Am I eligible for the Family Home Guarantee?

The Family Home Guarantee is an Australian Government initiative designed to assist eligible single parents and single legal guardians in purchasing a home with a deposit as low as 2%, without needing Lenders Mortgage Insurance (LMI), meaning the Government will guarantee 18% of your loan. This means your application will be accessed with a Loan To Value Ratio of 80% instead of 98%, saving you thousands in interest repayments each year and means you can purchase a home much sooner than previously thought.

Eligibility Criteria:

To determine if you're eligible, consider the following requirements:

• Marital Status: You must be a single parent or single legal guardian of at least one dependent child. Being "single" means you're not married or in a de facto relationship. If you're separated but not divorced, you're not considered single under this scheme. You must be divorced.

• Citizenship and Age: You must be an Australian citizen or permanent resident and at least 18 years old.

• Income: Your taxable income should not exceed $125,000 per annum for the previous financial year. Notably, child support payments are excluded from this income calculation.

• Property Ownership: You must not currently own any property, including commercial or investment properties, land, or company title interests in land in Australia.

• Owner-Occupier Requirement: You must intend to live in the property you purchase.

Property Price Caps:

In Queensland, the property price caps for the Family Home Guarantee are:

• Brisbane and Regional Centres: $700,000

• Rest of Queensland: $550,000

Given that you're in Brisbane, the relevant cap is $700,000.

Next Steps:

If you meet the above criteria, you may be eligible for the Family Home Guarantee. To proceed:

1. Contact a Participating Lender: Applications must be made through participating lenders.

   housingaustralia.gov.au

2. Prepare Necessary Documentation: This includes proof of income (such as your Notice of Assessment from the Australian Taxation Office), identification, and evidence of your single status and dependent child.

3. Assess Your Financial Situation: Ensure you can service the loan repayments, considering your income and expenses.

The Family Home Guarantee (FHG) has specific property price caps that vary by state and territory, as well as between capital cities, regional centres, and other areas. These caps are designed to reflect the varying property market conditions across Australia.

National Property Price Caps for the Family Home Guarantee:

State/TerritoryCapital City & Regional Centres*Rest of State

New South Wales (NSW) $900,000 Regional Centres $750,000

Victoria (VIC) $800,000 Regional Centres $650,000

Queensland (QLD) $700,000 Regional Centres $550,000

Western Australia (WA) $600,000 Regional Centres $450,000

South Australia (SA) $600,000 Regional Centres $450,000

Tasmania (TAS)$600,000 Regional Centres $450,000

Australian Capital Territory (ACT) $750,000 Regional Centres N/A

Northern Territory (NT)$600,000 Regional Centres N/A

Jervis Bay Territory & Norfolk Island $550,000

Christmas Island & Cocos (Keeling) Islands $400,000

*Regional centres include Newcastle and Lake Macquarie, Illawarra, Geelong, Gold Coast, and Sunshine Coast.

Please note that these caps and government guarantees, and the way lenders access your situation are subject to change, and it's advisable to consult with a mortgage broker to understand how these limits apply to your situation.

You can use the below Price Cap Tool and the Eligibility Tool to see if your postcode or your situation qualifies you for the Family Home Guarantee