When lenders assess home loan applications they'll look at the applicants' financial situation. As a single parent applicant, you'd need to prove you can repay your loan on a single income, on top of the costs of having dependents. With only one income it can also be harder to save for the deposit needed, even though you'd be able to meet the loan repayments comfortably.
Single parents may also be receiving Centrelink payments, such as the Parenting Payment. While some Centrelink payments are viewed by lenders as secondary sources of income, child support payments are generally considered primary income.
As a single parent, you may be eligible to receive the Parenting Payment from Centrelink. Most lenders will accept these as part of your income. In addition to this, you may be eligible for the Child Care Subsidy, which is also an acceptable form of income.
The federal government also offers the Family Tax Benefit, depending on your income. Once again, most lenders will accept this as a form of income, depending on the age of your children.
If you're receiving child support payments from a former partner, these are also taken into account when assessing your income.
For a full list of the Centrelink benefits lenders accept as income, read our guide.
The Australian Government 5% Deposit Scheme (formerly the Home Guarantee Scheme, with the single parent pathway also known as the Family Home Guarantee) is a federal government scheme which allows single parents and single legal guardians of dependent children to qualify for home loans with 2% deposits.
You need to borrow the remaining 98%, but you can avoid the extra cost of lenders mortgage insurance. This can save you thousands and help you buy a home sooner. It does mean borrowing quite a large amount of money, with minimal equity. So it might not be a good option, depending on your circumstances.
Since 1 October 2025, the scheme has had no income caps, no limit on places and no waitlist. Property price caps still apply, so check the cap for the area you want to buy in.
Not every lender is participating in the 5% Deposit Scheme. See our full guide for the lenders that are participating and more in-depth information. You will need to contact a participating lender to discuss their eligibility criteria. You can then apply directly through that lender or through a mortgage broker.
"When you've established your eligibility for a home loan and saved your deposit, it's important you find the right loan for your needs.
Finding a loan with a low interest rate and no or low fees will really help you keep those mortgage costs down. You might also pick a loan with more flexibility and features to help you save money - and hopefully pay the loan down early!"
Trying to put together a deposit for a home while raising a child on a single income can be difficult, especially as the costs of both are increasing. Take note of the following if you're looking for ways to save for a home and you're the provider for a dependent child.
How to calculate your borrowing power
Mortgage brokers specialise in helping borrowers in difficult or unique circumstances, including borrowers with Centrelink payments. They can help you find lenders who accept government assistance as a source of income, and will help you work out how much you'll realistically be able to borrow to avoid being rejected for a loan. Mortgage brokers get a commission from the lender, meaning you don't have to pay for their help.
How a self managed super fund can help, plus options for first-time buyers explained.
Find out how much deposit you need to qualify for a home loan in Australia.
The larger your deposit, the better your chances of getting your home loan approved.
Deposit bonds benefit purchasers who do not have readily available access to a cash deposit or would prefer not to use their own cash.
Getting a home loan deposit from family as a gift? Cash gifts can help you get on the property ladder, but you need some genuine savings, too.
Does a single parent qualify for a first home buyers grant?
Hi Lisa!
Thanks for the comment.
Being a single parent doesn’t disqualify you from applying for First Home Owners Grant. Take note that the eligibility may vary from state to state and some basic requirements are needed to be met.
You can check those details on our state-by-state guide to the First Home Owners Grant.
Hope this helps.
Cheers,
Jonathan
i am a single parent of a 2 1/2 yr old. I really want to buy my own first home of up to $100,000. its looking really good but i heard that you lose all of your rental assistance and family tax a altogether. i ring centrelink who dont pick up the phone – i leave messages and they dont answer so i just really want to know? does anyone know? thanks
Hi Jess,
Thanks for your question.
In regards to Rent assistance, you will not be eligible to receive this benefit if you own or are buying the home you live in, except relocatable homes. Other eligibility criteria apply.
For Family Tax Benefit, I’ve checked the Department of Human Services website and can’t seem to find a stipulation about the connection of this benefit to purchasing a home. You may have to directly call the Department of Human Services on 136 150 to enquire.
Cheers,
Anndy
thank you so much for that! ive just heard as well that after my child turns 8 i go onto newstart. im really concerned about meeting mortgage payments along with living expenses which i worked out to be about $490 pf.based on thats including mortgage payments of 192-223 pf.id like to know how much of newstart payments you receive when you child turns 8.if you know that it would be fantastic! thanks
Hi Jess,
Thanks for getting back.
Yes, one of the benefits that the Department of Human Services offers to single parents is the Newstart Allowance for single parents whose youngest child is 8 years old or over, subject to eligibility criteria. You can generally earn up to $104 every 2 weeks before the agency start reducing your Newstart payment. You may have to contact Centrelink on 132 850 to learn more about Newstart Allowance.
Cheers,
Anndy
After reading bits & pieces on the net I’m a bit confused.Something that i thought could be simple is turning out to be more complicated
than I thought
My question if anyone knows
My parents own their property but are not financial, I was wondering if I can pay for an extension onto their house for myself to live- would I be able to get a home loan through their equity to do so, as a personal loan would be to costly and not much better than paying outside rent?
We are based in Victoria, I think that effects the granny flat options and I was wondering what effect this would have if any on their pension
Hi there,
Thanks for reaching out.
Your ability to borrow using your parent’s equity depends on whether or not your parents will co guarantor you on the loan and/or whether it will be a joint application.
It’s advised that you speak to a licensed mortgage broker as they will help you understand your borrowing options and they can review your financial situation to find a home loan that’s right for you. A broker can also assist you with the paperwork and negotiate for better terms on your behalf.
All the best,
Belinda