What Is The Family Home Guarantee?

What Is The Family Home Guarantee?

It's where a single parent with a child can build a new home or purchase an existing one with as little as 2% deposit. And without paying Lenders Mortgage Insurance! The single parent will pay a 2% deposit & the government will guarantee the other 18% of the deposit so you won't pay LMI.

The number of slots in this scheme is capped & operates on a first-come-first-served basis. There is up to 15,000 spots this year.

Am I Eligible for the Family Home Guarantee?

1. You must be a single parent of a dependent child. Statistics show, there are 120,000 single parents, with 80% of them being single mothers.
2. You must be 18 years or older.
3. Your taxable income must be less than $125,000.
4. Child support payments can be on top of the income cap.
5. You CAN be a previous home owner. This is not just for first home buyers.
6. This must be your only property.
7. You must be an Australian citizen, not a PR.
8. You must have a 2% deposit.

There are Proprty Price Caps for the Family Home Guarantee!

NSW - $900,000 in metro areas, lower in regional.

VIC - $800,000 in metro areas, lower in regional.

QLD – $700,000 in metro areas, lower in regional.

WA – $600,000 in metro areas, lower in regional.

SA – $600,000 in metro areas, lower in regional.

TAS – $600,000 in metro areas, lower in regional.

ACT - $750,000

Northern Territory - $600,000

What does the Application process look like?

Either apply through me as your mortgage broker or go directly to one of the 27 participating lenders, which I'll list below. Finance Broker - Matthew Stack - 0423 237 242. Call me to reserve your place in the Family Home Guarantee Scheme. I'll work out how much you can borrow and then compare lender interest rates for you.

The scheme provider (NHFIC) does not accept applications directly.

How to reserve a Scheme Place?

Step 1: Home loan application

As your finance broker, we will conduct a fact find around your income, then we'll research which lender has the right loan product and interest rates for you. We'll then organise your application forms, fill them out, and bring them to you for signing. I do not charge a brokerage fee, as I'm paid by the lender.

Step 2: Pre-approval

Know how much you can spend on a home before you start looking. Once you find a suitable property, send me the contract of sale and I'll deal directly with the lender on your behalf.

Step 3: Contract of Sale (COS)

Send me the signed contract of sale, and then I'll organise the mortgage documents with your chosen lender.

Step 4:

Get formally approved and move to settlement. Once your loan is settled, you can then move into your new home!

Which banks are part of the Family Home Guarantee?

NAB, CBA and Westpac are the three major banks participating in the Family Home Guarantee Scheme.

The non-major lenders are:

• Australian Military Bank
• Auswide Bank
• BankSA
• Bank Australia
• Bank First
• Bank of Melbourne
• Bank of us
• Bendigo Bank
• Beyond Bank Australia
• Community First Credit Union
• CUA
• Defence Bank
• Gateway Bank
• G&C Mutual Bank
• Indigenous Business Australia
• Mortgageport
• MyState Bank
• People’s Choice Credit Union
• Police Bank (including the Border Bank and Bank of Heritage Isle)
• P&N Bank
• QBANK
• Queensland Country Credit Union
• RAMS
• Regional Australia Bank
• St.George
• Sydney Mutual Bank and Endeavour Mutual Bank (divisions of Australian Mutual Bank Ltd)
• Teachers Mutual Bank Limited (including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank and UniBank)
• The Mutual Bank
• WAW Credit Union

Is the scheme available for investment properties?

No. Must be a home to live in.

Can both parents apply for it?

Yes. But each has to buy their own home - as you must be a single parent.

I am separated, but not divorced, can I apply?

No. You must be single and not have a spouse.

What is considered a dependent child?

• The child is substantially dependent on the single parent.

Can I build a home on vacant land I own?

No. You cannot own anything before starting with this scheme.

Can I change my Investment property into an owner occupied?

No.

How to get started?

Give me a call to start the fact find process. It's a simple 10 minute phone conversation around your income, your 2% deposit and the documents I'll need to properly assess.

Matthew Stack - Finance Broker - 0423 237 242

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