For many Australian families, the dream of owning a home often feels just out of reach. The challenges of saving for a substantial deposit, alongside rising property prices, can make entering the property market seem daunting. Recognizing these hurdles, the Australian government has introduced the Family Home Guarantee as a beacon of hope. This initiative aims to make homeownership more accessible and achievable for families who might otherwise struggle to break into the property market.

What is the Family Home Guarantee?

Purpose and How it Works

The Family Home Guarantee is a government-backed program specifically designed to support eligible low- and middle-income families in purchasing their first home. This initiative significantly eases the burden of saving for a large deposit, one of the primary barriers to homeownership. The key feature of the Family Home Guarantee is that it allows eligible families to buy a home with a smaller deposit than typically required, reducing the upfront financial pressure.

From July 2023 to June 2025, the government has allocated 35, 000 Family Home Guarantees each year. This commitment underscores the government’s dedication to assisting families in achieving their homeownership dreams. By reducing the deposit requirement, the Family Home Guarantee opens the door for more families to step onto the property ladder, fostering a sense of security and stability.

Eligibility Criteria

Understanding the eligibility criteria for the Family Home Guarantee is crucial for families considering this pathway to homeownership. Here’s a breakdown of the key requirements:

Income Thresholds

The Family Home Guarantee is targeted at low- and middle-income families. To qualify, applicants must have an annual taxable income that does not exceed a certain threshold. This income cap is set by the government and is designed to ensure that the program benefits those who need it most. It’s important for potential applicants to verify their income against the latest threshold values to determine their eligibility.

Citizenship Requirements

To be eligible for the Family Home Guarantee, applicants must be Australian citizens. This requirement underscores the program’s focus on supporting the Australian community. Permanent residents or non-citizens are not eligible under this scheme. Proof of citizenship will be required as part of the application process.

Property Price Caps

A critical aspect of the Family Home Guarantee is the property price cap, which varies depending on the location of the property. These caps are set to reflect the diverse property market conditions across Australia. For instance, the price cap for properties in major cities may differ from those in regional areas. Applicants need to ensure that the property they wish to purchase falls within the price cap applicable to their desired location. This measure helps in maintaining the affordability aspect of the program.

These eligibility criteria are designed to make the Family Home Guarantee as accessible as possible to the intended demographic while ensuring that the benefits are appropriately targeted. Prospective applicants should carefully assess their circumstances against these criteria to gauge their suitability for the program.

3 Benefits of the Family Home Guarantee

The Family Home Guarantee offers several significant benefits to eligible families, making the journey to homeownership more accessible and less financially daunting. Here are three key advantages of this program:

1. Lower Deposit Requirements

One of the most attractive features of the Family Home Guarantee is the substantially lower deposit requirement. Traditionally, homebuyers need to save for a 20% deposit to avoid paying lenders mortgage insurance. However, under this program, eligible families can purchase a home with a deposit as low as 2%. This reduced deposit requirement is a game-changer, significantly lowering the barrier to entry into the property market.

2. Reduced Mortgage Insurance Costs

Typically, buying a home with less than a 20% deposit requires paying lenders mortgage insurance (LMI), which can add thousands of dollars to the cost of a mortgage. The Family Home Guarantee alleviates this burden. By providing a government guarantee for a portion of the loan, the program reduces or even eliminates the need for LMI, saving families a substantial amount in insurance costs.

3. Potential to Enter Property Market Sooner

With the reduced deposit requirement and the savings on mortgage insurance, eligible families can potentially enter the property market much sooner than they would have otherwise. This acceleration is especially beneficial given the rising property prices, allowing families to secure a home and build equity earlier, rather than spending additional years saving for a larger deposit.

The Family Home Guarantee thus presents a unique opportunity for Australian families to overcome some of the traditional financial hurdles associated with buying a home, paving the way for increased homeownership and financial stability.

How to Apply

Navigating the application process for the Family Home Guarantee can be straightforward with the right information. Here’s a step-by-step guide to help you get started:

Step-by-Step Process

  1. Check Eligibility: Before applying, ensure that you meet all the eligibility criteria, including income thresholds, citizenship requirements, and property price caps.
  2. Gather Necessary Documentation: Prepare the required documents, which typically include proof of income, identity documents, and any other relevant financial information.
  3. Seek Pre-Approval: Approach a lender who participates in the Family Home Guarantee program to get pre-approval for a loan. This step will give you an idea of your borrowing capacity and the price range of properties you should be considering.
  4. Find a Suitable Property: Search for a property that fits within the price caps of the program. Remember, the property should align with the program’s guidelines and your pre-approved loan amount.
  5. Formal Loan Application: Once you’ve found a property, complete a formal loan application with your lender. Here, the Family Home Guarantee will be factored into your loan structure.
  6. Valuation and Approval: The lender will conduct a valuation of the property and assess your application in detail. If everything is in order, your loan will be approved.
  7. Settlement: After loan approval, you can proceed to the settlement of your new home. The lender and your legal representatives will guide you through this final step.
  8. Move In: Once the settlement is completed, the property is yours, and you can move into your new home.


Remember, it’s important to work closely with your broker/lender throughout this process and seek advice if you’re unsure about any aspect of the application. Each lender may have slightly different procedures, so it’s crucial to follow their specific guidance.

Expert Advice from Will Bell Mortgage Broker

Will Bell Mortgage Broker offers expert guidance on the Family Home Guarantee program, combining deep knowledge of the program with a thorough understanding of the Australian property market. Our team is committed to helping families achieve their homeownership dreams, providing personalized service to ensure that every client’s unique situation is addressed. With Will Bell Mortgage Broker, you gain a dedicated partner in your journey to owning a home, equipped with the expertise to navigate this beneficial program effectively.

Other Key Information to Know About Family Home Guarantee

What Types of Properties can I purchase under the Family Home Guarantee?

Under the Family Home Guarantee, you can purchase new and existing homes, including houses, townhouses, and apartments. The property must be residential and intended for use as your primary place of residence. It’s important to note that investment properties do not qualify under this scheme, and the purchased property should fall within the specified price caps for its location.

Do I still need to pay Lenders Mortgage Insurance (LMI) with the Family Home Guarantee?

One of the significant benefits of the Family Home Guarantee is the potential reduction or elimination of Lenders Mortgage Insurance (LMI). Since the government guarantees a portion of the loan, the risk to lenders is lowered, which can often negate the need for LMI. This can result in considerable savings for the homebuyer.

Can I use the Family Home Guarantee in conjunction with other government incentives, such as the First Home Owner Grant (FHOG)?

Yes, the Family Home Guarantee can often be used in conjunction with other government incentives, including the First Home Owner Grant (FHOG). This combination can provide additional financial support and savings for first-time homebuyers. However, it’s important to check the specific criteria and conditions of each program to ensure eligibility for both.

What are the repayment obligations with the Family Home Guarantee?

Under the Family Home Guarantee, you are responsible for regular mortgage repayments, just like any standard home loan. The guarantee does not change the repayment amount but rather reduces the initial deposit required. It’s crucial to ensure that the loan is manageable within your budget.

Can I use the Family Home Guarantee to refinance an existing home loan?

The Family Home Guarantee is primarily designed for the purchase of a first home and is not typically available for refinancing existing home loans. Its main objective is to assist eligible buyers in entering the property market, rather than to provide financial relief for existing mortgages.


In conclusion, the Family Home Guarantee represents a significant step forward in making homeownership more accessible for Australian families. With its lower deposit requirements, reduced mortgage insurance costs, and the potential for early market entry, it’s a valuable initiative for those striving to own their first home. Understanding the program’s details, from eligibility to application, can empower families to take this important step towards financial stability and the dream of homeownership.

Frequently Asked Questions About Family Home Guarantee

There is no “best” age to buy a house in Australia as it varies based on individual circumstances, financial stability, and long-term goals. The right time to buy is when you feel financially secure and ready for the responsibilities of homeownership.

Yes, non-citizens can buy property in Australia, but they are subject to certain regulations and might need approval from the Foreign Investment Review Board (FIRB). Different rules may apply for permanent residents compared to temporary residents or foreign investors.

The First Home Buyers Grant in Australia 2023 is a government initiative designed to assist first-time homebuyers in purchasing their first property. The specifics of the grant, including the amount and eligibility criteria, can vary by state and territory and are subject to change, so it’s important to check the latest details.

The deposit required for your first home in Australia typically ranges from 5% to 20% of the property’s value. However, with programs like the First Home Guarantee, eligible buyers may purchase with a deposit as low as 2%, significantly lowering the barrier to homeownership.

Will Bell

Will Bell

Will Bell has 15 years’ experience in the finance industry, the last 11 years he has owned and operated Will Bell Mortgage Broker. He specializes in residential home loans and over the years has carved out a trusted brand. This is proven by the reviews his customers have made regarding the service and the experience he has provided.


Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.



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