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The federal government has announced a new scheme targeted at helping single parents with limited deposits into the housing market.
The government has continued to leak key budget measures ahead of 11 May, with the latest housing scheme allowing single parents to buy their home with only a 2 per cent deposit.
The program, to be known as the Family Home Guarantee, will bring the deposit amount single parents need to save to approximately $8,000.
The remaining 18 per cent will be backed by the Australian government.
The new Family Home Guarantee for single parents will support up to 10,000 parents with dependents over four years from 1 July 2021.
The scheme is similar to the first home buyers with parents subjected to price caps.
Commonwealth Bank chief executive officer Matt Comyn said the new scheme will help single parents overcome the biggest challenge, which is saving for a deposit.
“This announcement will come as a welcome relief for hard-working single parents, particularly those working in essential services such as education, healthcare and public safety, looking to buy their first home or re-enter the property market,” he said.
The government has also announced that an additional 10,000 spots will be made available for eligible first home buyers under the First Home Loan Deposit Scheme (New Homes) from 1 July 2021.
This is in addition to the 10,000 spots under the First Home Loan Deposit Scheme (FHLDS).
“Customer interest has been beyond our expectations from day one,” NAB group executive personal banking Rachel Slade said.
“We are strong supporters of the scheme and have seen first-hand how it has helped thousands of Australians purchase their first home earlier than they thought possible.”
As part of the new scheme, the government is also set to allow access to superannuation savings which will be expanded from $30,000 to $50,000 to help buyers get into the market.