By Chaice Paterson, CEO & Founder, Low Deposit Homes | Updated June 2026

The Family Home Guarantee lets eligible single parents in Australia buy their first home with just 2% deposit and zero Lenders Mortgage Insurance — on a property up to $1 million in metropolitan Queensland or $950,000 in metropolitan Victoria. There is no income cap (removed October 2025), and unlike the 5% Deposit Scheme, the Family Home Guarantee is open to BOTH first-time buyers AND returning homeowners. Single-income borrowing capacity is the real constraint: as a single parent with two dependent children, a $160,000 income typically supports borrowing of around $720K–$750K. To target property at the upper metro caps ($1M QLD), single parents generally need income closer to $200K+ — which is why Help to Buy (shared equity) is often the more practical path at lower incomes. Here’s exactly how the FHG works and how it stacks with the other schemes.

What is the Family Home Guarantee?

The Family Home Guarantee (FHG) is a Federal Government scheme operated by Housing Australia. The government guarantees the gap between your 2% deposit and the 20% LVR threshold (so up to 18% of the property value), meaning your lender doesn’t require LMI.

You own 100% of the property — unlike Help to Buy, this is NOT shared equity. The government simply provides a guarantee that reduces lender risk.

Eligibility:

• Single parent (or legal guardian) with at least one dependent child
• Australian citizen or permanent resident
• Property under the relevant cap ($1M metro QLD/NSW; $950K metro VIC; $700K other QLD regional; $650K other VIC regional)
• Genuinely intending to live in the property (not investment)
• No income cap (removed October 2025)
• Open to first-time AND returning homeowners

The “dependent child” requirement is broadly defined — typically a child under 18 who lives with you, but specific eligibility is assessed at application.

What’s the deposit gap for a single parent under the FHG?

For a single parent buying a $760,000 brand-new home in Queensland under the Family Home Guarantee (requires household income of approximately $160K+ to service):

• Deposit (2%): $15,200
• Stamp duty: $0 (QLD FHB new build exemption — if first home buyer)
• LMI: $0 (FHG guarantee)
• Legal, lender, registration fees: ~$3,500
• Total cash on hand: ~$18,700

Compare to the same property without FHG (using a 5% deposit and paying LMI):

• Deposit (5%): $38,000
• LMI: ~$26,000
• Other costs: ~$3,500
• Total cash on hand: ~$67,500

The Family Home Guarantee saves a single parent approximately $48,800 on this purchase.

For Victoria at $700,000 in Melbourne West (requires household income of approximately $110K+ to service):

• FHG path: 2% deposit ($14,000) + costs (~$3,500) – $10K VIC FHOG = ~$7,500 cash on hand
• Standard 5% deposit + LMI path: ~$73,000 cash on hand

The financial reframe is dramatic — particularly in Victoria where the FHOG genuinely applies at the sub-$750K price point.

What’s the practical scenario for a single parent earning $160,000?

Maria, single mother of two children aged 9 and 12, earning $160,000 as a senior healthcare administrator. She has $30,000 saved over three years of disciplined budgeting plus FHSSS contributions.

Borrowing capacity assessment: lender uses $160,000 income, with two dependent children deducted from servicing (approximately $1,000/month combined HEM impact) plus standard living costs. Maximum loan capacity approximately $720,000–$750,000 (single-income applications carry no second-income safety margin, so banks assess conservatively).

Target property: $760,000 brand-new home in a Logan or Ipswich outer suburb, Queensland.

• 2% deposit: $15,200 from savings
• Stamp duty: $0 (QLD FHB new build exemption — no upper price cap on this exemption)
• LMI: $0 (FHG guarantee)
• Legal, lender, registration fees: ~$3,500
• QLD FHOG: NOT applicable (property over $750K cap — see note below)
• Total cash on hand at settlement: approximately $18,700
• Buffer remaining: ~$11,300 in offset account

Weekly repayments on $744,800 loan at 6% = approximately $1,020/week vs equivalent rent of approximately $650/week. Higher than rent, but every dollar builds her family’s equity. Maria’s interest rate position is also stronger because the FHG treats her loan as 80% LVR equivalent for pricing.

Note on QLD FHOG: the $30,000 QLD FHOG is only available on properties under $750,000 contract value. Most new build packages in Brisbane metro corridors (Logan, Ipswich, North Brisbane) sit above $750K, so FHOG typically doesn’t apply for higher-priced packages — though it still applies to sub-$750K stock in regional areas, Beaudesert, parts of Toowoomba, and smaller-design metro packages.

What’s the scenario for a single parent on lower income?

This is where the conversation gets honest. For a single parent earning $85,000–$110,000 with two dependent children, borrowing capacity is approximately $500K–$650K. Most metro Queensland new build stock sits at $800K and above (Ipswich $850K–$1M, Logan $800K–$950K, North Brisbane $800K–$950K, Beaudesert from $850K). At lower income levels, that metro stock simply isn’t serviceable.

Queensland options at $85K–$110K income:

• Help to Buy (Federal shared equity) is often the only practical metro path. The government takes up to 40% on a new build, dropping the loan size to around 60% of property value. That makes a $750K–$850K metro package serviceable on a $100K-ish income because you’re borrowing far less. Income caps: $100K single / $160K single parent with dependant. This is genuinely the most realistic QLD route at lower incomes.
• Toowoomba (regional, $700K cap) — limited new build stock at this price point but exists in certain estates.

Victoria options at $85K–$110K income:

• Substantially more options. Melbourne West (Werribee, Tarneit, Wyndham Vale) packages from ~$700K, Melbourne North (Craigieburn, Mickleham, Donnybrook) from ~$750K. Both qualify for the $10K VIC FHOG, full VIC stamp duty exemption on the land component, AND the FHG.
• For a $700K Melbourne West new build with $10K FHOG, total cash on hand drops to around $7,500.

If you’re a single parent on $85K–$110K thinking about your first home, Victoria deserves serious consideration — and in Queensland, Help to Buy is usually the conversation we have first because of how it changes serviceability at lower incomes.

VIC scenario: single parent + $10K FHOG

For a single parent buying a $700,000 brand-new home in Melbourne’s west under FHG:

• 2% deposit: $14,000
• Stamp duty: $0 (VIC FHB land-component exemption applies — package signed during construction)
• LMI: $0 (FHG guarantee)
• Legal, lender, registration fees: ~$3,500
• Subtotal: $17,500
• VIC FHOG ($10,000): paid at settlement
• Net cash on hand at settlement: approximately $7,500

This is one of the strongest first home buyer outcomes in Australia in 2026 for single parents — minimal cash, 100% ownership, full grant access.

How does FHG differ from the 5% Deposit Scheme?

Key insight: a single parent who previously owned a home can use FHG. They cannot use the 5% Deposit Scheme. This is critical for separated/divorced single parents who lost their previous home in property settlement.

Why do new builds maximise the Family Home Guarantee benefit?

Three reasons:

1. Stamp duty exemption stacks. FHG provides the LMI benefit; QLD FHB new build stamp duty exemption is separate. On a $1M new build, that’s ~$38,000 additional saving on top of the LMI benefit.
2. FHOG eligibility (where it applies). New builds under $750K (QLD or VIC contract value) qualify for the FHOG ($30K QLD or $10K VIC respectively). In Victoria’s $700K Melbourne West corridor, the $10K FHOG genuinely applies to most stock. In Queensland, most metro new build packages now sit above $750K, so FHOG is highly unlikely for higher-priced packages — though it still applies to sub-$750K stock in regional areas, Beaudesert, parts of Toowoomba, and smaller-design metro packages.
3. Construction timeline allows continued saving. From land settlement to handover is approximately 6 months. During that period, you continue paying rent and continue saving — building an additional buffer for the move-in costs.

“I’ve helped dozens of single parents through the Family Home Guarantee. Every single one has said the same thing — ‘I didn’t think this was possible.’ It is. The schemes exist specifically because the government recognises single parents got pushed out of the market for too long.” — Chaice Paterson, founder of Low Deposit Homes

How does Low Deposit Homes help single parents through the process?

Single-parent buyers often face two unique challenges: tighter budgets (less room for error) and less time (between work and parenting). Our process is structured to remove friction at every step.

We start with a free 15-minute discovery call to map your specific situation — income, savings, custody arrangements, child support, target corridor. We then run the numbers against FHG, 5% Deposit Scheme, and Help to Buy to identify the optimal pathway. We refer you to broker partners who specialise in FHG applications and conveyancers experienced with single-parent purchases.

Frequently Asked Questions

Q: Do I have to be divorced to qualify for FHG? No. FHG is for single parents — that includes never-married parents, divorced, separated, or widowed. The legal status of the previous relationship is not part of the eligibility test.

Q: Does my child have to live with me full-time? Generally yes — the child must be a “dependent” who primarily resides with you. Shared custody arrangements are assessed on a case-by-case basis. Typically, more than 50% primary care satisfies the requirement.

Q: Can I use FHG if my ex still partially owns the family home? Possibly. The eligibility test focuses on whether you currently have an interest in residential property. If a property settlement is finalised and you have no ownership interest, FHG may be available. Confirm with a broker before assuming.

Q: What if I get into a new relationship after settling under FHG? The FHG is assessed at the time of application. Subsequent relationship changes don’t void the guarantee. However, your loan terms continue regardless of relationship status.

Start your first home buyer journey

Book a free 15-minute consultation — Book your free call → | Call 1800 920 172

Visit our First Home Buyer Queensland guide or First Home Buyer Melbourne guide for the complete pathway.

Low Deposit Homes operates under Winning Homes Australia Pty Ltd (ACN 633 321 758). All calculations are indicative. Individual circumstances may vary. This is not financial advice.