What is the Family Home Guarantee?
The Family Home Guarantee (FHG) is an Australian Government scheme that allows eligible single parents to purchase a home with a deposit of as little as 2% (compared to the standard 20%), without paying Lenders Mortgage Insurance (LMI). The government guarantees the difference between your deposit and 20%, meaning the lender treats your loan as if you had a full 20% deposit.
This scheme is specifically designed to help single parents and eligible single legal guardians enter or re-enter the housing market.
Who is eligible?
To qualify for the Family Home Guarantee, you must:
- Be a single parent or single legal guardian with at least one dependent child
- Be an Australian citizen aged 18 or over
- Earn no more than $125,000 per year (individual taxable income)
- Not currently own property (you can have owned previously - this is NOT a first home buyer scheme)
- Intend to live in the property as your principal place of residence
- Be purchasing an eligible property within the price caps for your area
This is NOT a first home buyer scheme
Unlike the First Home Owner Grant, the Family Home Guarantee is available to people who have previously owned property. This makes it particularly valuable for separated parents who owned a home with their ex-partner and need to buy again after settlement.
If you sold the family home as part of your property settlement and walked away with limited equity, the FHG could help you buy again with just 2% deposit.
Property price caps (2025-2026)
| Location | Price Cap |
|---|---|
| Sydney | $900,000 |
| Melbourne | $800,000 |
| Brisbane | $700,000 |
| Perth | $600,000 |
| Adelaide | $600,000 |
| Canberra | $750,000 |
| Hobart | $600,000 |
| Darwin | $600,000 |
| Regional areas | Varies, generally $500,000-$600,000 |
Price caps are reviewed regularly. Contact us for the latest caps in your area.
How much could you save?
On a $600,000 property with a 2% deposit ($12,000), you would normally need to pay approximately $15,000-$20,000 in LMI. The Family Home Guarantee eliminates this cost entirely.
Compare this to saving a 20% deposit ($120,000) - the FHG gets you into a home with just $12,000 plus purchase costs.
How to apply
- Check your eligibility - we assess your income, dependants, and property goals
- Get pre-approved - we apply with a participating lender for pre-approval
- Reserve a guarantee place - places are limited and allocated on a first-come basis
- Find your property - search within the price cap for your area
- Settle - move into your new home with minimal deposit and no LMI
Frequently asked questions
Can I use the FHG if I owned a home with my ex?
Yes. The FHG is not limited to first home buyers. If you previously owned a home jointly with your ex-partner and no longer own property, you may be eligible. This is one of the most common scenarios we help with.
Can I combine the FHG with the First Home Owner Grant?
Yes, if you are also a first home buyer purchasing a new home, you may be able to use both the FHG (2% deposit, no LMI) and the FHOG (cash grant). This combination can significantly reduce your upfront costs.
What if I receive child support or Centrelink payments?
Child support and Centrelink payments (including Family Tax Benefit and Parenting Payment) can be used to support your loan application. Many lenders accept these as supplementary income, improving your borrowing capacity.
Are places limited?
Yes. The government allocates a fixed number of FHG places each financial year. Once they are used, no more are available until the next year. We recommend applying early to secure a place.
Which lenders participate?
Major banks and several non-bank lenders participate in the FHG scheme. As a broker, we have access to all participating lenders and can find the best rate and product for your situation.