The new Family Home Guarantee, a new federal government scheme, will allow single parents that have dependent children to purchase a home with a deposit for as little as two per cent. 

This was announced alongside the government also rolling out another 10,000 places for the New Home Guarantee, which allows first time home buyers to build a new home or purchase a newly built home with a reduced deposit. 

The Family Home Guarantee will provide 10,000 guarantees over four years to single parents.

To be eligible you must demonstrate that you earn $125,000 or less, do not currently own property and must be 18 or older. You can purchase a new or existing dwelling up to the cost of various price caps that can be found here. 

The Minister for Women’s Economic Security Jane Hume has driven home the importance of this scheme for women: “So many single-parent families are led by women. A woman’s home will now be her castle as well.”

A bit over 100,000 families are estimated to be eligible for the scheme and the vast majority of these are single-working mothers.

However, the Labor party does not view the scheme as being sufficient to match the actual issue of single-parents acquiring housing. 

Labor’s housing spokesperson Jason Clare commented: “There are about a million single-parent families around Australia. This will help about 10,000 a year. In other words, one in 100.” 

Currently, almost half of all single-parent families are renting from a private landlord and don’t own any property. Only one in four dual-parent families are living in rental properties, having the obvious advantage of two incomes. 

Housing Minister Michael Sukkar is confident that the new Family Home Guarantee will be successful in helping single parents enter the housing market. 

“The hurdle for single parents on single incomes to get into the housing market is getting that deposit together. The family home guarantee will enable single parents to jump that hurdle.”

“The Morrison Government believes all Australians who aspire to purchase a home should be given that opportunity.”

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