Family Home Guarantee (FHG): Supporting Single Parents to Buy
Christian Stevens, Mortgage Broker
Published December 10, 2025, 2:10 P.M ET
Learn how the Family Home Guarantee helps single parents buy a home with a 2% deposit and no LMI. Check eligibility, price caps, benefits, and how Flint can assist.
🔑 Key Facts
- The Family Home Guarantee (FHG) helps eligible single parents with dependants buy a home with as little as a 2% deposit, an important benefit for Australians wanting to secure stable housing.
- The government provides an 18% loan guarantee, allowing buyers to avoid paying Lenders Mortgage Insurance (LMI).
- Available to both first-time buyers and previous homeowners who do not currently own property.
- Buyers must meet income and property eligibility requirements and live in the home they purchase.
- Flint’s mortgage brokers help assess eligibility, compare lenders participating in the scheme, and maximise borrowing potential.
What Is the Family Home Guarantee?
The Family Home Guarantee (FHG) is part of the Australian Government’s Home Guarantee Scheme (HGS). It was created to support single parents with at least one dependent to enter the property market sooner by allowing them to buy with a 2% deposit — without LMI.
By guaranteeing up to 18% of the property value, the scheme reduces upfront costs and helps eligible buyers secure a home loan more easily while maintaining full ownership.
Who Is the FHG For?
The FHG supports:
Single parents with at least one dependent
Australians who do not currently own a home (first home buyers and returning buyers)
Applicants earning $125,000 or less annually (excluding child support)
You must be an Australian citizen aged 18+ and intend to live in the home as your principal place of residence.
How Does the FHG Work?
- Minimum 2% deposit required
- Government guarantee of up to 18% to help reach an 80% LVR
- No LMI charged by participating lenders
- Standard lender assessment applies — including credit score, income verification, and expenses
Property Price Thresholds
The FHG uses the same price caps as other HGS programs, varying by location:
- NSW Metro: $900,000
- VIC Metro: $800,000
- Regional centers: $600,000–$750,000
- Other locations: $500,000–$700,000
Benefits of the Family Home Guarantee
Buy with as little as 2% deposit — ideal for single parents with limited savings
Save thousands by avoiding LMI
Available to returning buyers — not restricted to first-home buyers
Provides faster access to secure and stable housing for families
Things to Watch Out For
Only 5,000 places available each year — early application is essential
You must still meet lender policy requirements, including serviceability
The property must be owner-occupied, not an investment purchase
📞 Need Help Buying as a Single Parent?
At Flint, our mortgage brokers specialize in helping single parents through government schemes like the Family Home Guarantee.
We assist with:
- Eligibility checks
- Comparing participating lenders
- Pre-approval and application submission
Talk to Flint today and secure a safe, stable home for your family with a 2% deposit.
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