Home Loans for Single Mothers: Your Deposit and Loan Options

Yes. You can apply for a home loan on your own, and eligible single parents can buy with a deposit as small as 2% plus costs through the Australian Government 5% Deposit Scheme. The lender still needs to see that the repayments fit your income and family budget.

We’ll work through your wages, child support and any Centrelink payments, then compare the lenders that can use your income. From there, we can set a purchase budget that leaves room for childcare, school costs and the expenses that come with owning a home.

Although this guide focuses on single mothers, the single-parent scheme also covers eligible fathers and legal guardians.

If you are deciding what happens to the former family home, start with our separation and home loans guide. To keep the home, use the buyout calculator to estimate the full loan, including the current mortgage and agreed payout.

The Family Home Guarantee is now the single-parent stream of the Australian Government 5% Deposit Scheme. Since 1 October 2025, both guarantee streams have had no income caps and unlimited places. Regional buyers use the same scheme rather than a separate Regional First Home Buyer Guarantee.

If you qualify for both guarantee streams, you must apply through the single-parent stream. You can still contribute more than the 2% minimum. Our 5% Deposit Scheme guide explains the wider program.

The Government guarantees part of your loan so you can buy with a smaller deposit and avoid Lenders Mortgage Insurance (LMI). You own the home, and you repay the full amount you borrow. The guarantee doesn’t pay your deposit or cover missed repayments.

LMI is insurance that protects the lender if a property sale does not cover the loan after a borrower defaults. Avoiding it removes a borrowing cost; you still need to budget for your deposit and purchase expenses.

Sharing care doesn’t automatically rule you out. For a child under 16, the scheme can recognise part-time care where they live with you and you’re legally responsible for their day-to-day care. Older children can also qualify, depending on their age, income and circumstances.

You can read the single-parent eligibility rules and the full information guide on the Government’s website for the detailed conditions.

If you’re also a nurse, compare the government scheme with nurse LMI-waiver options. The deposit requirements and property restrictions differ, so the best fit depends on your buying plans.

The higher regional caps apply to the locations listed in the Government’s price-cap guide, including the Gold Coast and Sunshine Coast in Queensland and Geelong in Victoria. Check the postcode of the property you’re considering: both the purchase price and the lender’s property value must fit the cap. A cap tells you which properties can qualify, not how much you can afford to borrow.

They may count, depending on the payment and lender. Give us the full picture of your income, including work, benefits and child support. We’ll check what each lender can use and how long those payments are expected to continue.

The scheme can reduce the deposit you need. The lender still needs to count enough of your income to cover the repayments and your family’s living costs.

CommBank’s home loan application guide asks for a Centrelink letter where you receive government income. Westpac’s application checklist also sets out evidence for child support and other benefits. We’ll check both the paperwork and how much of those payments the lender will count.

Our child support and home loans guide explains the arrangement documents, payment history and ongoing costs to have ready.

Parenting Payment for single parents generally ends when your youngest child turns 14. If that’s approaching, we’ll check how your income might change and what that means for your repayments. Other benefits have different rules.

If your circumstances are more involved, our guides to self-employed home loans and buying while on maternity leave explain the extra paperwork.

Two single parents earning $80k can have very different borrowing limits. Childcare bills, debts and the income each lender accepts can change the amount available.

Your lender allows for living expenses and dependants, credit-card limits, loans and any HELP or HECS repayments. We also need to allow for school costs and changes you already expect, such as returning to work or a benefit ending.

Banks normally assess a new home loan at least 3% above the actual rate. That higher test rate gives them a way to check how you would manage a rise in repayments.

Before using your deposit to clear debts, let us compare the effect on your borrowing power. Reducing an unused credit-card limit may help, while paying off another debt could leave you short of cash for settlement. Our HECS and home loan guide explains how student debt can affect the assessment.

On a $600k home, a 2% deposit is $12k. You also need to pay the costs of buying, including any stamp duty, conveyancing, inspections and settlement adjustments. Allow for moving and a cash buffer too.

The smaller deposit gets you into the market with less cash, but leaves a larger loan to repay. These figures assume the property value matches the price and exclude purchase costs. Use our mortgage repayment calculator to compare what the different loan amounts could cost each month.

The deposit in your sale contract is also worth checking. An agent might ask for 5% or 10% when you sign, even though your scheme loan only requires a 2% contribution. Ask your solicitor to negotiate the contract deposit and timing before you commit. Our guide to making an offer explains the other terms to discuss before signing.

Rent history may help show a lender that you can manage regular housing payments, but it does not replace the cash you need at settlement. If family can help with a gift, we’ll confirm how the lender treats it and what evidence is required. A repayable family loan must be included in your debts.

For a savings plan, start with the cash target after costs and the time you have. Our deposit-saving guide and guide to help from parents cover the next steps.

A lower purchase price can reduce the loan and repayments you need. Check it against your work, childcare, school travel and support network before deciding to move. Saving on the mortgage is less useful if the move brings much higher transport or care costs.

A guarantee, a grant and a stamp-duty concession do different jobs. You may qualify for more than one, but each has its own rules. Being eligible for the single-parent guarantee after owning a home before does not automatically make you a first-home buyer for a grant.

Queensland has continued the $30k grant for eligible contracts from 1 July 2026. Our Queensland First Home Owner Grant guide explains the application process.

Check when the grant is paid before counting it towards a contract deposit. Your lender and conveyancer can work out which costs are due first and what cash you need available.

These concessions have separate ownership, residency and move-in rules. Queensland also changed its residency eligibility from 1 August 2026. Have your solicitor confirm the concession for your contract date, particularly if you owned property with a former partner. The state revenue links in the table take you to the current rules.

Help to Buy is a separate shared-equity scheme. With at least a 2% deposit, eligible buyers can receive a Government contribution of up to 30% for an existing home or 40% for a new home. That reduces the bank loan you need.

The Government shares in changes to the home’s value. When you sell or buy back its share, the amount is based on the property’s value at that time. There are also ongoing income reviews and obligations.

For applications in 2026/27, the single-parent taxable-income limit is $165k, using your FY2026 notice of assessment. The limit for an individual who is not a single parent is $103k. Help to Buy has 10,000 places a year and requires Australian citizenship.

You cannot combine Help to Buy with the guarantee scheme. Grants and stamp-duty concessions can still be available if you meet their separate rules. Read our Help to Buy guide for more on the trade-offs, and use the Government’s participating-lender list to check where to apply.

The Victorian Homebuyer Fund is closed to new applicants. In Western Australia, Keystart’s shared-ownership options are another avenue to check directly with the provider. Each program has its own access and eligibility rules.

The First Home Super Saver scheme can let eligible buyers release voluntary super contributions for a first home. Up to $15k of eligible contributions per financial year and $50k overall can count.

How much you can release depends on the contributions you made and how they were taxed. Your employer’s compulsory super payments can’t be withdrawn through this scheme. Check the ATO’s determination and release steps before signing. Our FHSS guide explains how it works.

We’d start with lenders that can support your deposit option and accept the income you need. Then we compare rates, fees and features on the same loan amount and term. Applying alone doesn’t tell us which bank will be the best fit.

For the detail behind individual banks, see our CommBank, NAB and Westpac guides. We’ll compare the repayments, fees and features for the loan you actually need.

A family guarantor may help with the deposit or security required. You still need to afford the repayments yourself, and the guarantor puts their property at risk if the loan is not repaid. It is a separate option to the government guarantee. If your profession qualifies, our LMI-waiver guide is also worth a look.

Our pre-approval guide explains what the lender checks before you start making offers.

You don’t need to have every document ready before speaking with us. Start with your income, savings, debts and the area you want to buy in. We’ll tell you what else is needed for the lenders and schemes that fit.

For more help planning your finances, see Barefoot Investor bank accounts, low- and no-deposit home loans and our home-buying guides.

This guide contains general information and does not take into account your full financial circumstances. Loan and scheme eligibility, rates and fees depend on your application and the property. We’ll explain any costs and how we’re paid before you proceed.