Preparing financially
Preparing financially as a single parent
Three separate tests — scheme eligibility, lender approval and household resilience — the Single Parent Stream, why Help to Buy isn't the same kind of scheme, and cash beyond the deposit.
- A lower deposit minimum solves one problem — scheme eligibility, lender approval and household resilience are three separate tests, not one.
- The 5% Deposit Scheme's Single Parent Stream (2% deposit) and Help to Buy (also 2%, but shared equity) solve different problems — don't treat them as interchangeable.
- The 2% deposit is separate from buying costs and a post-settlement reserve — check the real total cash required.
- How a lender treats child support and government payments is lender-specific — ask directly rather than assuming.
- Build your budget from actual household expenses, including childcare and irregular costs, not just a lender's maximum approval.
Three separate tests, not one
A lower deposit minimum solves one problem — it doesn't solve the other two. Worth checking separately: scheme eligibility (do you actually qualify for the scheme's specific rules), lender approval (will a lender actually approve the loan on your income), and household affordability and resilience (can your household actually sustain the repayment day to day). A 2% deposit doesn't answer the second or third question at all.
The 5% Deposit Scheme's Single Parent Stream
Eligible single parents and legal guardians of at least one dependent child can access a 2% deposit minimum (Housing Australia / Australian Government, verified 29 Jul 2026) (compared with 5% for other eligible first-home buyers) — you may have owned property before, but generally can't hold another property interest at settlement. The property still needs to sit under the applicable location price cap, and a participating lender still needs to approve the loan itself; the scheme removes the usual LMI requirement, it doesn't reduce what you're borrowing or guarantee approval. See the 5% Deposit Scheme guide for the full eligibility rules.
Help to Buy is a different kind of option
Help to Buy also has a 2% deposit minimum for eligible applicants, but it isn't simply another low-deposit guarantee — it's a shared-equity scheme, where the Government takes a proportional stake in the property in exchange for its contribution, with its own income limits and property rules. See the Help to Buy guide before assuming it works the same way as the 5% Deposit Scheme.
The 2% deposit isn't all the cash you need
The minimum scheme deposit is separate from conveyancing, inspections, settlement adjustments, government charges, moving costs, and a reserve for after settlement — see complete buying costs and deposit, LVR and LMI for the fuller breakdown, since a 2% deposit still leaves a meaningful amount to fund separately.
How lenders treat child support and government payments
Whether and how a lender counts child support, Family Tax Benefit or other government payments toward your income is lender-specific — don't assume every lender accepts, rejects, or discounts these sources the same way. Ask directly what evidence, payment history and remaining payment term the lender needs before you rely on that income in your budgeting.
A single-income resilience check
Applying on a single income means the lender's serviceability assessment (see safe budget vs. borrowing capacity) is based on that one income against the full loan, with no second income to fall back on. Build your own budget from actual household expenses, not just a lender's maximum — childcare, medical costs, schooling, transport and irregular child-related costs all belong in it, along with what happens if employment or a support payment is interrupted. APRA's 3-percentage-point lender buffer is a system-wide lending safeguard, not a substitute for your own personal emergency margin.
Practical checklist
Before relying on a single-parent deposit minimum
- Check your eligibility for the 5% Deposit Scheme's Single Parent Stream in full
- Check whether Help to Buy's shared-equity structure actually suits your situation
- Ask your lender exactly how they treat child support and government payments
- Budget the real cash required beyond the deposit — buying costs and a reserve
- Build a household budget from actual expenses, not just the lender's maximum
Questions for a professional
- Based on my single income, what would you realistically approve?
- How would you assess my child support or government payments as income?
- Am I eligible for the Single Parent Stream under the 5% Deposit Scheme?
Official resources
Sources and methodology
- Australian Government 5% Deposit Scheme — Housing Australia / Australian Government (retrieved 29 Jul 2026)
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.