The Family Home Guarantee, part of the Australian Government 5% Deposit Scheme, helps eligible single parents and legal guardians buy or build a home with as little as a 2% deposit* and no Lender’s Mortgage Insurance (LMI).
Welcome to your go-to guide for the Family Home Guarantee. As part of the Australian Government 5% Deposit Scheme, this dedicated pathway helps eligible single parents and legal guardians with at least one dependent child purchase or build a home sooner with a minimum 2% deposit. This page explains how it works, eligibility requirements, property price caps, and the application process—helping you confidently take the next step towards home ownership.
The Family Home Guarantee is now part of the Australian Government’s Home Guarantee Scheme, also known as the Australian Government 5% Deposit Scheme. It allows eligible single parents and legal guardians to purchase or build a home with a deposit from 2%, without the need to pay Lenders Mortgage Insurance (LMI).
Rather than requiring a full 20% deposit, the scheme helps eligible buyers enter the property market sooner by reducing the upfront savings required. It is administered by Housing Australia and accessed through approved participating lenders.
From 1 October 2025, the scheme expanded with:
These updates reflect current market conditions and broaden the range of buyers who may be eligible.
2%* Minimum deposit required
No place limits for eligible single parents and legal guardians from 1 October 2025
Eligible single parents and legal guardians with at least one dependent child
Maximum purchase prices apply. See price caps
Family Home Guarantee is now incorporated into the 5% Deposit Scheme
The Family Home Guarantee is a dedicated pathway under the Australian Government 5% Deposit Scheme, helping eligible single parents and legal guardians buy or build a home with a deposit from 2% and no Lenders Mortgage Insurance (LMI).
From 1 October 2025, updates to the scheme removed place limits and income caps while increasing property price caps, making it easier for eligible buyers to access support.
| Feature | Before 1 October 2025 | From 1 October 2025 |
|---|---|---|
| Minimum deposit | 2% | 2% |
| Income caps | Applied | No income caps |
| Place limits | Limited number of places | Unlimited places |
| Property price caps | Lower price caps | Increased price caps |
| Note: Changes are indicative only and subject to government eligibility criteria and policy updates. Click for full details. | ||
These updates are designed to support more eligible single parents and legal guardians into home ownership by removing previous barriers such as income limits and capped availability.
If you’re considering applying, the next step is understanding how the home loan process works under the scheme — including how the government guarantee interacts with your loan and deposit.
How does the Family Home Guarantee work? If you’re eligible, the scheme allows a participating lender to assess your home loan application with the support of a Housing Australia guarantee. This can reduce the deposit required to purchase or build a home and may help eligible borrowers enter the property market sooner.
Eligible buyers must apply for an owner-occupier home loan with principal and interest repayments. Here’s what to expect:
Under the Family Home Guarantee, eligible single parents and legal guardians may be able to purchase or build a home with a deposit from as little as 2% of the property value, subject to meeting scheme and lender requirements.
Applications must be made through a participating lender. Our finance partner, Resolve Finance, can help assess your eligibility, explain your borrowing capacity and guide you through the home loan application process.
If your application is approved, Housing Australia may provide a guarantee of up to 18% of the property value. This can help eligible borrowers purchase a home with a lower deposit and without paying Lenders Mortgage Insurance (LMI).
If approved, you can proceed to purchase or build an eligible home. To remain eligible under the scheme, the property must be your principal place of residence and you must meet ongoing owner-occupier requirements.
Note: Eligibility criteria, lender requirements and Government scheme settings apply.
Read the full disclaimer.
The Family Home Guarantee, part of the Australian Government 5% Deposit Scheme, is available through a network of participating lenders across Australia.
To help you navigate your options with confidence, Homebuyers Centre partners with Resolve Finance, our trusted finance partner.
Their experienced finance specialists can guide you through the process, help you understand your eligibility, and support your application through participating lenders.
For single parents and legal guardians, buying a home can feel like a big step, but the right support may help bring it closer. As part of the Australian Government 5% Deposit Scheme, the Family Home Guarantee is designed to help eligible buyers purchase or build a home with a lower deposit and without the need to pay Lenders Mortgage Insurance (LMI).
By reducing some of the common barriers to home ownership, the scheme can help eligible families take the next step sooner and with greater confidence.
Here’s how it may make a meaningful difference on your home ownership journey.
| Benefit | What it means for you |
|---|---|
| Lower upfront deposit (from 2%) | Eligible single parents and legal guardians may be able to buy or build a home with a deposit from just 2%, helping reduce the time needed to save a traditional 20% deposit. |
| May avoid paying LMI | With most lenders, deposits below 20% usually require Lenders Mortgage Insurance (LMI). Under the Family Home Guarantee, eligible buyers may not need to pay LMI, potentially saving thousands in upfront costs. |
| Support designed for families | The scheme is specifically designed for eligible single parents and legal guardians with one or more dependent children, providing a dedicated pathway to home ownership. |
| Clear pathway with expert support | With guidance from Homebuyers Centre and Resolve Finance, you can better understand your eligibility, borrowing options and next steps, helping you navigate the process with confidence. |
| Ready to explore your options? Enquire now | |
Eligibility criteria, lender requirements and property price caps apply. Approval is not guaranteed and depends on your individual circumstances and lending assessment.
The Family Home Guarantee can be used to buy or build an eligible home in Victoria, provided the borrower, property and loan meet the scheme requirements. This may include house and land packages, vacant land with a separate building contract, off-the-plan homes and newly built properties, subject to the applicable property price cap.
If you’re considering building, it’s important to understand how your deposit, borrowing capacity and total project costs fit within the scheme requirements. Eligibility and borrowing limits vary based on your individual circumstances and lender assessment.
Everyone’s starting point is different. What you can do under the scheme comes down to your deposit, your budget, and how much you can borrow.
Before diving into specific homes or locations, it helps to understand where you stand. A quick chat with a finance specialist can give you a clearer picture of your options and what you could move forward with.
Ready to take the next step?
A single parent considering a house and land package in Melbourne’s outer growth areas might find land for $400,000 and a build contract for $540,000. With a combined total of $940,000, the project may fall within the applicable Victorian property price cap and could be eligible under the Family Home Guarantee, subject to lender assessment and scheme requirements. Similar opportunities may also be available across Geelong and other Victorian growth corridors.
Build-specific considerations:
Speak to a New Homes Consultant to explore your options and connect with our trusted finance partner, Resolve Finance. Their finance specialists can guide you through the process and help you understand current State Revenue Office Victoria requirements and Housing Australia program criteria.
This example is indicative only and does not consider your personal circumstances. Eligibility criteria apply and are subject to state and/or federal government requirements. Visit www.sro.vic.gov.au for full details. Financial services are provided by Resolve Financial Solutions Pty Ltd trading as Resolve Finance (ABN 65 079 545 378, Australian Credit Licence 385487). Homebuyers Centre is a building practitioner (ABN Group (Vic) Pty Ltd, CDB-U 49215). Images are for illustrative purposes only.
Applications for the Family Home Guarantee are made through participating lenders, not directly through Housing Australia. Homebuyers Centre and Resolve Finance can help you understand the process, assess your options and navigate the pathway to home ownership.
The process starts with understanding your eligibility and borrowing capacity, followed by support from experienced finance specialists who can guide you through each stage of the application.
Homebuyers Centre and Resolve Finance are here to help you understand your options and take the next step with confidence.
For eligible single parents and legal guardians, building a new home can be a smart way to make the most of the Family Home Guarantee. By planning your budget, land and home design together, you may be able to find a solution that suits your family’s needs while remaining within the applicable property price cap.
Combined with eligible Victorian grants and incentives, building can help bring home ownership within reach sooner, without compromising on the lifestyle you’re working towards.
You’ll also have more clarity along the way, from understanding what you can borrow through to seeing your home come together step by step.
With the right support, it’s a process you can move through with confidence.
Ready to get started?
Explore house and land options See if your eligible
For the latest eligibility requirements and property price caps, refer to the official government guidance or speak with Resolve Finance to discuss your individual circumstances.
Terms and conditions apply. This information is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether it is appropriate for your circumstances.
First Home Owner Grant eligibility is determined by the Victorian State Revenue Office. For more information, click here.
Eligibility for the Australian Government 5% Deposit Scheme, including the Family Home Guarantee, is determined by Housing Australia and participating lenders. For more information, click here.
Information is current at the time of publication and may change due to government policy updates, lender requirements or scheme changes. Participating lender criteria, terms and conditions apply and may vary.
Finance services are provided by Resolve Financial Solutions Pty Ltd trading as Resolve Finance ABN 65 079 545 378, Australian Credit Licence 385487.
Since 1997, Resolve Finance are construction finance experts and have been proudly supporting homebuyers in Victoria, helping more than 36,000 families build their dream homes. Their commitment extends beyond just home loans— offering a complete range of financial services.
At Resolve Finance, they’re here to guide you every step of the way, making sure you have a trusted advisor by your side. Their goal is simple: to be your finance partner for life.
The Family Home Guarantee single parent home loan scheme is a single parent home loan scheme Australia pathway that may help eligible single parents and legal guardians buy or build a home with a 2% deposit. In 2026, it operates as the 2% deposit scheme single parent pathway within the Australian Government 5% Deposit Scheme.
It was introduced in 2021 as part of the Australian Government’s Home Guarantee Scheme. Housing Australia provides the government guarantee, but you apply through a participating lender, not directly to Housing Australia.
To be eligible for the Family Home Guarantee, applicants must be single parents or single legal guardians of one or more dependent children. All applicants must be Australian citizens or permanent residents at least 18 years of age to qualify for the Family Home Guarantee.
You must also buy or build an owner occupier home loan property, meet the participating lender’s lending criteria, and ensure the property is within the relevant Victorian price cap. The application process for the Family Home Guarantee involves checking your eligibility with a Participating Lender, who will assess your individual situation and guide you through the necessary steps.
Eligible single parents and legal guardians may need a minimum deposit of 2% under the Family Home Guarantee. That is much lower than the typical 20% deposit often used to avoid lenders mortgage insurance lmi.
For comparison, first home buyers in Australia can access the First Home Guarantee 5% deposit scheme, which allows them to purchase a home with a minimum deposit of 5%. The FHG pathway is different because it is specifically designed for eligible single parents and single legal guardians.
Under the Family Home Guarantee, eligible borrowers generally do not pay lenders mortgage insurance when the loan is covered by the scheme and the participating lender approves the application. The Australian Government 5% Deposit Scheme helps eligible buyers avoid paying Lenders Mortgage Insurance (LMI) when their deposit is below 20%.
This does not mean every borrower will be approved. Your credit history, income, expenses, interest repayments, loan amount, property type and other lender requirements still matter.
The 2% Deposit Scheme typically refers to the Family Home Guarantee, a pathway within the Australian Government 5% Deposit Scheme designed for eligible single parents and legal guardians with at least one dependent child.
Under the scheme, eligible buyers may be able to purchase or build an owner-occupied home with a deposit from just 2%, while Housing Australia provides a government guarantee that may allow them to avoid paying Lenders Mortgage Insurance (LMI).
Unlike the general 5% Deposit Scheme pathway, which is available to a broader range of eligible buyers, the Family Home Guarantee is specifically designed to support single parents and legal guardians. The property must be owner-occupied and meet applicable scheme requirements, including property price caps and lender criteria.
No. The Family Home Guarantee does not automatically exempt you from paying stamp duty. Stamp duty is a state government charge that sits separately from the Australian Government 5% Deposit Scheme, so whether you pay it will depend on the property you’re purchasing and any state-based concessions you may be eligible for.
In Victoria, eligible first home buyers may be able to access the First Home Owner Grant (FHOG) when purchasing or building a new home, along with other first home buyer concessions that can help reduce upfront costs.
Because the Family Home Guarantee and Victorian grants and concessions are separate programs, it’s important to assess your eligibility for each individually. A finance specialist can help you understand which grants, concessions and government initiatives may apply to your circumstances.
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If you’re buying or building your first new home in Melbourne, Victoria, you could be eligible for a $10,000 First Home Owner Grant*. This valuable boost can help you take that crucial first step toward owning your dream home.
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