The Family Home Guarantee Scheme, Single Parents… What does it all mean?

The Federal Government’s new Family Home Guarantee Scheme was announced in the 2021 Federal Budget and has commenced on July 1st, 2021 with the aim to run for a four year period. The Scheme targets Australian single parents, making it easier for them to purchase their own homes with the government to guarantee home loans with deposits as low as 2%.

As the housing prices continue to rise, many single parents are seeing their dream of owning their own home slipping through their fingers. This new scheme is hoping to make their dreams a reality, there are an estimated 125,000 single parents eligible, but initially, there will only be 10,000 spots available.

What does it mean?

To address the problem that single parents face in purchasing a home, the government has greenlit this scheme to allow eligible people to purchase homes with very low deposits. Typically, a bank would prefer that you would save a 20% deposit before applying for a home loan, but now the government will guarantee loans between 2% and 20%.

Another great benefit is that the mortgage won’t be subject to lenders mortgage insurance, which could potentially save the borrower thousands of dollars. By guaranteeing the loans, the government is hoping to speed up the purchasing process and give single parents, who in the past would have found it difficult to be approved for a home loan, a leg up into the housing market.

Am I eligible?

As with all government legislation, there are a few boxes that need to be ticked to ensure that you are eligible for the Family Home Guarantee Scheme.

  • Must be an Australian citizen aged 18 years and over.
  • Single parent with at least one dependent child as defined in the Social Security Act 1991 Cth.
  • A parent is not single if they are married or in a de facto relationship. A person who is separated but is not divorced is not single.
  • Annual taxable income under $125,000.
  • Can be used to buy a new build or an existing property.
  • First home buyers and people re-entering the market are eligible.
  • Loans can’t be longer than 30 years.
  • Does not currently own any other property.
  • Must have a deposit between 2% and 20%

Are there price Caps?

As in the past, there are price limits for the property that you can purchase under the Family Home Guarantee Scheme. Depending on where you are choosing to purchase will determine your price cap, capital and major cities with populations over 250,000 have the highest thresholds.

Price Caps per State and Territory


Major City





















$500,000 – All Areas



$500,000 – All areas


Where do you go to apply ?

Participating Lenders for the Family Home Guarantee

The team at QC Law have years of experience in all things property and the team are always on hand to help you through your purchasing decision and the process that follows. Whether it's your first time buying a property or you're a seasoned property mogul, a trusted solicitor will grow to become your second greatest asset, of course after the property they help you buy.

QC LAW Solicitors

PH: 07 5657 1928

3/23 Nind St Southport

[email protected]