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Buying our family home

Saving to purchase a family home can be a challenging task, especially when you are a single parent. Queensland Country Bank is now a Participating Lender of the Family Home Guarantee!

To help you achieve your goal of having a family home to call your own, the Australian Government launched the Family Home Guarantee (FHG) which aims to support eligible single parents with at least one dependent child. 

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How does the Family Home Guarantee work?

The Family Home Guarantee is designed to support eligible single parents by providing a guarantee to your bank that allows you to use a deposit of as little as 2% when buying your family home.  This applies regardless of whether you are a first home buyer or a previous homeowner.  Investment properties are not supported by the Family Home Guarantee.  

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 Family Home Guarantee will allow you to bypass Lenders Mortgage Insurance without having to stress about providing an extra 18% in your deposit.

If your home loan is covered by the Scheme, you may also be able to access other Government Support programs such as the First Home Super Saver Scheme, First Home Owner Grant and Stamp Duty Concessions.  It is worth exploring all your entitlements before locking in your new home. 

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How is a ‘single parent’ defined?

A single parent must demonstrate that they are the natural or adoptive parent of a dependent child within the meaning of s.5 of the Social Security Act 1991 (Cth).  In a general sense, this means that the person must show that they are legally responsible (whether alone or jointly with another person) for the day-to-day care, welfare and development of the dependent child and the dependent child is in their care. 

Alternatively, a natural or adoptive parent of a child between 16 and 22 years of age, who receives a disability support pension and lives with them would also be eligible.

A parent is not a single parent if they are married or in a de facto relationship. NB: a person who is separated but not divorced is not single.

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Check your eligibility

Owner Occupied home loans paid on a principal and interest basis. Investment properties are not supported

18+ single parent Australian Citizen with at least one dependant child***

Applicants must have a deposit of between 2% and 20% of the property’s value

 

Must be able to provide 2020-21 Notice of Assessment issued by the ATO to reserve a place in the Scheme

The single parent must have a taxable income* that does not exceed $125,000 per annum for the previous financial year.

The single parent must be the only name listed on the loan and the certificate of title

Your maximum property purchase price is subject to the suburb and postcode of your new property**

Applicants can be either first home buyers or previous owners who do not currently own a home

 

* Child support payments are not included as income for the purpose of the income cap

** To find out the property price threshold of a suburb you a looking to buy in you can try the NHFIC tool here.

*** the natural or adoptive parent of a dependent child within the meaning of s.5 of the Social Security Act 1991 (Cth).  

View the key fact sheet and for more information.

Family Home Guarantee information guides are also available.

 

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What if I used to own a home?

Previous home owners can apply for the FHG provided they do no currently own a 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

There are no costs or repayments associated with the guarantee. However, eligible single parents are responsible for meeting all costs and repayments for the home loan associated with the guarantee.

 

Property types you could buy with the Family Home Guarantee.