Home Loan for Single Parents

Author: John Pierre Saliba — 10-year mortgage broker | Bachelor of Business & Commerce | Diploma in Mortgage Broking & Finance | Advanced Diploma in Financial Planning | MFAA Accredited

77 five-star Google reviews | 50+ lender panel | Australian Credit Licence 511092

Being a single parent is one of the toughest jobs in Australia. You are managing a household, raising children, working, and trying to build financial security — all on a single income. And if you want to buy a home, the challenge feels even more daunting. How do you save a deposit while paying rent and covering the costs of raising kids? How do you qualify for a home loan when lenders assess dependents as a drag on borrowing power?

The answer, in 2026, is more achievable than most single parents realise. The Australian Government's Family Home aim to achieve allows eligible single parents to purchase a home with as little as a 2 percent deposit — and no Lenders Mortgage Insurance. On a $650,000 property, that is a deposit of just $13,000 instead of the $130,000 you would need for a standard 20 percent deposit.

Combined with state-level stamp duty exemptions, the First Home Owner Grant, and strategic loan structuring, single parents have more pathways into homeownership than at any point in Australian history.

At Lend & Loan in Barangaroo, we have helped single parents across Sydney achieve what many thought was impossible — moving from renting to owning, often within months of their first conversation with us. This guide explains every option available to you.

Chapter 1: The Family Home aim to achieve — Your Secret Weapon

What It Is

The Family Home aim to achieve is a federal government initiative administered by Housing Australia. It allows eligible single parents or single legal guardians to purchase a home with a deposit as low as 2 percent, with the government guaranteeing up to 18 percent of the property's value to the lender.

This means the lender treats the loan as if it has a 20 percent deposit, eliminating the requirement for Lenders Mortgage Insurance. LMI on a 2 percent deposit loan would typically cost $25,000 to $40,000 or more — so this aim to achieve represents an enormous saving.

Key Differences from the First Home aim to achieve

The Family Home aim to achieve is different from the standard 5% Deposit Scheme (First Home aim to achieve) in several important ways.

You do not need to be a first home buyer. The Family Home aim to achieve is available to previous homeowners who are re-entering the market. If you owned a home with a partner before separation but do not currently own property, you may be eligible. This is a critical distinction that many single parents are not aware of.

The minimum deposit is 2 percent, not 5 percent. On a $600,000 property, the difference between a 2 percent deposit ($12,000) and a 5 percent deposit ($30,000) is $18,000 — potentially a year or more of additional saving.

You must be a single parent or single legal guardian with at least one dependent child. The child must be dependent — meaning under 18 or, in some cases, a full-time student under 25.

Eligibility Criteria

To access the Family Home aim to achieve, you must be an Australian citizen or permanent resident aged 18 or over. You must be a single parent or single legal guardian of at least one dependent child. You must not currently own any interest in residential property in Australia (though you may have previously owned). You must intend to live in the property as your principal place of residence. You must apply through a participating lender with a principal and interest, owner-occupier loan.

There are no income caps on the Family Home aim to achieve as of October 2025. Previously, income limits applied, but these have been removed under the expanded scheme. There are also no limits on the number of places available — there are no waitlists and no annual caps.

Property Price Caps

The property price cap for the Family Home aim to achieve is the same as the First Home aim to achieve. In NSW capital city and regional centres, the cap is $1.5 million. In regional NSW, the cap is $900,000. These caps cover the vast majority of the Sydney apartment market and a significant portion of the house market in middle and outer ring suburbs.

Chapter 2: How Much Can Single Parents Borrow?

The Income and Expense Challenge

Single-income borrowers face a structural challenge in borrowing power calculations. With one income instead of two, the maximum loan amount is naturally lower. Add dependents (which increase the living expense benchmark) and the borrowing power squeeze becomes real.

A single parent earning $85,000 with two dependents will have materially lower borrowing power than a couple earning a combined $170,000 with the same number of dependents, even though the per-person income is identical. This is because the single parent carries the full living expense burden on one income, while the couple shares it across two incomes with economies of scale.

Realistic Borrowing Power Estimates

Here are approximate borrowing power ranges for single parents at different income levels in April 2026, assuming no other debts, standard living expenses, and a 30-year loan term.

At $65,000 income with one dependent: approximately $310,000 to $370,000. At $80,000 income with one dependent: approximately $400,000 to $470,000. At $80,000 income with two dependents: approximately $370,000 to $430,000. At $95,000 income with one dependent: approximately $490,000 to $560,000. At $95,000 income with two dependents: approximately $450,000 to $520,000. At $110,000 income with two dependents: approximately $530,000 to $610,000. At $130,000 income with two dependents: approximately $630,000 to $720,000.

These ranges vary by lender — which is why working with a broker who can compare multiple lenders is essential for single-income borrowers. The difference between the lowest and highest borrowing power across lenders can be $60,000 to $100,000 for the same borrower.

Supplementary Income Sources

Single parents often have income sources beyond their primary salary that can boost borrowing power. Child support payments may be accepted by some lenders as supplementary income, provided they are regular and documented (typically for at least 12 months). Family Tax Benefit payments are accepted by many lenders, usually at 80 to 100 percent of the current amount. Parenting Payment is accepted by some lenders. Part-time work, casual employment, or freelance income may be included if consistent over 12 months or more.

Each lender has different policies on which supplementary income sources they accept and how they shade them. A broker who understands single-parent lending will identify the lenders that treat your specific income mix most favourably.

Chapter 3: Stacking Government Support — Maximising Every Dollar

The Full Stack for Single Parents

Single parents can potentially access multiple government programs simultaneously, dramatically reducing the upfront cost of purchasing a home.

The Family Home aim to achieve eliminates LMI (saving $20,000 to $40,000 or more) and allows a 2 percent deposit. The First Home Owner Grant (NSW) provides $10,000 cash for new homes valued at up to $750,000. The stamp duty exemption (NSW) eliminates stamp duty on homes valued at up to $800,000 (saving up to $31,000). The First Home Super Saver Scheme allows withdrawal of voluntary super contributions for a deposit (up to $50,000 plus deemed earnings).

Worked Example: Single Mother, $78,000 Income, Two Children

Michelle earns $78,000 per year as a nurse. She has two children aged 6 and 9. She receives $14,000 per year in Family Tax Benefit and $8,400 per year in child support (documented for 18 months). She has $18,000 in savings.

Her borrowing power at a lender that accepts FTB at 100 percent and child support at 80 percent is approximately $430,000 (assessable income of $78,000 plus $14,000 FTB plus $6,720 shaded child support = $98,720).

She finds a new two-bedroom apartment in Western Sydney for $520,000. Under the Family Home aim to achieve, her minimum deposit is 2 percent — $10,400. The FHOG provides $10,000 cash (new home under $750,000). Stamp duty is zero (property under $800,000, first home buyer).

Total cash required: $10,400 deposit plus approximately $3,000 in legal and inspection costs minus $10,000 FHOG = approximately $3,400 out of pocket. With $18,000 in savings, she has more than enough — and retains a $14,600 buffer for moving costs and emergencies.

Her loan of $509,600 at 6.30 percent over 30 years has monthly repayments of approximately $3,163. Her after-tax monthly income (including FTB and child support) is approximately $6,800. Repayments represent 46 percent of gross income — tight but manageable, particularly with the child support and FTB providing additional cash flow.

Without government support, Michelle would have needed $104,000 for a 20 percent deposit, approximately $18,000 for stamp duty, and approximately $30,000 for LMI if she proceeded with a low deposit — a total of $152,000 in upfront costs. The government programs reduced this to $3,400. That is the power of stacking.

> Single parent wondering if you can buy? Call Lend & Loan on 02 8046 3933 or book a free consultation. We will check your eligibility for the Family Home aim to achieve and calculate your borrowing power — in one conversation.

Chapter 4: Where Can Single Parents Buy in Sydney?

Affordable Entry Points

With borrowing power typically ranging from $350,000 to $600,000, single parents need to focus on areas that offer good value, strong amenities (schools, childcare, transport), and safety.

Western Sydney offers the strongest value proposition. Suburbs like Mount Druitt, St Marys, Rooty Hill, and Penrith have two to three bedroom apartments in the $400,000 to $550,000 range and older houses from $650,000. These areas benefit from the Western Sydney Airport development, new Metro stations, and significant government infrastructure investment.

South-West Sydney, including Liverpool, Campbelltown, and Macarthur, offers apartments from $380,000 to $500,000 and townhouses from $550,000 to $700,000. These areas have excellent schools, family-friendly amenities, and improving transport links.

The Central Coast (Gosford, Woy Woy, Umina Beach) offers houses from $600,000 to $800,000 and units from $400,000 to $550,000. For single parents who work remotely or have flexible work arrangements, the Central Coast provides significantly more space for the money compared to metropolitan Sydney.

Parramatta and surrounds (Merrylands, Granville, Harris Park) offer two-bedroom apartments in the $450,000 to $600,000 range with excellent transport, shopping, and school access. Parramatta is becoming Sydney's second CBD with growing employment opportunities.

What to Prioritise

As a single parent, your property search priorities should reflect your family's daily life. Proximity to school and childcare reduces travel time and cost — critical when you are managing pickup and dropoff solo. Access to public transport provides independence as children grow older. Safe, family-friendly neighbourhoods with parks and community facilities improve quality of life. Adequate space — at minimum, a bedroom for you and a bedroom for the children — is essential for comfort and wellbeing.

Do not sacrifice these fundamentals for a cheaper property in an inconvenient location. The daily stress of a long commute, limited childcare options, or unsafe surroundings will cost you more in the long run than the slightly higher purchase price of a well-located property.

Chapter 5: Practical Strategies for Single Parents

Building Your Deposit Faster

The Family Home aim to achieve requires only a 2 percent deposit, but more savings give you more options and a stronger financial position. Here are strategies that work for single parents.

Automate your savings by setting up a direct debit from your pay into a separate savings account on payday. Even $200 per week ($10,400 per year) builds a meaningful deposit over 12 to 18 months. Treat it as a non-negotiable bill rather than an optional transfer.

Use the First Home Super Saver Scheme to save within super at a lower tax rate. Salary sacrificing $100 per week into super costs you approximately $70 after tax (versus $100 if you saved in a standard bank account), and the contributions grow tax-efficiently within super. After 12 months, you will have approximately $5,400 in additional savings within super, available for withdrawal as a deposit.

Investigate rent assistance and government payments you may be entitled to but are not claiming. Single parents can access Rent Assistance through Centrelink, which reduces your rental costs and frees up cash for saving.

Maximising Your Borrowing Power

Close all credit cards and BNPL accounts (see our borrowing power guide for the exact dollar impact). Every dollar of credit limit reduces your borrowing power. If you have a $5,000 credit card and a $2,000 Afterpay account, closing both could increase your borrowing power by $20,000 to $35,000.

Pay off any personal loans, car loans, or consumer debts before applying. A $10,000 car loan with $300 monthly repayments reduces your borrowing power by approximately $35,000 to $45,000.

Document all income sources meticulously. If you receive regular child support, keep records of every payment for at least 12 months. If you receive FTB, have your Centrelink income statement ready. The more income you can verify, the higher your borrowing power.

Managing Repayments on a Single Income

Budget conservatively. Your mortgage repayment should ideally be no more than 30 percent of your gross income for comfort, though lenders will approve up to 35 to 40 percent in some cases. Include a buffer for unexpected expenses — car repairs, medical costs, school excursions. That are harder to absorb on a single income.

Build an emergency fund of at least three months of repayments before or shortly after purchasing. This protects you against income disruption, vacancy if you later rent the property, or unexpected costs.

Consider income protection insurance. As a single-income household, your ability to make loan repayments depends entirely on your continued employment. Income protection insurance provides a safety net if illness or injury prevents you from working.

Chapter 6: Common Concerns and Questions

Chapter 7: After You Buy — Setting Yourself Up for Success

The First 12 Months

The first year of homeownership as a single parent is about establishing stability. Set up automatic loan repayments aligned with your pay cycle. Build your emergency fund to three months of repayments. Familiarise yourself with the ongoing costs of homeownership — council rates, water rates, insurance, maintenance — and build these into your regular budget.

If you purchased with a very low deposit (2 to 5 percent), you have minimal equity buffer. Focus on making your repayments consistently and on time. Every on-time repayment builds your credit history and brings you closer to the 20 percent equity threshold where you can refinance to a more competitive rate if needed.

Building Equity Over Time

As you make repayments and your property grows in value, your equity increases. Once your equity reaches 20 percent of the property's current value, you may be able to refinance to a lower interest rate, release the government aim to achieve, and potentially access equity for home improvements.

Property values in well-located areas of Sydney have historically grown at 5 to 7 percent per year over the long term. On a $550,000 purchase, even modest growth of 4 percent per year adds $22,000 in equity in the first year. Combined with principal repayments of approximately $8,000 per year, your equity position improves by roughly $30,000 in year one alone.

Chapter 8: Buying After Separation or Divorce

The Financial Reset

Separation and divorce are among the most common pathways into single-parent homeownership. If you previously co-owned a home with a partner, you may have received a property settlement — either as a lump sum, ongoing payments, or a share of equity from the sale of the family home.

Whatever the outcome, your financial position has fundamentally changed. You are now operating on a single income, potentially with child support and government payments as supplements. Your credit history may include a joint mortgage that has been discharged or transferred. And your savings may be either depleted by legal costs or boosted by a settlement payment.

The first step is a clean financial assessment. What is your current income from all sources? What debts do you carry? What savings or settlement funds do you have available? What is your credit file showing? A broker can review all of this and give you a clear picture of where you stand and what you can achieve.

Using Settlement Funds as a Deposit

If you received a cash settlement from the property division, this can be used as your deposit. Lenders will want to see evidence of where the funds came from — a copy of the consent orders or binding financial agreement, and bank statements showing the receipt of funds.

Settlement funds are treated as genuine savings by most lenders, which is important because some lenders require at least a portion of your deposit to be genuine savings (money you have saved yourself over time). If your deposit consists entirely of settlement funds, check with your broker that the chosen lender accepts this.

Removing Your Name from a Joint Mortgage

If you and your former partner co-owned a home and your partner is keeping the property, you need to be removed from the mortgage. This requires your former partner to refinance the loan into their sole name — which means they must demonstrate the ability to service the loan independently.

Until your name is removed from the joint mortgage, the existing loan is assessed as your liability when you apply for a new home loan. This can significantly reduce your borrowing power. If your former partner is slow to refinance, this can create a frustrating delay in your ability to purchase your own home.

Push for clear timelines in your property settlement. Include specific deadlines for the refinancing of the joint loan so you are not left in financial limbo indefinitely.

Child Support and Property Settlement Interactions

Child support payments can boost your borrowing power, but lenders want to see consistency and documentation. If child support was agreed as part of a formal settlement (consent orders or a Child Support Agency assessment), this provides stronger evidence than informal arrangements.

If your former partner has been inconsistent with child support payments, some lenders may discount or exclude this income from their assessment. Maintaining a record of all payments received — amounts, dates, and method — strengthens your application.

Chapter 9: Additional Worked Examples

Example 2: Single Father, $95,000 Income, One Child

David is a 38-year-old single father earning $95,000 as a project manager. He has one child aged 11. He receives no child support but does receive Family Tax Benefit of $4,200 per year. He has $35,000 in savings and a $12,000 HECS debt.

At a lender that accepts FTB income, his assessable income is $99,200. After deducting tax, HEM for one adult with one dependent, and the HECS repayment, his borrowing power is approximately $510,000.

After paying off the $12,000 HECS (using $12,000 of his savings), his borrowing power increases to approximately $545,000. His remaining savings of $23,000 provide a 2 percent deposit of $10,900 on a $545,000 property under the Family Home aim to achieve, plus approximately $12,100 for legal costs and a financial buffer.

David could purchase a two-bedroom apartment in Parramatta or a three-bedroom townhouse in Western Sydney and be well within his financial comfort zone.

Example 3: Single Mother Re-Entering the Market After Divorce

Sarah is 43 years old with two children aged 8 and 12. She was previously a co-owner of a family home that was sold during her divorce. She received $180,000 in settlement funds. She earns $72,000 as a teacher, receives $18,000 per year in child support (documented for two years), and $9,500 in Family Tax Benefit.

At a lender that accepts both child support at 80 percent and FTB at 100 percent, her assessable income is approximately $95,900. Her borrowing power is approximately $480,000.

With $180,000 in settlement funds available as a deposit, Sarah has options that most single parents do not. She could purchase a $660,000 property with a $180,000 deposit (27 percent LVR) — well above the 20 percent threshold, avoiding LMI entirely and securing the best possible interest rate. She would not need the Family Home aim to achieve because her deposit already exceeds 20 percent.

Her loan of $480,000 at 6.15 percent over 30 years has monthly repayments of approximately $2,918. With after-tax monthly income of approximately $6,400 (including child support and FTB), repayments represent 46 percent of gross income — manageable, particularly given no other debts and a strong financial buffer from the remaining settlement funds.

Example 4: Single Parent with Modest Income

Jenny earns $58,000 working part-time as an administrative assistant while her two children (aged 4 and 7) are young. She receives $22,000 in Family Tax Benefit and $12,000 in child support. Her total annual income from all sources is $92,000, but her assessable income for lending purposes (after shading) is approximately $83,600.

Her borrowing power is approximately $360,000 to $400,000 depending on the lender. This limits her options in metropolitan Sydney but opens up possibilities in the outer suburbs (apartments in Campbelltown, Mount Druitt, or Blacktown from $380,000 to $450,000) or on the Central Coast (units from $400,000 to $500,000).

Under the Family Home aim to achieve, Jenny needs just $7,200 to $8,000 for a 2 percent deposit. Combined with the FHOG ($10,000 if buying new) and stamp duty exemption (if under $800,000), her out-of-pocket costs could be as low as zero after the grant offsets her deposit requirement.

This scenario illustrates that even single parents on modest incomes can achieve homeownership with the right support and structure.

Chapter 10: Which Lenders Are Best for Single Parents?

What to Look For

The suitable lender for a single parent is not necessarily the one with the lowest headline rate. The suitable lender is the one that maximises your borrowing power by accepting all your income sources at the most favourable shading rates, participates in the Family Home aim to achieve, and offers loan features that suit single-income households (like flexible repayment options and hardship provisions).

Some lenders are significantly more favourable than others for single-parent applications. The key variables include how they treat child support income (some accept at 100 percent, others shade to 80 percent, and some do not accept it at all), how they treat Family Tax Benefit (similar variation), how they assess living expenses for single-parent households, and whether they participate in the Family Home aim to achieve through Housing Australia.

Major Banks vs Smaller Lenders

Major banks like CommBank and NAB participate in the Family Home aim to achieve and offer competitive rates. However, their income assessment for single parents can be conservative — particularly around child support and supplementary income sources.

Some smaller banks, credit unions, and non-bank lenders have more flexible policies on supplementary income and may offer higher borrowing power for the same borrower profile. The trade-off is that they may not participate in the Family Home aim to achieve, meaning you would need a 5 percent deposit and may need to pay LMI.

A broker compares all options and identifies the lender that delivers the best outcome across rate, borrowing power, and government scheme access.

Chapter 11: The Stability Factor — What Homeownership Means for Your Family

More Than Just Bricks and Mortar

For single-parent families, homeownership provides something that extends far beyond financial returns. It provides stability — the knowledge that you and your children have a permanent home that cannot be taken away by a landlord's decision to sell, renovate, or increase rent beyond your means.

Australian renters face an increasingly challenging market. National vacancy rates are at historic lows, rents have increased by 30 to 40 percent in many areas since 2020, and lease renewals come with the constant anxiety of whether the landlord will raise the rent or choose not to renew. For single parents, this instability is amplified — a forced move means changing schools, disrupting routines, and adding stress to an already demanding situation.

Owning your home eliminates this uncertainty. Your mortgage repayment is predictable (on a fixed rate) or at least manageable (on a variable rate within known parameters). You can enrol your children in a school near your home with confidence that they will not need to change. You can invest in the property — painting a bedroom, planting a garden, hanging pictures — knowing that these improvements benefit your family, not a landlord.

Research consistently shows that children who grow up in stable housing environments perform better academically, have stronger social connections, and experience fewer behavioural issues than those who experience frequent moves. For single parents, providing this stability is one of the most impactful things you can do for your children's wellbeing.

Future Financial Planning

Once your home is established and your finances are stable, homeownership becomes a platform for future wealth building. As your equity grows, options emerge — refinancing to a lower rate, accessing equity for home improvements, or eventually purchasing an investment property to build retirement wealth.

Many single parents have lower superannuation balances due to career breaks during child-rearing years. Property equity can partially compensate for this gap, providing a financial safety net in later life. A home that is fully paid off by retirement means your housing costs drop to rates, insurance, and maintenance — a fraction of what you would pay in rent.

Consider reviewing your superannuation contributions as your children grow older and your earning capacity stabilises. Even modest additional contributions during your working years can make a meaningful difference to your retirement position.

You Are Not Alone

Approximately 1 million Australian families are headed by a single parent. Many of them own their homes. The path is not always easy, and it often requires creativity, discipline, and professional support — but it is well-travelled and entirely achievable.

At Lend & Loan, we see single parents achieve homeownership every month. Each one starts with the same question you are asking right now — can I really do this? The answer, almost always, is yes.

Getting Started with Lend & Loan

If you are a single parent considering homeownership, we are here to help. At Lend & Loan, we understand the unique financial circumstances of single-parent families, and we have the expertise to navigate the Family Home aim to achieve, state-level grants and concessions, and the lending landscape to find the best solution for your situation.

Our free consultation is completely confidential and no-obligation. We will assess your income (including supplementary sources), calculate your borrowing power across multiple lenders, confirm your eligibility for government programs, and give you a clear, honest picture of what you can achieve.

Call us on 02 8046 3933 or visit lendloan.com.au/contact. Owning your own home as a single parent is not a dream, it is a plan. Let us help you make it happen. Every journey starts with a single conversation, and that conversation is free, confidential, and completely without obligation. We are open seven days a week because we know single parents do not always have the luxury of calling during business hours.

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