Home Loans for Single Parents in Perth

home-loans-for-single-parents

Securing home loans presents distinct challenges for single parents. They often struggle with stringent loan approval criteria and the task of saving for a deposit on a single income. Additionally, balancing everyday expenses with potential mortgage payments adds to the complexity. 

Understanding and navigating the available home loan schemes can also be daunting for single parents.

Government Schemes for Single Parents Seeking Home Loans in Perth

These government schemes are tailored to reduce the financial burden and make the process more accessible. Here’s an overview of the government schemes available:

Family Home Guarantee Scheme

This scheme allows single parents to purchase a home with as little as a 2% deposit without needing Lenders Mortgage Insurance (LMI). The government guarantees a portion of the loan, making it easier for single parents to secure a mortgage.

First Home Owner Grant (FHOG) in Western Australia

While not exclusively for single parents, this grant is available to first-home buyers in Perth, including single parents. It provides a one-time payment to assist with the costs associated with buying a first home.

Keystart Home Loans

Keystart provides low-deposit home loans to both first-home buyers and subsequent home buyers. Their income limits and lending criteria may favour single parents more favourably than traditional lenders.

Shared Equity Home Buyer Helper

Announced in 2023, this scheme in NSW allows eligible single parents to purchase a home with a minimal deposit, often as low as 2%. It’s designed to make homeownership more achievable for single parents, key workers, and others facing financial challenges.

Parenting Payment

While not a direct home loan scheme, this Centrelink payment supports single parents and can be considered part of the income when applying for home loans. This can increase the borrowing capacity for single parents.

Overview of Family Home Guarantee Scheme and Shared Equity Home Buyer Helper 

Let’s delve deeper into two key schemes: the Family Home Guarantee Scheme and the Shared Equity Home Buyer Helper. These initiatives are pivotal in making home ownership more attainable for single parents.

Family Home Guarantee Scheme

The Family Home Guarantee Scheme is a significant development for single parents looking to enter the housing market. It allows eligible single parents to purchase a home with a minimum deposit of 2% without needing Lenders Mortgage Insurance (LMI). 

This scheme is particularly beneficial as it reduces the upfront costs significantly. The government guarantees up to 18% of the loan, providing a safety net that makes lenders more willing to offer mortgages to single parents. 

It is a game-changer, making home ownership far more accessible for single parents who might struggle to save for a larger deposit.

Eligibility Criteria for Family Home Guarantee Scheme

The Family Home Guarantee scheme is designed to support eligible single parents in purchasing a home. Critical eligibility criteria include:

Dependent Children: The applicant must be a single parent with at least one dependent child.

Citizenship/Residency: Applicants must be Australian citizens or permanent residents.

Income Cap: There may be an income cap, typically assessed annually.

First Home or Re-Entering the Market: The scheme is often available to single parents who are first home buyers or those re-entering the housing market.

Property Ownership: Applicants must not currently own property at the time of application.

Deposit Requirement: A minimum deposit, often as low as 2%, is required.

Shared Equity Home Buyer Helper

The Shared Equity Home Buyer Helper, introduced by the NSW Government, is another innovative scheme aimed at assisting single parents, among others, in purchasing their own homes. 

This scheme enables eligible buyers, including single parents, to purchase a property with as low as a 2% deposit. It’s designed to support those who find it challenging to accumulate a substantial deposit, thereby facilitating more accessible access to the property market. 

The scheme works by the government taking an equity share in the property, which reduces the overall loan amount and, consequently, the deposit required. This shared equity approach lowers the entry barrier to home ownership and makes the ongoing mortgage repayments more manageable.

Eligibility Criteria for Shared Equity Home Buyer Helper

The Shared Equity Home Buyer Helper scheme, particularly relevant in NSW, offers significant assistance to single parents. Its eligibility criteria include:

Minimum Deposit Contribution: Single parents must contribute at least 2% of the purchase price towards the deposit.

Residency Requirement: The purchased property must be the applicant’s primary residence.

No Other Property Ownership: Applicants must not own any other land or property.

Age and Citizenship: Applicants must be over 18 years of age and be Australian or New Zealand citizens or permanent Australian residents.

Income and Asset Limits: There are specific income and asset limits. For single applicants, the gross income must be no more than $93,200; for couples, it’s $124,200.

Property Price Limits: The maximum property price is determined by the home’s location, with different caps for Sydney and other regional areas of NSW.

Government Contribution: The NSW Government can contribute up to 40% of the purchase price for a new home or 30% for an existing dwelling, which helps secure a mortgage by reducing the deposit required.

How Do These Schemes Make Home Ownership More Achievable For Single Parents?

These schemes significantly ease the financial burden on single parents aspiring to own a home. 

By lowering deposit requirements and providing government support, they address two of the biggest hurdles single parents face: accumulating savings for a deposit and meeting stringent loan criteria. 

With these supportive measures, single parents in Perth have a more viable pathway to owning a home, contributing to their financial stability and providing a secure environment for their families.

How Make My Finance Supports Single Parents in Securing Home Loans

Make My Finance is your reliable home loan broker in Perth offers a comprehensive range of services to assist single parents in navigating the complexities of securing home loans. Our support extends beyond essential loan facilitation, focusing on personalised solutions catering to single parents’ unique financial circumstances. 

Here’s a detailed look at how we can help:

Personalised Consultations

  • Understanding Individual Needs: Make My Finance provides one-on-one consultations to understand the specific needs and challenges single parents face. This includes discussing your financial situation, homeownership goals, and any concerns you might have.
  • Customised Financial Planning: They offer customised financial planning advice, helping single parents to manage their finances effectively, which is crucial for loan approval.

Loan Comparisons

  • Exploring a Range of Products: Make My Finance compares loan products from different lenders to find the most suitable options for single parents. This includes comparing interest rates, repayment terms, and other loan features.
  • Highlighting Government-Supported Schemes: We specifically focus on loans and schemes beneficial for single parents, such as the Family Home Guarantee and Shared Equity Home Buyer Helper, ensuring clients know and understand these options.

Application Assistance

  • Guidance Through the Application Process: Make My Finance assists single parents throughout the loan application process. This includes help with filling out forms, gathering necessary documentation, and ensuring that all the paperwork is complete and accurate.
  • Support with Documentation: We provide assistance in compiling and organising all required documents, which can be particularly challenging for single parents who might be managing work and family responsibilities.

Connect with Make My Finance for Expert Home Loan Assistance

Embarking on the journey to homeownership as a single parent can be a challenging yet rewarding experience. Make My Finance is dedicated to guiding you through every step of this journey with expertise and understanding.

Schedule Your Consultation Today!

Don’t let the complexities of home loans deter you from achieving your dream of homeownership. Reach out to Make My Finance for a personalised consultation where our experts will discuss your unique needs and how we can assist you in making informed decisions.

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