In this guide, we’re going to walk you through everything you need to know about home loans for single moms, from overcoming income challenges to accessing government schemes and choosing the right lender.
If you’re a single mom dreaming of owning your own home, the journey might feel overwhelming, especially when juggling a career, parenting, and finances on your own. However, thousands of single mothers across Australia have successfully purchased homes, and many have done so with government support, little or no deposit, and the right lending partners behind them-—including expert help from a trusted mortgage broker in Brisbane who understands the unique challenges single parents face.
Whether you’re working full-time, part-time, or receiving Centrelink payments, there are options available. We’ll also show you how to boost your borrowing power, save a deposit while parenting solo, and connect with programs that help single moms buy a house.
By the end of this article, you’ll understand:
- How much deposit you need
- What types of income banks accept from single moms
- Which lenders are more flexible with single-parent applications
- Which government grants and guarantees are available (like the Family Home Guarantee)
- How to compare and apply for a single parent home loan confidently
Let’s dive in!
Common Barriers To Getting Home Loans For Single Mothers.
Buying a home as a single mom comes with unique challenges. It’s not just about getting your finances in order—it’s also about overcoming perceptions, policies, and personal pressure. The good news is that once you understand the key barriers, you can start building a plan to overcome them.
Let’s break down the most common obstacles single mothers face when applying for a mortgage in Australia.
1. Lower Household Income
As a single-income household, it can be harder to meet standard borrowing power thresholds. Most lenders assess how much you can borrow based on your income minus expenses—including the cost of raising children.
For example, If you earn $70,000 per year and have two young children, a lender might only count part of that income toward your borrowing power, depending on your outgoings and liabilities.
But here’s the truth: You can still qualify. In fact, some lenders accept child support, Centrelink payments, and part-time income when properly documented. (We’ll show you how in later sections.)
2. Credit Score Challenges
Many single mothers have gone through financial strain—whether from divorce, job loss, or raising a child on their own. This can result in a lower credit score or missed payments, which some banks see as red flags.
Expert Tip: Before applying, check your credit file and fix any inaccuracies. Also, some lenders are more understanding of past issues if you can show stability today.
3. Saving a Deposit on One Income
Saving a 20% deposit while raising children alone feels nearly impossible. And it’s true—without support, it is a challenge.
But here’s the game-changer: You don’t need 20%!
Thanks to government-backed schemes like the Family Home Guarantee, eligible single parents can buy a home with as little as a 2% deposit without paying Lenders Mortgage Insurance (LMI).
We’ll explore how that works in detail later.
4. Dependents Affecting Borrowing Capacity
Having dependents—especially more than one—affects how much banks will lend you. They factor in the cost of raising each child, which reduces your “surplus income.”
However, not all lenders use the same formulas for child-related expenses. Some are more generous than others.
Expert tip: Working with a mortgage broker who understands single-parent lending policies is critical. They’ll help match you with the banks most likely to approve your application.
If you would like assistance, please give us a call on 1300 088 065 or book a free assessment online to see how we can help.
5. Lack of Financial Advice or Support
Single moms often carry the full mental and financial load alone. You may not have someone to bounce decisions off or guide you through mortgage jargon.
That’s where tailored advice comes in.
A good mortgage broker doesn’t just compare rates—they guide you through the entire journey, from application to settlement. They can also point you to grants, legal help, budgeting tools, and more.
6. Fear of Rejection or Past Setbacks
It’s common to feel discouraged if you’ve been knocked back before or if friends and family have warned you it’s “too hard” to buy a home as a single mother.
But here’s the truth: Thousands of single moms are doing it. The key is knowing your options, choosing the right lender, and preparing your application the right way.
Real Talk: The Odds Are Better Than You Think
According to the ABS, over 15% of home buyers in Australia are single-parent households—many of them led by mothers. And with new government schemes aimed at helping single parents into homes faster, the pathway is more accessible than ever.
Up next, we’ll show you how eligibility really works—and what income types, documents, and dependents lenders will accept when assessing a single mom home loan application.
The Truth About Home Loan Eligibility: Can You Qualify As A Single Mom?
If you’ve ever wondered, “Will a bank even consider me for a home loan as a single mom?”—you’re not alone. The answer is: Yes, absolutely—if you meet certain criteria.
But there’s a lot of misinformation out there about what banks will and won’t accept from single parents. So, let’s set the record straight.
What Lenders Actually Look At
When assessing a home loan application, lenders look at the following key factors:
- Income – How much money you earn and how reliable it is
- Expenses – How much you spend each month, including dependents
- Liabilities – Any loans, credit cards, or debts you already have
- Deposit – How much you’ve saved or how much equity you’re contributing
- Credit History – Your repayment record and credit score
Being a single parent doesn’t disqualify you—but it does change how these factors are assessed.
Accepted Income Sources for Single Moms
This is one of the most important parts—and where many single moms get tripped up. You can absolutely get approved using a mix of income sources as long as they’re verified.
Here are the most common income types that many lenders accept:
Income Type | Accepted by Lenders? | Conditions |
Full-time employment | Yes | Payslips, employment letter, tax returns |
Part-time / Casual | Yes (varies) | Minimum 6–12 months continuity |
Centrelink parenting payments | Sometimes | Must be regular and ongoing |
Family tax benefit A & B | Yes (some lenders) | Must be permanent and non-declining |
Child support payments | Yes (many lenders) | Court order or bank statements required |
Self-employment income | Yes | 1–2 years’ tax returns or BAS statements |
Rent from housemates | Sometimes | Lease agreement or bank evidence |
Expert tip: Work with a broker who knows which lenders accept which types of income. This alone can make or break your chances of approval.
How Dependents Affect Borrowing Power
Every child in your care increases your living expenses in the lender’s eyes—even if you’re managing just fine.
Lenders use what’s called a Household Expenditure Measure (HEM) to estimate how much your family needs to live. The more dependents you have, the higher the assumed expenses, which lowers your borrowing capacity.
For example, A single mom earning $80,000 with one child may borrow more than a mom earning the same with three children—simply because of estimated living costs. This is why different lenders can give vastly different borrowing limits for the same person.
Your Relationship Status Isn't a Barrier
You don’t need to be legally separated or divorced to apply—but you do need to be financially independent.
If you’re separated, some lenders will ask for:
- A copy of your separation agreement, especially for child support arrangements
- Evidence of property settlements, if applicable
- Confirmation that you’re not tied to ex-partner debts or home loans
What If You're Receiving Centrelink Payments?
It’s a myth that being on Centrelink disqualifies you from a mortgage.
Many lenders accept certain types of Centrelink income, especially Parenting Payment, Family Tax Benefits, and child support, as long as it’s stable and ongoing.
But here’s the catch: not all lenders will count Centrelink income the same way.
That’s why broker guidance is crucial. One lender might count 100% of your Parenting Payment, while another might only use 50%.
Minimum Deposit Requirements For Home Loans For Single Mothers
Technically, you can still buy a home with just:
- 2% deposit under the Family Home Guarantee (no LMI)
- 5% deposit under the First Home Guarantee or other lender options
- 10%–20% deposit with full flexibility and choice of lender
Some lenders allow genuine savings, gifted funds, or even rent history as part of your deposit proof. We’ll go deeper into deposit strategies in a later section.
Credit History: Clean, Recovering, or Complicated?
Even if you’ve had past financial struggles, that doesn’t mean it’s game over. Some lenders will still consider you if:
- You’ve recovered from any defaults or missed payments
- You’ve paid down your debts
- You’ve had a stable income and rental history for at least 6–12 months
Expert Tip: If your credit file has issues, speak to a mortgage broker before applying. They can help you avoid lenders that will automatically reject you.
In the next section, we’ll dive into government programs that help single moms buy a house—including grants and guarantee schemes you may not even know about.
Government Support Programs That Help Single Moms Buy a House
One of the biggest game-changers for single moms buying a home in Australia is government assistance.
These aren’t just small rebates—they’re powerful grants and guarantees that can help you buy with a low deposit, pay no Lenders Mortgage Insurance (LMI), or even access stamp duty discounts.
Let’s explore the key programs that help single moms buy a house—how they work, who qualifies, and how much you can save.
1. Family Home Guarantee (FHG)
Best for: Single parents with at least one dependent child
Deposit needed: As little as 2%
LMI: Not required
The Family Home Guarantee is the most powerful home loan assistance for single mothers in Australia.
It allows eligible single parents to buy a home with just a 2% deposit and no LMI—even if they’ve owned property before.
Key Eligibility Criteria:
- Must be a single parent with at least one dependent child
- Can be previous homeowners, but must not currently own property
- Australian citizen or permanent resident
- Must have an income of $125,000 or less (excluding child support)
- Intend to live in the home
- Applies to new or existing homes
This scheme has helped over 10,000 single parents into homes across Australia since 2021.
Best for: First-home buyers with low deposit
Deposit needed: As little as 5%
LMI: Not required
If you don’t qualify for the Family Home Guarantee, the First Home Guarantee could be your next best option.
It allows first-home buyers (including single moms) to purchase a property with just a 5% deposit and pay no LMI.
Eligibility Criteria:
- Must be a first home buyer
- Income must be under $125,000 for singles
- Must live in the home
- Available for existing homes, new builds, or house-and-land packages
Best for: Buyers of brand-new homes
Grant amount: $10,000–$30,000 depending on state/territory
The FHOG provides a one-off payment to eligible first home buyers who are purchasing or building a new home.
Example Grant Amounts (As of 2025):
- QLD: $30,000
- NSW: $10,000
- VIC: $10,000 (regional boosts may apply)
- WA/SA/NT: Up to $15,000–$25,000
Pro tip: The grant can usually be used toward your deposit or closing costs, making it ideal for single moms with limited savings.
Best for: First-home buyers
Potential savings: Up to $30,000+
Every Australian state and territory offers some form of stamp duty exemption or discount for eligible first-home buyers.
In some cases, you may pay zero stamp duty if your home is valued below a certain threshold.
Examples:
- NSW: No stamp duty for homes up to $800,000 (as of 2025 reforms)
- VIC: Full exemption for homes under $600,000; discounts up to $750,000
- QLD: First-home concession up to $500,000
For single moms, this can mean thousands saved upfront—especially in major cities.
5. Regional First Home Buyer Guarantee
Best for: Single parents buying in rural/regional areas
Deposit needed: 5%
LMI: Not required
This scheme helps eligible homebuyers (including single moms) purchase in regional areas with just a 5% deposit. It’s great if you’re living outside a capital city and want to avoid the big-city price tag.
Best for: Low- to moderate-income earners
How it works: The state co-purchases part of your home to reduce your loan
For example, Victoria’s Homebuyer Fund lets eligible single parents buy a home with just a 5% deposit, and the government covers up to 25% of the purchase price—which you repay when you sell or refinance.
Which Programs Can You Combine?
Yes, you can stack some of these:
Family Home Guarantee + FHOG + Stamp Duty Exemption
First Home Guarantee + FHOG
Shared equity + FHOG (state-based)
Your mortgage broker can help structure your application to make sure you get every dollar you’re entitled to.
Next, we’ll dive into Saving a Deposit as a Single Mom (Even on One Income)—and share creative ways to build a deposit faster without sacrificing your family’s financial security.
Saving A Deposit As A Single Mom (Even on One Income)
Saving for a home deposit while raising kids on a single income can feel like a massive uphill climb. But here’s the truth: you don’t need a 20% deposit—and you don’t have to do it all on your own.
How Much Deposit Do You Really Need To Buy A House As A Single Parent?
It depends on the path you choose. Here’s a quick guide:
Option | Minimum Deposit | Need LMI? | Notes |
Family Home Guarantee | 2% | No | For single parents only |
First Home Guarantee | 5% | No | For first-home buyers |
Regular Home Loan | 10–20% | Yes (under 20%) | More lender options |
Shared Equity Schemes | 2–5% | No | VIC/WA only |
Pro tip: If you’re eligible for the Family Home Guarantee, a $500,000 home only needs a $10,000 deposit. That’s less than most people think.
How to Supercharge Your Deposit Savings
1. Set a Target and a Timeline
If you’re a single mom buying a house or exploring your options for a single parent home loan, the first step is to set a clear savings goal and timeline. Saving for a deposit can feel intimidating, but breaking it down into smaller, achievable milestones makes the process more manageable. For example, if your goal is to save $10,000 in 12 months, that’s roughly $833 per month—or just $28 a day. This kind of structured approach helps you stay focused and motivated as you work toward securing your home loan for single moms.
Expert tip: To stay accountable and on track, consider using budgeting and savings apps like Up, Raiz, or the Barefoot Investor’s Bucket System.
2. Use Rent as Proof of Saving
If you’ve been renting for at least 12 months and have consistently paid your rent on time, this record may help you meet the deposit requirements for home loans for single moms without needing to show a separate savings account.
Expert tip: Ensure your rent is paid directly from your personal bank account, not in cash or from someone else’s account. Lenders require a clear paper trail to verify your rental history. It shows the lender that you’re already managing housing costs reliably—boosting your credibility as a borrower.
3. Tap Into Government Grants
You can use government support to make homeownership more achievable. The First Home Owner Grant (FHOG), which we covered in a previous section, gives you between $10,000 and $30,000, depending on your state. You can use this money to boost your deposit, cover stamp duty or closing costs, or reduce the size of your loan—making your repayments more affordable and helping you qualify for a home loan sooner.
4. Explore Gifted Funds
If you’re a single mom buying a house and receiving help from family, some lenders will accept gifted funds as part of your deposit. This is a common path for single mothers getting support from parents or siblings. To use a financial gift, you’ll usually need a signed gift letter confirming the money isn’t a loan, along with proof that the funds have been transferred into your account. Lenders want to see that the gift is genuine and that you’re not expected to repay it, which helps strengthen your home loan application.
5. Consider a Guarantor (With Caution)
As a single mom buying a house, using a guarantor can help you get into the property market sooner—especially if you don’t have enough savings for a deposit. A guarantor is typically a close family member, such as a parent or sibling, who offers the equity in their own home to secure part of your loan. With their support, you may be able to avoid paying Lenders Mortgage Insurance (LMI), boost your borrowing power, and buy a home without needing any upfront cash savings. This option can make a big difference for single moms struggling to save while managing everyday expenses.
However, it’s important to understand the risks. If you can’t meet your loan repayments, your guarantor becomes responsible—and their property could be on the line. It may also limit their ability to borrow in the future. Always speak to a legal adviser and your mortgage broker before committing to a guarantor arrangement. While it’s a helpful tool, it’s not the right solution for everyone.
6. Side Hustle for a Purpose
If you have a talent—writing, sewing, tutoring, baking—consider turning it into a small side income to boost your savings. Even an extra $200/month from a side hustle can shave 6–12 months off your savings timeline.
7. Use the First Home Super Saver Scheme (FHSS)
You can use the First Home Super Saver Scheme (FHSSS) to boost your deposit through your superannuation. This allows you to salary-sacrifice up to $15,000 per year (with a total cap of $50,000), which you can later withdraw to put toward your first home. The key benefits include paying less tax on your contributions and earning higher interest than you would in a regular savings account. Just make sure to check your eligibility and understand the required timelines—this strategy works best if you don’t need access to the funds within the next 12 months.
Next, we’ll move on to the next section, where we explore how to compare lenders, select the right features, and avoid being overcharged simply because you’re applying alone.
Choosing the Right Lender and Home Loan as a Single Mom
When you’re a single mom buying a house, choosing the right lender and home loan isn’t just about interest rates—it’s about trust, flexibility, and support.
Some lenders are more single-parent-friendly than others, and certain home loan features can make a massive difference to your cash flow, peace of mind, and long-term success as a homeowner.
Let’s walk through how to make the smartest choice for your situation.
Step 1: Understand the Different Loan Types
Here’s a breakdown of the most common types of home loans and what they mean for you:
- Variable Rate: This type of loan has an interest rate that moves with the market. It’s ideal for single moms who want flexibility and the potential to save money if rates go down.
- Fixed Rate: With this loan, the interest rate is locked in for a set period, usually between 1 and 5 years. It’s best for single moms who prefer predictable repayments and stability in their budgeting.
- Split Loan: A combination of both fixed and variable rates, offering a mix of stability and flexibility. It suits single moms who want the best of both worlds.
- Interest-Only: You only pay the interest for an initial period before the loan switches to a principal and interest repayment. This can help single moms who need lower repayments in the short term.
- Principal & Interest: You pay off both the original loan amount and the interest from the start. It’s a good option for single moms looking to build equity and pay off their homes faster.
Expert Tip: If you’re concerned about budgeting, a fixed or split loan might help you plan better—especially if your income varies or you receive Centrelink payments.
Talk to a mortgage broker today! Give us a call on 1300 088 065 or book a free assessment online to see how we can help.
Step 2: Look for Features That Support Single Parents
Not all home loans are created equal. Look for these features that make a big difference for single moms:
Offset Account – Helps reduce interest by linking your savings to your loan. Even $5,000 in an offset account could save you hundreds in interest per year.
Redraw Facility – Allows you to access any extra repayments you’ve made if you’re ever in a tight spot.
Flexible Repayments – Choose weekly or fortnightly to match your income cycle and reduce interest faster.
Low Fees or Fee Waivers – Some lenders waive fees for first-home buyers or low-income families.
Parental Leave Consideration – A few lenders will still approve loans if you’re on (or recently finished) parental leave, provided you have a return-to-work plan.
Step 3: Choose the Right Lender (Not Just the Big Banks)
There are three main types of lenders you might deal with:
- Major Banks: These lenders offer stability and are well-known, which can give you confidence. However, they can be strict when it comes to applicants with a single income or those relying on government benefits.
- Non-Bank Lenders: These lenders tend to have more flexible policies, making them potentially easier to work with. On the downside, they usually have less brand recognition compared to major banks.
- Credit Unions / Mutual Banks: These lenders are community-focused and may offer better deals or personalised service. However, they often have fewer branches, and their online services can vary in quality.
Expert tip: Some smaller lenders are more understanding of single-income households and will assess applications with child support, Family Tax Benefit, or part-time/casual income more generously.
Step 4: Compare Like a Pro
When comparing home loans, don’t just look at the interest rate; also consider the other factors that influence the overall cost, such as:
- Comparison rate (includes fees): This gives a more accurate picture of the true cost of a loan by factoring in fees along with the interest rate.
- Loan term (shorter = more interest saved): Choosing a shorter loan term means you’ll pay less interest overall, but your monthly repayments may be higher.
- Application, monthly & exit fees: These extra charges can add up, so it’s important to know what fees you’ll be responsible for throughout the loan.
- Rate flexibility (especially if interest rates drop): A flexible rate lets you benefit if market interest rates go down, potentially lowering your repayments.
- Extra repayment options: Being able to make extra payments can help you reduce your loan faster and save on interest.
Use comparison tools like Canstar, Mozo, and RateCity: These websites help you quickly compare loan options and find deals that suit your needs.
Step 5: Speak With a Mortgage Broker Who Understands Home Loans For Single Mothers
A good mortgage broker can:
- Compare 30+ lenders for you: This gives you access to a wide range of loan options without having to research each one yourself.
- Match you with lenders who accept single-income or government benefits: They know which lenders are flexible with your financial situation, improving your chances of approval.
- Help you apply for government schemes, such as the Family Home Guarantee. They guide you through programs that can make buying a home more affordable and accessible.
- Avoid you wasting time with lenders who might reject you: Their expertise helps focus your applications on lenders most likely to say yes, saving you frustration and delays.
Next up, we’ll cover How Much Can a Single Mom Borrow?—including borrowing calculators, income types lenders accept, and tips to boost your borrowing power as a solo parent.
How Much Can a Single Mom Borrow To Buy A House?
One of the most common questions we hear is:
“I’m a single mom with one income—can I even borrow enough to buy a house?”
The good news? Yes, you absolutely can.
The not-so-good news? Your borrowing power depends on several factors—and getting it right can mean the difference between owning a home now or waiting another 5 years.
Let’s break down exactly how much you can borrow as a single mom and how to increase your borrowing capacity.
What Affects Your Borrowing Power as a Single Mom?
Lenders consider several key factors to decide how much they’ll let you borrow:
- Your income: This shows your ability to repay the loan, so higher income generally means you can borrow more.
- Your expenses: The lower your living costs and regular expenses, the more you may be approved to borrow.
- Your existing debts: Outstanding debts like car loans, credit cards, or Buy Now Pay Later (BNPL) reduce your borrowing capacity.
- Number of dependants: Having more children or dependants increases your living costs, which can lower how much you’re able to borrow.
- Type of employment: Full-time employment is preferred by lenders, but casual and part-time jobs can still be acceptable.
- Government support: Some lenders accept income from Centrelink or other government benefits, while others may not.
- Deposit size: A larger deposit means you need a smaller loan, which improves your chances of approval.
- Credit score/history: Missed repayments or defaults on your credit record can reduce your chances of getting approved.
How Much Can I Actually Borrow? (Real Example)
Income | Estimated Borrowing Power |
$65,000 per year | $280,000 – $330,000 |
$75,000 per year | $320,000 – $370,000 |
$85,000 per year | $360,000 – $420,000 |
Assumptions:
- Variable interest rate: 6.25%
- Loan term: 30 years (principal and interest repayments)
- Lending guidelines: Updated for 2025
Note: These are estimates, and actual borrowing power may vary based on your full financial situation.
Expert tip: With the Family Home Guarantee, a $350,000 loan with a 2% deposit lets you buy a home worth around $357,000—no LMI required.
Can I Use Centrelink Payments as Income?
Yes—some lenders do accept government benefits as part of your income. This may include:
Centrelink Payment | Accepted by Lenders? |
Family Tax Benefit A & B | Often accepted |
Parenting Payment | Some lenders accept |
Child Support Payments | Often accepted (needs documentation) |
Rent Assistance | May be counted |
Disability Support Pension | Some lenders accept |
To use these in your application, you’ll usually need:
- A Centrelink Income Statement
- A Child Support Assessment (if applicable)
- 3–6 months of bank statements showing consistent deposits
Expert tip: Some major banks ignore Centrelink income entirely, which can slash your borrowing power by 30–50%. This is why working with the right mortgage broker is critical.
How to Boost Your Borrowing Power as a Single Mom.
1. Clear or Reduce Other Debts
Clear or reduce other debts before applying for a home loan, as every $10,000 in car loans or credit cards can reduce your borrowing capacity by up to $40,000. Pay off credit cards, lower their limits, and consider consolidating smaller debts if needed. Also, avoid taking on any new debt for 6 to 12 months before applying to improve your chances.
2. Declare All Legitimate Income
Include any regular overtime and shift loadings in your income, as lenders may consider these if they’re consistent. Also, include child support payments, but make sure they are consistent and well-documented. Additionally, report government benefits if your lender accepts them, as well as any rental income or board payments if you rent out a room in your home.
3. Choose a Lender Who Gets You
Some lenders penalise you for being a single parent. Others have policies tailored to single-income families and low-deposit loans. Mortgage brokers (like us) know which lenders to avoid—and which ones will maximise your borrowing power.
4. Cut Back Expenses Temporarily
Some lenders look at bank transactions for the past 3–6 months. Consider reducing:
- Discretionary spending (takeout, online shopping)
- Streaming subscriptions
- Holidays or entertainment
The lower your living costs, the more you can borrow.
5. Consider a Co-Buyer (With care)
If you have a sibling, parent, or trusted friend willing to co-buy with you, you may be able to borrow significantly more.
Be careful! This means joint legal ownership and shared responsibility for repayments. Always get legal advice first.
Case Study: Emily Boosted Her Borrowing by $105,000
Emily, a single mom with 2 kids, was earning $78,000 and receiving $900/month in Family Tax Benefit and $500 in child support.
The big banks told her she could borrow $310,000.
A broker found a lender that:
- Counted 100% of her child support and FTB
- Considered her low living expenses
- Approved a $415,000 loan
That meant the difference between buying a home now or waiting 3+ years to save more.
Step-by-Step: Applying For Home Loans For Single Mothers
Now that you’re familiar with the grants and programs available let’s break down the exact steps for applying for a home loan as a single mom—from getting pre-approved to receiving the keys.
This is where many people get overwhelmed, but we’ll make it simple with a clear, step-by-step guide tailored to your situation as a first-home buyer and single parent in Australia.
Step 1: Check Your Eligibility
To qualify for most single parent home loan schemes and lender requirements, you’ll need to meet the following criteria:
- Age: You must be 18 years or older.
- Residency: You must be an Australian citizen or a permanent resident.
- Income: You must have a stable income, which can come from employment, Centrelink, or a combination of both.
- Dependents: You must be a single parent with at least one dependent child (required for schemes like the Single Parent Guarantee).
- Property ownership: You must be a first home buyer or not have owned property in the past 10 years.
- Purchase intention: You must plan to live in the home you’re buying; investment properties are not eligible.
Expert Tip: Even if you’ve previously owned a home, you may still qualify under the 10-year gap rule in the Single Parent Home Guarantee.
Step 2: Speak With a Mortgage Broker (Highly Recommended)
As a single mom, your financial situation might not fit into the “big bank” mould. This is why working with a broker who understands single parent home loan schemes is so important. Brokers are free to use in most cases—they’re paid by the lender when your loan settles.
Step 3: Get Your Documents Ready
You’ll need to prove your income, savings, and ability to repay the loan. Here’s what most lenders ask for:
When applying for a home loan, here’s what you’ll typically need to prepare:
- ID: Provide a valid passport or driver’s licence.
- Proof of income: Submit 2–3 recent payslips, your latest tax return, and Centrelink statements if applicable.
- Proof of savings: Supply 3–6 months of bank statements showing consistent saving habits.
- Child support: Include your Centrelink child support assessment and 3 months of bank deposits showing consistent payments.
- Rental history: Get a rental statement from your property manager or landlord.
- Expenses: List your regular monthly costs, such as bills, groceries, school fees, and other living expenses.
- Existing debts: Detail all current credit card limits, personal or car loans, and any Buy Now Pay Later balances like Afterpay or Zip Pay.
Many lenders now allow digital document uploads, making the application process faster and more convenient.
Step 4: Get Pre-Approval
Pre-approval means the lender has assessed your financial position and conditionally approved you for a certain loan amount (e.g., $400,000).
Benefits of Getting Pre-Approved:
- Know your maximum purchase price: Pre-approval gives you a clear idea of how much you can borrow so you can focus on homes within your budget.
- Shop for homes with confidence: You’ll avoid wasting time on properties you can’t afford and negotiate more confidently.
- Shows sellers you’re serious: Sellers are more likely to consider your offer if they know your finance is conditionally approved.
- Speeds up the buying process: With paperwork already in motion, you can move faster when you find the right home.
Note: Pre-approvals typically last 3–6 months, so it’s best to apply when you’re ready to start house-hunting seriously.
Step 5: Find a Home That Fits
Work with a buyer’s agent or real estate agent to find properties within your budget. Use your pre-approval amount as your maximum price.
Check these before you fall in love with a home:
- Is it within your price cap (e.g., $650,000)?
- Is it eligible under the scheme you’re applying for (some have value caps)?
- Will it suit your family’s needs (school zones, transport, safety)?
- Is it ready to move in (some grants only apply to new or turnkey properties)?
Step 6: Make an Offer or Bid at Auction
Once You Find a Home:
- Get a building and pest inspection if you’re buying a house to check for structural issues or hidden damage.
- Review the contract of sale carefully to understand all terms and conditions before signing.
- Make an offer (or bid at auction if that’s how the property is being sold).
- Include “subject to finance” conditions in your offer unless you’ve been pre-approved and are confident in your borrowing capacity.
Your mortgage broker and solicitor or conveyancer will guide you through each of these steps to help you avoid costly mistakes.
Step 7: Finalise Your Home Loan
After Your Offer Is Accepted:
- Your broker or lender will order a bank valuation to ensure the property is worth the agreed purchase price.
- You’ll sign the formal loan documents to confirm the terms of your home loan.
- You’ll pay your deposit, usually 5–10% of the purchase price, as outlined in the contract.
- The lender will confirm your loan approval once all conditions are met.
- Your solicitor or conveyancer will prepare for settlement day, handling the legal transfer of ownership.
Step 8: Settlement Day – You Get the Keys!
On settlement day:
- The lender pays the seller the balance of the home price
- Your name is registered on the property title
- You get the keys and officially own your home.
Step 9: Move In and Set Up Repayments
Congratulations, you’re a homeowner! Now it’s time to:
- Set up direct debit repayments on your mortgage
- Set a monthly budget for utilities, insurance, and rates
- Celebrate this milestone with your kids—you did it!
Final Tips For Single Moms Buying Their First Home
- Start Early and Plan – The earlier you start your home loan journey, the more time you have to build savings, improve credit, and find the right property.
- Use a Specialist Broker – They know lenders and programs that cater specifically to single parents and can save you time and money.
- Keep All Documents Organised – From payslips to Centrelink statements, having your paperwork ready will speed up approvals.
- Budget for More Than the Loan – Remember to account for ongoing costs, such as council rates, insurance, utilities, and maintenance.
- Stay Patient and Persistent – Buying your first home is a big step with many moving parts. If something doesn’t go your way, don’t get discouraged.
- Lean on Support Networks – Friends, family, community groups, and online forums can provide advice, emotional support, and sometimes even financial help.
Frequently Asked Questions (FAQs) – Home Loans for Single Moms
Can single moms get special home loans or grants in Australia?
Yes! The Australian government offers schemes like the Single Parent Home Guarantee, which helps single parents buy a home with a low deposit and often without paying Lenders Mortgage Insurance (LMI). Additionally, First Home Owner Grants and stamp duty concessions may apply depending on your state.
What is the Single Parent Home Guarantee?
It’s a government program that helps eligible single parents buy a home with as little as a 2% deposit, without paying LMI, provided they meet income and other criteria. This scheme is designed specifically to support single parents entering the housing market.
Do I need a deposit to buy a house as a single mom?
Yes, but with government schemes like the Single Parent Home Guarantee or First Home Loan Deposit Scheme, you may only need a 2–5% deposit. Without these, most lenders require at least 10–20% to avoid paying Lenders Mortgage Insurance.
Can Centrelink payments count as income for a home loan?
Yes. Many lenders accept Centrelink payments (like Parenting Payment) as part of your income when assessing your borrowing capacity. You’ll need to provide official statements and proof of ongoing payments.
How important is a good credit score when applying for a single mom home loan?
Credit score is important because lenders use it to assess your risk. A higher score increases your chances of approval and better interest rates. If your credit history has issues, speak with a mortgage broker to find lenders who specialise in helping single parents.
Can I apply for a home loan if I have existing debts?
Yes, but your existing debts (like credit cards or personal loans) will be factored into your borrowing capacity. It’s advisable to reduce high-interest debts before applying to improve your chances and get better loan terms.
What costs should I budget for besides the home loan?
Besides repayments, budget for stamp duty (unless exempt), legal fees, building inspections, moving costs, home insurance, council rates, utilities, and ongoing maintenance.
Is it better to buy a new home or an existing home as a single mom?
Both have pros and cons. New homes may qualify for grants and require less maintenance. Existing homes might be cheaper and in established neighbourhoods. Your choice depends on budget, location, and your family’s needs.
How can a mortgage broker help single moms?
Mortgage brokers have access to a wide range of lenders and programs, including those designed for single parents. They simplify the application process, help you find the best deals, and guide you through eligibility requirements and paperwork.
What if I'm not ready to buy yet?
Start by improving your savings, reducing debts, and building your credit score. Talking to a broker early can also help create a personalised plan, so you’re ready when the time is right.
Conclusion To Home Loans For Single Mothers
Owning your own home as a single mom in Australia is challenging but not impossible. With the right knowledge, support, and programs tailored for single parents, you can achieve your dream sooner than you think.
If you want personalised advice, talk to a mortgage broker experienced in single mom home loans today—and take your first step toward homeownership with confidence.
Our team at Hunter Galloway is here to help you buy a home in Australia. Unlike other mortgage brokers who are one-person operations, we have an entire team of experts dedicated to helping make your home loan journey as simple as possible.
If you want to get started, please give us a call on 1300 088 065 or book a free assessment online to see how we can help.
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