A 2% deposit can open the door for single parents.
Check if you qualify for a 2% deposit loan
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A home for you and your family
Saving a deposit on one income is hard.
For single parents and legal guardians, rent, childcare and everyday costs leave little room to build a large deposit.
The single parent stream of the Australian Government 5% Deposit Scheme lets eligible single parents and guardians buy with as little as a 2% deposit and no lenders mortgage insurance.
Here's how it works.
How it works
2% deposit
The minimum is 2% of the lender-assessed property value, with purchase costs additional. You may need to contribute more of your available savings.
Government guarantee
Housing Australia guarantees up to 18% of the property value to the lender. It is not cash or a grant; you remain responsible for the loan.
No LMI
No lenders mortgage insurance is charged on eligible loans.
Not only first homes
Previous home owners can be eligible too, as long as you won't own any other property after settlement.
Single parent stream (2%) — who qualifies
- Single applicant only — joint applications are not accepted
- Single, and the natural or adoptive parent or legal guardian of at least one dependent child
- No spouse or de facto partner — separated but still legally married is not eligible
- Australian citizen or permanent resident, aged 18 or over
- You don't need to be a first home buyer, but you can't own any other property after settlement
- Buying a home to live in, with a deposit of at least 2% but less than 20% of the lender-assessed property value
Why a 2% deposit loan?
- Give your children stability sooner instead of moving rental to rental.
- Keep your savings for purchase costs and a family buffer.
- No LMI added to the loan.
- Repayments planned around a single household budget.
Property price caps (from 1 Oct 2025)
Both the purchase price and lender-assessed value must be at or below the cap. Separate land/build contracts must meet the cap in total. NSW regional centres also include Central Coast, Coffs Harbour–Grafton, Illawarra, Mid North Coast, Richmond–Tweed, Newcastle and Lake Macquarie; VIC includes Geelong; QLD includes Gold Coast and Sunshine Coast. Check the official postcode tool with your lender.
| State / territory | Capital city & regional centres | Rest of state |
|---|---|---|
| NSW | $1,500,000 | $800,000 |
| VIC | $950,000 | $650,000 |
| QLD | $1,000,000 | $700,000 |
| WA | $850,000 | $600,000 |
| SA | $900,000 | $500,000 |
| TAS | $700,000 | $550,000 |
| ACT | $1,000,000 | Whole territory |
| NT | $750,000 | $600,000 |
| Jervis Bay Territory & Norfolk Island | $550,000 | $550,000 |
| Christmas Island & Cocos (Keeling) Islands | $400,000 | $400,000 |
Government scheme vs a standard low-deposit loan
| Government scheme | Standard loan + LMI | |
|---|---|---|
| LMI | Not payable — the government guarantees the lender | Usually payable; paid upfront or added to the loan |
| Eligibility | Fixed rules: owner-occupier, citizenship/PR, price cap, deposit band | No federal rules — mainly the lender's credit policy |
| Typical deposit | From 5% (2% for single parents) | Around 5%–10% |
| How to apply | Only through a participating lender — not the government directly | Any lender that offers high-LVR loans; assessment is often stricter |
- Other government assistance has its own rules; confirm any proposed combination with the participating lender.
- You can still check state stamp duty concessions and the First Home Owner Grant (FHOG).
- Scheme eligibility does not mean the loan will be approved — the lender still assesses your application.
- From 2025-10-01, no income cap and unlimited places; applications go through a participating lender, not directly to government.
- Generally principal-and-interest repayments over up to 30 years, plus up to 3 years for construction. Limited construction interest-only arrangements are permitted.
- Generally move in within 6 months of settlement or the new-build occupancy certificate, and remain an owner-occupier while guaranteed. Ask the lender about exemptions.
- Available savings must be contributed as required. If you have at least a 20% deposit available after purchase costs, the scheme is not available.
- Dependent-child eligibility involves age, living arrangements, care and income tests. For older dependants or disability support pension recipients, refer to the current Single Parents Guide rather than relying on a general age cut-off.
- Older articles mentioning $125k / $200k income caps or 35,000 places describe the rules before the October 2025 reforms.
Let's get you home
Frequently asked questions
Who is eligible for the single parent stream?
- • Single parents or single legal guardians of at least one dependent child.
- • Australian citizens or permanent residents aged 18 or over.
- • You must not retain any other qualifying Australian property interest after settlement and must live in the financed home. Previous owners can qualify; the 10-year ownership exclusion does not apply. An existing joint owner may be able to become the sole owner of the financed home.
Are there income or price limits?
- Since 1 October 2025 there is no income cap and no limit on places. Property price caps still apply by area — see the table below.
Do I need to pay LMI?
- No. The government guarantee replaces LMI on eligible loans.
What is LMI?
- Lenders mortgage insurance protects the lender — not you — if a borrower with less than a 20% deposit defaults. It's normally paid by the borrower and can add thousands to your costs.
Official resources
General information only. Checked 2026-11-02 against the government scheme website, Housing Australia expansion announcement and both Information Guides (1 July 2026). These official publications share an administrator and are not an independent legal opinion. Eligibility and credit approval must be confirmed with the participating lender.
