Help for single parents to buy a home

The Mutual Bank is proud to play a part in helping make home ownership a reality for single parent families.

The Mutual Bank is one of a limited number of participating lenders appointed by the National Housing Finance and Investment Corporation (NHFIC) to offer the Family Home Guarantee which is part of the Australian Government’s Home Guarantee Scheme.

The Family Home Guarantee initiative aims to support eligible single parents with dependants, to buy a new or existing family home with a minimum of a 2% deposit regardless of if they have been a previous homeowner.

Under this scheme there’s no Lenders Mortgage Insurance to pay which enables you to purchase your home sooner.

Scheme eligibility:

  • Australian citizens aged over 18
  • A single parent with at least one child
  • The single parent must have an income below $125,000 pa for the previous financial year
  • The single parent must be the only name listed on the loan and the certificate of title
  • Individuals must have at least 2 per cent of the value of the property as a deposit


Eligible residential properties include:

  • an existing house, townhouse or apartment
  • a house and land package
  • land and separate contract to build a home
  • an off-the-plan apartment or townhouse


There are property price caps which vary depending on the location in which you buy. You can work out your property price cap by visiting the NHFIC website.

Family Home Guarantee applicants can be either first home buyers or previous owners who do not currently own a home. To be eligible, you must not currently have: a freehold interest in real property in Australia; a lease of land in Australia; a company title interest in land in Australia.

A single parent under the Scheme is one who is either divorced or has never been married. Parents who are not divorced or are in a de facto relationship are ineligible.

A limited number of Family Home Guarantee places are available over four financial years to 30 June 2025.

We can help you through the application process.

To register your interest for a place in the Family Home Guarantee scheme please enquire now or talk to us on 1300 688 825.

The Family Home Guarantee (FHG) has an annual allocation of 5,000 places, from 1 July 2022 until 30 June 2025.

A person is considered to be single if they don’t have a spouse and/or the person does not have a de facto partner. A person who is separated but not divorced is not considered single under the eligibility requirements.

The person must have at least one dependent child, (either natural or adoptive) and must be a “dependent child” within the meaning of the Social Security Act 1991 or be at least 16 but under 22 years of age, receive a disability support and live with you.

Generally speaking, this means that you must show that you are legally responsible (whether alone or jointly with another person) for the day-to-day care, welfare and development of the dependent child and the dependent child is in your care.

Maximum purchase prices (property price caps set by Government legislation) are applicable for eligible properties purchased under the Home Guarantee Scheme (HGS).

You can find more information about price caps and search property price caps by suburb on the National Housing Finance and Investment Corporation website.

Lenders Mortgage Insurance (LMI) is a one-off premium added to your home loan if you do not have a 20% deposit. It is an insurance policy which covers the lender against the losses they may suffer if the borrower can no longer pay loan repayments. If a borrower defaults on their mortgage, LMI means the lender can recover what is owed to them by repossessing the property the home loan is tied to. If the property’s value has fallen, the lender can suffer a loss. This is the risk LMI covers.

Yes. Eligible first home buyers may also be able to take advantage of the Australian Government’s First Home Super Saver Scheme and may also be eligible for other NSW Government grants and concessions.

Important Information

Eligibility criteria, terms and conditions apply to the Family Home Guarantee. Eligibility criteria, terms, conditions, fees, and charges apply to all loans and are available on application.