The FHG is a part of an initiative by the Australian government and is supervised by the NHFIC (National Housing Finance & Investment Corporation). The Guarantee Scheme supports eligible single parents in purchasing a home.
Under the scheme, an eligible single parent with one dependent child can purchase a home – regardless if they are a first home buyer or have owned a home before. The NHFIC will guarantee part of the home loan. The eligible party should get the loan from a participating lender and can pay as little as a 2% deposit without paying Lenders Mortgage Insurance.
Read further to find out more about this scheme.
Who Is Eligible for the Family Home Guarantee Scheme?
In order to be eligible for the FHG scheme, the applicant must:
- Be single without a spouse or a de-facto partner. An individual who may be separated at the moment but not divorced isn’t considered single.
- Have at least one dependent child. The applicant should be the biological or adoptive parent of the child, and the child should be:
- A dependent child as described in Section 5 of the Social Security Act 1991.
- At least 16 years of age and under 22 years of age and receive a disability support pension as per the Social Security Act of 1991.
- Currently living with the parent.
- The parent also needs to show that he or she is legally responsible for the day-to-day care of the dependent child -whether alone or jointly with another person.
Property Requirements for Family Home Guarantee Scheme
- The applicant currently can’t own a home but may have owned one.
- The applicant must not currently have a lease of land in Australia.
- The applicant should have at least a 2% deposit for the purchase.
- The applicant should be the only name listed on the loan and the certificate of title.
Eligible Properties under Family Home Guarantee
Under the FHG, a property must be a ‘residential property to be considered eligible. Eligible residential properties include:
- A home and land package
- An existing house (townhouse or apartment)
- An off-the-plan apartment or townhouse
- A land as well as a separate contract to build the home
How Do I Apply For The Family Home Guarantee Scheme?
The application should be made directly with an FHLDS participating lender or a mortgage broker.
If you are looking for a reliable mortgage broker to apply for the FHG scheme, Peel Finance Brokers is your mortgage specialist, serving Western Australians Since 1994.
Dip. of Management (Deacon University)
Dip. of Finance/Mortgage Broking Mgt.
Assoc. Cert. of Business (Real Estate)
Assoc. of Mort. Ind. Assoc. of Aust. (AMIAA)
Terry Boag is the founder and CEO of Peel Finance Brokers and has been providing professional and loyal service to the Mandurah and southwest area for 25 years. With a long history of financial experience, Terry is reliable and dedicated to his clients, always ensuring the highest customer service and delivering strong lender relationships.