Single parent home loans: the 2% deposit stream
A single parent or legal guardian with at least one dependent child can buy a home with a 2% deposit and no lenders mortgage insurance under the Australian Government 5% Deposit Scheme, the stream that used to be called the Family Home Guarantee. There is no income cap, no limit on places, and you do not have to be a first home buyer. This guide covers who counts as single, the dependent child test, the price caps, and what the participating lenders publish.
- Minimum 2% deposit and no LMI for single parents and legal guardians of one or more dependent children (government site, CommBank, Westpac, IMB)
- No income cap, no waitlist, no cap on places; you do not have to be a first home buyer, only not currently own
- Single means no spouse or de facto partner; separated but not divorced does not count (government site)
- Price caps by location apply; eligible properties include builds and house-and-land packages, and Westpac accepts vacant land with a contract to construct
- Apply only through a participating lender; IMB reserves the place for 90 days after conditional approval; can combine with FHSS and state grants
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.
What is the single parent stream?
The government's first home buyer site describes it plainly: step into your new family home with a minimum 2% deposit and backing from the Australian Government, with no income caps, no waitlists and no LMI. It sits inside the Australian Government 5% Deposit Scheme, formerly the Home Guarantee Scheme, where it was the Family Home Guarantee. Housing Australia guarantees the part of your loan above 80% of the property's value to the lender, so the lender does not charge lenders mortgage insurance, and you borrow up to 98% of the price. You make the full repayments on the full loan; the guarantee is for the lender.
Who is eligible?
| Test | What the government publishes |
|---|---|
| Single | No spouse or de facto partner. If you are separated but not divorced, you are not considered single |
| Parent or guardian | The natural parent, adoptive parent or legal guardian of one or more dependent children |
| Dependent child | A dependent child within the meaning of the Social Security Act, or a child for whom you are the natural or adoptive parent who meets the stated conditions |
| Deposit | Minimum 2% of the property value; the lender may require more |
| Income | No cap; income does not restrict access |
| Prior ownership | Must not currently own a home; previous owners are eligible |
| Property | Owner-occupied; houses, townhouses, apartments, house-and-land packages, off-the-plan, or building on vacant land, at or below the location price cap |
| Lender criteria | You must also meet the participating lender's credit policy; eligibility for the scheme does not guarantee a loan |
How much can you buy with 2%?
The deposit is the easy part: 2% of $600,000 is $12,000, and IMB publishes that it can be combined with a First Home Super Saver release and a state first home owner grant or stamp duty exemption. The hard part is serviceability on one income. A 98% loan of $588,000 at 6% p.a. over 30 years is about $3,525 a month, and the lender assesses it at a buffered rate above that after living expenses for you and the children. The borrowing power calculator gives an estimate; child support, family tax benefit and parenting payments are treated differently by different lenders, which is where a broker earns the referral. The price cap for your location is the other limit, and the government says to confirm it with the lender rather than rely on its tool.
What do participating lenders publish?
Checked against each lender's published page on 20 September 2026; "Not published" means the page does not state it. The panel and the terms change without notice, so confirm before relying on them.
| Lender | Deposit as published | Repayments and property | Process | Other published terms |
|---|---|---|---|---|
| Westpac | Minimum 2%; no LMI on the Westpac loan | Principal and interest except during a construction phase; vacant land with a contract to construct a residence is eligible | Talk to a home loan specialist | Single parent or single legal guardian with at least one dependent child |
| IMB | Minimum 2% for eligible single parents or legal guardians | Not published | Conditional approval, then eligibility documents collected and the guarantee place reserved; 90 days to purchase | Can be used with the First Home Super Saver Scheme and state first home owner grants and stamp duty exemptions |
| CommBank | 2% for single parents and guardians; may be asked to contribute more depending on eligibility and financial situation | Property types as per the scheme, below the caps | Home Lending Specialist | Income does not restrict access; no LMI |
| People First Bank | Publishes a home loans for single parents guide | Not published | Not published | Participating mutual |
| The Mutual | Publishes a single parents scheme page | Not published | Not published | Participating mutual |
Single parent stream or Help to Buy?
Both are open to single parents and both start at a 2% deposit. Under the 5% Deposit Scheme you borrow the whole balance and own the whole home. Under Help to Buy the government takes an equity share of up to 30% of an existing home or 40% of a new one, so the loan is smaller and easier to service on one income, but the government shares any gain and there is an income threshold, which Bank Australia publishes as $165,000 for single parents against $103,000 for other individuals. If serviceability is the constraint, Help to Buy can be the difference between qualifying and not; if you can service the full loan, the 5% Deposit Scheme keeps all of the growth. A broker runs both, and Your Finance Guide refers you to one licensed broker partner for that; we do not lend or assess applications ourselves.
What to have ready
Proof that you are single and a parent or guardian: the lender will ask for documents supporting the dependent child test and, if you are separated, the divorce order, since the government publishes that separated but not divorced does not count as single. Then the usual home loan file: photo ID, payslips or, if self-employed, tax returns, bank statements, evidence of the 2% deposit, and statements for any child support or government payments you want counted as income. Get pre-approval before you look so the place is reserved and the price cap is confirmed.
Buying on one income
The schemes, the calculators and the process.
Single parent home loan FAQs
Can I get a home loan as a single parent?
How much does a single mum need for a house deposit?
What is the best home loan for a single mother?
Do I have to be a first home buyer?
Who counts as a single parent or legal guardian?
Is there an income cap for single parents?
Can I use the scheme to build, or with Help to Buy?
How long do I have once I am approved?
Buy the family home with 2% down
Tell us where you want to buy and what you have saved, and we refer you to one licensed broker partner who checks eligibility and the price cap, counts every income source a lender will accept, and lodges one application. Free for borrowers, no obligation.