Buying a home is challenging enough but if you're a single parent, it can be even more difficult. Kids are expensive, homes are expensive, and you're living on one income. But there are resources available to help single parents to purchase a family home.
Home loans for single parents
While there are no home loan products on the market designed specifically for single parents, there are programs to help single parents purchase their own property.
The Family Home Guarantee was launched in 2021 to help single parents with dependents build or buy a home with a deposit as low as 2% without needing to pay lenders mortgage insurance (LMI).
The initiative, administered by Housing Australia, is designed to assist single parents wanting to buy a home but struggling to save the hefty 20% home deposit to avoid paying LMI - a seemingly impossible task for someone on a single income with children to support.
The Family Home Guarantee differs from other Housing Australia guarantees geared towards first home buyers. Firstly, it requires a lower deposit amount - 2% as opposed to 5% for first home buyer applicants - and secondly, it's also available to single parents that may have previously owned a property.
Family Home Guarantee Scheme
The Family Home Guarantee is available for single parents with at least one dependent child. Under the Housing Australia scheme, buyers with a deposit as low as 2% can secure a home loan without being required to pay LMI.
On the broader lending market, home borrowers with a deposit lower than 20% are generally required to pay LMI, an insurance policy that protects the lender, not the borrower, in the event the borrower is unable to repay their loan.
But under the Family Home Guarantee, eligible single parents will be permitted to borrow up to 98% of the property's value with the government guaranteeing 18% of this amount.
The scheme is limited to 5,000 places per financial year to participants earning $125,000 a year or less. Unlike Housing Australia's first home buyer guarantee programs where participation and income caps have been removed from 1 October 2025, the Family Home Guarantee Scheme caps remain in place.
Who is eligible for the Family Home Guarantee?
You must:
Be a single person, i.e. a person that doesn't have a spouse and/or de facto partner
Have at least one dependent child
Be an Australian citizen who is at least 18 years old
Intend to live in the property (investment properties are ineligible)
Have an annual taxable income of $125,000 or less for the previous financial year
Maximum price caps and property types
Price caps apply to homes eligible to be purchased under the scheme and they vary by location. For new builds with vacant land and a separate contract to build a home, the combined land purchase and build cost must be equal to or under the price cap.
The price caps are as follows:
State | Capital City | Regional Centre | Other areas |
New South Wales | $900,000 | $900,000 | $750,000 |
Victoria | $800,000 | $800,000 | $650,000 |
Queensland | $700,000 | $700,000 | $550,000 |
Western Australia | $600,000 | $450,000 | |
South Australia | $600,000 | $450,000 | |
Tasmania | $600,000 | $450,000 |
Note: Regional centres are classified as Illawarra, Newcastle, and Lake Macquarie in New South Wales; Geelong in Victoria; and the Gold and Sunshine Coasts in Queensland.
| Territory | All Areas |
| Australian Capital Territory | $750,000 |
| Northern Territory | $600,000 |
| Jervis Bay Territory & Norfolk Island | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | $400,000 |
Note: Property price caps will be lifted to better reflect median values across Australia from 1 October 2025.
The properties you can purchase under the scheme include:
An existing house, townhouse or apartment
A house and land package
Land and separate contract to build a house
An off-the-plan apartment or townhouse
First Home Super Saver Scheme
The First Home Super Saver (FHSS) allows participants you to use their existing superannuation funds to save money for a first home deposit. In practical terms, it can help you save faster because of the concessional tax treatment on super contributions.
The scheme allows participants to make voluntary concessional contributions (taxed at a discounted 15%) and voluntary non-concessional, or after-tax, contributions taxed at the participant's usual marginal tax rate. They can then apply to release the funds, plus any associated earnings, to put towards purchasing a first home.
People using the scheme can contribute up to a maximum of $15,000 in any one financial year up to a maximum of $50,000 across all years. The maximum amount that can be withdrawn from super under the scheme is $50,000, plus any associated earnings.
While this amount is not likely to cover a median 20% deposit in many current housing markets, it should comfortably cover a 2% deposit as required under the Family Home Guarantee.
To be eligible to use this scheme, you must be a first home owner, and the following two statements must apply to you:
You are going to live in the property you're buying, or intend on living in the property you're buying as soon as you can
You intend on living in the property for at least six months within the first 12 months you own it (after you have moved in)
To use this scheme, you will need to apply for and receive a FHSS determination before signing the contract on a home. For more information on this scheme and how it works, visit the Australian Taxation Office (ATO) website.
See also: Is the First Home Super Saver Scheme worth using?
State and territory concessions
Be sure to check eligibility for state or territory home owner grants and any stamp duty concessions or exemptions. These generally apply to first home owners and can be used in conjunction the Home Guarantee Scheme.
First Home Buyers & Owners Grants Calculator
Tips for single parents looking to buy a home
As a single parent on one income, chances are buying a home is going to be hard work. However, it's possible to purchase a home on a single income. Below are some tips for single parents who want to buy their own home.
Take advantage of the schemes
We've told you which schemes are available but be sure to check your eligibility and understand how the schemes work. A mortgage broker may be able to help you navigate your way through the details and paperwork.
Have a good credit score
Having a good credit rating is vital in securing a home loan, particularly one with a competitive interest rate and loan terms. Be sure to get your finances in order before applying for a home loan.
See also: How to improve your credit score
Buy within your means
If you're a single parent, chances are you will have quite a few expenses already. If finances are tight, it's important to have a firm idea of your borrowing power before you start looking for somewhere to buy. Getting an idea of how much you can borrow will ensure you're not wasting your time looking at properties out of your price range and should also give you some confidence you will be able to service a home loan without putting yourself under undue financial pressure.
What the expert says
"It's certainly possible for single buyers to purchase a property. We've had numerous clients doing just that in recent months. Sometimes we've helped guide them through the various government schemes like the First Home Guarantee. Other times we've helped them find alternative lenders or strategies such as utilising a Self-Managed Super Fund to purchase a property.
These are things that brokers like myself can help with, but there are things you can do yourself to help, like closing credit cards or cleaning up any bad spending habits such as gambling, credit card debt, regular use of Afterpay, etc. The important thing is to be realistic about what you can afford and then adjust your strategy accordingly."