Family Home Guarantee
We’re an approved lender for the Family Home Guarantee (FHG).
Your single parent and single legal guardian customers may be eligible.
We are accepting applications for FY24-25 Scheme Places.
MyState Bank is a Participating Lender for the Australian Government’s Family Home Guarantee (FHG).
What is it?
The Family Home Guarantee aims to support eligible single parents and eligible single legal guardians with at least one dependent child in purchasing a family home, regardless of whether they are a first home buyer or a previous home owner.
How does it work?
Usually home buyers with less than a 20% deposit need to pay lenders mortgage insurance. Under the FHG, eligible home buyers can purchase a modest home with a deposit of as little as 2% (subject to MyState lending criteria). This is because Housing Australia guarantees up to 18% of the value of the property purchased.
If you have a customer that is a single parent or single legal guardian with at least one dependent child purchasing a home, and you think they may be eligible, here are your next steps:
Review the scheme requirements
The official Housing Australia has guidelines regarding property price thresholds, customer incomes and other criteria. Here you will find the FHG Fact Sheet to learn more.
Submit the loan application
Make sure you include ALL of the supporting documents in our Broker Submission Checklist – PLUS any extras required by the scheme, including the Home Buyer Declaration.
Is your customer eligible?
If you can tick off all of these requirements, then most likely, your customer is eligible to receive the offer:
- They’re Australian citizens and permanent residents who are at least 18 years of age
- Must be a single parent or single legal guardian of at least one dependent. A parent or legal guardian is not single if they are married or in a de facto relationship. NB: a person who is separated but not divorced is not single.
- They pass an income test
- They have at least a 2% deposit saved
- At the time of the home loan agreement, applicants must not hold a separate interest in property in Australia (including owning land), a lease of land in Australia or a company title interest in land in Australia, or, if they do hold such an interest at that time, either must not intend to hold that interest from settlement of the property being purchased or hold that interest as joint tenant or tenant in common in the property to which the loan relates, and intend to become the sole registered owner of the property as a result of the loan.
- They are going to live in the property (not an investment)
- The property they are looking to purchase falls within the Property Price Thresholds
Find out more about the eligibility requirements on the official Housing Australia website and by downloading the Family Home Guarantee (FHG) Fact Sheet.
Income Test
The Scheme includes an income test for:
- Individual applicants – the taxable income for the previous financial year must not be more than $125,000
Property Price Thresholds
There is a maximum property purchase price under the Scheme which applies in capital cities, large regional centres and regional areas. You can find a list of the property price thresholds as well as a tool to search by postcode on the Housing Australia website.
