The new Family Home Guarantee scheme, allows single parents to buy a property with as little as a 2% deposit. The government acts as a guarantor to waive the need for the lender’s mortgage insurance.
However, single parents fear that they could struggle to be approved for a loan under a new government scheme.
It will be open to first-home buyers and those who have previously owned property, subject to their ability to service a loan. But the single parents are concerned about the loan-servicing requirement and how the banks assess their ability to meet repayments.
Key things to note:
- Parents earning up to $125,000 with dependent children will be able to qualify for the scheme.
- It doesn’t help those in poverty or reliant on benefits.
- Lenders are unlikely to lend to those reliant on casual and part-time employment or support payments.
- The guarantee will have the same property price caps as the existing First Home Loan Deposit Scheme, meaning a single parent in Sydney could borrow up to $686,000 for a $700,000 home.
Family Home Guarantee could have a profound and life-changing impact for those who qualified. Still, it would only help a small number of single parents — likely those already paying high rent and who could manage mortgage repayments.
Do You Qualify For This Scheme?
Home Loan Experts can help you lodge an application for the Family Home Guarantee scheme.We have other options available if you don’t qualify for the scheme.
Discuss your situation with our mortgage brokers today, and we’ll find you a home loan for your scenario. Call us on 1300 889 743 or fill in our free assessment form.