Buy a house with a 2 per cent deposit | AUSTRALIA - Property News AU/NZ | propertynoise.co.nz & propertynoise.com.au

PHOTO: Sydney, Australia. FILE

An often neglected group of Australians will be backed to buy their own homes with a deposit as small as 2 per cent under a new housing scheme.

Single parents will be backed to buy their own home with a deposit as modest as 2 per cent under a new housing program to be announced in Tuesday’s budget.

The program, to be known as the Family Home Guarantee, is designed to help single mothers and fathers overcome one of the “biggest hurdles” to achieving the dream of homeownership.

The new Family Home Guarantee for single parents will support up to 10,000 single parents with dependants over four years, commencing 1 July 2021.

But it will help not only first home buyers but also single parents attempting to re-enter the housing market after divorce and family breakdown.

Like the existing First Home Loan Deposit Scheme, it will be subject to property price caps that restrict the benefits based on the state where the single parents live.

Treasurer Josh Frydenberg told news.com.au the new policy was designed to address the challenges experienced by single parents trying to enter the housing market.

“The Morrison Government understands the importance of owning your own home and the significant economic and social benefits home ownership provides,’’ he said.