Your guide to single parent home loans, grants, and government support

Owning a home is one of the biggest steps toward the future, but for single parents, it can feel like the finish line keeps moving. According to the ABS homeownership rates for single-parent families are significantly lower than for couples, with single mothers facing the steepest climb.

Many spend more than 30% of their income on housing, the threshold for mortgage stress, leaving little room to save for a deposit or weather rate hikes.

Whether you're a single mum looking for a home loan, a newly separated dad needing a fresh start, or a single-parent first-home buyer dreaming of more stability, there are real pathways to get you there.

That includes low-deposit options, lenders who understand your situation, and support through the single-parent home loan scheme.

You might also be interested in: Buying Your First Home with a 5% Deposit Loan

Why is it tougher for single parents, and is it possible?

If you're a single-parent first-home buyer you've probably felt like buying a house wasn't built for you. Getting a home loan on one income can be tough, especially with rising costs and the emotional load of raising kids alone.

But tough doesn't mean impossible. With the right support, buying a home can feel much clearer.

Let's unpack what makes it harder and how you can move forward with confidence.

One income, many moving parts. Raising a family solo means every dollar has to work harder. When lenders assess your application for a single-parent mortgage, they'll look closely at your income, everyday expenses, and any existing debts.

Your borrowing power might look smaller on paper, but with an expert by your side, it's not a dealbreaker. The right lender and loan structure can make all the difference.

Deposits aren't always 20%, and that's a good thing. Building a big deposit can feel out of reach between rent, groceries, school costs and life's surprises. But here's the good news: the single-parent home loan scheme (the Family Home Guarantee) lets eligible buyers purchase with as little as a 2% deposit and skip lenders mortgage insurance.

That's a huge leg-up for anyone looking for home loans for single parents.

Banks can be cautious, but you've got options. As a single applicant, lenders may apply extra scrutiny by looking at your spending habits, savings history, and financial buffers. It can feel overwhelming, but that's where an Aussie Broker steps in. We know which lenders are more flexible and how to position your application to give you the best chance of success.

You're doing a lot. Let's be honest: applying for a single mum home loan while juggling family, work, and finances isn't easy. But you don't have to do it alone. Allow us to share the load. Aussie brokers guide you through every step, from sorting paperwork to comparing thousands of loans. We're your steady, supportive voice when things get complex or confusing.

Whether you're still saving or ready to apply, we'll help you understand your options and make the process less daunting. Homeownership isn't just for couples; it's for anyone willing to take a bold step toward their future, and we're here to help you take it.

How can the Family Home Guarantee help single parents?

Saving a full deposit while renting, raising kids, and juggling day-to-day costs can be difficult. That's why the government stepped in with a targeted solution, a home loan pathway made for single parents doing it on their own.

Let's break down how the government home loan scheme for single parents, officially called the Family Home Guarantee, works and why it could fast-track your first (or next) home.

It's not a cash grant; it's something better. A common misconception is that this is free money. It's not. The scheme guarantees part of your home loan, so you don't need the usual 20% deposit.

With as little as 2% saved, you could be eligible to buy without paying LMI. That could save you tens of thousands.

It's made for single parents. This isn't a generic support program. It's designed specifically for single parents, whether you're separated, divorced, widowed or solo by choice. You'll need to have at least one dependent child and meet a few other criteria (we'll cover that below), but the intent is clear: to support single parents working hard to build stability for their families.

You don't have to be a first-home buyer. Unlike some first-time home buyer programs for single mothers, this scheme doesn't require you to be a first-timer. If you don't currently own a property, you can still apply even if you've owned it before and had to sell it.

Life happens. This gives you a path back in.

It's run through Housing Australia. The Family Home Guarantee is part of the federal Home Guarantee Scheme, administered by Housing Australia. You can only access it through participating lenders, which is why working with an Aussie Broker helps.

To apply, you'll need to meet these key requirements:

• Be an Australian citizen or permanent resident

• Be a single natural or adoptive parent with at least one dependent

• Have a taxable income of $125,000 or less (not including child support)

• Intend to live in the property as your primary home

• Apply through a participating lender

• Have at least 2% of the property purchase price saved

Remember, spots are limited each financial year, so timing can be everything. This scheme is the difference between waiting years and buying now for many single parents. It unlocks access to the property market sooner, even when saving a full deposit isn't realistic.

You don't have to figure it all out on your own. At Aussie, we'll walk you through the details, confirm your eligibility, and handle the loan comparisons. From day one to settlement, we'll support you so you can focus on what matters most: creating a stable home for your family.

What are the state-based schemes for single parents?

In addition to the national government home loan scheme for single parents (like the Family Home Guarantee), each state and territory in Australia offers grants, stamp duty concessions and support programs. These can shave thousands off your upfront costs and make the move from renting to owning more achievable sooner.

Here's what to look for and how state-based first-time home buyer programs for single mothers and fathers could give you a real head start.

If you're a single parent in Victoria, you might be eligible for more than one support program:

These tools can help single-income households get into the market now instead of waiting.

Each state has its version of first-time home buyer programs for single mothers and dads, including:

While eligibility varies by state, most are based on your income, the property's value, and whether the home will be your main residence.

What are the alternative pathways for single parents?

Being a single-parent first-home buyer can feel like navigating a system built for someone else, especially when doing it on a single income. While the traditional 20% deposit route may seem out of reach, there are smart, practical alternatives that can help you take your next step sooner.

But you're not out of options. From low-income home loans for single mothers to shared ownership and clever strategies like rentvesting, here's how many buyers make it work.

Co-buying with family allows you to combine resources and buy together. Many single parents are teaming up with someone they trust (a sibling, parent, or friend) to buy property together. This option allows you to share the loan and repayments, reducing the financial load. You may also qualify for a higher single-parent mortgage by combining incomes.

Lastly, you can enter the market faster while building shared equity. It's important to get independent legal advice and establish a clear agreement. Your Aussie Broker can help you structure the loan properly and understand what joint ownership means.

Rentvesting in which you live where you need and buy where you can. That makes it a powerful tool, especially for single mums and dads who want to stay close to schools, family, or work but can't afford to buy in the same area. Instead, you:

• Buy in a more affordable suburb or regional town.

• Rent in your preferred location so you keep your lifestyle.

• Build equity through the investment while planning for a future move or upgrade.

This can be a smart stepping stone for single parents wanting to grow wealth without compromising their current support system.

Guarantor loans or family equity where you ask for support from your family members. For many single parents, saving a deposit is the biggest hurdle. If a family member is in a position to help, a guarantor loan could be a game-changer.

A parent or close family member uses the equity in their home as security. This can eliminate the need for a deposit and avoid Lenders' Mortgage Insurance (LMI). Once you've paid off a portion of the loan, they can be released as guarantors.

It's a big decision, but for many families, it's a team effort that makes buying possible sooner.

There are also low deposit options available. The Single Parent Home Loan Scheme (Family Home Guarantee) lets you buy with just a 2% deposit—no LMI required. Some lenders offer tailored low-income home loans for single mothers, including government payments and family tax benefits. Others have 5% deposit loan options designed specifically to support solo buyers.

These products have helped single parents enter the market years earlier than expected, and your Aussie Broker can help you find the right one for your situation.

The takeaway? You've got more options than you think. Whether you're exploring the single-parent home loan scheme, considering joint ownership, or curious about rentvesting, there's more than one way to buy a home, and we're here to help you find it. You might be closer than you think.

How can single parents boost their borrowing power?

When applying for a single-parent mortgage, one of the biggest factors standing between you and your first home isn't just the deposit; it's borrowing power—the amount a lender will lend you based on your income, expenses, and debts.

The good news? You're not locked into that number. With a few smart moves, you can strengthen your position and show lenders that you're ready to take on a home loan and handle it long-term.

Tidy up your debts. Lenders look closely at what you owe, not just your income. That includes personal loans, credit card limits, and buy-now-pay-later services. To boost your borrowing power:

• Pay off or close credit cards you no longer use.

• Consolidate multiple personal loans into a single, manageable repayment.

• Avoid new debts in the months leading up to your application.

Less debt means more room in your budget for repayments and more confidence from the lender.

Streamline your finances. Messy money makes things harder. When your income and spending are scattered across too many accounts, it can confuse lenders and slow down your approval.

Here's how to clean it up:

• Use just a few key accounts for income, bills, and savings.

• Limit vague or frequent third-party transfers.

• Keep clear records of regular income and expenses.

A clean financial picture makes it easier for your broker and lender to understand your position.

Pick the right loan type. Whether you're a single-parent first-home buyer or looking to refinance, the structure of your loan can impact affordability.

• Fixed-rate home loans offer repayment certainty, which is great if you're budgeting solo.

• Variable-rate loans may offer more flexibility and a lower entry rate, but repayments can fluctuate.

• Some lenders offer split loans under the single-parent home loan scheme, giving you a mix of certainty and flexibility.

An Aussie Broker can help you determine the best fit for your lifestyle and goals.

Plan beyond pre-approval. Getting pre-approved is step one. Staying on top of your loan long-term is where the real planning comes in. Here's what smart single parents do:

• Set a monthly repayment figure you're truly comfortable with.

• Treat that as your limit even if the bank says you can borrow more.

• Consider future changes like reduced family payments, school costs, or part-time work.

• Building in a buffer room now can help you avoid mortgage stress later.

You might also be interested in: 6 ways to make the most of home loan pre-approval

Use tools that work harder for you. Aussie has tools to help you take control before applying. Use our borrowing power calculator to estimate what you might borrow as a single-parent first-home buyer. Test out different loan amounts and rates with our mortgage repayment calculator.

Want to improve your chances? Try these extra steps.

Add a guarantor or co-borrower. If a trusted family member can step in, you can boost your borrowing power, skip Lenders Mortgage Insurance, and strengthen your application.

Just make sure everyone understands the responsibility and get independent advice beforehand.

Look into the First Home Super Saver Scheme. This lets you make voluntary super contributions (up to $50,000) that can later be withdrawn for your deposit.

It could be worth exploring if you're still a year or so from buying or want to grow your deposit using pre-tax dollars and earn enough to benefit from the tax breaks.

An Aussie Broker can help you decide if this fits into your plan.

Use offset accounts to your advantage. Offset accounts can help you save on interest without locking up your money. With offset accounts, every dollar in the account reduces your loan's interest. You keep access to your funds. You may pay your loan off faster.

It's a flexible tool that works hard in the background.

Even if you're starting from a lower income or smaller deposit, there are smart ways to strengthen your application for a single-parent home loan scheme or similar product.

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What do lenders look for, and how can I prepare them?

If you're a single-parent first-home buyer, it's normal to feel dark about what lenders seek. It can all feel a bit like a black box. The truth is that lenders aren't just looking at your income but at how you manage your money. The good news is that you can show them you're more than ready to take on a single-parent mortgage with the right preparation.

Steady income. You don't need to work full-time in a salaried role to qualify for a single-mum home loan. What lenders want to see is reliable, ongoing income. That might include:

• Part-time or casual income, if it's consistent

• Government support payments like Family Tax Benefit or Parenting Payment

• Child support payments, especially when they're documented

It's all about showing that your income is regular and that it's sticking around.

Stable employment. If your job doesn't fit the traditional mould, don't worry. You can still be seen as stable in a lender's eyes. You can strengthen your application by showing the following:

• At least 6 months in the same role or with the same employer

• Consistent work patterns, even if contracts vary

• Repeat work with the same organisations over time

The key is consistency; it gives lenders confidence you can meet your repayments over time.

Smart savings habits. Lenders want to know you can manage your money, not just once, but every week. Here's how to show that:

• Open a dedicated savings account and top it up regularly.

• Aim for consistency over size (even $20–$50 per week adds up).

• Avoid unexplained large withdrawals or erratic transfers.

A strong savings shows you're committed to buying and ready to take on a home loan responsibly.

Your credit score. Your credit history plays a big role in your eligibility, especially for low-income home loans for single mothers. To keep your score healthy:

• Pay your bills on time (rent, power, phone, etc.).

• Reduce or close unused credit cards.

• Avoid applying for multiple types of credit.

Not sure where you stand? You can request a free credit report online before you apply.

Get your paperwork sorted. A little admin goes a long way. Lenders want a clear picture of your finances, and being organised can speed things up. Here's what to have on hand:

• Photo ID (like a passport or driver's licence)

• Recent payslips or income statements

• Centrelink documents (if applicable)

• Three months of bank statements

• A summary of your regular expenses

• Proof of rental history, like a tenancy ledger

Showing you've done the prep helps you come across as low risk and high readiness.

Ready to take the next step? We're here when you are.

Being a single parent isn't easy, but buying a home on one income can be an even bigger challenge. But with the right support, the right tools, and the right people in your corner, it's doable.

Whether you're applying through the single-parent home loan scheme, researching low-income home loans for single mothers, or just trying to figure out where to start as a single-parent first home buyer, you've already taken the most important step: getting informed.

At Aussie, we know every buyer's story is different. That's why we're here to help you make your next move with confidence, whether it's finding a single-mum home loan, securing a single-parent mortgage, or exploring alternative paths into the market.

You don't have to do it alone. Our Aussie Brokers will walk you through what's available, what's possible, and what's smart for your situation.

Let's get you closer to home.