What you need to know about the Governmentâ€™s Single Parents Home Buyer Scheme
One of lifeâ€™s most fulfilling achievements is owning your own home.
With the value of property in Sydney rising itâ€™s no surprise that this can sometimes feel a little out of reach. Single-parent households in Australia, for instance, have lower homeownership rates, on average, with the majority of the category choosing to rent instead.
However, the Government is aiming to address this with the launch of their new Family Home Guarantee (FHG) – a program that is designed to help single mothers and fathers purchase their own home.
So, if you are a single parent, this opens a lot of great opportunities for you and your children.
Here are important things you need to know about the Australian Family Home Guarantee.
What is the Family Home Guarantee?
Theâ€ŻFamily Home Guarantee (FHG), also known as the Single Parents Home Buyer Scheme,â€Żis an initiative by the Australian government that helps single parents successfully obtain home loan approval with a deposit amount as small as 2%.
By allowing the remaining deposit difference (up to 20%) to be shouldered by the government, this program supports would-be single parent home buyers to overcome the strict home loan eligibility offered by most mortgage lenders. As a single parent, the FHG also enables single mothers and fathers to avoid Lenderâ€™s Mortgage Insurance (LMI), which is often compulsory when taking out a mortgage with a deposit of less than 10%.
The FHG is not just geared to solely assist first-time buyers. For example, you can also apply as a single parent who is attempting to re-enter the housing market after a divorce too.
What are the conditions for the Family Home Guarantee?
The FHG commenced on 1 July 2021, and was established to continuously support up to 10,000 single parents with dependents over the next four years.
To apply, you must be an Australian citizen who is at least 18 years old with a maximum taxable income of $125,000 per household. You must also be the sole applicant listed on the loan and certificate of title.
Similar to the existing First Home Loan Deposit Scheme, just expect that the FHG will be subjected to property price caps per state that will then limit further benefits you can apply for.
Just remember that the property youâ€™ll purchase must be for living purposes only. You will also be ineligible once proven that you have another home, a commercial property or an investment property in the country.
The Single Parents Home Buyer Scheme paves the way for your family to get your own dream home, with some government-backed help.
Just like any mortgage, there are still ongoing repayments to be made, however, this program will offer some much-needed assistance to single mothers and fathers to help battle the rising Sydney prices.
Weâ€™d love to help you
If youâ€™re considering applying for Theâ€ŻFamily Home Guarantee, weâ€™re here to help you.
As your local Sydney property experts, you can rely on us to be skilled, agile, client-focused and tech-savvy as we help you find the perfect home for your family. We also have a team of financial specialists who can help assess your personal situation to find the best financial solution for you.
Itâ€™s time to find yourself in a better place
Our Upstate real estate specialists make buying a home so easy. Thatâ€™s because weâ€™re a big agency that acts like a boutique one. Our personalised service will help you get the most out of your property and help you with the Single Parents Home Buyer Scheme.
Speak to your local Upstate team today and weâ€™ll show you the possibilities that are earning excellent results!
We look forward to chatting with you soon.
Your local Upstate team