Family Home Guarantee (FHG) - from 2% deposit

Minimum 2% deposit

Get into your home sooner with a smaller deposit.

Pay no LMI

Save thousands in Lender's Mortgage Insurance costs.

No ongoing fees

No monthly or ongoing fees

What is the Family Home Guarantee?

The Family Home Guarantee (FHG) is an Australian Government initiative. It supports eligible single parents and eligible single legal guardians with at least one dependent to purchase a home with a deposit of as little as 2% without needing to pay for Lender's Mortgage Insurance (LMI).

From 1 July 2023 there are 5,000 FHG places available for the 2023-24 financial year.

Are you eligible?

To apply to the Family Home Guarantee, you'll be subject to certain eligibility criteria as outlined below. You need to provide documentation to prove your eligibility and secure your position.

You must be applying as an individual.
You must be a single parent or single legal guardian with at least one dependent (see more information below).
You must be an Australian citizen or eligible permanent resident at the time of entering the loan.
You must be at least 18 years of age.
You must be earning no more than $125,000 per year.
You must intend to be owner-occupier of the purchased property.
You must not currently own property (see more information below).

Family at the beach

Info for single parents and previous home ownership

To apply for the Family Home Guarantee, home buyers must:

be single. A person is considered single if they don’t have a spouse and/or a de facto partner. Note: a person who is separated but not divorced is not considered single
have at least one dependent child. To have a dependent child, you must be the natural or adoptive parent, or legal guardian of the child and the child must either be
- a “dependent child” within the meaning of subsections (2), (3), (4), (5), (6) and (7) of section 5 of the Social Security Act 1991 or  
- at least 16 but under 22 years of age, receive a disability support pension within the meaning of the Social Security Act 1991 and live with you. 
- Please note: P&N Bank is unable to accept applications from legal guardians before 31 July 2023.

For the purposes of the Social Security Act 1991, you must show that you are legally responsible (whether alone or jointly with another person) for the day-to-day care, welfare an development of the dependent child and the dependent child is in your care.

FHG applicants can either be first home buyers or previous owners who do not currently own a home or do not intend to own a separate property when they settle on the home. To be eligible, you must not currently have:

a freehold interest in real property in Australia
a lease of land in Australia
a company title interest in land in Australia.

What property types qualify?

Eligible property types for the Family Home Guarantee include:

an existing house, townhouse or apartment
a house and land package
land and a separate contract to build a home, or
an off-the-plan apartment or townhouse.

Housing Australia has also developed some tools to help first home buyers determine the property price caps for suburbs they’re looking to purchase a property in. All you need to do is enter the postcode for the area you want to buy in to find out more information.

Property price cap search