Being a single parent or guardian comes with enough challenges. Saving for a home deposit shouldn’t be the one that holds you back. Between rent, school costs, and everyday expenses, putting aside the 20% deposit most lenders want can feel impossible.
That’s where the Family Home Guarantee (FHG) can make a difference.
From 1 October 2025, the scheme has been expanded to include:
- Unlimited places no more waiting lists
- Higher property price caps across most states and territories
- Continued availability as part of the Government’s broader Home Guarantee Scheme
What Is The Family Home Guarantee?
The Family Home Guarantee is an Australian Government initiative under the Home Guarantee Scheme.
It is designed to help eligible single parents or guardians with at least one dependent child in purchasing a home with a minimum of a 2% deposit without paying Lenders Mortgage Insurance (LMI).
LMI is often charged on deposits of less than 20%. In this scheme, if the borrower pays a 2% deposit, the government will guarantee 18% of the loan, allowing the borrower to avoid paying LMI.
While the scheme helps you buy with a lower deposit, you’ll still need extra funds to cover purchase costs like stamp duty, legal fees, and government charges.
While the Family Home Guarantee allows eligible borrowers to buy a home with a 2% deposit, you may still need an additional 5% of the property price to cover costs like stamp duty and other mortgage-related expenses.
What Is The Eligibility For The Family Home Guarantee?
To qualify for the Family Home Guarantee, you:
- Must be 18 years or older
- Must be an Australian citizen or permanent resident
- Must be a single parent or legal guardian of at least one dependant child
- Cannot currently own a property. The scheme is open to first-home buyers and previous homeowners who currently do not own property
- Must have a minimum deposit of 2% of the property value
- Must buy a property within the price limit stated
No income cap applies from 1 October 2025. (Previously, taxable income was capped at $125,000.)
What Is The Property Price Cap For Family Home Guarantee?
| Region | Current Property Price Cap | Property Price Cap effective 1 October 2025 |
|---|---|---|
| NSW – Sydney and regional centres (Newcastle, Lake Macquarie and Illawarra) | $900,000 | $1,500,000 |
| NSW (rest of state) | $750,000 | $800,000 |
| VIC – Melbourne and regional centre (Geelong) | $800,000 | $950,000 |
| VIC (rest of state) | $650,000 | $650,000 |
| QLD – Brisbane and regional centres (Gold Coast and Sunshine Coast) | $700,000 | $1,000,000 |
| QLD (rest of state) | $550,000 | $700,000 |
| WA | $600,000 | $850,000 |
| WA (rest of state) | $450,000 | $600,000 |
| SA | $600,000 | $900,000 |
| SA (rest of state) | $450,000 | $500,000 |
| TAS | $600,000 | $700,000 |
| TAS (rest of state) | $450,000 | $550,000 |
| ACT | $750,000 | $1,000,000 |
| NT Regional | $600,000 | $600,000 |
| Jervis Bay Territory and Norfolk Island | $550,000 | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | $400,000 | $400,000 |
What Are The Benefits Of The Family Home Guarantee?
The benefits of the Family Home Guarantee Scheme are:
- Buy with a 2% deposit, which will help you get onto the property ladder sooner.
- No LMI, saving you thousands of dollars, as the government guarantees up to 18% of the property value.
- No income cap from October 2025, opening the scheme to higher-earning single parents who were previously excluded.
- Unlimited places from October 2025, so no need to rush or compete for spots.
- Higher property price caps give you more choices in expensive markets.
- Flexible property options so you can use the guarantee to buy or build houses, townhouses, apartments, or off-the-plan properties.
- Support for single parents, specifically tailored to help those raising children on their own.
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Get StartedHow To Apply For The Family Home Guarantee
You will go through the following process to reserve a place in the Family Home Guarantee:
Step 1: Initial home loan application
You apply for a home loan with a participating lender to make a First Home Guarantee reservation. It will take 14 days for the lender to assess your financial situation.
Step 2: Get pre-approval for a home loan
Once the lender gives you a home loan pre-approval, the reservation can be extended for a further 90 days. During this time, you have to find and sign a contract of sale for an eligible property.
Step 3: Sign contract of sale
Once you sign the contract of sale, your reservation can be extended for 30 days from the signing date.
The additional period is for you and your lender to finalise the paperwork and checks for your home loan.
To ensure the extension applies, make sure you immediately inform your lender that you’ve signed the contract of sale, so your lender can notify the NHFIC.
If you cannot finalise your home loan during this period, your reservation will expire.
We’re here to help
Home Loan Experts can help you apply for Family Home. Discuss your situation with our mortgage brokers today, and we’ll find you the best home loan for your scenario. Call us on 1300 889 743 or fill in our free assessment form.
Frequently Asked Questions
How Does Family Home Guarantee Work?
The Family Home Guarantee allows eligible single parents or guardians with at least one dependant child to buy a home with just a 2% deposit. Housing Australia then guarantees up to 18% of the loan, so you avoid paying Lenders Mortgage Insurance (LMI) — a fee that normally applies if your deposit is under 20%.
What Changes Have Happened To The Family Home Guarantee?
Is the scheme available for investment properties?
Who Are The Family Home Guarantee Lenders?
What’s a dependant child?
Can both parents apply for it?
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