If you're a single parent or guardian with at least one dependent child, the FHG gets you into a home with 2% deposit and no LMI. Here's exactly how it works in 2026.
The Family Home Guarantee (FHG) is the most under-used low-deposit pathway in Australia. It gets single parents and guardians into a home with a 2% deposit, no LMI, and the same generous property caps as the 5% Deposit Scheme. Yet most single parents either don't know about it or assume they won't qualify. This article explains who does, what they can buy, and how the application actually works.
Who is the FHG for?
The FHG is specifically for:
- Single parents with at least one dependent child, OR
- Eligible single guardians with at least one dependent child in their care
It doesn't matter whether you've owned property before. The FHG is one of the few pathways where previous home ownership is allowed — provided you don't currently own residential property in Australia. This makes it particularly valuable for divorced or separated parents starting over.
You can apply as a single applicant, or jointly with another person (including an ex-partner, a friend, or a family member, provided the other applicant also meets the scheme criteria).
Source: Housing Australia, "Family Home Guarantee"
The 2% deposit, step by step
- Confirm you have at least one dependent child (under 18, or aged 18+ in full-time study or with a disability)
- Confirm you don't currently own residential property in Australia
- Find a property within your state's price cap (same caps as the 5% Deposit Scheme)
- Save 2% deposit plus costs. On a $600,000 home, that's $12,000 deposit + ~$5,000 in duty, legal, inspections.
- Apply with a participating lender. The lender will assess your credit and submit the FHG application to Housing Australia.
- If approved, the Government guarantees the next 18% of the property's value. This means the lender doesn't need LMI on your loan — even though you're borrowing 98% of the property's value.
What's guaranteed, and what you save
On a $600,000 home with a 2% deposit ($12,000), your loan is $588,000 — a 98% LVR. The Government guarantees the next 18% of the property value (i.e. $108,000) to the lender. With that guarantee in place, the lender waives LMI entirely.
Without the FHG, LMI on a $588,000 loan at 98% LVR would cost roughly $30,000 to $40,000. The FHG saves you that entire amount.
Property caps (same as 5% scheme)
The FHG uses the same property price caps as the 5% Deposit Scheme. The headline caps in early 2026 are:
| State | Capital & regional centres | Other areas |
|---|---|---|
| NSW | $1,500,000 | $800,000 |
| VIC | $950,000 | $650,000 |
| QLD | $1,000,000 | $700,000 |
| WA | $850,000 | $600,000 |
| SA | $900,000 | $500,000 |
| TAS | $700,000 | $550,000 |
| ACT | $1,000,000 | — |
| NT | $600,000 | — |
What you can stack on top
The FHG stacks with most other state and federal support:
- State First Home Owner Grant (new homes only) — NSW $10,000, QLD $30,000, WA $10,000, SA $15,000, TAS $30,000, NT $10,000. ACT and VIC generally don't apply for FHBGs in this category, but check current rules.
- State stamp duty exemption or concession — most states offer a discount for first home buyers
- First Home Super Saver Scheme — withdraw up to $50,000 per person from super
- State lenders (Keystart, HomeStart) — these are alternatives to bank loans; you wouldn't combine FHG with them
You cannot use both the FHG and the 5% Deposit Scheme for the same property — pick one. The 2% FHG deposit is lower, but the 5% scheme is available to all first home buyers (not just single parents).
What it doesn't cover
- Investment properties
- Properties above the state cap
- Couples without dependent children
- Applicants who currently own residential property in Australia
- Holiday homes
FHG vs Help to Buy for single parents
Help to Buy is the more generous program (Government co-owns up to 40%), but it has a strict $103,000 single income cap. If you earn less than that, you should compare:
| FHG | Help to Buy | |
|---|---|---|
| Min deposit | 2% | 2% |
| Income cap | None | $103,000 single |
| LMI | Waived (Government guarantee) | Waived (Government equity) |
| Government ownership | None | Up to 40% of property |
| Your ongoing cost | Full mortgage | Mortgage on your share only |
If your income is below $103K, Help to Buy gives you more house for less monthly cost. If your income is above $103K, the FHG is your best low-deposit option.
If you're a single parent in Australia in 2026, the FHG is one of the most under-utilised pathways to home ownership. It exists, it works, and it can save you $30,000+ in LMI. The hardest part is often the deposit itself — and that's where the First Home Super Saver Scheme and weekly deposit plans can help.