5% Deposit Scheme vs Family Home Guarantee 2026 — AU Single-Parent Decision Guide

TL;DR — 30 SECOND ANSWER

If you are a single parent or single legal guardian with at least one dependent child, the Family Home Guarantee is almost always the better choice — it requires only a 2% deposit (vs 5% for the 5% Deposit Scheme), you do not need to be a first home buyer, and since 1 October 2025 there are no income caps and unlimited places. The 5% Deposit Scheme is for buyers who are NOT single parents, or for single parents who do not have dependent children. Both schemes guarantee no LMI.

Side-by-side comparison

	5% Deposit Scheme	Family Home Guarantee
Minimum deposit	5% (3% genuine savings)	2%
First home buyer required	Yes	No — can have owned previously
Eligibility	Any first home buyer aged 18+	Single parent or single legal guardian with at least one dependent child
Income cap	None (removed 1 Oct 2025)	None (removed 1 Oct 2025)
Places per year	Unlimited	Unlimited (cap removed Oct 2025)
LMI payable	Zero	Zero
Property price caps	Same locations + cap structure	Same as 5% Deposit Scheme
Government share of property	None — you own 100%	None — you own 100%
Stacks with state FHOG	Yes	Yes (if you are also a first home buyer)

Which is right for you?

Pick 5% Deposit Scheme if…

You are NOT a single parent with dependent children
You ARE a first home buyer
You can save a 5% deposit

Pick Family Home Guarantee if…

You ARE a single parent or single legal guardian with at least one dependent child
You can only save a 2% deposit
You have owned property previously (the Family Home Guarantee does NOT require first home buyer status — unique among federal schemes)

Can you combine them?

These are mutually exclusive — you cannot use both for the same purchase. However, a single parent who is also a first home buyer can choose either: the Family Home Guarantee is almost always preferable because of the 2% deposit and no-FHB-required structure. If you take the Family Home Guarantee but are also a first home buyer, you can still claim state FHOG and state stamp duty exemptions in most states.

FAQs

Can a single parent who has owned property before still use the Family Home Guarantee?#

Yes — this is the uniquely powerful feature of the Family Home Guarantee. Unlike the 5% Deposit Scheme (which requires first home buyer status), the Family Home Guarantee is open to any eligible single parent with at least one dependent child, regardless of prior property ownership. This is the only federal AU scheme that supports non-first-home buyers.

Does the dependent child need to live with the single parent full-time?#

The child must be a dependent of the applicant, with the applicant having either sole or shared custody. Shared custody arrangements (where the child lives with each parent part-time) generally qualify if the applicant has formal parental responsibility. Each application is assessed individually by the participating lender.

What counts as a "single parent" for the Family Home Guarantee?#

A natural or adoptive parent or legal guardian who is not currently in a de facto relationship or married, with at least one dependent child (typically under 18, or under 22 if a full-time student). Same-sex single parents qualify identically. Single applicants without dependent children do NOT qualify for the Family Home Guarantee — they would use the 5% Deposit Scheme instead.