The Family Home Guarantee Scheme (FHG) is an initiative drawn by the Australian Government, designed to support single parents or single legal guardians of at least one dependent child to buy their dream home sooner. It is operated by Housing Australia, the Australian government’s independent national housing authority. The FHG operates under the broader Home Guarantee scheme that aims to make home ownership more accessible, especially for those who struggle to save large deposits.
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What is the Family Home Guarantee Scheme?
A family home guarantee is a scheme, like several other government initiatives in the country, that supports disadvantaged Australians in achieving home ownership sooner. Perhaps you’re a single mother who’s raising her child alone? Your ability to factor the costs for a home loan application is much lower than that of a complete family. Mortgage Loans for single mothers raising children by themselves can be challenging, from deposits to repayments, they can get taxing. The Family Home Guarantee aims to ease this financial pressure and make property ownership attainable regardless of your circumstances. It could be your very own single mom mortgage solution.
Under the FHG, eligible single parents can purchase their home with a deposit of as little as 2%, rather than the standard 20% typically required by lenders. Importantly, borrowers using the scheme also avoid paying Lenders Mortgage Insurance (LMI), which can otherwise add tens of thousands of dollars to the cost of a home loan.
Beginning from the 1st of October 2025, the scheme has expanded to include unlimited places, higher property price limits, and eliminated income limitations across several states and territories, alongside continued availability as part of the Government’s broader Home Guarantee Scheme.
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How does the FHG work?
Under the Family Home Guarantee Scheme, Housing Australia supports eligible borrowers by guaranteeing up to 18% of the property’s value to a participating lender. Normally, lenders require a 20% deposit to avoid paying Lenders Mortgage Insurance (LMI); however, under the Family Home Guarantee, borrowers are only required to pay 2% deposit.
When the borrowers 2% deposit scheme is combined with the 18% government guarantee, the lender can approve a loan of up to 98% of the property’s value. Because part of the loan is backed by the government, LMI is usually not required, which can save you thousands upfront.
To access the Family Home Guarantee Scheme, you simply need to apply for a loan with a participating bank or lender. The lender assesses your financial situation, confirms your eligibility and then reserves your place in the scheme. Given that you cannot apply directly to Housing Australia, consulting your broker and wisely choosing your representative increases the chance of success.
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Who is Eligible?
To be eligible for the Family Home Guarantee, applicants must meet all of the following requirements:
- Single parent or a Single Legal Guardian: You must either be a biological or adoptive parent of a dependent child. A legal guardian responsible for the child’s day-to-day care, welfare and development also counts. Overall, the child should be in your sole care. You may also be eligible if you’re the parent or guardian of a person who receives disability support and lives with you. Overall, the family guarantee is the single parent mortgage solution of your dreams.
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Please note that you are not considered single if you are married or in a de facto relationship. At the same time, if you’re separated but not divorced, you are not eligible under this scheme.
- Australian Citizen or Resident: You must be an Australian citizen or a permanent resident.
- Age Requirement: You must be at least 18 years old to apply.
- Income Limit: Your taxable income must not exceed $125,000 per year. This is assessed using your most recent Notice of Assessment from the Australian Taxation Office. Child support payments are not counted as income for this purpose.
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While the Home guarantee scheme, which includes the FHG, has introduced no income caps, the current guidance doesn’t explicitly state so; thus, consulting your broker or lender before making assumptions is vital.
- Sole Borrower or Owner: You must be the only person listed on the home loan and on the property title. Joint applications are not allowed under the Family Home Guarantee Scheme.
- Deposit Requirement: A minimum of 2% deposit of the property’s value is required. The home loan deposit must be genuine savings or from any acceptable fund source specified by the lender.
- Property and Loan Conditions: The property bought with the loan should be the principal place of residence. The loan must be a principal and interest loan. The term shouldn’t exceed the 30-year mark.
- Existing Property Ownership: At the time of entering into the home loan, you must not have an existing home or own another property in Australia, including land or company title interests.
Also Read: Understanding Debt to Income Ratio in Australia.
What Type of Properties are Eligible?
The Housing Australia Family Home Guarantee Scheme allows eligible parents or guardians to buy owner-occupied residential properties. While the purchase price must be below the set threshold across Australia, the scheme applies to all loans taken for purchasing existing houses, townhouses, apartments, house and land packages, off-the-plan homes or even vacant land with a separate contract to build a new home.
You must intend to live in the property as your primary residence. Only residential properties are eligible; investment properties do not apply.
What are the Property Price Caps for the Family Home Guarantee?
If you’re looking to buy your first home through the Family Home Guarantee Scheme, there are limitations you need to consider, specifically price caps. The price varies by state and territory, based on whether the property is located in a capital city, a regional centre or anywhere apart from the mentioned two but within the state.
As of October 1, 2025, the Australian government introduced significant increases to the property price caps, allowing eligible buyers to have access to a wider range of homes. However, property price caps are subject to review and change; always remember to check with your participating lender to confirm the correct price cap for your specific location.
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Price Caps Before October 1, 2025
| State / Territory | Capital City & Regional Centres | Rest of State / All Areas |
| NSW | $900,000 | $750,000 |
| VIC | $800,000 | $650,000 |
| QLD | $700,000 | $550,000 |
| WA | $600,000 | $450,000 |
| SA | $600,000 | $450,000 |
| TAS | $600,000 | $450,000 |
| ACT | $750,000 | – |
| NT | $600,000 | – |
| Jervis Bay & Norfolk Island | $550,000 | – |
| Christmas & Cocos Islands | $400,000 | – |
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Price Caps After October 1, 2025
| State / Territory | Capital City & Regional Centres | Rest of State / All Areas |
| NSW | $1,500,000 | $800,000 |
| VIC | $950,000 | $650,000 |
| QLD | $1,000,000 | $700,000 |
| WA | $850,000 | $600,000 |
| SA | $900,000 | $500,000 |
| TAS | $700,000 | $550,000 |
| ACT | $1,000,000 | – |
| NT | $600,000 | – |
| Jervis Bay & Norfolk Island | $550,000 | – |
| Christmas & Cocos Islands | $400,000 | – |
The new price caps apply to all Home Guarantee schemes, including the Family Home Guarantee and the First Home Guarantee.
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How to Apply?
As mentioned before, to apply for the Australian Family Home Guarantee Scheme, you must work directly with a participating lender, bank or a trusted mortgage broker. You cannot directly apply to a government agency. Speaking with a broker early in the process can help you understand whether the scheme is suitable for you and if you meet the key eligibility requirements before submitting a formal application.
Once you decide to proceed, your lender will guide you through their standard home loan application procedure. This includes collecting documents, everything from proof of identity, citizenship, permanent residency, your most recent ATO Notice of Assessment to confirm your income, to the evidence that you are a single parent or legal guardian and proof of your deposit or savings. With the provided information, a mortgage broker can help you compare lenders and loan features if you haven’t decided on one yet.
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If you meet the eligibility criteria, the lender will assess your financial position, your income, expenses, credit history and borrowing capacity. If the inspection is successful, the lender will request a Family Home Guarantee place from Housing Australia for you. Once you’ve done your part, the lender is responsible for everything else; ensure a transparent exchange on your end.
After your application is conditionally approved, you are usually given up to 90 days to find a suitable property and sign a contract of sale that meets the applicable property price cap of your location. Your lender will continue to support you during this stage, ensuring that the property and loan remain compliant with the scheme’s requirements. Once your loan receives final approval and settlement is complete, you must move into the property within six months and remain as a resident.
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Essential Tips for Successfully Utilising the Family Home Guarantee Scheme
Check Your Eligibility Early: The Family Home Guarantee (FHG), like other Home Guarantee initiatives, has specific eligibility requirements. These include citizenship or residency status, limits on income and the value of property that can be purchased, ie the price cap. Single parents or single legal guardians must also meet family and ownership criteria. Doing your research early can save time and disappointment later down the line.
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Understand the Property Price Caps: Property price caps vary depending on the state or territory, as well as whether the property is located in a capital city, regional centre or other regional areas. In some cases, regional centres share the same price caps as capital cities. Make sure you understand the cap that applies to the specific suburb or postcode you’re considering. Your lender or broker can confirm this before you make an offer on a property.
Try Regional Areas: If the property prices in your preferred area exceed the FHG price caps or your borrowing capacity, consider expanding your search to regional areas. Many regional locations are eligible under the scheme and often offer significantly more affordable housing options. This can improve your chances of securing a suitable home while staying within the specified limits, and you may discover benefits you hadn’t previously considered. Try using our borrowing power calculator to estimate exactly how much home you can afford.
Choose the Right Home Loan: While the Family Home Guarantee allows eligible buyers to purchase a home with a deposit as low as 2%, it’s still essential to choose a home loan that suits your long-term financial goals. Compare interest rates, loan features, repayment flexibility and fees. The scheme supports your purchase, but selecting the right loan product will help you ensure your mortgage remains manageable over time. Even though the burden of the deposit is off your shoulders, your loan is still your responsibility after all.
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Act Quickly Once Approved: Once your lender secures conditional approval under the scheme, you’ll generally have up to 90 days to purchase a suitable property. Stay organised, have your finances ready and shortlist your preferred locations. This can help you act quickly and make the most of your selection.
Seek Professional Guidance: Working with a lender or a mortgage broker isn’t just essential for the application itself but also for you. With someone who understands the Family Home Guarantee Scheme, the whole process will be smoother. They can guide you through eligibility checks, property requirements and the application procedure, helping you avoid common mistakes, reduce delays and improve your overall buying experience.
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Family Home Guarantee Scheme QLD
The Family Home Guarantee Scheme in QLD operates in much the same way as it does across the rest of Australia. To be eligible, you must be a single parent or a single legal guardian, at least 18 years old and an Australian citizen or a permanent resident at the time of signing your home loan contract.
Since property caps differ and depend on where you’re buying, for the capital city and major regional centres in Queensland, including Brisbane, Gold Coast and the Sunshine Coast, the price cap is $1,000,000, effective from 1 October 2025 onward. In other areas of Queensland, however, it’s up to $700,000.
It’s essential to check the specific price cap for the postcode where you plan to buy, as the limits can differ across Queensland. Your mortgage broker can help confirm the correct cap in your area. To make the most of the scheme, get pre-approval early and act quickly once your approval is granted.
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FHG Alternatives For Single Parents and Legal Guardians
If you aren’t able to qualify for the Family Home Guarantee Scheme for whatever reason, there’s no particular reason to panic; you still have plenty of options. There are still government-backed options and relevant schemes available that can help reduce the upfront costs of buying a home or make saving for a deposit easier.
- First Home Guarantee: The First Home Guarantee Scheme, as the name suggests, is designed for eligible first home buyers. It allows you to purchase a home with as little as a 5% deposit, without paying Lenders Mortgage Insurance (LMI).
- Help to Buy Scheme: The Australian Government Help to Buy scheme is a shared equity initiative that allows potential home buyers to purchase a property with just 2% deposit. The government contributes a portion of the cost and becomes a silent co-owner alongside the homeowner.
- First Home Super Saver Scheme: This one helps buyers use voluntary contributions from their superannuation to boost their deposit. You can withdraw some contributions plus your earnings to help reach your deposit goal faster. While it doesn’t guarantee a loan approval, it’s an effective way to strengthen your deposit and improve your borrowing power.
- State and Territory Grants and Schemes: In addition to federal programs, each state and territory offers its own home buyer support program. For instance, the First Home Owner Grant in QLD provides a cash grant for eligible buyers, and first home buyers may also be eligible for stamp duty concessions.
In several cases, you can combine multiple schemes, perhaps use a state grant alongside a federal scheme? Always remember to check eligibility carefully, as some programs are limited to first home buyers or have income and property value limitations. If you’re new to the market, First Home Buyer Grants and Schemes are exactly the cut for you.
As a single caregiver, you already have a lot on your plate. Worrying about how to buy a home shouldn’t be another overwhelming burden. Whether you’re a single mother, single father or a legal guardian, getting a mortgage doesn’t need to be complicated. After all, a single parent home loan should be straightforward, achievable and supportive.
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The Family Home Guarantee Scheme is designed to do exactly that, making it easier for single mums and dads to achieve their home ownership goals without breaking the bank. With recent updates to the scheme, even greater opportunities have emerged. With no income limits and increased property price caps, eligible buyers now have a wider range of options. You could be closer to owning your dream property than you might think.
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FAQs
Can I get help with my mortgage as a single mum?
Yes, you can receive assistance for your mortgage as a single mum, dad or legal guardian. The Family Home Guarantee Scheme is designed specifically to help eligible single parents purchase a home with a deposit as low as 2% without paying Lenders Mortgage Insurance (LMI).
Can a Permanent Resident apply for the Family Home Guarantee Scheme?
Yes, a Permanent Resident in Australia can apply for the Family Home Guarantee, provided they meet all other eligible criteria.
Can I use a broker to apply for the Family Home Guarantee?
Absolutely. You can apply for the Family Home guarantee through a participating lender, either directly or with the help of a mortgage broker. Using a broker can be especially helpful, as they can check your eligibility, compare lenders and guide you through the application process from start to finish.
Does the Family Home Guarantee Scheme have additional Fees?
The FHG scheme does not charge any application or participation fees. The government guarantee simply allows eligible buyers to borrow with a smaller deposit and avoid LMI. However, standard home loan costs do apply.
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