I only have a 2% deposit and no guarantor … how can I possibly get a home loan?
That’s what a client said to me recently.
Like many single parents or guardians, they assumed home ownership was out of reach.
But that wasn’t the case.
They secured a competitive home loan without paying Lenders Mortgage Insurance (LMI), thanks to a little-known government initiative: the Family Home Guarantee.
What is the Family Home Guarantee?
The Family Home Guarantee (FHG) is a scheme run by Housing Australia that helps eligible single parents or single legal guardians buy a home with as little as a 2% deposit, while avoiding the cost of LMI.
It’s designed to remove barriers to home ownership for those raising children on their own—people who are often overlooked by traditional lending pathways.
Who is eligible?
To access the FHG, you’ll need to meet a few eligibility criteria:
✅ You’re a first home buyer, or you haven’t owned property in the last 10 years
✅ You’re a single parent or legal guardian with at least one dependent
✅ Your income falls within certain limits based on ATO tax returns
✅ The property value is within regional or city-specific price caps
✅ The home will be your principal place of residence
✅ You apply through a participating lender
There’s no need for a guarantor, and you can still secure a competitive interest rate.
What’s the catch?
No catch, but be aware:
- Places under the scheme are limited
- Eligibility requirements may change each financial year
- Not all lenders participate, so it’s essential to work with a broker who understands the scheme
Why this matters
Many would-be buyers rule themselves out before they even apply, assuming a low deposit or lack of guarantor disqualifies them.
But government support schemes like the Family Home Guarantee are designed specifically for people in this situation.
Don’t assume it’s not possible—explore your options first.
You might be closer to owning your own home than you think.
Want to learn more? Let’s connect