Single Parent Home Loan. Easy Approval & Low Rates

Navigate eligibility for your single parent home loan

Getting approved for a mortgage as a single parent requires careful preparation. Lenders assess your ability to manage repayments, considering your total income, debts and eligible government support. Presenting financial stability is key:

• Income assessment: Lenders include employment income and may accept certain Centrelink payments, like the Single Parent Payment or Family Tax Benefit, though the accepted percentage varies.

• Deposit requirements: Saving a 20% deposit avoids Lenders Mortgage Insurance (LMI), but that’s not always realistic. The Family Home Guarantee allows single parents to buy with as little as a 2% deposit and no LMI, backed by a government guarantee.

• Debt to income (DTI) ratio: Keeping existing debts low strengthens your application. Pay down credit cards or personal loans before applying to demonstrate repayment capacity.

Partnering with an expert broker, like those you’ll find through HeyNest, is the best strategy. They know which lenders are flexible with supplementary income and how to structure your application for success.

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The family home guarantee and other support

The Family Home Guarantee (FHG) is a transformative initiative for single parents with dependent children. It helps eligible buyers, both first-time and returning, to purchase with only a 2% deposit, as the government guarantees up to 18% of the property’s value, removing the need for LMI.

Other key support options include:

• First Home Owner Grant (FHOG): A one-off payment for first-time buyers, varying by state or territory.

• Stamp duty concessions: Reduced or waived property tax for eligible first-home buyers, depending on location and property value.

Understanding these programs can be complex, especially while balancing work and family. HeyNest brokers simplify the process, assessing your eligibility for all available schemes, handling the paperwork and helping you make the most of your financial opportunities.

Stop Stressing: Why a Broker is the 'Smart, Chill' Way

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Traditional Bank

Access to many lenders

Compares and negotiates the best market rates for you.

Dedicated, personalized guide every step of the way.

Only offers their own limited products.

Standard, often non-negotiable in-house rates.

Standardized service; often no single dedicated contact.

Why an independent broker is your best ally

Applying for a home loan alone can feel daunting, especially with a unique financial situation. An independent mortgage broker acts as your advocate, providing access, clarity and confidence throughout the process. How a broker helps:

• Access to multiple lenders: They compare hundreds of loan products across banks and non-bank lenders to find one that fits your income and family needs.

• Negotiation power: Brokers understand market pricing and use their relationships to secure better interest rates and lower fees.

• Streamlined process: From documentation to settlement, your broker manages the entire process, saving you time and stress.

• Clarity and confidence: You receive impartial advice and clear explanations every step of the way.

With HeyNest, you’re matched to a local, independent broker who understands the challenges single parents face. Whether you’re in Sydney, Melbourne, Brisbane, Perth or regional Australia, they’ll guide you toward affordable, achievable homeownership with expert care.

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Frequently asked questions

Can Centrelink payments be used for a home loan?

Yes, most lenders accept a portion of eligible Centrelink payments, like the Family Tax Benefit, as supplementary income, but criteria vary widely.

What is the minimum deposit for a single parent?

With the Family Home Guarantee, a minimum deposit of 2% is required for eligible single parents, avoiding the need for Lenders Mortgage Insurance (LMI).

Do I need a single parent home loan specialist?

It is highly recommended. A specialist broker knows which lenders are most flexible and can secure better terms using programs like the FHG.