From Thursday 1 July 2021, 10,000 Family Home Guarantees (FHG or Scheme) will be available to eligible single parents.

Customers can use the Family Home Guarantee to build a new home or buy an existing home with as little as a 2% deposit. Both first home buyers and previous homeowners can apply to purchase an owner-occupied property as their principal residence.

Important information

  • Applicants must be an eligible single parent with at least one dependent child
  • 2% deposit must be a ‘genuine contribution’ as per the lenders credit policy
  • There are no restrictions on prior home ownership, but applicants can’t currently own a home
  • Property must be the buyer’s primary place of residence
  • Limited to Australian Citizens, aged 18 or over with income of $125,000 or less as declared in their FY21 (ending 30 June 2021) income tax return
  • You will need your 2021 Notice of assessment from the Australian Tax office to confirm earnings
  • Contracts must be dated on or after 1 July 2021, except land contracts which may be dated at any time

Please note: While the National Housing and Finance Investment Corporation (NHFIC) can support customers with a minimum 2% deposit, any deposit requirements set out by the vendor must be complied with and provided by the customer. NHFIC will not cover upfront costs (including stamp duty, conveyancing, etc.).

 

What are the Government Guarantee Schemes available?

From 1 July 2021 there will be three different Government Guarantee Schemes available to customers, each with specific eligibility criteria that customers will need to satisfy.

  • First Home Loan Deposit Scheme (FHLDS)
  • New Home Guarantee (NHG)
  • Family Home Guarantee (FHG)

Information regarding these programs and how to apply is detailed below:

 

First Home Loan Deposit Scheme (FHLDS)

The First Home Loan Deposit Scheme is an Australian Government initiative, administered by the National Housing Finance and Investment Corporation (NHFIC), and aimed at supporting eligible first home buyers purchase or build their first home sooner.

Under the Scheme, NHFIC will provide a guarantee of up to 15% meaning eligible first home buyers are able to purchase or build a new or existing home (subject to meeting eligibility requirements) with a deposit as little as 5%.

There are 10,000 FHLDS places available each financial year to a panel of lenders.

Eligible borrowers can use the guarantee in conjunction with other government programs like the First Home Super Saver Scheme, state and territory First Home Owner Grants and stamp duty concessions. Refer to First Home Owners Grant Scheme (FHOGS) for more information.

FHLDS cannot be used in conjunction with NHG or FHG. The guarantee is not a cash payment.

Cannot be used in conjunction with the HomeBuilder scheme where the HomeBuilder funds are required to complete the build.

 

New Home Guarantee (NHG)

Similar to FHLDS, the New Home Guarantee (NHG) is Australian Government Initiative aimed at supporting eligible first home buyers purchase a home. Whilst FHLDS places are available for both new and existing properties, NHG places are only available to customers building or purchasing an eligible new home.

As with FHLDS, under the Scheme NHFIC will provide a guarantee of up to 15% meaning eligible first home buyers are able to purchase or build a new or existing home (subject to meeting eligibility requirements) with a deposit as little as 5%.

There are 10,000 NHG places available for the FY22 financial year to a panel of lenders.

Eligible borrowers can use the guarantee in conjunction with other government programs like the First Home Super Saver Scheme, state and territory First Home Owner Grants and stamp duty concessions. Refer to First Home Owners Grant Scheme (FHOGS) for more information.

The NHG cannot be used in conjunction with FHLDS or FHG. Cannot be used in conjunction with the HomeBuilder scheme where the HomeBuilder funds are required to complete the build.

 

Family Home Guarantee (FHG)

The Family Home Guarantee (FHG) is an Australian Government Initiative aimed at supporting eligible single parents to build or purchase a new or existing home. Unlike FHLDS and NHG, customers do not have to be first home buyers to be eligible for FHG and can have held property in the past. They must however not currently own any property (including investment property).

Under the FHG Scheme NHFIC will provide a guarantee of up to 18% meaning eligible customers are able to purchase or build a new or existing home (subject to meeting eligibility requirements) with a deposit of as little as 2%.

There are 10,000 FHG places available for the FY22 financial year to a panel of lenders.

Eligible borrowers can use the guarantee in conjunction with other government programs like the First Home Super Saver Scheme, state and territory First Home Owner Grants and stamp duty concessions. Refer to First Home Owners Grant Scheme (FHOGS) for more information.

The FHG cannot be used in conjunction with FHLDS or NHG. Cannot be used in conjunction with the HomeBuilder scheme where the HomeBuilder funds are required to complete the build.

 

More Information

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