22 Nov 2008
Family Home Guarantee 2022
The Family Home Guarantee Scheme, as announced in the 2022-23 Federal Budget, has been extended for 3 additional years. 5,000 additional places will be made available for qualified single parents to buy a house with a lower deposit using the Family Home Guarantee FHG.
Single parents will now be able to get a home loan with a low down payment, as was initially announced in the government budget for 2021â€“2022. The government's initiative aims to aid women who are single parents with dependent children in entering or reentering the housing market. This programme offers a less restrictive alternative for single parents to buy real estate.
Places in the scheme are limited! To find out how you can apply contact one of our Fast Repay Home Loan brokers today
The Family Home Guarantee Scheme was included in the Federal Budget for 2021â€“2022, and it became operational on July 1, 2021. The Family Home Guarantee Scheme intends to assist single parents in their journey towards home ownership based on the success of the First Home Guarantee for first-time home buyers and the HomeBuilder grant created in response to the coronavirus pandemic.
This home loan programme, like the First Home Guarantee, is centred on lowering the entry barrier by enabling single parents to buy an existing home or build a new one with a small down payment and avoid Lenders' Mortgage Insurance (LMI). Single parents will be allowed to purchase a home with less than a 5% down payment. Of course, when buying a property there will be supplementary costs involved in addition to paying the 2% deposit. During the purchase process, there are many different costs to consider.
Your Fast Repay Home Loan broker will work in your best interest to provide you with an estimate on what costs to expect.
As of the start date, 10,000 places were made available for the first year, with 5,000 places available over the remaining 3 financial years (to 30 June 2025) to eligible single parents who are looking to build a new house or purchase an existing one. The good news is this program is available to all single parents, regardless of whether theyâ€™re a first home buyer or have previously owned their own home.
These are the basic conditions that need to be met for someone to be considered eligible for the Family Home Guarantee scheme:
You must show that, in your capacity as a single parent, you are entrusted with the daily upbringing, welfare, and development of your child and that they are in your custody. Both a single mother and a father of a child may be able to independently access the Family Home Guarantee as individuals, depending on their circumstances and the specifics of any shared custody arrangement.
Please note that in order to apply for a spot in this programme from 1 July 2021 to 30 June 2022, you must submit the relevant Notice of Assessment for the previous year from the ATO.
Not all properties will be eligible because the Family Home Guarantee is an extension of the First Home Loan Deposit Scheme (FHLDS) by NHFIC. The FHLDS has property price caps that might vary depending on where you live, and this programme has similar caps. If there is a property price cap in your area, you must find out what it is.
To learn if you qualify and which lenders are a part of the programme, get in touch with your Fast Repay Home Loan broker.
Disclaimer: Information included in this post is of general nature, it has been prepared without taking into account your specific situation. It is not intended to be and does not constitute financial advice, investment advice, trading advice, or any other advice. You should not make any decision, financial or otherwise, based on any of the information presented here without undertaking independent due diligence and consultation with a professional accountant or financial adviser.
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