Government help for single parents to buy a home with a 2% deposit

Single parents can now get assistance to buy the family home

Australia has more single-parent households than ever before. And at the same time, home ownership rates for single parents have decreased.

The Australian Government’s Home Guarantee Scheme (replacing the First Home Loan Deposit Scheme) is designed to address this challenge, expanding to include multiple groups including single parents.

Have a 2% deposit? The Government will guarantee the rest

If you’re a single parent looking to buy a family home, see if you’re eligible for the First Home Guarantee.

Book an appointment

Why single parents in Penrith need help to get (back) into the housing market

In 2007-08, 42% of single-parent households were renting. Ten years later, that figure had increased to 47%[1].

Why? Since the 1970’s we’ve seen a growth in single parent households. The associated economic constraints that come with a single income has been a significant factor in the decline of home ownership rates for single parents[2], and this is reflected most clearly in Penrith.

Comparing the families with children in Penrith in 2021 to Greater Sydney, the Penrith City Council community profile highlights that Penrith has:

  • A larger proportion of single parent households with children under 15 (4% compared to 3.4%), and
  • A larger proportion of single parent households with older children (15+): 8% compared to 5.9%.

The increase in Penrith’s single parent households between 2016 and 2021

Why single parents are most vulnerable – and how to get help securing a mortgage

Many single parents have transitioned from home ownership to rental, with increasing house prices and the corresponding deposit required presenting a major barrier to re-entering the market.

This is compounded for women who, as Penrith’s numbers indicate, are more likely to have responsibility for dependants. Research also shows that the national wage gap (currently 14.1%) makes it even more difficult for women to save for a house deposit compared to men[3].

Reversing the decline in home ownership for single parents, particularly in Penrith

Nationally, it’s hoped some of these barriers will be reduced with the introduction of the Family Home Guarantee.

Designed to help single parents with dependants (who are predominantly women) to buy a family home, the Scheme:

  • Recognises the stress that can result from moving from a dual to single income, and
  • Acknowledges the immediate and long-term negative effects of insecure housing on both adults and children.

What’s the Family Home Guarantee all about?

The Family Home Guarantee:

  • Is administered by the National Housing Finance and Investment Corporation on behalf of the Australian Government
  • Supports single parents with at least one dependent child to enter (or re-enter) the housing market sooner, and
  • Can be used to purchase an existing home or building a new home.

There are 5,000 Family Home Guarantee
places each financial year until 30 June 2025.

How does the Family Home Guarantee Scheme work?

The National Housing Finance and Investment Corporation guarantees up to 18% of the property value. This enables eligible single parents to purchase a home:

  • With as little as a 2% deposit, and
  • Without the required Lenders’ Mortgage Insurance.

Loans must be provided by a participating lender (to find out which lenders are involved, talk to us).

Until 30 June 2025, 5,000 places a financial year have been allocated to support eligible single parents with at least one child to re-enter the market.

Want to know your borrowing power?

Use our Property Buying calculator to find out your borrowing capacity.

Am I an eligible single parent for the Family Home Guarantee Scheme?

A high-level look at the eligibility criteria for the Family Home Guarantee includes:

How to buy your home with a 2% deposit – the Fact Sheet and Information Guide for single parents

Single parent in Penrith? We’ll help you apply

There are just three simple steps.

1. Make sure you’re eligible

Check your eligibility (the ticks and crosses above).

Got questions? Give us a call, we’re happy to talk you through it.

2. Apply for conditional approval

Book an appointment with Penrith’s best team of mortgage brokers (and no, we’re definitely not biased!).

We’ll help you apply and, following conditional approval, will reserve your place in the Scheme.

3. Build or buy your family home

Your family’s future starts today – build the life you want in the home you’ll love.

Whether you choose to buy an existing property or build a new home, the future is yours.

If you’re ready to get started, we’re ready to help

With numbers capped at 5,000 per financial year, give us a call.

Taking with Educated finance is obligation and pressure-free – it’s just an opportunity for you to:

  • Identify the support you’re eligible for as a single parent
  • Confirm your eligibility against the criteria
  • See the various rates, features and fees of the approved lenders (we’ll analyse and identify the best option for your needs)
  • Get help working out your repayment capacity, and
  • Get help from our mortgage brokers with a plan to move forward.

Single parenting is a tough gig, which is why we’re genuinely committed to helping you make the most of every opportunity to get into – or back into – the property market.

Don’t go it alone. For support from beginning to end, talk to an Educated Finance broker today.


    [2] Yates J (2015) Trends in home ownership: causes, consequences and solutions, Home Ownership Submission 3, University of Sydney, Sydney.

  [3] Closing the gender property gap: why do fewer women than men own homes? Corelogic Women and Property, Research News, Thought Leadership 08 Mar 2021

  Disclaimer: This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.