Buying a home as a single parent means one income, childcare costs and often a fresh start after separation. Saving a 20% deposit in that situation can feel impossible. The Family Home Guarantee was designed for exactly this.
What it is
The Family Home Guarantee is part of the Australian Government 5% Deposit Scheme. It lets eligible single parents and single legal guardians buy a home with as little as 2% deposit and no Lenders Mortgage Insurance.
Housing Australia guarantees up to 18% of the property's value to your lender, covering the gap between your 2% and the usual 20%.
Who's eligible
You'll generally need to:
- Be a single parent or single legal guardian of at least one dependent child
- Be an Australian citizen or permanent resident, aged 18 or older
- Buy a home you'll live in
Importantly, you don't need to be a first home buyer. Many separated parents previously owned a home with a former partner. As long as you don't currently own property (in some cases you can, if you're selling as part of a separation), you may qualify.
Income caps and place limits applied under the old rules. Check the current conditions on firsthomebuyers.gov.au, as settings have been changing.
Price caps
The Family Home Guarantee uses the same property price caps as the 5% Deposit Scheme, for example $1,500,000 in Sydney and NSW regional centres and $800,000 elsewhere in NSW.
An example
Leah is a single mum with two kids, earning $105,000 as a project coordinator. She's renting in Shellharbour and wants to buy a $720,000 house nearby.
- 2% deposit: $14,400
- Loan: $705,600
- LMI: $0
- NSW stamp duty: $0 if she's a first home buyer, otherwise she pays standard duty
At an example rate of 6.49% over 30 years, her repayment would be about $4,455 a month. Whether a lender approves that depends on her income, child support received, childcare costs and other expenses.
How lenders assess single parents
A few things matter a lot:
Child support and family tax benefits. Many lenders count these as income, sometimes only if the youngest child is under a certain age. Lender policies differ widely.
Childcare costs. These are counted as expenses and can be significant.
Separation status. If you're still finalising a property settlement, lenders usually want to see the signed financial agreement or court orders.
Stability. Lenders like to see regular income and that you can cover expenses without relying on credit.
A broker who knows which lenders are more flexible on these points can make a big difference.
Things to consider before you buy
Higher repayments. With a 2% deposit, you're borrowing 98%. Make sure the repayment leaves room for life's surprises.
Building a buffer. Even a few thousand dollars in an offset account helps when the car breaks down or school costs hit.
Insurance. As the sole earner, consider income protection and life insurance so the kids are protected if something happens to you.
Keep living there. The guarantee requires the home to be your main residence.
Frequently asked questions
Can I use the Family Home Guarantee if I've owned a home before?
Yes. Unlike most first home buyer schemes, previous ownership doesn't automatically rule you out.
Does child support count as income?
Often yes, especially if it's paid under a court order or child support assessment. Policies differ between lenders.
Can I combine it with stamp duty concessions?
If you're also a first home buyer, you may be eligible for state concessions. If you've owned before, standard duty usually applies.
If you're a single parent ready to buy, call Finfident on 0424 545 654. We'll find lenders that count your income fairly and check your eligibility for the Family Home Guarantee.
This article is general information only and doesn't take into account your objectives, financial situation or needs. Figures, rates and scheme rules are current as at October 2026 and can change. Finfident Finance Brokers (ABN 94 679 280 801) is Credit Representative 569374 of Outsource Financial Pty Ltd (ACN 131 090 705), Australian Credit Licence 384324.