The government of Australia launched the Family Home Guarantee scheme to support first-time home buyers. As per a survey, nearly 44% of Australian citizens live in massively crowded localities, and over 18% live in accommodation for the homeless and poor. Moreover, over 32% of citizens live in rented apartments and houses, which is a huge 2.6 million households.
Now, if you take into consideration the inflation, fluctuating economy due to the pandemic and high cost of living, the situation is pathetic. Thus, the family home guarantee scheme comes as a sigh of relief for single parents who have a dependent child. So let's learn how or why this home loan is beneficial to you.
Also Read: First Home Owner Grant
What Is Family Home Guarantee All About?
The government of Australia is giving this loan to single parents with a minimum of one dependent child to purchase a new home or buy one. The reason for this is to get as many people to enter the housing market soon. Administered by the National Housing Finance and Investment Corporation (NHFIC), the government is looking to support single parents, which is also a noble initiative.
If you, as the borrower, have only 2% of the deposit, the government will provide your lender the rest 18% of the value. However, you also have to be eligible for this scheme.
Also Read: First Home Loan Deposit Scheme
What Is The Criteria To Apply For the Family Home Guarantee Scheme?
If you or someone you know is looking to apply for this scheme, you have to fulfill the following criteria:
1# You have to be a non-permanent Australian citizen over eighteen years of age.
2#You must be raising one child or children alone as a single parent. Moreover, if you are in a de-facto relationship or only separated, you cannot apply.
3# Your annual income must be less than $125,000, including taxes for the previous financial year.
4#As a single parent, while applying, only your name should be on loan.
5# You have to show legal proof to the government that you are the natural or adoptive parents of the child or children.
6# If your child or children are in the range of sixteen to twenty-two years of age, you have to show legal proof of your parenthood too. This is an exception for those children who are completely dependent or have some sort of disability.
7#You must have a minimum of two percent of the deposit money. However, if you have more than twenty percent, you will not be considered.
8# You agree to repay the loan within thirty years in full with interest.
9#You have to live in the property as the owner and cannot use it for other purposes.
10#It has to be your first home in Australia with no interest from real estate or land within the continent.
Is Your House Eligible For This Scheme?
To know if your house is eligible for this scheme, check for these criteria:
- Your first house must be an existing townhouse, apartment, or house.
- Package of house and a land
- A separate contract for land and one for the house
A townhouse or off-the-plan apartment
If your house and you can meet all the criteria mentioned above, you can easily app for a home loan. To do that, you have to go to the website www.nhfic.gov.au/what-we-do/family-home-guarantee/. Once you have applied and got the loan successfully, you will be completely responsible for repaying all the costs and interest related to it.