From 1 July 2021, the Family Home Guarantee will support divorced or separated parents with dependent children by enabling them to purchase a home sooner with a deposit of as little as 2%.
The government will guarantee up to a maximum of 18% of the property purchase price, allowing the applicant to get a loan without paying lender’s mortgage insurance.
Applicants must be Australian citizens, at least 18 years of age and have an annual taxable income of no more than $125,000.
The new Family Home Guarantee, which will act in a similar way to the existing government guarantee schemes, will provide 10,000 guarantees over four years to single parents with dependents.
It is expected that the program will have property price caps (similar to the First Home Loan Deposit Scheme), but would not be limited to first home buyers.
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