The Family Home Guarantee (FHG) has been expanded to offer 5,000 places each financial year, to eligible home buyers from 1 July 2022, until June 2025.

What is the Family Home Guarantee?

The FHG is an Australian Government initiative designed to help eligible single parent families, with at least one dependent child, purchase a family home.

Under the Scheme, the government provides a guarantee enabling eligible single parents the opportunity to purchase a new or existing home with a deposit as little as 2%, without the need to pay lenders mortgage insurance.  Applicants can be first home buyers or a previous owner-occupier.

How does the Family Home Guarantee work?

Eligible applicants can obtain a loan with a participating lender; enabling them to purchase a property with a deposit as little as 2%.  Up to 18% of the value of the property, or the balance of the remaining 20% deposit, will be guaranteed by the National Housing Finance and Investment Corporation on behalf of the Australian Government.

How many people can get assistance?

From 1 July 2022, 5,000 Family Home Guarantees will be made available each financial year until 30 June 2025.

Who is eligible?

Home buyers must meet the following criteria to be eligible.

• Australian citizen

- Applicants must be Australian citizens who are at least 18 years of age.  Permanent residents are not eligible. 

• Family status

  - You must be a single parent with at least one dependant. 

• Income

- The single parent must have a taxable income less than $125,000 per annum for the previous financial year. Child support payments are not included as income for the purpose of the income cap.

• Existing deposit

- The single parent must have saved a deposit equal to at least 2% (but less than 20%) of the value of an eligible property.

• Owner-occupier

- You must be intending to occupy the home as an owner-occupier. Investment properties are not supported by the scheme. Applicants must be first home buyers or previous owner-occupiers who do not currently own a home. 

What types of property can be purchased under the scheme?

For a property to be eligible it must be a ‘residential’ property in Australia. 

Eligible residential properties generally include:

• An existing house, townhouse or apartment
• An off-the-plan apartment or townhouse
• A house and land package
• Land and a separate contract to build a home

Is there a property price threshold?

Yes, property price thresholds have been set to ensure that the FHG is used to purchase modest homes.  The same property price thresholds apply to the First Home Guarantee.  Thresholds vary between states and territories, and between capital cities and regional areas. 

Can the scheme be used with other government incentives?

Yes, the FHG can be used in conjunction with other incentives such as the First Home Super Saver Scheme, the First Home Owners Grant and stamp duty concessions.  For more information about available incentives in your state visit:

• Victorian Government First Home Buyer Incentives

• New South Wales Government First Home Buyer Incentives

• Queensland Government First Home Buyer Incentives

• South Australian First Home Buyer Incentives

For more information download the Family Home Guarantee fact sheet or visit www.nhfic.gov.au.

_{^{Disclaimer: The above information has been sourced from www.nhfic.gov.au.  Interested parties should seek their own financial advice and make their own investigations as to eligibility for concessions, rebates, exemptions and grants. Information is correct as at July 2022, but is subject to change and no warranty, express or implied, is given as to its accuracy. AVJennings disclaims liability for any loss, damage or claim of whatever nature or kind (including negligence) incurred by any party which arises out of any alleged reliance on this article. ® Registered Trademark. © AVJennings Properties Limited. ABN 50 004 601 503. NSW Builders Licence 39168C, QLD Builders Licence No QBCC41712, VIC Builders Licence CDB-U 57318, SA Builders Licence BLD56537.}}