With the cost of living and rental prices increasing, saving for a new home deposit can be a real challenge, particularly for single parents.
On 8 May 2021, under the 2021- 2022 Budget, the Australian Government announced the extension of the FHLDS (New Homes) and the establishment of a new program called the Family Home Guarantee.
Usually, home buyers with less than a 20% deposit need to pay lenders mortgage insurance. Under this Scheme, part of an eligible home buyer’s home loan from a Participating Lender will be guaranteed by NHFIC.
This allows eligible single parents with dependants the opportunity to build a new home or buy an existing home with a deposit of only 2% - subject to the individual’s ability to service a home loan.
From 1 July 2021, 10,000 Family Home Guarantees will be made available over four financial years.
The Family Home Guarantee is aimed at single parents with dependants, regardless of whether that single parent is a first home buyer or previous owner-occupier.
Applicants must be Australian citizens, at least 18 years of age and have an annual taxable income of no more than $125,000. You can find up to date information about the eligibility criteria at the Government website below.
All applications for the Family Home Guarantee need to be made directly with one of the Scheme’s Participating Lenders (or their authorised representatives, i.e. a mortgage broker).
If you're a single parent and would like to take advantage of the Family Home Guarantee, it's a great opportunity to secure your own new home with only 2% deposit.
As part of our service, our finance team assists buyers to take advantage of eligible Government grants and incentives.
Eligible first home buyers can take advantage of the Family Home Guarantee in conjunction with other government programs such as the First Home Super Saver Scheme, First Home Owner Grants and stamp duty concessions.
Speak to our team to explore your options.
For the latest updates and more information on the Family Home Guarantee visit https://www.nhfic.gov.au/