I’m a single mum. Can I buy a home with a 2% deposit?

You’re a single mum.

You’re earning a pretty good income, paying rent, raising your child and trying to save whatever is left at the end of the month.

Maybe you’ve managed to put away $20,000 or $30,000.

But when you look at Australian property prices and think about saving a traditional deposit on your own, buying a home still feels unachievable.

Here’s something you may not know.

If you’re an eligible single parent, you may be able to buy your first home with a deposit as small as 2%.

Not 20%.

2%.

It’s available through the single-parent stream of the Australian Government 5% Deposit Scheme, and it could make a very big difference to how long you need to save before buying.

But... and this is important... having a 2% deposit doesn’t automatically mean you can borrow the other 98%.

Let me explain.

How does the 2% deposit work for single parents?

Under the Australian Government 5% Deposit Scheme, eligible single parents and single legal guardians can purchase a home with a minimum deposit of 2% of the property value.

The Australian Government provides a guarantee to the participating lender, which means eligible buyers can avoid paying Lenders Mortgage Insurance (LMI), despite borrowing more than 80% of the property's value. First Home Buyers And importantly, this isn't shared equity.

You still own your home.

The government isn't buying 20% of your house and it doesn't share in your future capital growth. That's different from the Australian Government's Help to Buy scheme, which is a shared-equity program.

If you've heard about both schemes and thought they were the same thing, you're definitely not alone.

So, how much could 2% look like?

Say you found a home for $700,000.

A 2% deposit would be: $14,000.

On an $800,000 property: $16,000.

And on a $900,000 property: $18,000.

Of course, your deposit isn't necessarily the only money you'll need.

Depending on what and where you're buying, there may also be stamp duty, conveyancing or legal fees, inspections and other purchasing costs to consider.

That's why I wouldn't look at your savings account and simply say, “You've got 2%, let's go.”

I'd want to work out the whole transaction first.

Do I have to be a first-home buyer?

This is probably one of the most interesting parts of the scheme.

No.

For the single-parent stream, you can potentially qualify even if you've owned property previously.

The current eligibility criteria require that you don't have another property interest once your new home settles.

That can make the scheme particularly relevant if you've separated or divorced and are trying to establish a home of your own again.

You may have owned a home with your former partner.

That doesn't necessarily mean you're locked out of the scheme forever.

Your individual circumstances still need to satisfy the eligibility requirements, but previous home ownership itself doesn't automatically rule you out.

Who can qualify for the single-parent 2% deposit option?

There are several requirements.

Among other things, you need to:

• be at least 18
• be an Australian citizen or permanent resident
• be a single parent or single legal guardian of at least one dependent child
• have at least the minimum 2% deposit
• not have another property interest once the new property settles
• buy a property within the applicable price cap
• live in the property yourself
• apply for the loan on your own
• use a participating lender and meet its normal lending requirements.

There are no income caps and no waiting list under the current scheme.

There is one eligibility detail worth knowing if you're separated.

For the purposes of the Scheme, being “single” means you don't have a spouse or de facto partner. The Government's current guidance says that if you're separated but not divorced, you're not considered single for this scheme.

So this is one of those situations where I'd rather check your circumstances properly than have you assume you're eligible based on something you've seen on Instagram.

But can I afford a mortgage on one income?

This is the conversation I think matters more than the 2% deposit.

Getting the deposit together and being able to comfortably afford the mortgage are two completely different things.

Let's say you're earning $120,000 and have one child. A lender is going to look at more than your salary and savings.

They'll consider your expenses and existing financial commitments, and your lender still has to be satisfied that you meet its normal credit and loan-approval criteria. The Government guarantee doesn't override that assessment.

And this is where your real life matters.

• Maybe you're paying childcare.
• Maybe you've got a HECS/HELP debt.
• Maybe you have a credit card.
• Maybe you receive child support.

Those details can all form part of working out what your home-buying position looks like.

A 2% deposit doesn't mean you should borrow your maximum

This is something I feel quite strongly about.

If you're supporting your family on one income, I don't want the goal to simply be: “What's the absolute maximum the bank will give me?”

I'd rather know what happens after the mortgage payment comes out.

Can you still save? Can you handle an unexpected bill? Can you take your child away for a weekend? Can you still order takeaway on Friday night without having an existential crisis about your offset account?

Because getting the loan approved is only the beginning.

The mortgage still has to fit your life.

That's the same approach I take with all my first-home buyer clients at April Six.

What if I've only saved $20,000?

This is where I'd say: let's run the numbers before you write yourself off.

You might discover you're not ready yet. That's okay.

But you might also discover that the deposit you've already accumulated puts you much closer than you thought.

For example, $20,000 represents a 2% deposit on a $1 million property although that doesn't mean you could necessarily borrow the remaining amount, afford the associated costs, or that the property would satisfy the relevant Scheme price cap.

Those are separate questions.

And that's exactly why I'd rather look at your deposit + income + expenses + borrowing capacity + buying costs together instead of focusing on one number.

Where do you start?

If you're a single parent thinking about buying, I'd start with the numbers before spending every Saturday at open homes.

We can work out: what you may be able to borrow, whether you could qualify for the single-parent stream, how much cash you'd realistically need, which participating lenders might suit your circumstances, and what repayment feels comfortable for you.

Then you'll know whether buying is something you're working towards over the next few years… or whether you're much closer than you thought.

You can also read my guide to the Australian Government 5% Deposit Scheme in 2026, which explains how the broader scheme works.

Want me to look at your numbers?

If you're a single mum or dad and you've been quietly wondering whether buying a home on your own is possible, you don't need to have everything figured out before speaking to me.

Bring me the messy version.

Your salary. Your savings. Your childcare. Your debts. Your “I have absolutely no idea whether this is enough.”

I'll work through it with you.

Book a free chat with Eshanee by clicking here.

Any information or advice contained on the April Six Pty Ltd website is general in nature only and has been prepared without considering your individual personal objectives, financial situation or requirements. Before acting or relying on this information, you must consider the appropriateness of this information with regard to your individual circumstances and objectives.

April Six Pty Ltd is a Credit Representative of Astute Financial Management Pty Ltd | Australian Credit Licence 364253

© April Six Pty Ltd | ACN: 667183735 | Credit Representative Number 554762

Eshanee Collins is the founder of April Six, a Sydney-based mortgage broker for first home buyers and first-time property investors across Australia.

📱 0488 471 888 | @eshanee_thebroker | aprilsix.com.au