Are you a single parent dreaming of homeownership but struggling to save a large deposit? The Family Home Guarantee Scheme might be your solution. Designed to support eligible single parents and legal guardians, this initiative enables you to buy a home with as little as 2% deposit, without paying Lenders Mortgage Insurance (LMI).
At Stryve Finance, we help Australians navigate the mortgage process every day and access this powerful government initiative that helps make homeownership possible on a low deposit.
What is the Family Home Guarantee Scheme?
The Family Home Guarantee is a government-backed initiative introduced to assist single parents or legal guardians with at least one dependent child in buying a home. The scheme allows you to purchase a property with only a 2% deposit, while the government (through Housing Australia) guarantees up to 18% of the property’s value. This means you can avoid paying Lenders Mortgage Insurance (LMI), which can add thousands to your home loan, even if your deposit is below 20%.
Whether you’re a first-time buyer or someone who previously owned property but no longer does, this scheme can help you get back into the property market faster, with far less financial burden.
Tip
Many single parents don’t realise they’re eligible even if they’ve owned a home before. If you’re unsure, we can perform a free eligibility check in minutes — start with our home loan eligibility guide.
Who Is Eligible?
To qualify for the Family Home Guarantee, you must meet a specific set of eligibility requirements:
- You must be an Australian citizen, aged 18 or older.
- You must be legally single (never married, divorced, or legally separated).
- You must have at least one dependent child in your care.
- Your taxable income must be $125,000 or less per year (not including child support).
- The home you purchase must be used as your principal place of residence.
- You cannot currently own any property in Australia.
The good news? You don’t need to be a first-home buyer. If you previously owned a home but no longer do, you’re still eligible. Read more for.
At Stryve, we’ll help confirm your eligibility quickly, so you can take the next steps without delay.
Tip
If you’re receiving Centrelink parenting payments, some lenders will count them as income; others won’t. We’ll match you with the lenders who recognise your full financial picture.
What Properties Can You Buy?
One of the great advantages of the Family Home Guarantee is its flexibility in terms of property types. Under this scheme, you can purchase:
- An existing house, townhouse or apartment
- A newly built home
- A house and land package
- Vacant land with a separate building contract
- An off-the-plan apartment or townhouse
However, the property must be classified as residential, and its purchase price must fall within specific caps based on your location. For example, the price cap in Sydney differs from that in regional NSW or Tasmania. You can read our guide on property price caps to see what limits apply in your area.
Eligible Property Types Used
If you’re unsure whether a property qualifies, Stryve’s mortgage experts are here to help you assess your options.
Tip
Some lenders apply stricter rules for off-the-plan or regional properties under this scheme. We’ve seen clients lose approval mid-process — contact us first to avoid potential deal-breakers.
How the Scheme Works
Here’s how the Family Home Guarantee Scheme simplifies the journey to home ownership:
Usually, if you can’t provide a 20% deposit, banks will charge Lenders Mortgage Insurance (LMI), which can add tens of thousands of dollars to your loan. But under this scheme, the government acts as a guarantor for up to 18% of the purchase price, so you’re only required to provide a 2% deposit and pay no LMI.
You still need to secure a home loan through a participating lender and meet the lender’s standard criteria. That’s where Stryve Finance comes in — we help you find the right lender, prepare your application, and get approved faster.
How to Apply (Step-by-Step)
Applying for the Family Home Guarantee might sound complex, but with the right guidance it’s straightforward. At Stryve Finance, we break the process into simple steps and handle most of the heavy lifting so you can focus on finding the perfect home for your family.
Step 1: Check Your Eligibility
The first step is confirming whether you meet the scheme’s criteria. At Stryve, we offer a free eligibility check and consultation to help you determine your status with no obligation.
Step 2: Choose a Participating Lender
Not all lenders offer loans under the Family Home Guarantee. We’ll match you with trusted, participating lenders who offer competitive rates and understand the unique circumstances of single parents.
Step 3: Prepare Your Documents
To apply, you’ll need a few key documents:
- Proof of identity (e.g. driver’s licence or passport)
- Your most recent Notice of Assessment from the ATO
- Documents showing dependent care (e.g. Medicare card with dependents listed)
- Bank statements and evidence of savings
We’ll guide you through gathering everything required, saving you time and stress.
Step 4: Reserve Your Place
Once your application is prepared, your lender will lodge a scheme place reservation with Housing Australia. This step is crucial — there are only 5,000 places available each year, so securing your spot early is essential.
Step 5: Find and Buy Your Home
After your reservation is confirmed, you’ll have 90 days to sign a contract of sale. If you don’t secure a property within that time, you may need to reapply; we’ll be with you every step to keep everything on track.
Tip
The 90-day window isn’t as flexible as it seems. Pre-approvals can expire and lender conditions may change if a purchase drags on. We’ll help you line up timing, lenders, and contracts with precision.
Why Choose Stryve Finance?
At Stryve Finance, we recognise the distinct challenges that single parents encounter when applying for a mortgage. Unlike banks, we’re not tied to a single set of products; we work with multiple lenders to find the best loan for you.
We will:
- Guide you through the entire Family Home Guarantee process from eligibility to approval
- Explain every step in simple language
- Support you with document prep and lender communication
- Compare interest rates across multiple lenders
- Offer personalised guidance at no cost to you
Let our team take the pressure off so you can focus on finding the perfect home for you and your family.
Frequently Asked Questions
Can I use the Family Home Guarantee more than once?
No. The scheme is limited to a single use per applicant.
Do I need to be divorced to be eligible for this program?
You must be legally single. If you’re separated but not legally divorced, you may still be eligible for benefits. We recommend consulting with our team to review your specific situation.
Can I use this scheme for an investment property?
No. The scheme only applies to homes that will be used as your principal place of residence.
Can I combine this scheme with other grants or benefits?
Yes! Many buyers combine the Family Home Guarantee with:
- The First Home Owner Grant (FHOG)
- Stamp duty concessions
- The First Home Super Saver Scheme
What if I don’t buy a home within 90 days of approval?
You may lose your place in the scheme and need to reapply, depending on availability. Our team will help you avoid this by keeping your application on schedule.
Other Government Schemes You Might Be Eligible For
Alongside the Family Home Guarantee, several other government grants and schemes can further support your path to home ownership:
- First Home Guarantee (FHBG): for eligible first-time buyers
- Regional First Home Buyer Guarantee: for those purchasing outside metro areas
- First Home Owner Grant (FHOG): a lump-sum payment in eligible states
- Stamp Duty Concessions: reduced or waived duties in some states
Speak with a Stryve Finance expert to find out which programs you’re eligible for — you might qualify for more help than you think.
Final Thoughts
The Family Home Guarantee Scheme is a game-changer for single parents looking to buy a home. By dramatically lowering the deposit requirement and removing the burden of LMI, this scheme makes home ownership more accessible than ever.
If you’re ready to stop renting and start building equity in your own home, now’s the time to act. With only 5,000 places released per year, demand is high and spaces fill quickly.
Let Stryve Finance be your partner in the journey — from eligibility to keys in hand.
Dylan Bertovic is the Director and Senior Finance Broker at Stryve Finance, specialising in non-traditional lending solutions. He helps clients across Australia with tiny home loans, construction finance, equipment and asset lending, refinancing, and investor loans. With deep expertise in self-employed and renovation mortgages, Dylan is known for crafting tailored strategies that get results
