πŸ“… Last Updated: 15-Aug-2026

Understanding the Family Home Guarantee: Buy with Just a 2% Deposit

Single parents and legal guardians can enter the Australian property market with as little as a 2% deposit without paying Lenders Mortgage Insurance.

For single parents, saving a traditional 20% home deposit while managing daily living expenses and childcare costs can feel nearly impossible. The Australian Government’s Family Home Guarantee (FHG), administered by Housing Australia, was created specifically to eliminate this hurdle and provide single parents and legal guardians a path into secure, long-term home ownership.

Under the Family Home Guarantee, eligible single parents with at least one dependent child can purchase a residential property with as little as a 2% genuine savings deposit. The Australian Government acts as a guarantor for up to 18% of the property's value, enabling borrowers to secure standard prime bank interest rates without paying Lenders Mortgage Insurance (LMI), saving between $15,000 and $35,000 upfront.

πŸ‘¨β€πŸ‘§
Single Parents & Guardians

Open to mothers, fathers, and legal guardians with dependent children.

πŸ’΅
Just 2% Deposit Needed

Save $12,000 deposit on a $600,000 family home rather than $120,000.

πŸ›‘οΈ
$0 Lenders Mortgage Insurance

Avoid expensive LMI insurance premiums added to your loan balance.

πŸ”„
Previous Homeowners Eligible

You can qualify even if you previously owned property before separation.

🏑
New & Established Homes

Buy an existing house, townhouse, unit, or house-and-land build.

πŸ›οΈ
State Stamp Duty Waivers

Combine with state stamp duty exemptions to maximize total upfront savings.

To qualify for the Family Home Guarantee, applicants must meet the following federal requirements: be an Australian citizen or permanent resident, be single (not married or in a de facto relationship), have at least one dependent child who is financially dependent on you, earn a taxable income under $125,000 in the previous financial year, and not currently own property in Australia at the time of settlement.

You can use the 2% deposit guarantee to purchase an established home, a newly constructed townhouse, an off-the-plan apartment, or land combined with a comprehensive building contract. Price caps vary by state capital and regional territory (e.g., up to $950,000 in Greater Sydney and $800,000 in Greater Melbourne). EZ Mortgage Broker can verify your local suburb cap instantly.

Does child support count as assessable income for the loan?

Yes, many lenders on our panel accept court-ordered or Services Australia-registered child support payments as assessable income to boost your borrowing capacity, provided there is a consistent track record of payments.

Can I apply if I owned a house with an ex-partner in the past?

Yes. Unlike standard first home buyer grants, the Family Home Guarantee is specifically open to previous homeowners who currently do not hold title to any property.