Buying a home as a single parent is tough. You are managing a household on one income, covering childcare, keeping the lights on — and somehow trying to save a deposit on top of all of that. The idea of pulling together $80,000 or $100,000 for a 20% deposit can feel genuinely impossible.
But there is a federal government scheme that was massively expanded in October 2025 — and it could let you buy a home with as little as a 2% deposit and no Lenders Mortgage Insurance. It is called the Family Home Guarantee, and it is specifically designed for single parents and legal guardians.
Since the October 2025 expansion, there are now unlimited places (previously capped at 5,000/year), no income caps (previously $125,000), and significantly higher property price caps across all states. In the first four months after these changes, 22,921 guarantees were issued — a 75% increase over the same period the year before.
In this guide we cover who is eligible, updated price caps for 2026, how much a single parent can save, how the FHG compares to other schemes, and how to apply.
⚡ Family Home Guarantee is 1 of 7 federal+state schemes
Most single-parent FHBs qualify for 3–4 schemes simultaneously and stack them. Find every 2026 scheme you qualify for (FHG, FHOG, FHSSS, stamp duty concessions, state-specific grants) in 2 minutes.
Open the Eligibility Checker →What Is the Family Home Guarantee?
The Family Home Guarantee (FHG) is a federal government initiative, part of the Home Guarantee Scheme (HGS), administered by Housing Australia. It is designed to help single parents and single legal guardians purchase a home with a deposit as small as 2% of the property value.
Normally, if you buy a home with less than a 20% deposit, your lender will require you to pay Lenders Mortgage Insurance (LMI) — a one-off premium that can cost $15,000 to $35,000 or more (see what LMI would cost in your scenario). Under the Family Home Guarantee, the federal government guarantees up to 18% of the property value. Your 2% deposit plus the government's 18% guarantee equals the 20% threshold that lenders need to waive LMI.
Key points to understand:
- It is NOT a cash grant — the government does not give you money. They act as a guarantor to the lender.
- You do not owe the government anything — there is no repayment or clawback.
- You do NOT need to be a first home buyer — if you previously owned a home but do not currently own property, you are eligible. This makes the FHG unique among guarantee schemes.
- Available for new and existing homes — houses, apartments, townhouses, and house and land packages.
The scheme was introduced in the 2021–22 Federal Budget and was massively expanded from 1 October 2025 with unlimited places and no income caps.
Single Parent Home Loan Options in Australia 2026
If you are a single parent looking for a home loan with a small deposit, the Family Home Guarantee is the standout option — but it is not the only path. Here is how the main options compare for a single parent buying a $650,000 home in Perth:
| Option | Deposit Needed | LMI | Interest Rate | Total Upfront Cost |
|---|---|---|---|---|
| Family Home Guarantee | 2% ($13,000) | None | Competitive bank rate (~6.25–6.55%) | ~$13,000 |
| Standard bank loan (5%) | 5% ($32,500) | ~$20,000 | Competitive bank rate | ~$52,500 |
| Standard bank loan (20%) | 20% ($130,000) | None | Best rates available | ~$130,000 |
| Keystart (WA only) | 2% ($13,000) | None | Higher (~7.60%) | ~$13,000 |
The Family Home Guarantee is the clear winner for most single parents: the lowest deposit (2%), no LMI, and access to competitive bank rates from day one. The key advantage over Keystart is the interest rate — FHG gives you a standard bank rate, while Keystart charges a premium.
For a single parent earning $75,000, saving $13,000 for a 2% deposit is achievable in 6 to 12 months — compared to 3+ years for a 20% deposit. Combined with the FHSS scheme for tax-advantaged savings, you could have your deposit ready even faster.
Family Home Guarantee Eligibility 2026
The eligibility criteria were significantly relaxed in October 2025. You must meet all of the following:
Single parent or legal guardian
You must be a single parent or single legal guardian of at least one dependent child. "Single" means you are not in a married or de facto relationship at the time of application. Your dependent child must be under 18 (or under 23 if they are a full-time student) and must live with you at least 35% of the time. Shared custody arrangements are fine — you do not need full custody.
Australian citizen or permanent resident
You must be an Australian citizen or permanent resident aged 18 or over.
No income caps
From 1 October 2025, there are no income caps for the Family Home Guarantee. Previously, your taxable income had to be $125,000 or less. This restriction has been removed entirely — single parents at any income level can now access the scheme. This was one of the biggest changes in the October 2025 expansion.
Property ownership
You must not currently own any property — residential, commercial, or investment — at the time of settlement. However, you do not need to be a first home buyer. If you previously owned a home but sold it (for example, after a separation) and currently do not own property, you are still eligible. This is a crucial distinction that makes the FHG accessible to many single parents who would not qualify for other guarantee schemes.
Loan requirements
- Must be sole applicant on the loan and title (no co-borrowers)
- Minimum 2% deposit, maximum less than 20%
- Principal and interest repayments, up to 30-year term
- Through a participating lender (most major banks and many smaller lenders)
- Owner-occupier only — must be your principal place of residence
A mortgage broker can quickly confirm your eligibility and tell you which participating lenders are processing FHG applications fastest.
Family Home Guarantee Price Caps 2026 — State by State
The property price caps were significantly increased from 1 October 2025. These are the current caps:
| State | Capital City / Major Regional | Rest of State |
|---|---|---|
| New South Wales | $1,500,000 | $900,000 |
| Victoria | $950,000 | $650,000 |
| Queensland | $1,000,000 | $700,000 |
| Western Australia | $850,000 | $550,000 |
| South Australia | $900,000 | $550,000 |
| Tasmania | $650,000 | $450,000 |
| ACT | $750,000 | — |
| Northern Territory | $600,000 | $450,000 |
These caps are now generous enough to cover the majority of the market in most capital cities. The Perth cap of $850,000 covers nearly every suburb — including established homes in popular areas like Baldivis, Joondalup, Rockingham, and Armadale, as well as house and land packages in growth corridors. In Brisbane, the $1,000,000 cap opens up suburbs that were previously out of reach. Sydney's $1,500,000 cap is the highest in the country.
Always verify current caps at housingaustralia.gov.au before making decisions, as they are reviewed periodically.
What Changed in October 2025 — Major Expansion
The Family Home Guarantee was dramatically expanded from 1 October 2025. These changes transformed it from a limited program into one of the most generous home buyer assistance schemes in Australia:
| Feature | Before October 2025 | From October 2025 |
|---|---|---|
| Places per year | 5,000 nationally | Unlimited |
| Income cap | $125,000 | No cap |
| Perth price cap | $600,000 | $850,000 (+42%) |
| Sydney price cap | $900,000 | $1,500,000 (+67%) |
| Brisbane price cap | $700,000 | $1,000,000 (+43%) |
| Melbourne price cap | $800,000 | $950,000 (+19%) |
| Adelaide price cap | $600,000 | $900,000 (+50%) |
The impact was immediate: 22,921 guarantees were issued in the first four months after the expansion — a 75% increase compared to the same period the year before. The removal of the income cap and the unlimited places are the two biggest changes, making the scheme accessible to a much wider group of single parents.
How Much Can a Single Parent Save with the FHG?
Let us work through a real example for a single parent buying in Perth.
Scenario: $650,000 home in Perth
| Cost | Without FHG (5% deposit) | With FHG (2% deposit) | Saving |
|---|---|---|---|
| Deposit | $32,500 (5%) | $13,000 (2%) | $19,500 less needed |
| LMI | ~$20,000 | $0 | $20,000 saved |
| Total upfront | ~$52,500 | ~$13,000 | ~$39,500 less |
The total benefit is roughly $39,500 in reduced upfront costs. For a single parent on one income, that is the difference between buying this year and waiting another 3 to 4 years to save.
If you compare against a 20% deposit ($130,000), the FHG saves you $117,000 in deposit plus $0 in LMI — a total of $117,000 less upfront. The trade-off is a larger loan and therefore higher monthly repayments, but for most single parents, the ability to buy now and build equity outweighs paying rent indefinitely while trying to save a larger deposit.
Use our borrowing power calculator to see exactly how much you can borrow on a single income with a 2% deposit.
Family Home Guarantee vs First Home Guarantee
Housing Australia administers both schemes. They are often confused because the names are similar, but they target different buyers:
| Feature | Family Home Guarantee | First Home Guarantee |
|---|---|---|
| Who is it for? | Single parents / legal guardians with dependents | Any first home buyer (singles or couples) |
| Minimum deposit | 2% | 5% |
| Government guarantee | Up to 18% | Up to 15% |
| Must be first home buyer? | No — previous owners eligible | Yes (or not owned in 10 years) |
| Must be single parent? | Yes, with dependent child(ren) | No |
| Income caps | None | None (removed Oct 2025) |
| Places | Unlimited | Unlimited (from Oct 2025) |
| LMI required? | No | No |
| Property type | New or existing | New or existing |
Key takeaway: If you are a single parent, the Family Home Guarantee is always the better option — you need a smaller deposit (2% vs 5%), get a larger guarantee (18% vs 15%), and do not need to be a first home buyer. If you qualify for both, choose the FHG.
Family Home Guarantee vs Help to Buy — which suits you?
If you are a single parent house-hunting in 2026, you have two federal schemes to choose between — and the right one depends on whether you would rather own 100% of a smaller home or share ownership of a larger one. The Help to Buy scheme launched on 5 December 2025 and is a completely different model to the Family Home Guarantee. Most articles still ignore it. Here is the plain-English comparison.
The fundamental difference
Under the Family Home Guarantee, you own 100% of the home from day one. The government acts as a guarantor on your loan so you avoid LMI — that is its only role. There is no equity claim and no clawback.
Under Help to Buy, the federal government becomes your co-owner. They contribute up to 40% of the purchase price for a new build (or 30% for an existing home) in exchange for an equivalent equity stake. You only borrow against your share. When you sell, you repay their share of the sale price — which means if the home doubles in value, so does the amount you owe back.
Side-by-side: FHG vs Help to Buy (2026)
| Feature | Family Home Guarantee | Help to Buy |
|---|---|---|
| Minimum deposit | 2% | 2% |
| Government role | Loan guarantor only (18%) | Co-owner (up to 40% new / 30% existing) |
| Do you own the home outright? | Yes — 100% | No — you share equity with the government |
| LMI | None | None |
| Income cap (single parent) | No cap (since Oct 2025) | $160,000 |
| Places per year | Unlimited (since Oct 2025) | 10,000 (capped) |
| Price cap — Sydney | $1,500,000 | $1,300,000 |
| Price cap — Melbourne | $950,000 | $950,000 |
| Price cap — Perth | $850,000 | Pending — WA joins early-to-mid 2026 |
| Available in | All states and territories | QLD, VIC, NSW, SA, ACT, NT (WA pending; TAS opted out) |
| First home buyer required? | No | Yes — or no property ownership in last 10 years |
| When you sell | Keep 100% of any capital gain | Pay back the government's equity share of the sale price |
Worked example: $650,000 home, single parent on $90,000
Under the FHG: 2% deposit = $13,000. You borrow $637,000. Monthly repayments at 6.4% over 30 years are roughly $3,985. You own 100% of the home. If the property grows to $850,000 over five years, every dollar of that $200,000 gain is yours.
Under Help to Buy (existing home): 2% deposit = $13,000. The government contributes 30% = $195,000. You borrow $442,000 (the remaining 68%). Monthly repayments at 6.4% over 30 years are roughly $2,765 — about $1,220 a month less. But if the home grows to $850,000, you owe the government 30% of $850,000 = $255,000 back, not the $195,000 they put in. Your share of the $200,000 gain is $140,000; theirs is $60,000.
Which one is right for you?
Choose the Family Home Guarantee if:
- You can comfortably service the full loan and want to keep all future capital growth.
- You earn over $160,000 (you are ineligible for Help to Buy).
- You are buying in WA or Tasmania (Help to Buy is not yet live in WA, and Tasmania has opted out).
- You are not a first home buyer — for example, you sold a property after a separation.
- You want maximum flexibility to sell, renovate, or borrow against equity later without a co-owner involved.
Consider Help to Buy if:
- Your borrowing capacity on one income is the binding constraint — the lower loan size unlocks a home you otherwise could not afford.
- Lower monthly repayments matter more to your household cash flow than maximising long-term capital gain.
- You qualify for both and the property is priced under both caps.
- You can act fast — the 10,000-place annual cap fills quickly. The 2025-26 allocation was already over 20% subscribed within weeks of launch.
A mortgage broker can model both schemes against your actual income, deposit, and target suburb in one sitting. For most single parents we speak to in Perth and other WA postcodes, the FHG remains the clear choice through 2026 because Help to Buy is not yet operational there — but if you are buying in NSW, VIC, QLD, SA, ACT or NT, run the comparison before applying.
How to Apply for the Family Home Guarantee
You do not apply directly to Housing Australia. The guarantee is accessed through participating lenders as part of your home loan application. Here is the step-by-step process:
Step 1: Check your eligibility
Visit housingaustralia.gov.au and use their eligibility tool, or speak to a mortgage broker who is familiar with the guarantee programs. A broker can assess your eligibility in a single phone call and tell you which lenders are on the panel.
Step 2: Get pre-approved with a participating lender
You need a home loan from a lender that participates in the FHG program. Your broker will know which lenders are processing FHG applications fastest. Read our pre-approval guide for details on what you need and how long it takes.
Step 3: Your lender reserves a guarantee place
Your lender applies to Housing Australia on your behalf. This happens as part of your home loan application — you do not need to fill out a separate form. The lender verifies your eligibility and submits the request.
Step 4: Find a property within the price cap
With your guarantee confirmed and pre-approval in hand, search for a property within your state's price cap. New builds, existing homes, and house and land packages all qualify.
Step 5: Purchase with 2% deposit, no LMI
When you find the right home and your offer is accepted, the guarantee is activated and your loan proceeds without LMI. Your broker handles the coordination between the lender and Housing Australia.
With unlimited places now available, there is no urgency to "secure a spot" — but you should still start the process early so your pre-approval is ready when you find the right property.
One cost the FHG doesn't cover that catches single parents off guard: your lender will still require building insurance in place before settlement, typically $1,200–$2,500 for the first year's premium. Compare home insurance in the weeks after your offer is accepted so the certificate of currency is ready when your broker locks in unconditional approval — a delay here can push back settlement by days.
Stacking the FHG with Other Schemes
The Family Home Guarantee is a federal scheme and stacks with state-level assistance. Here are the most powerful combinations:
- FHG + First Home Owner Grant: If buying a new build, you can receive your state's FHOG on top of the FHG. In WA, that is $10,000 for a new home. In Queensland, $30,000 for new builds under $750,000. Check your state's grants here.
- FHG + Stamp duty concessions: First home buyer stamp duty exemptions apply regardless of whether you use the FHG. In WA, no stamp duty on new homes under $430,000. Use our stamp duty calculator to see what you will pay.
- FHG + FHSS: Use the First Home Super Saver Scheme to save your 2% deposit through super with tax savings of $5,000+ per year. FHSS accelerates the deposit, FHG removes the LMI barrier.
- FHG + Keystart (WA): In most cases, FHG is the better option over Keystart because you get a competitive bank rate. However, if your credit history is complicated, Keystart may be more flexible on approval criteria.
The key insight: the FHG removes the deposit and LMI barriers. Every other scheme stacks on top because they address different parts of the purchase — grants reduce upfront costs, stamp duty concessions reduce fees, and FHSS helps you save the deposit faster.
FHG + FHOG Stacking — State-by-State Combined Value
The federal FHG removes LMI. Each state's FHOG adds a separate cash grant (new builds only in most states). Combined with state stamp duty exemptions, the total scheme value for a typical single-parent FHB is substantial:
| State | FHG benefit (LMI avoided) | FHOG (new builds) | Stamp duty saving | Combined total |
|---|---|---|---|---|
| NSW | ~$25,000 | $10,000 | Up to $24,740 | ~$59,740 |
| VIC | ~$22,000 | $10,000 | Up to $31,070 | ~$63,070 |
| QLD | ~$20,000 | $30,000 (until 30 June 2026) | Up to $17,850 | ~$67,850 |
| WA | ~$19,000 | $10,000 | Up to $15,370 | ~$44,370 |
| SA | ~$20,000 | $15,000 | Concession varies | ~$50,000+ |
| TAS | ~$18,000 | $30,000 (until 30 June 2026) | Up to $11,250 | ~$59,250 |
| ACT | ~$22,000 | None (full stamp duty exemption) | Up to $43,290 | ~$65,290 |
| NT | ~$18,000 | $10,000 + $50,000 HomeGrown | Concession varies | ~$78,000 |
QLD currently offers the best combined value through 30 June 2026 thanks to the boosted $30,000 FHOG. NT offers the highest absolute number thanks to the $50,000 HomeGrown Territory grant. The numbers above assume a ~$600K-$700K new build in each state; adjust for your actual purchase price.
Participating Lenders — Where to Apply for the FHG
The FHG is delivered through participating lenders, not directly by the government. Major participating lenders for 2026 include Commonwealth Bank, NAB, ANZ, Westpac, Bank Australia, The Mutual Bank, Gateway Bank, Beyond Bank, Heritage Bank, Police Bank, P&N Bank (WA), and Great Southern Bank. Not every participating lender offers the same interest rate on FHG loans — rates can vary 0.3-0.7% between lenders for an identical scheme application. A broker comparing 5-6 participating lenders typically finds a meaningfully better rate than going direct to the first bank you check. Find a NestPath vetted broker — free.
Frequently Asked Questions
Can I get the First Home Owner Grant if I use the Family Home Guarantee?
Yes, in every state that offers a FHOG — the federal FHG and state FHOG are independent and stack. The FHOG eligibility depends on your state's specific rules (new builds only in most states, with property price caps). For a single parent buying a $620K new-build in QLD with the FHG, you receive the $30,000 QLD FHOG on top of the federal LMI guarantee. See the state-by-state stacking table above for combined values.
Can I use the Family Home Guarantee if I'm not a first home buyer?
Yes — this is one of the most important features of the FHG and where it differs from the standard 5% Deposit Scheme. You qualify as long as you are a single parent or legal guardian with at least one dependent child, and you do not currently own residential property in Australia. Past ownership (e.g. a home you owned before separation or before becoming a single parent) does not disqualify you. The scheme is forward-looking — about helping you back into ownership, not penalising prior ownership history.
Did the May 2026 federal budget change the Family Home Guarantee?
No — the scheme remains unchanged. The 12 May 2026 budget focused on housing infrastructure ($2 billion package), 65,000 new homes over the decade, and negative gearing reform for established residential investment property from 1 July 2027. Existing FHG places, the 2% deposit, the no-income-cap rules, and the state property price caps all continue exactly as set after the October 2025 expansion. New-build investment property keeps preferential negative-gearing treatment, which indirectly increases the supply of new builds the FHG can be used on.
What is the Family Home Guarantee?
The Family Home Guarantee is a federal government scheme that helps single parents and legal guardians buy a home with just a 2% deposit and no Lenders Mortgage Insurance. The government guarantees up to 18% of the property value through Housing Australia. It is not a cash grant — the government acts as a guarantor to the lender. You do not owe the government anything and there is no repayment or clawback.
Can I get a home loan as a single parent with a small deposit?
Yes. The Family Home Guarantee allows eligible single parents to buy with just a 2% deposit and no LMI. On a $650,000 home, that is a deposit of just $13,000. You do not need to be a first home buyer — if you previously owned property but do not currently own any, you are eligible. Most major banks participate. A mortgage broker can assess your eligibility and find the best rate.
Do I have to be a first home buyer for the Family Home Guarantee?
No — and this is one of the biggest advantages of the FHG over other guarantee schemes. You can have previously owned property, as long as you do not currently own any property at the time of settlement. This makes the FHG particularly valuable for single parents who sold a property after a separation and are now looking to buy again.
What are the Family Home Guarantee price caps for 2026?
The price caps were increased from 1 October 2025. Current caps: Perth $850,000, Sydney $1,500,000, Brisbane $1,000,000, Melbourne $950,000, Adelaide $900,000, Hobart $650,000, Canberra $750,000, Darwin $600,000. Rest of state caps are lower — ranging from $450,000 to $900,000 depending on location. Always verify at housingaustralia.gov.au.
Are there income limits for the Family Home Guarantee in 2026?
No. Income caps were removed from 1 October 2025. Previously, single parents had to earn $125,000 or less. Now there is no income limit — single parents at any income level can access the scheme. This was one of the biggest changes in the October 2025 expansion.
Can I combine the Family Home Guarantee with other grants?
Yes. The FHG is a federal scheme and stacks with state-level assistance including the First Home Owner Grant (FHOG), stamp duty exemptions, and concessions. For example, a single parent buying a new build in WA could combine the FHG (2% deposit, no LMI) with the $10,000 WA FHOG and stamp duty concessions. Visit our grants hub for the full breakdown.
What is the difference between Family Home Guarantee and First Home Guarantee?
The Family Home Guarantee requires only a 2% deposit (vs 5% for the First Home Guarantee), provides a larger 18% government guarantee (vs 15%), and does not require you to be a first home buyer. However, it is only available to single parents or legal guardians with dependent children. If you qualify for both schemes, the FHG is always the better option due to the lower deposit requirement.
How long does the Family Home Guarantee application take?
The FHG application is processed as part of your home loan application — your broker or lender handles it on your behalf. There is no separate application form. The guarantee is typically confirmed within the same timeframe as your loan pre-approval (1 to 5 business days depending on the lender). With unlimited places now available, there is no risk of places running out.
Ready to see what you can afford as a single parent? Use our borrowing power calculator, then talk to a broker who can assess your FHG eligibility and find the best rate — free, no obligation.
