From July 1, 2024, to June 30, 2025, there will be 5,000 guarantees available under the FHG. With this guarantee, Housing Australia makes it easier for eligible buyers to secure a home loan from a participating lender, allowing them to buy a home with just a 2% deposit without needing Lenders Mortgage Insurance.
The FHG guarantee can cover up to 18% of the property's value, as evaluated by the lender. It's essential to note that this is a guarantee, not a cash contribution or down payment. Your lender will require proof of your eligibility through your Notice of Assessment (NOA) for the relevant financial year. For reservations before July 1, 2024, the 2022-23 NOA is needed, and post-July 1, 2024, the 2023-24 NOA will be required. This provides a 90-day window to obtain the NOA, which is necessary before any guarantee is issued and settlement occurs.
To qualify for the Family Home Guarantee, you need to be:
Applying as an individual
A single parent or guardian of at least one dependent
An Australian citizen or permanent resident
At least 18 years old
Earning up to $125,000 annually
The intended homeowner living in the property
Without current property ownership, or not planning to own another property upon settlement
Eligible applicants include single individuals without a spouse or partner, and those responsible for at least one dependent child or recipient of a disability support pension living with them. Previous homeowners can apply if they do not plan to own another property.
A deposit between 2% and 20% of the property's value is necessary, though lenders might require a higher percentage based on finances. It's essential to confirm with your lender if other grants can count toward your savings.
The scheme applies to various residential properties, such as existing homes, house and land packages, and off-the-plan units. Different property types have specific criteria. Applications must go through a Participating Lender or their representative, as Housing Australia doesn't process applications or offer personal financial advice.
Consider discussing potential interest rate changes or property value fluctuations with your lender. The FHG involves an income check via the NOA, and applicants should speak with a lender if they don't have the NOA – alternative documentation may be needed.