Buying a home on your own can feel impossible—especially when you're juggling parenting, rent, and trying to save for a deposit. But there’s some good news for single parents: the Australian Government’s Family Home Guarantee Scheme (often referred to as the Single Parent Home Scheme) is here to help. In a recent podcast episode, host Vincent Turner and returning guest Jake Wood break down how this game-changing program works and what single parents need to know to make the most of it.
The Family Home Guarantee Scheme was introduced to assist single parents or legal guardians who might otherwise be locked out of the property market. Jake Wood, a mortgage broker and returning podcast guest, explains it simply:
“It allows them to place only a 2% deposit without paying any lenders mortgage insurance—up to certain property price points depending on the state.”
Let’s put that into perspective. If you’re eyeing a $500,000 property, you’d only need a $10,000 deposit. That’s significantly lower than the typical 20% ($100,000), which is out of reach for many families.
But there’s a catch—actually, a few.
First and foremost, this scheme is not just for first-home buyers. It’s also designed to help those re-entering the market—say, after a divorce or separation. However, there are specific criteria:
And here's something many people miss: if you’re separated but not legally divorced, you're not eligible. As Jake puts it:
“People who are separated but not divorced are not considered single for this.”
So, how does the scheme actually work behind the scenes? The government doesn’t give you money—it guarantees the loan. Typically, lenders require you to pay for Lender’s Mortgage Insurance (LMI) if your deposit is below 20%. But under this scheme, the government guarantees that shortfall, so you’re not slapped with an LMI bill.
“It’s not a cash deposit or payment,” Jake clarifies. “It’s just a guarantee that helps you skip LMI and get into the market sooner.”
Another key factor: property price limits. These caps vary depending on where you're buying. For example:
If you're buying in outer regional areas, the caps drop slightly. Importantly, these limits are separate from any state-based stamp duty exemptions, so buyers need to check both sets of rules.
Getting into the scheme is competitive—only 5,000 places are available nationwide between July 2024 and June 2025. So, being prepared is crucial.
“The biggest mistake people make is not having their paperwork ready,” Jake warns. “Tax returns, Notice of Assessments—everything has to be in order.”
The documents you provide to qualify for the scheme are usually the same ones needed for your loan application, so getting them ready kills two birds with one stone.
Not all lenders offer the Family Home Guarantee. Some don’t even offer pre-approvals under the scheme, which can be frustrating if you’re not ready to buy straight away.
“It’s really important to work alongside someone that can provide you with flexibility and understand your situation,” Jake advises.
This is where a broker becomes essential—not just to guide you through the process but to ensure you're paired with a lender who supports the scheme and suits your timeline.
Even with only a 2% deposit, you’re still taking on a sizable loan—98% of the property value, in fact. And lenders will want to see that you can manage repayments.
“You are servicing quite a high portion of that loan,” says Jake. “Minimizing other debts like credit cards and personal loans can work in your favor.”
In other words, clean up your financial act before you apply. That means a tidy bank statement, up-to-date bills, and no surprise spending habits.
If you're a single parent dreaming of homeownership, the Family Home Guarantee Scheme could be your stepping stone—whether you're buying for the first time or starting over. But timing and preparation are everything.
“Even if you’re not ready to buy now, get your ducks in a row,” says Vincent. “Talk to a broker who knows this stuff inside and out.”
There are limited spots, specific rules, and paperwork hurdles—but with the right support, it’s entirely possible to secure a stable home for you and your family.
Jake Wood's spotlight:
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