Single parent home loans

If you're a single parent keen to buy a home, there may be some lenders who will accept your Centrelink payments as part of your income.

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If you're a single parent looking to buy a home, you have more options than you probably realise. Some lenders accept Centrelink payments when assessing your income on a loan application (we've listed some options below). And there's also a new government scheme that lets eligible single parents buy properties with 2% deposits.

  • Looking for the government's new policy for 2% deposit loans for single parents? Read our guide on the Family Home Guarantee.

Compare home loan options for single parents

Name Product Interest Rate (p.a.) Comp. Rate (p.a.) Fees Monthly Payment Smart Booster Discount Investor Variable Home Loan P&IInvestment≥ 20% Deposit Smart Booster Discount Investor Variable Home Loan
  • App: $0
  • Ongoing: $0 p.a.
If you have an owner occupier loan with you can also get this very low rate variable mortgage for your investment property. Principal and interest repayments. Add an offset sub-account for an additional 0.10% on your interest rate. Get your loan processed fast and settle within 30 days. Smart Booster Discount Variable Home Loan P&IHome≥ 20% Deposit Smart Booster Discount Variable Home Loan
  • App: $0
  • Ongoing: $0 p.a.
Home buyers can get a very low discounted variable rate for the first year. Requires a 20% deposit. Add an offset sub-account for an additional 0.10% on your interest rate. Get your loan processed fast and settle within 30 days. Smart Booster Discount Variable Home Loan P&IHome≥ 20% Deposit Smart Booster Discount Variable Home Loan
  • App: $0
  • Ongoing: $0 p.a.
Get a low discounted variable rate loan. Requires a 20% deposit. Get your loan processed fast and settle within 30 days.

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As a single parent, you may be eligible to receive the Parenting Payment from Centrelink, and most lenders will accept it as part of your income. In addition to this, you may be eligible for the Childcare Benefit, 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 accou[/fin_hide]nt when assessing your income.

For a full list of the Centrelink benefits lenders accept as income, read our guide.

The Family Home Guarantee

This federal government scheme allows single parents with incomes below $125,000 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.

There is also a limit of 2,500 places a year for the scheme.

Tips for saving a deposit on a single income

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.

  • Government assistance. Single income parents may be eligible for the federal government’s Family Tax Benefit A & B, Parenting Payment and the Child Care Benefit. Government assistance can help cover the incidental day-to-day expenses and larger expenses like rent and child care, which can give you a little more room in the budget to save.
  • How much do you earn? When it comes time to apply for your home loan, you will want to know how much you can borrow. A higher income means you can borrow more, and pre-approval will give you a ballpark figure. Once you’ve done a comparison of home loans, speak to the lender directly to find out whether parenting-related payments can be included on your home loan application.
  • Budgeting. A budget is essential to any financial plan. List all the money you get, your income, and look at ways to cut down on the money going out.
  • Get a savings account. High-interest savings accounts are great if you’re saving for a goal, such as a mortgage deposit. Not only do the accounts let you earn interest, they also come with features to help you save. Automatic savings plans are a great way to save for a goal.
  • Get the right home loan. Spend some time comparing home loans and find the loan that’s the right fit for you. The right loan charges less in fees and gives you the flexibility to change the features as your situation changes in the future. A comparison of fees versus features now will save you time and money later.

Find out how much you can borrow

Get free, personalised help from a mortgage broker

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.

You can compare brokers in the table below. Simply click Enquire now and fill in your details to lodge an obligation-free enquiry.

Compare more brokers in the table below

Name Product Upfront consultation fee Variable rates from Comparison rates from Lenders on panel Apply Now
Finsure has a large panel of lenders and offers flexible mortgage solutions for borrowers.
Mortgage Choice
Mortgage Choice's extensive broker network can help you find the right home loan.

Compare up to 4 providers

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10 Responses

    Default Gravatar
    SueJune 26, 2017

    I would like to buy a home. I am 48 years old, a perm p/t Qld gov employee (64 to 72 hrs / fn). I am a single parent of 2 children 13 & 16.
    I am the sole provider. My average net income is $2100/ fortnight. Family tax $180/ ft. I do not have savings but do have a good credit history. I have currently have a personal loan owing $10,000. Could you tell me what options I have. If you think I would be eligible for a home loan who/ where to from here. Thanking you for your time.

      Default Gravatar
      JonathanJune 27, 2017

      Hi Sue!

      We know you’re doing your best to get qualified! :)

      You can shoot an enquiry to your desired lenders of the choices below. They will have a broker to talk with you about the requirements.

      All the best!

      Hope this helps.


    Default Gravatar
    LisaJune 1, 2017

    Does a single parent qualify for a first home buyers grant?

      Default Gravatar
      jonathan.chan@findercrew.comJune 1, 2017

      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.


    Default Gravatar
    JessApril 21, 2017

    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

      Avatarfinder Customer Care
      DeeMay 7, 2017Staff

      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.


      Default Gravatar
      JessMay 7, 2017

      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 like to know how much of newstart payments you receive when you child turns 8.if you know that it would be fantastic! thanks

      Avatarfinder Customer Care
      DeeMay 8, 2017Staff

      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.


    Default Gravatar
    bitconfusedMarch 11, 2016

    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

      Default Gravatar
      BelindaMarch 14, 2016

      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,

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