The Family Home Guarantee: Your Path to Home Ownership
Family Home Guarantee: Are you a single parent struggling to save for a home deposit? Or perhaps you have a low income and are finding it difficult to secure a home loan?
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The Australian government’s Family Home Guarantee scheme may be the solution you’ve been looking for.
What is the Family Home Guarantee?
The Family Home Guarantee is a new program from the Australian government. The program is designed to help single parents and low-income families buy a home. Individuals have the opportunity to do so by making a deposit as low as 2%. This plan aligns with the government’s goal to help more Australians own homes and have easier access to housing options.
Under this scheme, eligible single parents and low-income families can apply for a guarantee from the government to secure a home loan with a participating lender. This scheme replaces a deposit, helping families buy a home with less money upfront in the property market.
How Does the Family Guarantee Work?
The Family Home Guarantee helps 10,000 single parents and low-income families buy homes over four years, starting July 1, 2021. The government will guarantee a portion of the property’s value. This means that families can borrow up to 95% without having to pay for lenders mortgage insurance.
For example, if you are purchasing a property worth $500,000, you would typically need a deposit of $50,000 (10%) plus LMI, which can cost thousands of dollars. With the Family Home Guarantee, you would only need a deposit of $10,000 (2%) and the government would guarantee the remaining 18%, allowing you to secure a home loan with a deposit of just $10,000.
Who is Eligible for the Family Guarantee?
To be eligible for the scheme, you must meet the following criteria:
- Be an Australian citizen or permanent resident
- Be at least 18 years old
- Have a taxable income of no more than $125,000 per year for the previous financial year
- Be a single parent with at least one dependent child
- Be a first home buyer or a previous homeowner who has experienced a significant life event, such as a divorce or separation, that has resulted in you being a single parent
- Have a deposit of at least 2% of the property’s value
- Meet the lender’s eligibility criteria for a home loan
How Can ScaleMortgage Help?
Navigating the Family Home Guarantee can be overwhelming, especially if you are a first home buyer or have never applied for a home loan before. That’s where ScaleMortgage comes in.
ScaleMortgage helps first-time home buyers and low-income families get home loans. Our team of experienced brokers can guide you through the entire process, from determining your eligibility for the Family Home Guarantee to finding the right lender and securing a home loan.
Determining Your Eligibility
The first step in applying for the Family Home Guarantee is determining your eligibility. Our brokers at ScaleMortgage can assess your financial situation and help you determine if you meet the eligibility criteria for the scheme. If you are not eligible, we can also provide advice on other options that may be available to you.
Finding the Right Lender
Once we have determined your eligibility, our brokers can help you find the right lender for your needs. We work with a wide range of lenders, including those participating in the scheme, to find the best home loan options for our clients.
We understand that every family’s financial situation is unique, and we take the time to understand your needs and preferences to find a lender that is the right fit for you.
Securing a Home Loan
Once we have found the right lender, our brokers will guide you through the application process and help you secure a home loan. We will handle all the paperwork and negotiations with the lender, making the process as smooth and stress-free as possible for you.
FAQ
The Family Home Guarantee is free for eligible families. There are no application fees or ongoing costs associated with the scheme.
The Family Guarantee Home Loan can be used to purchase any type of residential property, including houses, apartments, and townhouses. However, it cannot be used for vacant land or to build a new home.
No, the scheme can only be used to purchase a property that you intend to live in as your primary residence.
You can apply for the Family Home Guarantee with a participating lender/partner, such as ScaleMortgage. Our brokers can guide you through the application process and help you secure a home loan under the scheme.
Take the First Step Towards Home Ownership
The Family Home Guarantee is a fantastic opportunity for single parents and low-income families to enter the property market with a smaller deposit. With the help of ScaleMortgage, you can navigate the process and achieve your dream of home ownership.
Contact us today to speak to one of our experienced brokers and take the first step towards owning your own home.
External Resources
External Resources
Thomas Makin
Thomas Makin is the Principal Mortgage Broker and Co-Founder of Scale Mortgage. He has a Diploma in Finance and Mortgage Broking Management and is accredited by the Mortgage & Finance Association of Australia (MFAA).
Thomas is known for his skill in providing tailored mortgage solutions. He helps homebuyers and investors across Australia, showing a strong commitment to professionalism and high industry standards.
