New Government scheme helps single parents to own homes for as little as 2% deposit.
The federal government has recently implemented a new strategy called the Family Home Guarantee Scheme. It helps single-parent families get onto the property market with a deposit of as little as 2%. If you’re a single-parent household with at least one dependent child, this scheme can help you buy your new home.
Signature Dream Homes supports Australian families. We understand that one of the biggest restrictions when it comes to owning a home, is coming up with a deposit whilst renting a property. For single parents this program takes away the financial burden of waiting years to save up money for a 10-15% deposit. We’re here to make your dream of getting on the property ladder a reality.
What is the Family Home Guarantee Scheme?
The scheme helps single-parent households get onto the property market. It was implemented on the 1st July 2021, in response to the coronavirus pandemic and the success of the First Home Loan Deposit Scheme (FHLDS).
A low deposit of 2% will help many single-parent families become homeowners. Families can save money and time saving up for a deposit, as well as benefiting from not paying Lenders Mortgage Insurance (LMI). This frees up cash for other costs that come with owning your own home like purchase, construction, and government costs.
How does it work?
Most banks and lenders require a minimum deposit of 20% of home value for the borrower to be exempt from paying LMI. The scheme allows homebuyers who can’t reach this threshold to take out a loan if they can pay at least a 2% deposit. The government will underwrite the balance of the deposit with a loan so that borrowers do not have to pay LMI.
Who is eligible for the scheme?
The scheme will be available to 10,000 eligible applicants over a four-year period. Single parents can purchase an existing home or buy land to build a property, providing service loan repayments can be paid. You are eligible if you’re a first-time homebuyer, or you’ve previously owned your own home.
In order to qualify, the below criteria must be met:
- The property you wish to purchase is the property you will reside in.
- You do not currently own other properties including commercial, investment, or land ownership in Australia.
- Be a single parent with at least one dependent child. You will need to provide evidence you are legally responsible for the day-to-day care and welfare of the child. Depending on a shared custody arrangement, both a mother and father may be able to apply for the scheme separately.
- Have an annual taxable income of $125,000 or less. You will be asked to provide the relevant Notice of Assessment from the ATO.
- Be an Australian citizen of 18+ years.
- Be the sole applicant listed on the loan and certificate title.
The property price cap:
For Queensland the below caps on properties apply:
City or regional state
- Purchase established property – $600,000
- Build or purchase a newly built home – $650,000
Rest of state
- Purchase established property – $450,000
- Build or purchase a newly built home – $500,000
How do you apply for the scheme?
Signature Dream Homes can help you apply for the Family Home Guarantee Loan. We have been helping families find their dream home in Queensland for over seven years, specialising but not limited to first-time home buyers. We understand that the journey of owning your own home can be overwhelming, therefore we provide the answers and assist you throughout the process.
We can help you to apply for the Loan securing all of the paperwork. One exciting benefit is that this loan can also be combined with the QLD First Home Owner Grant, which can be used towards your deposit or as a payment towards your mortgage balance.
Additional Signature Solutions:
If you are not eligible for the Family Home Guarantee, there are additional ways we can help you access available grants and incentives from the government.
If you are a First Home Buyer, you have additional benefits from the government to help you save when buying your first home. We can help you access to up to $30,000 of Grants and Incentives from the government.
- QLD First Home Owner Grant – The QLD government gives First Home Buyers $15,000 as a one-time payment to use for their home. It can go towards your deposit.
- Stamp Duty Exemption – First Home Buyers are exempt from paying Stamp Duty on brand new homes and land purchases, up to a certain amount. Ask our team for more details.
How Much Could You Save?
During our first phone calls, our team will work with you to get an early assessment of how much you can safely borrow. After that, we’ll see what programs and incentives you are qualified for, and how much you can save towards your first home.
Get started with the first step, with our survey to begin the pre-qualification process.
To speak directly to one of our agents that can provide you with the best information and advice, contact us today.