Family Home Guarantee — Single Parent Home Buying Scheme Australia (2026)
The Family Home Guarantee (FHG) is an Australian Government scheme that allows eligible single parents or single legal guardians to purchase a home with a minimum 2% deposit — without paying Lenders Mortgage Insurance (LMI). The government guarantees the lender for the portion between the 2% deposit and 20% of the property value.
Unlike the First Home Guarantee, the Family Home Guarantee is not limited to first home buyers. Single parents who have previously owned a home may still qualify.
Key Facts (2026)
| Feature | Detail |
|---|---|
| Minimum deposit | 2% of purchase price |
| LMI payable | No |
| Income cap | $125,000 gross taxable income |
| Annual places | 5,000 |
| Eligible buyers | Single parents / single legal guardians with at least one dependent |
| First home buyer requirement | Not required |
| Administered by | Housing Australia |
Property Price Caps by State (2026)
The Family Home Guarantee uses the same property price caps as the First Home Guarantee:
| State / Territory | Capital City / Regional Centre | Regional 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 | — |
Who Is Eligible?
To qualify for the Family Home Guarantee, you must:
- Be a single parent or single legal guardian — you must be applying as an individual borrower (not jointly with another adult)
- Have at least one dependent child — a child under 18 who lives with you
- Be an Australian citizen aged 18 or older (permanent residents are not eligible for this scheme)
- Meet the income test — gross taxable income below $125,000 per year
- Not currently own any real property — you must not currently own any residential or investment property in Australia at the time of application
- Intend to occupy the property as your principal place of residence
You do not need to be a first home buyer. If you previously owned a home but sold it during or after a separation, you may still be eligible — provided you do not currently own property.
How the 2% Deposit Works
Example — $550,000 property in QLD (within price cap):
| Item | Amount |
|---|---|
| Purchase price | $550,000 |
| Minimum deposit (2%) | $11,000 |
| Loan amount | $539,000 |
| LVR | 98% |
| Government guarantee covers | Portion above 80% LVR (to protect lender up to the 20% threshold) |
| LMI payable | $0 |
Without the scheme, LMI on a 98% LVR loan on a $550,000 property would typically cost $25,000–$40,000.
What You Still Need Beyond the 2% Deposit
While the deposit requirement is just 2%, there are still other upfront costs:
- Stamp duty — varies by state; first home buyer exemptions may apply if you haven’t owned before
- Conveyancing fees — $1,500–$3,500
- Building and pest inspection — $400–$900
- Moving costs — $800–$2,500
For a single parent purchasing a $550,000 property in QLD as a first home buyer:
- Deposit: $11,000
- Stamp duty (QLD FHB concession on $550,000 new build): reduced or nil with FHOG
- Legal fees: ~$2,500
- Estimated total savings required: ~$13,500–$16,000
This is significantly more accessible than a standard 20% deposit requirement.
Serviceability Considerations for Single Parents
While the deposit requirement is low, lenders still assess whether you can service the loan. Key considerations for single parents:
- Centrelink income: Family Tax Benefit (Part A and B) is generally included in lenders’ income assessments
- Child support: received child support payments can generally be counted as income (70–100% depending on lender, with consistency of payments required)
- Single income: a single income makes it harder to borrow large amounts; realistic borrowing capacity should be assessed
- APRA buffer: lenders still apply the 3% serviceability buffer above the interest rate
Use the borrowing power calculator for an estimate, and speak with a mortgage broker who has experience with single-parent applications.
Frequently Asked Questions
Can I use the Family Home Guarantee if I’ve owned a home before? Yes — unlike the First Home Guarantee, the FHG does not require you to be a first home buyer. However, you must not currently own any residential property in Australia at the time of application.
Can de facto couples use the Family Home Guarantee? No. The FHG is specifically for single applicants only. Couples — including de facto couples — are not eligible. If you are in a relationship, the standard First Home Guarantee or another scheme would apply.
Do I need to be divorced or separated to qualify? No. The Family Home Guarantee is open to any single parent or single legal guardian with a dependent child — regardless of relationship history. There is no requirement to be divorced or separated.
What if I earn just over $125,000? If your gross taxable income exceeds $125,000, you do not qualify for the Family Home Guarantee. You may still be eligible for the First Home Guarantee (if a first home buyer) at the same income threshold, or alternative low-deposit options through standard LMI-backed lending.
Can I combine the Family Home Guarantee with the FHOG? If you are also a first home buyer purchasing a new home, you may be eligible for both the Family Home Guarantee and the First Home Owner Grant (FHOG) simultaneously. Check eligibility with your state revenue office.
Related Guides
- Home Guarantee Scheme — All Three Guarantees
- How Much Deposit Do I Need?
- Buying on One Income in Australia
- First Home Buyer Hub
This article provides general information only. Eligibility criteria are set by the Australian Government and may change. Always verify current details at housingaustralia.gov.au. For advice tailored to your situation, speak with a licensed mortgage broker or financial adviser. Find one through MoneySmart.