Saving to purchase a family home can be a challenging task, especially when you are a single parent.
The Family Home Guarantee (FHG) is designed to support eligible single parents by providing a guarantee to Participating Lenders that allows you to buy a family home with a deposit of as little as 2%. This scheme enables single parents with at least one dependent child to enter or re-enter the housing market sooner. Normally, to avoid paying Lenders Mortgage Insurance, anyone purchasing a property will need to save a 20% deposit (based on the property value). Taking advantage of the Guarantee will allow you to bypass Lenders Mortgage Insurance without having to stress about providing an extra 18% in your deposit. Investment properties are not covered by the Guarantee.
Applicants can have previously owned a home and still be eligible provided they no longer have an invested interest in the property.