Single parents get encouragement from federal government to buy a home with 2% deposit

The federal government has revealed a new scheme for single parents to buy a house with only two percent deposit saved, with the government guaranteeing the other 18 percent

Single parents get encouragement from federal government to buy a home with 2% deposit
Single parents get encouragement from federal government to buy a home with 2% deposit

The federal budget will contain a scheme designed to help 10,000 single parents get into the property market over the next four years.

The Family Home Guarantee will let 10,000 single parent families put down a deposit of only 2 per cent. The government will guarantee the other 18 per cent of the deposit.

The measure is expected to cost the federal budget just $300,000.

Housing Minister Michael Sukkar said the primary hurdle for single parents with one income was pulling together a deposit.

"The Morrison government believes that all Australians who aspire to purchase a home should be given that opportunity. There are few more important people in our society than single parents," he said.

"We are very pleased that the family home guarantee will help single parents - of which 80 per cent are women - to purchase their home."

However, Labor's housing spokesman Jason Clare noted there are a million single parents across Australia.

"This will help just 2500 of them per year," Mr Clare said.

But the new support measure aimed at helping families into their own home would make a real difference in the lives of thousands of Australians, according to the HIA managing director, Graham Wolfe.

“Research in 2019 found that 92 per cent of renters aspire to own their own home yet just 49 per cent of renters felt they would achieve home ownership,” Wolfe said.

The federal budget will also contain a further 10,000 places for the First Home Low Deposit Scheme.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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