Exciting news for single parents, as the government is set to introduce a new program allowing them to buy a home for just a 2% deposit. This scheme will take into place from 1 July 2021.
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What is the Family Home Guarantee?
Known as the Family Home Guarantee, designed to assist single mothers and fathers overcome one the largest hurdles during the process to owning a home.
The scheme aims to target single parents with dependent children, being available to only 10,000 people. It will commence 1 July 2021. To be eligible, participants must be at least 18 years of age, and have an annual taxable income of no more than $125, 000. It’s important to keep in mind the service fees and other expenses involved on top of the initial deposit amount
What the industry experts have to say about the scheme?
Treasurer Josh Frydenberg goes on to say “The Family Home Guarantee recognises the challenges of saving for a deposit when you’re a single parent while raising children”.
This much-needed support will definitely help an often-overlooked group.
“With the recent announcement it will come as welcome relief for hard-working single parents, in particular, those working in essential services such as health care, education and public safety”, said CBA chief executive officer Matt Comyn.
Housing Minister Michael Sukkar said, “The development of the scheme will allow more families to realise the dream of homeownership”.
If the demand for this scheme is high enough, the Morrison Government has given the opinion of considering the extension of the scheme.
Related scheme news
In addition to the new scheme, the government will be rolling out an additional 10,000 places for single and couple parents to access the New Home Guarantee allowing FHBs to build a new home or purchase a new one for as little as a deposit of 5%.
Voluntary contributions for First Home Super Saver Scheme has now been increased from $30,000 to $50,000. Eligible participants can access this new super amount if they meet the requirements.