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Family Home Guarantee (FHG) Scheme – A Guide for Single Parents

Navigating the property market as a single parent can feel overwhelming – especially with rising house prices, cost-of-living pressures, and the challenge of saving for a home deposit on one income. Fortunately, the Family Home Guarantee (FHG) Scheme offers eligible single parents and single legal guardians a unique opportunity to step onto the property ladder with as little as a 2% deposit. If you’re raising children on your own and dreaming of home ownership, this guide will help you understand how the scheme works, whether you’re eligible, and how McKinley Plowman can help you secure your future.

What is the Family Home Guarantee (FHG) Scheme?

The FHG is an Australian Government initiative administered by Housing Australia under the Home Guarantee Scheme. It aims to help eligible single parents or single legal guardians of at least one dependent child buy a home sooner. The key benefit? You can purchase a property with as little as a 2% deposit, without needing to pay Lenders Mortgage Insurance (LMI).

Housing Australia provides a guarantee of up to 18% of the property value (as assessed by a participating lender), meaning you won’t need to save the typical 20% deposit. Importantly, this guarantee is not a cash payment or deposit – it’s a government-backed support mechanism that enables more Australians to enter the property market sooner. For FY2025-26, 5,000 FHG places are available nationwide.

Eligible properties under the FHG include:

• Existing houses, townhouses, or apartments
• House and land packages
• Land with a separate contract to build
• Off-the-plan apartments or townhouses

The property must be a residential home intended for owner-occupation, not investment.

Who is Eligible and What Are the Requirements?

The FHG is designed for Australians who are single parents or single legal guardians with at least one dependent in their care. You don’t need to be a first home buyer – previous homeowners may also be eligible if they don’t currently own property.

To qualify, you must:

• Be an Australian citizen or permanent resident
• Be at least 18 years old
• Be legally single (not married or in a de facto relationship)
• Have a taxable income no greater than $125,000 (excluding child support)
• Be the sole applicant listed on the home loan and title
• Intend to live in the property as your principal place of residence
• Have at least 2% of the property’s value available as a deposit

You must not own property at the time of settlement, unless you’re becoming the sole registered owner through the purchase. Eligible dependants include those under your day-to-day care, welfare, and development, or adult children receiving a Disability Support Pension who live with you.

Before you proceed, it’s worth discussing your personal situation with a lender or mortgage broker to understand your borrowing power, your responsibilities under the FHG, and the impacts of interest rate fluctuations or additional build costs (for house-and-land purchases).

How McKinley Plowman Can Help

Applying for the Family Home Guarantee can be complex, especially with strict eligibility requirements and limited places available. That’s where our team at McKinley Plowman comes in. As experienced finance specialists, we work closely with a wide network of participating lenders to help eligible clients access FHG places and navigate the home loan process with confidence.

Here’s how we can help:

• Eligibility Assessment: We help determine whether you meet the criteria for the FHG, and if not, explore other pathways to home ownership.
• Loan Application Support: We guide you through the entire application process, ensuring all documentation is correct and deadlines are met.
• Lender Matching: Not all lenders participate in the FHG. We match you with lenders who do, and compare loans from them to get you the best deal for your circumstances.
• Property Strategy: Whether you’re looking for an existing home or a house-and-land package, we help you understand timelines, price thresholds, and risks involved.

Our mission is to empower you to make confident decisions about your financial future. And that starts with finding the right support to buy a home for your family.

Why Now is a Smart Time to Act

With house prices across many parts of Australia trending upward and FHG places limited to just 5,000 nationally in 2025–26, eligible single parents and guardians are encouraged to act quickly. The opportunity to purchase a home with only a 2% deposit and avoid LMI is rare, and as property markets gain momentum, affordability may become more difficult.

At McKinley Plowman, we understand the challenges faced by single-income families – and we’re here to help. Reach out today to find out how we can guide you through the Family Home Guarantee process and move you one step closer to owning your own home. Call us on (08) 9301 2200 or contact us via our website to get started.

Further Reading:

• Family Home Guarantee FAQs | Housing Australia

written by:

Paul Moran

Paul has over 35 years of experience in finding financial solutions for homebuyers, investors and business owners.
A licensed broker and member of the Mortgage & Finance Association of Australia (MFAA), Paul’s extensive experience includes 20 years with a major bank, seven of which were as commercial banking manager.
Paul delivers a holistic financial solutions to achieve the best possible outcome for a client’s personal or commercial lending needs. Paul also provides a comprehensive financial consultancy to business owners on commercial, equipment and invoice finance.