By Chaice Paterson, CEO & Founder, Low Deposit Homes | Updated June 2026
The Family Home Guarantee is one of the most powerful government programs available to single parents in Australia in 2026 — and most single parents don’t know it exists. Under the Federal scheme, eligible single parents and legal guardians of at least one dependent child can purchase a home with as little as 2% deposit ($20,000 on a $1 million property) and pay zero Lenders Mortgage Insurance. Since October 2025, the scheme has been expanded with no income cap and unlimited places, making it more accessible than ever. At Low Deposit Homes we’ve structured Family Home Guarantee applications for single parents across Queensland and Victoria — this guide breaks down exactly how it works.
What Is the Family Home Guarantee?
The Family Home Guarantee (FHG) is a Federal Government program administered by Housing Australia. It allows eligible single parents and legal guardians to purchase a home with a deposit as low as 2%, while the government guarantees up to 18% of the property value to the lender. This eliminates the lender’s requirement for Lenders Mortgage Insurance.
For the official source, see the Housing Australia Family Home Guarantee page.
The structure is straightforward:
- You contribute: 2% minimum deposit
- Government guarantees: Up to 18% of the property value to the lender
- Lender treats your loan as: 80% LVR (no LMI required)
- Your loan: 98% of the property value
- You own: 100% of the property
Unlike Help to Buy or Boost to Buy, the Family Home Guarantee is not a shared equity scheme. The government doesn’t take ownership of any part of your home. They provide a guarantee that reduces the lender’s risk, in exchange for a small ongoing fee.
How Much Deposit Do I Actually Need?
For a $750,000 new build in Melbourne’s north under the Family Home Guarantee:
| Item | Amount |
|---|---|
| Property price | $750,000 |
| Your deposit (2%) | $15,000 |
| Stamp duty (FHB exemption) | $0 |
| LMI | $0 (FHG guarantee) |
| Legal/settlement | ~$4,000 |
| Total cash on hand needed | ~$19,000 |
For an $850,000 new build in South East Queensland:
| Item | Amount |
|---|---|
| Property price | $850,000 |
| Your deposit (2%) | $17,000 |
| Stamp duty | $0 (FHB new build exemption) |
| LMI | $0 (FHG guarantee) |
| Legal + lender fees | ~$3,500 |
| Total cash on hand needed | ~$20,500 |
For comparison, the same single parent without the Family Home Guarantee would typically need $80,000–$120,000 to purchase the same property under standard financing. The FHG is the difference between owning a home now and waiting another decade.
“The Family Home Guarantee is genuinely life-changing for the single parents we work with. It’s not a marginal benefit — it’s the difference between renting forever and owning a home. The income cap was removed in October 2025, which means higher-earning single parents now qualify too. Most don’t know yet.” — Chaice Paterson, founder of Low Deposit Homes
Who Qualifies for the Family Home Guarantee in 2026?
To qualify you must:
- Be a single parent or legal guardian with at least one dependent child
- Be an Australian citizen or permanent resident aged 18+
- Be the sole applicant — you cannot be in a de facto relationship or married
- Have at least 2% deposit (genuine savings)
- Purchase a property within the price cap for your area
- Intend to live in the property as your principal place of residence
Important: you don’t need to be a first home buyer. The Family Home Guarantee is available to single parents who have previously owned property and are re-entering the market — for example, after a divorce or sale of a prior home.
What’s Different Since October 2025?
The Federal Government expanded the Home Guarantee Scheme (including the Family Home Guarantee) on 1 October 2025. The key changes:
- No income cap. Previously, eligible single parents needed taxable income under $125,000. Now there’s no income limit — higher-earning single parents qualify.
- Unlimited places. Previously capped at 5,000 places per financial year. Now uncapped — no waitlists.
- Higher property price caps. Aligned with the expanded 5% Deposit Scheme caps.
This is a significant expansion. Most single parents who weren’t eligible under the old rules (income too high, scheme places exhausted) are now eligible under the 2026 rules.
What Are the Property Price Caps?
The Family Home Guarantee price caps match the 5% Deposit Scheme caps:
- Brisbane and major regional QLD centres: $1,000,000
- Other QLD regional: $700,000
- Melbourne and Geelong: $950,000
- Other VIC regional: $650,000
For Low Deposit Homes single parent clients, the most common purchases sit in the $750K–$1M range — well-suited to the caps in both QLD and VIC.
How Does the Family Home Guarantee Differ From Other Schemes?
For single parents specifically, there are three main paths:
| Factor | Family Home Guarantee | 5% Deposit Scheme | Help to Buy |
|---|---|---|---|
| Deposit | 2% | 5% | 2% |
| LMI | $0 (gov guarantee) | $0 (gov guarantee) | $0 (low LVR) |
| First home buyer required | No | Yes (or no property in past 10 years) | No (first-time or returning) |
| Income cap | None | None | $100K single / $160K couple or single parent with dependant |
| Shared equity (gov owns part) | No | No | Yes (up to 40%) |
| Can convert to investment later | Yes (after residency met) | Yes (after residency met) | No |
| Best for | Single parents with dependants who want full ownership | Standard FHB couples | Income-constrained buyers who want low weekly repayments |
For many single parents in 2026, the Family Home Guarantee is a strong option. Two reasons it works well:
- You own 100% of the property — unlike Help to Buy where the government owns up to 40%.
- No income cap — unlike Help to Buy which has the $160K single-parent-with-dependant cap.
That said, the Family Home Guarantee isn’t automatically the right choice for every single parent. Because you take out a 98% loan, weekly mortgage repayments are higher than Help to Buy on the same property. For single parents whose serviceability is tight, Help to Buy may deliver a more manageable weekly outcome — the trade-off being shared capital growth with the government. The 5% Deposit Scheme is also a strong option for single parents who can save a 5% deposit and want full ownership without the higher 98% LVR loan.
The right scheme depends on your specific income, savings, weekly cash flow preference, and long-term plans. We compare all three on the discovery call.
Common Eligibility Traps
Across single parent clients we’ve worked with, several traps recur:
- De facto relationship status. The scheme is for single applicants only. If you’re in a registered de facto relationship — even informally — you don’t qualify.
- Dependent child definition. “Dependent child” means under 16, or a 16–24-year-old in full-time study. Adult children no longer in education don’t count toward eligibility.
- Taxable income vs cash flow. Even though the income cap was removed in October 2025, lenders still assess your borrowing capacity based on income. Your actual borrowing power depends on income, dependents, child support, HECS, and other commitments.
- Child support. Child support payments received don’t count as taxable income for FHG eligibility (good news), but lenders generally do count it toward serviceability (also good news for borrowing power).
How Do I Apply?
You don’t apply directly to Housing Australia — applications go through a participating lender. The Low Deposit Homes process:
- Free 15-minute consultation — we confirm your eligibility for the Family Home Guarantee and identify alternative schemes if needed
- Pre-approval through a participating FHG lender (most major banks and many credit unions participate)
- Property selection — house and land package in approved corridor
- Contract and unconditional finance
The Family Home Guarantee has unlimited places since October 2025, so there’s no urgency around place reservation — but property availability moves quickly.
Frequently Asked Questions
Do I need to be a first home buyer to use the Family Home Guarantee?
No. This is one of the most important features of the Family Home Guarantee — you don’t need to be a first home buyer. The scheme is specifically designed for single parents and legal guardians, including those who have previously owned property (for example, after a divorce or property sale). You must not currently own residential property at the time of applying.
What counts as a dependent child for Family Home Guarantee eligibility?
A dependent child is generally a child under 16, OR a 16–24-year-old engaged in full-time secondary or tertiary education. The child must be legally dependent on you (your child, adopted child, or in your legal guardianship). Child support received doesn’t disqualify your application.
Can I use the Family Home Guarantee for a new build?
Yes. The scheme works for both new builds and established homes. For most single parent clients, new builds are mathematically stronger because they stack with the QLD or VIC stamp duty exemption (saving $30K+) and access depreciation benefits if eventually converted to investment.
What happens if I get into a new relationship after using the Family Home Guarantee?
The eligibility test is at the point of application. If you qualify as a single parent at the time of purchase and the loan is approved, your single status at that moment is what counts. You don’t lose the guarantee or face penalties if your relationship status changes afterward.
Can I rent out my Family Home Guarantee property?
Not initially. The scheme requires you to live in the property as your principal place of residence for a minimum period (typically 6–12 months from settlement). After that period, you may be able to convert to an investment property depending on your lender’s terms and the specific scheme conditions. This is significantly more flexible than Help to Buy, which prohibits renting out at any point.
Ready to See If You Qualify for the Family Home Guarantee?
Book a free 15-minute consultation with Low Deposit Homes — Book your free call | Call 1800 920 172
We’ve helped 1000+ families navigate the government home ownership schemes. The Family Home Guarantee was expanded in October 2025 and most single parents still don’t know they qualify under the new rules. The consultation is free, and we’ll confirm in 15 minutes whether the FHG is the right path for you.
Low Deposit Homes operates under Winning Homes Australia Pty Ltd (ACN 633 321 758). All deposit calculations are indicative and based on general scenarios. Individual circumstances may vary. Government grant eligibility is subject to assessment by the relevant authority. This guide is for informational purposes and does not constitute financial advice.