Last updated: July 2026 · Reviewed by John Pierre Saliba, Director and Mortgage Broker, MFAA Accredited
Home Loans for Single Mothers in Australia, 2026
Getting a home loan as a single mother in Australia is genuinely achievable, particularly with government schemes that significantly reduce the deposit required. The Family Home Guarantee scheme allows single parents to buy with as little as 2% deposit and no LMI. Combined with child support income, FTB and employment income, many single mums are in a stronger borrowing position than they realise.
The Family Home Guarantee is one of the best government lending schemes in Australia for single parents, and it's genuinely underutilised. A single mother with $125,000 income or less, one dependent child and $17,000 in savings can potentially buy a $850,000 home with no LMI. Many eligible applicants don't realise they qualify until we run the numbers with them.
The Family Home Guarantee, Key Details (2026)
- Who qualifies: Single parents or single legal guardians with at least one dependent child
- Deposit required: Minimum 2% genuine savings
- LMI: None, government guarantees up to 18% of the property value
- Income cap: $125,000 taxable income (single applicant)
- Property price cap (NSW): $900,000 (existing); varies for new builds
- Property type: Must be owner-occupier, principal place of residence
- Availability: Limited places per financial year, apply early
How Child Support and FTB Boost Borrowing Capacity
Many lenders include child support (80–100%) and Family Tax Benefit as assessable income. This can add $15,000–$30,000+ to your annual assessed income, significantly increasing what you can borrow. The key is documentation: CSA assessment notices, 3–6 months of bank statements showing consistent receipt, and FTB payment statements.
Worked Example: Single Mum Using Family Home Guarantee
- Employment income: $78,000 p.a.
- Child support (2 kids, CSA): $15,600/year
- FTB A: $7,200/year
- Total assessed income: $100,800
- Savings (2% of purchase price): $17,000
- Purchase price: $850,000
- Government guarantee covers: 18% = $153,000 (no LMI)
- Loan amount: $833,000
- LMI saving vs without guarantee: ~$28,000
- Monthly repayment (6.49%, 30yr P&I): ~$5,260
Deposit Strategies for Single Mums
- Family Home Guarantee: Only 2% deposit needed, the fastest path to ownership for eligible applicants
- Family guarantee (guarantor): A parent providing a property guarantee can eliminate LMI and boost borrowing capacity
- First Home Owner Grant: $10,000 for new builds in NSW, can supplement your deposit
- Settlement proceeds: Share of family home from separation counts as genuine savings after 3 months
- Government rent-to-buy schemes: State-based options worth exploring if deposit accumulation is the primary challenge
What Lenders Look For
- Stable employment history, full-time, part-time with tenure, or self-employed with 2 years of records
- Clean credit file, no recent defaults or dishonours
- Documented child support receipt, CSA assessment plus bank statement evidence
- Genuine savings history, 3 months minimum, longer is better
- Manageable liabilities, credit cards, personal loans minimised
