Jane Hume (Victoria, Liberal Party, Minister for Superannuation, Financial Services and the Digital Economy) Share this | Hansard source

The government will also be opposing this Greens amendment. The family home guarantee will allow eligible single parents to purchase a new or existing home with a deposit of as little as two per cent, because this will establish a pathway to homeownership for single parents with dependants who have struggled to save a deposit while renting or restarting their lives following a relationship breakdown. The deposit challenge is even harder when you're on a single income and raising children, particularly if you're not eligible for first home buyer programs.

As with all home loans, regardless of the size of the deposit, a lender will only extend a loan of this nature to a borrower who has the capacity to service it. This means that credit providers, when undertaking their serviceability assessments to determine a consumer's borrowing capacity with a deposit of as little as two per cent, must consider whether the consumer can repay the loan without going into substantial hardship.