Family Home guarantee scheme
What is it?
Family Home Guarantee Scheme
If you’re a single parent who has at least one dependent child, the federal government’s Family Home Guarantee can get you into your own home sooner. The Family Home Guarantee lets you buy a home with as little as 2% deposit. It also helps you to avoid paying for lenders mortgage insurance, which will save you thousands of dollars.
Normally, you have to pay lenders mortgage insurance if you don’t have a deposit of at least 20%. A 20% deposit can take years to save, but you won’t have to worry about it if you’re eligible for the Family Home Guarantee!
You can be a first home buyer or a previous home owner and still be eligible for the Family Home Guarantee.
Purchase Sooner with a 5% deposit
Are you eligible
You will be eligible for the Family Home Guarantee if you can say “Yes” to all of the following:
- You are one of the first 5,000 applicants across Australia each financial year up until the end of the 2024/25 financial year.
- You are an Australian citizen
- You are at least 18 years of age.
- You are single (i.e. you don’t have a spouse or de facto partner).
- You have at least one dependent child.
- You don’t have any current financial interest in any other Australian property.
- Your net income for the last financial year is less than $125,000.
- You are buying a property to live in yourself (in other words, you’re not buying an investment property to rent out).
How much Can I Buy For?
You can purchase a brand new house, vacant land and build or an established house under the First Home Guarantee. You will need to ensure that the property is sold for less than the property price cap set for your area. To find out the exact property price cap for your area, please contact us and one of our specialists will assist you.
will the Government own my house?
No, the Government will not own part of your house under this scheme. They are essentially just going guarantor for your loan. They are putting down a guarantee to the bank that if you had to sell your house and there was a short fall, they would cover it. They are basically replacing the function of a Lenders Mortgage Insurer (LMI) without the premium.
What Will My Home Loan Repayments Be?
This depends on how much you borrow, your loan term and the comparison interest rate. Standard loan terms in Australia are 25 and 30 years. You can use our Wisebuy Home Loans loan repayment calculator to help you work out your repayments of different loan amounts over different terms and at different interest rates.
Are There Any Other First Home Buyer Concessions?
Yes. For example, eligible first home buyers in New South Wales receive a transfer (stamp) duty concession. It could save you thousands of dollars when you buy your first home. You can use our Wisebuy Home Loans stamp duty calculator to work out if you’re eligible for a full or partial concession.
Our expert team at Wisebuy Home Loans works with participating lenders in the Family Home Guarantee Scheme. We arrange home loans for a living and first home buyer loans are one of our specialties. We can help you to find the right loan for your needs.
We can guide you every step of the way, right from helping you organise a home loan pre-approval so you can negotiate and buy with confidence, through to taking ownership and moving into your new home.
Contact our Newcastle mortgage broker team to arrange a free, no-obligation consultation. Or click get started below to start the process online. We’d be happy to answer any questions you have.