If you’re a single parent trying to buy a home, saving a big deposit can feel impossible — especially when you’re juggling kids, rent, and everyday expenses.
That’s why the government created a 2% deposit scheme designed specifically to help single parents and single legal guardians buy a home sooner.
Here’s the simple breakdown.
1. What the 2% deposit scheme actually is
The official name is the Family Home Guarantee.
It allows eligible single parents to:
- Buy a home with just a 2% deposit, and
- Avoid paying Lenders Mortgage Insurance (LMI)
Normally, buying with such a small deposit would attract huge LMI fees.
But with this scheme, the government guarantees up to 18% of the deposit — meaning you don’t pay LMI at all.
This makes it possible to buy a home with far less savings than a standard loan requires.
2. Who can use the 2% deposit scheme?
To qualify, you must:
- Be a single parent or single legal guardian
- Have dependant children living with you
- Have at least a 2% deposit saved
- Buy under your state’s property price limit
- Intend to live in the home (not for investment)
You don’t need to be a first-home buyer — even if you’ve owned before, you may still be eligible if you don’t currently own a property.
It’s a supportive pathway designed for parents doing it on their own.
3. Why the scheme helps single parents so much
Saving 20% deposit while renting and raising kids is extremely difficult.
This scheme helps because:
- You need far less savings
- You avoid expensive LMI (sometimes $10k–$20k+)
- You can buy sooner instead of watching prices rise
- Your repayments go toward your home, not someone else’s
- You can give your kids more stability and security
For many single parents, this scheme is the only reason buying becomes possible.
4. What to think about before applying
Before using the Family Home Guarantee, it’s worth considering:
- Is the repayment comfortable based on your income?
- Do you have some savings available?
- Are you ready for the stability of owning vs renting?
This scheme is one of the strongest ways for single parents to enter the market — but it’s important to choose a home and budget that feel safe and sustainable for your family.
If you want help working out what your 2% deposit looks like, or what homes fit your budget, we can walk you through it.
