COMPARE THE WAYS FORWARD

Family support.
More than one way.

A guarantee, a gift and a family loan do different jobs. Government support is a separate pathway again.

Start with the gap you are trying to close, then consider the commitment each option creates for everyone involved.

By Foster Ramsay Finance · Checked 13 October 2026

A CLEARER SIDE-BY-SIDE VIEW

What is actually being offered?

These are different arrangements, not interchangeable names for the same loan.

Family guarantee, gift or family loan
Option	How it helps	What the family should weigh up
Family guarantee	Property provides additional security, rather than a cash gift. The buyer remains responsible for the home loan. [2]	The guarantor takes a legal obligation and risks the property securing it. Understand the limit, covered debts and release process. Read the guarantor’s guide.
Cash gift	Money is contributed without an expectation of repayment. The lender may ask for a letter confirming the amount and whether repayment is expected. [3]	The giver parts with the money. Consider their future needs; gifting may still affect income and assets tests for government payments. [4]
Family loan	A family member lends money under an agreed repayment arrangement. It is not a gift. Obtain legal advice on recording the terms. [5]	Tell the home-loan lender about the debt and repayment terms. Discuss repayment expectations, security and what happens if family circumstances change. [1]

“Parent assist” is sometimes used as a broad label for family help. Ask what the actual proposal involves—cash, another loan, security or shared ownership—before comparing it with anything else.

A DIFFERENT KIND OF GUARANTEE

Government backing.
No family guarantor.

The Australian Government 5% Deposit Scheme is separate from a parent or relative guaranteeing your mortgage.

For an eligible loan, the government provides a guarantee to a participating lender. The scheme can allow purchase with a smaller deposit without LMI; you still owe and repay the home loan. Eligibility, property price caps and lender assessment apply. [6]

5%Minimum deposit for eligible first-home buyers.

2%Minimum for eligible single parents or single legal guardians with a dependent child.

These are scheme minimums, not the full cash needed to buy. A greater deposit may be required in your circumstances. Single-parent eligibility is not limited to first-home buyers. [7] [8]

Seen “First Home Guarantee” or “Family Home Guarantee”?

These are names used under the former Home Guarantee Scheme. Since 1 October 2025, the expanded scheme is called the Australian Government 5% Deposit Scheme. The earlier Family Home Guarantee supported eligible single parents; it did not mean asking your own family to guarantee a loan. Check the current rules rather than relying on an older article. [9]

Check the official scheme details ↗

BUILD A PLAN AROUND REAL LIFE

What would you like to understand next?

“We want to help, but keep our home separate.”

Discuss a gift, a properly documented family loan or a purchase plan that does not need family support. Think about both households’ cash reserves.

Understand the commitments →

“I can repay, but my deposit is small.”

Compare the overall costs of a guarantee, any scheme eligibility and an ordinary low-deposit loan. Avoid choosing on a single upfront saving.

Explore deposit pathways →

“I’m not comfortable with the repayments.”

Revisit the price range, timing and savings plan before asking anyone to guarantee a loan. A home should leave space for the life you want to live.

Work through your buffer →

For grants, duty concessions and other assistance, explore the first-home support guide →

General information, checked 13 October 2026. This guide is not a personal recommendation, legal advice or a loan approval. Lender policies, scheme rules and individual circumstances matter. Obtain independent legal and financial advice before giving a guarantee.

Sources and further reading

Bank pages describe their own policies; they are not promises that another lender will offer the same terms.

YOUR NEXT USEFUL STEP

Choose the question to bring to Chris.

Look more closely at family support, the responsibilities or what buying could cost.

Understand family guaranteesConsider responsibilities, risks and an exit plan.For the family member helpingUnderstand limits, risks, advice and planning for release.Plan buying costsKeep purchase costs and a cash buffer in view.

Compare our family’s optionsTell us what you are hoping to do and what each household needs to preserve. We can discuss which lending pathways may be worth exploring.Phone, video or office appointment. You can start with questions.

Choose a time with Chris ↗