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August 17, 2021

Family Home Guarantee

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State
Amount
Conditions
ACT
n/a
From July 1 2019, the FHOG ACT has been replaced with exemptions on stamp duty(see below section 1.5).
NSW
$10,000
To be eligible, your first home must have a total value below $600,000, and beeither newly constructed or ‘substantially renovated’*. If you plan to build a newhome from scratch, you can still be eligible as long as your land plus the home youbuild have a combined value of less than $750,000.
NT
$10,000
Your income and the price of your home don’t affect the FHOG NT, and the grant isavailable if you buy or build a new house, apartment, duplex or townhouse.
QLD
$15,000
To be eligible, you need to buy a brand new home or build a home from scratch withthe total value (including the land) below $750,000. You may also be eligible if youbuy off the plan or an established home that’s been substantially renovated*.
SA
$15,000
You are only eligible when you buy or build a brand new home, the grant is notavailable if you buy an established home. You can choose from a house,apartment, townhouse or villa, but you will only be able to claim the FHOG SAif you pay below $575,000 for your home.
TAS
$20,000
You are only eligible when you buy or build a brand new home, the grant is notavailable if you buy an established home. The FHOG in Tasmania is currentlyavailable until 30 June 2022. Off the plan purchases are also eligible. In Tasmaniathere is no limit on the purchase price and the grant is not means tested.
VIC
$10,000
The FHOG is available if you buy a newly built home or if you choose to build a homefrom scratch in Victoria. Your first home can be a house, townhouse, apartment, or unitbut it must be valued at $750,000 or less, and it must be a new home – being sold asa home for the first time, and less than five years old
WA
$10,000
You are only eligible when you buy or build a brand new home, the grant is notavailable if you buy an established home. However, a home that has beensubstantially renovated* may be considered a new home. There are limits on whatyou can pay for your first home to be eligible. If you’re located south of the 26thparallel, which basically covers all the Perth metropolitan area, you can claim theFHOG WA if your new home is worth up to $750,000 – this includes the value of theland plus buildings. If you buy or build a home north of the 26th parallel, the propertymust be valued up to or below $1 million.

*Substantially Renovated means all, or most, of the building, has been removed or replaced. As a guide,substantial renovations include replacing or altering foundations or replacing or altering floors.

What is the Family Home Guarantee?

This new scheme announced in the 2021-22 Federal budget allows single parents to be able to get a home loan with a 2% deposit, as the government’s scheme aims to support single parents with dependants (who are predominantly women) to enter or re-enter the housing market.
Commencing on 1 July 2021, the Family Home Guarantee scheme will provide 10,000 places to eligible single parents over four financial years to 30 June 2025.

Similarly to the 5% deposit scheme, the family home guarantee is administered by the NFHIC and allows single parents to purchase an existing home or build a new property with a low deposit while avoiding LMI. Although unlike the FHLDS, single parents will be able to get a mortgage with a 2% deposit as opposed to 5%.

Of course when buying a property there will be additional costs involved than just paying a 2% deposit. During the purchase process there are many different costs to consider. Your Buyer Ready Team will work in your best interest and can help provide you with an estimate on what costs to expect. Read more on the common home loan costs here.

Although this grant is not specifically for first home buyers, eligible first home buyers are able to apply.

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FY2021-22 Price Caps

As the Family Home Guarantee is offered by the NFHIC as an extension of the First Home Loan Deposit Scheme (FHLDS, not all properties will be eligible. This scheme holds the same property price limits as the FHLDS that can differ depending on your state.

Here in Victoria, if you Build or purchase newly built home the price cap is $850,000

Eligibility

To be eligible for the Family Home Guarantee scheme you will need to meet these basic conditions:

  • Be a single parent with at least one dependent. You will need to demonstrate that as a single parent you are legally responsible for the day-to-day care, welfare and development of your child and that they are in your care. Depending on your situation and terms of any shared custody arrangement, both single mother and father of a child may be able to separately access the Family Home Guarantee as individuals.
  • Australian citizen, at least 18 years of age
  • With an annual taxable income of $125,000 or less for the previous financial year (Child support payments are not
    included as income for the purpose of the income cap) Please note to apply for a place in this scheme from 1 July 2021 to 30 June 2022, you will need to provide the relevant Notice of Assessment from the ATO for the previous financial year.
  • As a single parent, you must be the sole applicant listed on the loan and certificate of title.
  • You must live in the property you intend to purchase.
  • Although this does not need to be your first home to be eligible for this scheme, you will not be eligible if you docurrently own a home, including commercial property, investment property, owning land or a company title interest in land in Australia.

How to apply.

Similar to the FHLDS, to apply for the Family Home Guarantee you will need to make an application through one of the 27 participating lenders or through our Buyer Ready Team.
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Other Grants

Parental Guarantee

High property prices are seeing some first home buyers turn to parents and close relatives to act as a guarantor for their loan.  Buyers can even pay no deposit and like The First Home Loan Deposit Scheme, not incur lenders mortgage insurance (LMI) saving up to $20,000 or more.

References

See the complete list of state based references and resources for you to explore. Each state has their own individual requirements. However, thats why we are here to assist you on your journey of homes ownership.

Super Saver

The First Home Super Saver Scheme (FHSSS) helps Australians boost their savings for a first home by allowing them to build a deposit inside superannuation, giving them a tax cut. The FHSSS applies to voluntary superannuation contributions made from 1 July 2017. These contributions, along with deemed earnings, can be withdrawn for a home deposit from 1 July 2018. For most people, the FHSSS could boost the savings they can put towards a deposit by at least 30 per cent compared with saving through a standard deposit account as amounts saved through the scheme will only be taxed at 15% instead of your marginal tax rate, this can help you purchase your first home sooner.

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