Last updated: July 2026 · Reviewed by John Pierre Saliba, Director and Mortgage Broker, MFAA Accredited
Home Loans for Single Parents, 2026 Guide
Single parents face a unique combination of challenges in home lending, a single income, potential child-related expenses, and often a smaller deposit than two-income couples. The 2026 landscape includes several government schemes specifically designed to bridge this gap, and a number of lenders with policies that genuinely favour single parent applications.
Single parents are consistently some of the most motivated and prepared clients I work with. They've done their research, they know what they want, and they're determined to provide stability for their children. My job is to make sure the finance matches that determination, by finding the lender whose policies best suit their income mix, and by accessing every scheme and strategy available to maximise their position.
Government Schemes for Single Parents (2026)
Family Home Guarantee
The most powerful scheme available to single parents. Key features: 2% minimum deposit, no LMI, government guarantees the remaining 18%. Income cap $125,000. Available to single parents or legal guardians with at least one dependent. Property must be owner-occupier. Price caps apply by state ($900K in NSW).
First Home Guarantee
If you've never owned property: 5% deposit, no LMI. Income cap $125,000 for singles. Slightly more restrictive than FHG but with more places available annually. Can be combined with First Home Owner Grant.
First Home Owner Grant (NSW)
$10,000 grant for eligible first home buyers purchasing or building a new home. Can be used toward deposit. Income-tested in some states.
Income Sources That Count
- Employment income: Full-time, part-time, casual (with tenure), self-employed
- Child support: 80–100% included with CSA documentation and 3–6 months of payment history
- Family Tax Benefit A and B: Included by most lenders, check remaining eligibility
- Spousal maintenance: Included with court order or formal agreement
- Centrelink (select payments): Some accepted, lender-specific
Worked Example: Single Parent, Family Home Guarantee
- Employment income (full-time): $92,000
- Child support (1 child): $10,800/year
- FTB A: $5,400/year
- Total assessed income: $108,200
- Deposit (2% FHG): $15,000
- Purchase price: $750,000 | LMI saving: ~$21,000
- Loan amount: $735,000 | Monthly repayment: ~$4,643
Tips for Single Parent Applications
- Apply for the Family Home Guarantee early, places are limited per financial year
- Formalise child support through CSA if it's currently an informal arrangement
- Build 3 months of clean bank statements showing consistent income and savings behaviour
- Reduce credit card limits and pay down personal loans before applying
- Consider a family guarantee from a parent, eliminates LMI and can increase borrowing capacity
