Family Home

Guarantee (FHG)

The Family Home Guarantee (FHG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative to support eligible home buyers purchase a home sooner. QBANK is proud to support the Family Home Guarantee (FHG) to help single parents purchase a home sooner.


 

Applications now Open

 

Home Loan Loan to Value Ratio Interest Rate Comparison Rate*
Special Offer Classic Variable <98% 4.24% PA 4.26% PA
3 Year Fixed^ <98% 6.19% PA 5.42% PA

1 To be eligible for the above rates, a salary credit of at least $1,500 per month must be deposited into your QBANK transaction account. New lending only.

What is the Family Home Guarantee (FHG)? 

The Family Home Guarantee (FHG) is an Australian Government initiative that aims to support eligible single parents with at least one dependent child in purchasing a family home. It is administered by the National Housing Finance and Investment Corporation (NHFIC) under the Home Guarantee Scheme (Scheme) on behalf of the Australian Government.

From 1 July 2022, 5,000 Family Home Guarantees will be made available each financial year (up until 30 June 2025) to eligible single parents with at least one dependent child, subject to their ability to service a loan.

The Family Home Guarantee can be used to build a new home or purchase an existing home with a deposit of as little as 2 per cent, regardless of whether that single parent is a first home buyer or a previous home owner. Investment properties are not supported by the Family Home Guarantee.

How does the Family Home Guarantee work?

Eligible single parents with at least one dependent child looking to build a new home or purchase an existing home are able to apply for a loan to purchase an eligible property through a participating lender.

NHFIC guarantees to a participating lender up to 18 per cent of the value of the property, provided the borrower has a minimum 2 per cent deposit, and is eligible for the Family Home Guarantee.

This will enable single parents with at least one dependent child to enter, or re-enter, the housing market sooner.

Who is eligible?

  • Australian citizens who are at least 18 years of age. Permanent residents are not eligible.
  • Must be a single parent with at least one dependent child. A parent is not a single parent if they are married or in a de facto relationship. NB: a person who is separated but not divorced is not single.
  • The single parent must have a taxable income that does not exceed $125,000 per annum for the previous financial year as shown on the Notice of Assessment (issued by the Australian Taxation Office). NB: Child support payments are not included as income for the purpose of the income cap.
  • The single parent must be the only name listed on the loan and the certificate of title.
  • It is expected that the single parent demonstrate that they are the natural or adoptive parent of a dependent child within the meaning of s.5 of the Social Security Act 1991 (Cth). In a general sense, this means that the person must show that they 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 their care.
  • Alternatively, the single parent must show that they are the natural or adoptive parent of a child between 16 and 22 years of age, who receives a disability support pension and lives with them.
  • Individuals must have at least 2 per cent of the value of the property available as a deposit. If the borrower has a deposit of more than 20 per cent, then the home loan cannot be covered by the Family Home Guarantee.
  • Loans under the Family Home Guarantee require scheduled repayments of the principal and interest of the loan for the full period of the agreement. The loan agreement must have a term of no more than 30years.
  • Applicants must intend to be owner-occupiers of the purchased property. In the case of an active Australian Defence Force member applicant, the Family Home Guarantee is not subject to the owner-occupier requirement after entering into the loan if they cannot meet this requirement because of their duties.
  • Applicants can be either first home buyers or previous owners who do not currently own a home. That is, the applicant must not currently have a freehold interest in real property (this includes land) in Australia, a lease of land in Australia or a company title interest in land in Australia.
  • The eligibility criteria must be satisfied at the time the loan agreement is entered into. The eligibility criteria for the Family Home Guarantee is outlined in the currently in force National Housing Finance and Investment Corporation Investment Mandate Direction 2018.
  • More information on FHG Scheme

If you would like to know more about the Scheme please download the Family Home Guarantee (FHG) Information Guide  and the Family Home Guarantee (FHG) Fact Sheet or visit the NHFIC Website. For more information about QBANK Home Loans (including credit eligibility criteria, terms and conditions, fees and charges) please visit our Home Loan Key Fact Sheet.


 

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Terms and Conditions apply to home loans and are provided with our loan offer. Fees and charges apply.

Interest rates current as at 20 July 2022 and are subject to change without notice.

Fact Sheets are available HERE

Target Market Determination is available here.

If you would like to know more about the FHG please visit https://www.nhfic.gov.au/

*WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rate displayed is calculated based on a loan amount of $150,000 over a 25 year term.

Footnotes:

  • 1 Valid for home loan applications of $150,000 or more of new lending for owner occupiers and is available for a limited time only. Interest only not available. To qualify, the customer must deposit a salary credit of at least $1,500 a month into a QBANK transaction account. Offer may be withdrawn at any time. Offer not valid for redraw of advance repayments, existing QBANK members switching loans or internal refinances.
  • 2 After the expiry of the fixed rate period, the interest rate changes to QBANK’s Classic Variable Home Loan Product Rate (currently 5.09%p.a. for Owner Occupier |5.11%p.a. Comparison Rate and 5.44% for Investor | 5.51% Comparison Rate.