Under the proposed Family Home Guarantee, single parents will now be able to purchase a property with a deposit of just 2%, with the government guaranteeing the remaining 18%.
The Family Home Guarantee is limited to 10,000 places which will be spread evenly across four financial years, equating to 2,500 spots per year.
The scheme is open to first home buyers, as well as those who have previously owned a home.
The Family Home Guarantee aims to help single-parent families get onto the property ladder or re-enter the property market. The scheme was announced as part of the 2021-22 Federal Budget.
To be eligible for the scheme, you must:
- Be a single parent with a dependant(s)
- Earn less than $125,000 per year
- Be an Australian citizen
- Be above 18 years of age.
The Family Home Guarantee will commence from 1 July 2021, subject to legislative approval. Further information about the scheme will be available over the coming days on the National Housing Finance and Investment Corporation website.
In a separate measure, the government has also announced an expansion of the New Home Guarantee scheme with an additional 10,000 places. The scheme allows first home buyers to build a new home, or purchase a newly built home, with as little as a 5% deposit.
If you have any questions regarding the Family Home Guarantee, or would like assistance determining if you are eligible for the scheme, please give us a call on 03 5434 7690.