Family Home Guarantee (FHG)

who is eligible to apply?

1. Australian citizens or permanent residents who are at least 18 years of age.
2. Home buyers must be eligible single parents or eligible single legal guardians of at least one dependent. A parent is not a single parent if they are married or in a de facto relationship. NB: a person who is separated but not divorced is not single.
3. The single parent or guardian must have a taxable income that does not exceed $125,000 per annum for the previous financial year as shown on the Notice of Assessment (issued by the Australian Taxation Office). NB: Child support payments are not included as income for the purpose of the income cap.
4. The single parent or guardian must be the only name listed on the loan and the certificate of title.
5. It is expected that the single parent or guardian demonstrate that they are the natural or adoptive parent of a dependent child within the meaning of s.5 of the Social Security Act 1991 (Cth) or single legal guardians of children. In a general sense, this means that the person must show that they are legally responsible (whether alone or jointly with another person) for the day-to-day care, welfare and development of the dependent child and the dependent child is in their care.
6. Alternatively, the single parent or guardian must show that they are the natural or adoptive parent of a child between 16 and 22 years of age, who receives a disability support pension and lives with them.
7. Individuals must have at least 2 percent of the value of the property available as a deposit. If the borrower has a deposit of more than 20 percent, then the home loan cannot be covered by the Family Home Guarantee.
8. Loans under the Family Home Guarantee require scheduled repayments of the principal and interest of the loan for the full period of the agreement. The loan agreement must have a term of no more than 30 years.
9. Applicants must intend to be owner-occupiers of the purchased property. In the case of an active Australian Defence Force member applicant, the Family Home Guarantee is not subject to the owner-occupier requirement after entering into the loan if they cannot meet this requirement because of their duties.
10. Applicants can be either first home buyers or previous owners who do not currently own a home. That is, the applicant must not currently have a freehold interest in real property (this includes land) in Australia, a lease of land in Australia or a company title interest in land in Australia

The eligibility criteria must be satisfied at the time the loan agreement is entered into. The eligibility criteria for the Family Home Guarantee are outlined in the currently in force Housing Australia Investment Mandate Direction 2018.

Check your eligibility with Housing Australia