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The Family Home Guarantee (FHG) is one of Australia's most useful — and least known — home buying assistance schemes. It's specifically for single parents (or single legal guardians) with at least one dependent child, and unlike almost every other first home buyer scheme, it does not require you to be a first home buyer.
Information checked on 26 October 2026. Policies and scheme rules change; confirm current eligibility with Housing Australia and your lender.
If you were previously married, owned a home in the relationship, and have since separated — you may qualify even though you've owned property before.
What Is the Family Home Guarantee?
The FHG is a federal government scheme administered by Housing Australia. The government guarantees 18% of your home loan, meaning you only need a 2% deposit and no LMI is required. Your effective LVR from the lender's perspective is 80% — so LMI is never triggered.
Eligibility Requirements (checked 25 October 2026)
| Criteria | Requirement |
|---|---|
| Applicant type | Single parent OR single legal guardian with at least one dependent child |
| Income threshold | No income cap (removed 1 October 2025) |
| First home buyer required? | No — previous homeowners can qualify if they don't currently own property |
| Citizenship | Australian citizen or permanent resident |
| Property type | Residential — new or established |
| NSW price cap | $1,500,000 for the capital city and listed regional centres; $800,000 for other NSW areas |
| Intent | Owner-occupier (must live in the property) |
| Places | Unlimited, no waiting list (from 1 October 2025) |
Who Counts as a "Single Parent"?
For FHG purposes, you must be a single parent at the time of application — meaning you are not in a married or de facto relationship. This includes:
- Divorced or separated parents
- Widowed parents
- Parents who have never been in a relationship
- Single legal guardians (e.g., grandparent raising grandchildren)
The "Previously Owned" Exception
This is the most significant difference between the FHG and the First Home Guarantee. Under the FHG, you can have previously owned a property — as long as:
- You do not currently own residential property (in Australia or overseas)
- You are purchasing as an owner-occupier
This is transformative for separated parents. If you owned a home in a previous relationship and it was sold or transferred in the settlement, you can potentially re-enter the property market using the FHG with only a 2% deposit.
How to Apply
Applications are made through a participating lender — not directly with Housing Australia. Not all lenders participate. Your mortgage broker can identify which participating lenders are currently accepting FHG applications. Since 1 October 2025 there is no limit on places and no waiting list.
- Contact a participating lender or mortgage broker
- Confirm your income, deposit amount, and property price range
- Lender checks your FHG eligibility with Housing Australia
- The lender requests the guarantee for your application (no limit on places)
- You proceed with a standard home loan application
- At settlement, the government guarantee activates — no LMI is charged
Combining FHG with Other Grants
If you are a first home buyer who also qualifies as a single parent, you may be able to combine the FHG with:
- NSW stamp duty exemption — if property is under $800,000 and you've never owned before
- First Home Owner Grant ($10,000) — for new builds under $600,000, if first home buyer
If you have previously owned property (the re-entry case), stamp duty exemption will not apply — but the FHG 2% deposit / no-LMI benefit still does.
Frequently Asked Questions
our broker team has helped separated parents and single parents access the FHG when they thought they'd permanently missed their chance to buy. Call 0432 634 648 for a free eligibility check.
Related Guides
Are you eligible for the Family Home Guarantee?
Free check with our broker team — he'll confirm eligibility and find you a suitable participating lender.
Call 0432 634 648