promote and enable eligible home buyers the opportunity to purchase without the 20% deposit most lenders require without additional fees. This allows first time buyers and other eligible borrowers the opportunity to buy their homes sooner.
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The friendly team at Australian Finance Brokerage is here to guide you through your home buying journey. Buying your new home is a huge milestone that we’re excited to share with you. It’s never too early to say hello and get an understanding of the next steps for your new home.
What makes Australian Finance Brokerage different?
We work in your best interests
(not the banks)
Access to 30+ lenders in one place
Fast Turn Around Times
Ongoing support and guidance once your loan has settled
Our service is free
