Last updated: July 2026. Reviewed by the Soren Financial broker team.

If you are raising kids on a single income, saving a full deposit can feel impossible. The Family Home Guarantee is built for exactly that: eligible single parents and guardians can buy with a deposit as small as 2% and pay no Lenders Mortgage Insurance. On a $600,000 home that is $12,000 in the bank instead of the $120,000 a 20% deposit would ask for.

This is the deep-dive on the Family Home Guarantee. For the full first home buyer picture see our first home buyer guide, and if you are not a single parent, the standard First Home Guarantee covers a 5% deposit.

What the Family Home Guarantee does

Put down less than 20% the normal way and the lender charges Lenders Mortgage Insurance, a one-off premium that can run well into five figures. This scheme has the government guarantee the gap instead, so a lender says yes on 2% down and skips the LMI entirely. You are not borrowing that guarantee or paying it back later; it just sits quietly behind the loan and falls away once you have paid the balance under 80% of the home’s value.

What is different here is the focus. This one is built around families rather than first-timers, and you do not strictly have to be a first home buyer at all.

Who qualifies in 2026

To be eligible for the Family Home Guarantee you generally need to:

• Be a single parent or legal guardian of at least one dependent child, and be genuinely single (no spouse or de facto partner; separated but not divorced does not count as single).
• Be an Australian citizen or permanent resident, aged 18 or over.
• Have a taxable income of no more than $125,000 a year, shown on your ATO Notice of Assessment.
• Buy a home you will live in as an owner-occupier, new or existing.
• Have a deposit of at least 2% (and under 20%).
• Buy under the price cap for your area (below).

You can be a first home buyer, or a previous owner as long as you will not hold any other property once your new home settles, so it can work for a parent buying again after a separation. You apply on your own, through a participating lender.

This is one of the most life-changing schemes we work with, because 2% is an achievable number for a lot of single parents who had written off owning a home. The catch is there are only 5,000 places a financial year, so once you are ready it pays to move.

Mansour Soltani, Soren Financial

How much deposit you will need

The 2% is the minimum, and the smaller your deposit the more the guarantee is doing for you. As a rough guide:

Property value	2% deposit	LMI you avoid (approx.)
$500,000	$10,000	~$15,000–$20,000
$600,000	$12,000	~$20,000–$28,000
$750,000	$15,000	~$25,000–$35,000

2026 property price caps

Both the purchase price and the lender’s valuation must sit at or below the cap for your location. Since October 2025 these caps are the same as the main 5% deposit scheme:

State	Capital city & regional centres	Rest of state
New South Wales	$1,500,000	$800,000
Victoria	$950,000	$650,000
Queensland	$1,000,000	$700,000
Western Australia	$850,000	$600,000
South Australia	$900,000	$500,000
Tasmania	$700,000	$550,000

Territory	Price cap
Australian Capital Territory (all areas)	$1,000,000
Northern Territory, Darwin	$750,000
Northern Territory, rest of Territory	$600,000

Some suburbs span more than one postcode with different caps, so confirm the exact cap for your address.

A few things worth knowing

• Places are capped at 5,000 for the whole 2025–26 financial year and they do run out, so once you are ready it pays to move quickly.
• The income test still applies. Unlike the standard first home buyer scheme, the Family Home Guarantee keeps the $125,000 income cap.
• It stacks with state help. You can still claim your state’s first home owner grant and stamp duty concessions on top if you qualify.
• The guarantee ends once your loan drops below 80% of the value, or if you sell, move out or rent the home.

Why use a Soren Financial broker?

Only some lenders offer the Family Home Guarantee, places are capped, and the paperwork around single-parent eligibility trips people up. We will confirm you qualify, secure a place with the right lender, and handle it end to end so you can get on with the move. It costs you nothing.

Related first home buyer guides

• First Home Buyer Guide (2026) – the complete guide to deposits, loans, costs and schemes.
• First Home Guarantee (5% deposit scheme) – for buyers who are not single parents.
• First home buyer grants & stamp duty by state.
• How to avoid Lenders Mortgage Insurance.

FAQs

How much deposit does a single parent need?

As little as 2% of the property value under the Family Home Guarantee, with no LMI, versus the 20% usually needed to avoid LMI.

Do I have to be a first home buyer?

No. You can be a first home buyer, or a previous owner as long as you will not own any other property once your new home settles.

Is there an income limit?

Yes. Your taxable income must be $125,000 a year or less, based on your latest ATO Notice of Assessment.

How many places are there?

There are 5,000 Family Home Guarantee places for the 2025–26 financial year, and they can be used up before year end.

Can I buy an existing home?

Yes. The scheme covers new or existing homes you will live in, up to the price cap for your area.

Can I use it with the First Home Owner Grant?

Yes. If you qualify for your state’s grant or stamp duty concession, you can use them alongside the guarantee.

Information is general only and does not take your circumstances into account. Eligibility, income and price caps and places are set by the Australian Government and can change. Confirm the current rules before you apply.