Family Home guarantee
Are you a single parent that needs a leg-up? We’ve got you covered.
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On the 11th of May, the Australian government released its 2021-22 budget, and there’s good news for single parents looking to build or buy their own place.
The last 18 months have been tough for many. Last year the government gave housing a boost with grants and schemes, and this year they’ve brought out new plans to help more Aussies get into the market.
The big reveal was the new Family Home Guarantee which is aimed at helping single mums and dads buy their own homes. Let’s take a closer look at the Family Home Guarantee and what it means for your family.
what is the family home guarantee?
The Family Home Guarantee (FHG) is a federal government scheme that lets single parents build new or buy an existing home with a deposit as low as 2%.
They’re making 10,000 places available in the program over the next 4 years.
The FHG is similar to the First Home Loan Deposit Scheme (FHLDS), another government guarantee that helps Aussies buy homes with deposits as low as 5%. The FHG and FHLDS aren’t grants and you’ll have to pay back the money as part of your mortgage, but lower deposits are a leg up for single parents trying to raise children and save money at the same time.
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family home guarantee FAQs
Family home guarantee explained:
To qualify for the FHG, you and the property you buy will have to meet some eligibility requirements. You need to:
- Be an Australian citizen
- Be a single mum or dad with dependents
- Have an income under $125,000 per year
- Not be the owner of any other homes
- Children must be under 16, or aged 16-21 and make under $6,403 per year
- Build a new home or buy an existing one to live in
- Comply with the FHG borrowing limits
- Move into your new home within 6 months
Stay in your new home for as long as your loan has a Family Home Guarantee applied.
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- First Home Loan Deposit Scheme. Since both the FHG and the FHLDS are designed to help low deposit buyers, you can’t access both.
- First Home Owner Grant. Eligible buyers can access both the Family Home Guarantee and their state’s First Home Owner Grant. We encourage you to contact us and speak to a New Home Guide to find out whether you’ll be able to access both schemes at once.
- First Home Super Saver. The FHG is compatible with the First Home Super Saver (FHSS) scheme. The FHSS lets you make voluntary super contributions and then use them as a deposit later, up to $50,000. The FHSS usually applies to first home buyers but exceptions exist for people who lost a home during financial hardship like a separation or divorce.