[2022] Family Home Guarantee Geelong
[2022] Family Home Guarantee Geelong
Single parents in Geelong and the Bellarine Peninsula with at least one child can now buy a low-deposit new home. This can be done through the Family Home Guarantee (FHG) which the federal government launched in May 2021.
Under the FHG, single parents can purchase a new residence with a deposit as low as 2%. This is a huge boost, as home buyers would typically need to save a 20% deposit or pay thousands in Lender’s Mortgage Insurance (LMI).
The low 2% deposit in the FHG is made possible through the Federal Government’s New Home Guarantee scheme. The National Housing Finance and Investment Corporation (NHFIC) will guarantee up to 18% of the loan of an FHG-eligible buyer.
10,000 places up for grabs
Single parents who want to avail of the FHG will have to act promptly. This scheme is limited to 10,000 qualified buyers across the country. The availability of these places or slots for buyers is spread over four financial years starting from 1 July 2021.
If you’re a single parent looking for a property in Geelong, Armstrong Creek, Torquay, Barwon Heads, Ocean Grove, or anywhere in the Bellarine Peninsula, call us. We can assist in assessing your FHG eligibility, help you apply, and have your loan approved.
Set your Free Lending Strategy Session with us to get started in an FHG application.
Who’s eligible to apply?
Single parents who are first home buyers and those who owned homes previously can apply. The basic FHG eligibility criteria for single parents are as follows:
- No spouse or de facto partner. Single parents who are not divorced are ineligible.
- With at least one dependent child, natural or adoptive, as defined by section 5 of the Social Security Act 1991
- An Australian citizen. Non-citizen permanent residents do not qualify.
- At least 18 years old.
- With a taxable income not exceeding $125,000 per annum for the previous financial year.
- Will be the owner-occupier of the property purchased.
Types of homes Family Home Guarantee covers
Only residential properties qualify under the FHG, either for purchase or construction.
The qualified residences include the following:
- A built-up house, apartment, or townhouse
- A house and land package
- Land and a separate contract to build a home
- An off-the-plan townhouse or apartment
Family Home Guarantee price caps
The government has set a limit on the price of the homes eligible for purchase under the FHG. The price cap varies depending on the property’s location, with the level higher for capital and regional centres.
Significantly, the government has increased the price caps moving onwards fiscal year 2022-2023. The table below lists the price caps for Victoria and its regional centre compared with the rest of the state.
Victoria and regional centre (Geelong):
- $700,000 (FY 2021-22)
- $800,000 (FY 2022-23)
The rest of the state:
- $500,000 (FY 2021-22)
- $650,000 (FY 2022-23)
How To Apply For The Family Home Guarantee
We’re here to help. There are 26 participating lenders. We can find a great lender to suit your unique situation.
The government has also announced other new incentives for aspiring homeowners, especially for first home buyers. Aside from FHG, you can also consider the First Home Guarantee, the Regional Home Guarantee, or the First Home Super Saver Scheme.
Find out which of these schemes offer the best chances for eligibility for the government’s housing incentives. Book an appointment with an Aussiewide mortgage expert for our Free Lending Strategy Session.