Family Home Guarantee

Family Home Guarantee (FHG) – Buy a Home Sooner with a Low Deposit

The Family Home Guarantee (FHG) is part of the Australian Government’s Home Guarantee Scheme (HGS), designed to help eligible single parents or single legal guardians of at least one dependent child purchase a home sooner with a low deposit.

This initiative is administered by the National Housing Finance and Investment Corporation (NHFIC) on behalf of the Australian Government and aims to make home ownership more accessible for single-parent households.

How the Family Home Guarantee Works

Under the Family Home Guarantee, eligible buyers can purchase a home with as little as a 2% deposit, without paying Lenders Mortgage Insurance (LMI). Instead of a cash payment, the government provides a guarantee of up to 18% of the property value, helping borrowers secure finance with a lower upfront deposit.

This guarantee is not a deposit or cash payment. It supports your home loan application with a participating lender, making it easier to enter the property market sooner.

Eligibility Criteria

To qualify for the Family Home Guarantee, applicants must meet the following requirements:

• Be an Australian citizen or permanent resident aged 18 years or older
• Apply for an owner-occupier home loan with principal and interest repayments
• Have a taxable income of up to $125,000 (single applicants)
• Be a single parent or single legal guardian with at least one dependent child
• Not currently own a home
• Minimum deposit of 2%

Benefits of the Family Home Guarantee

• Buy a home with as little as a 2% deposit
• No Lenders Mortgage Insurance (LMI)
• Faster access to home ownership
• Government-backed support through NHFIC
• Available for both first-time buyers and previous homeowners

How to Apply Under the Scheme

Step 1: Start a Conversation

Book an appointment with our mortgage specialists. We’ll assess your financial situation and estimate your borrowing capacity before any credit check is completed.

Step 2: Loan Approval

Our mortgage experts will guide you through the entire process, helping you choose the most suitable guarantee and home loan based on your needs now and in the future.

Once approved, you will generally need to purchase your home within 90 days under the Home Guarantee Scheme.

Step 3: Settlement

Your lender will complete the settlement process. Once you accept the loan offer, you are ready to move forward and become a homeowner.

Why Choose Index Finance?

• Expert guidance on government home guarantee schemes
• Access to multiple participating lenders
• Tailored home loan solutions
• Support for single parents and first-home buyers
• End-to-end assistance from application to settlement
• Simple, stress-free mortgage process

At Index Finance, we help eligible single parents and guardians understand their options and take advantage of government support to achieve home ownership sooner.