As a single parent, you want the best for your children and will sacrifice almost everything for them. Be it for school, activities, or a roof over their head. You may be on the renting “treadmill” and desperate to get off – which means venturing into property market. As a single parent on a single income, it can prove challenging to buy your own home – but it’s far from impossible. In some cases, you won’t need to come up with the standard 20% deposit, which could take decades to save for even when times are good. Here’s how you can get into a new home as a single parent.
Auditing Your Finances
The first part of getting into a new home is getting a handle on your finances. 
You should have a snapshot of where your money is coming and going each month – and how much you can afford in repayments, even if the market heats up and the Reserve Bank hikes interest rates. You should also figure out what your credit score looks like, as this is a big factor in a lender arriving at a final interest rate offer.
At this stage, you should gather payslips, notices of assessment from the tax office, and any other financial information that can help lenders or brokers figure out your financial status.
Doing Your Market Research
To ensure you get a home suitable not only for you but your kids, you need to research the market and weigh up potential extra costs with benefits – such as being in a good school catchment area, which means you may save money on sending your kids to private school. You need to attend inspections, ask lots of questions, and if you have your heart set on a place, paying for structural or pest inspectors to ensure it’s safe.
Researching Incentives and Loans
As of 2024, single parents or single legal guardians of at least one child or dependent can apply for the Family Home Guarantee, which helps you when borrowing as a single parent. In a nutshell, you will approach a participating lender in the scheme. (You may want to consult a broker to speed up this process.) 
This gives you the option to purchase a home with only 2% deposit while waiving Lender’s Mortgage Insurance, which can cost tens of thousands of dollars until you hit a loan-to-value ratio of 20%. The guarantor of the loan is the government. If you’re unsure if you are eligible for the Family Home Guarantee, consult the website for more details.
Some states may have their own incentives and schemes, such as Stamp Duty waiver schemes, the First Home Owner’s Grant, or Victorian Homebuyer’s Fund. In the fund, the State government provides up to 25% of the purchase price in exchange for a share in eligible properties. If you sell the property, the government will take 25% of the revenue.
Remember – this advice is only general in nature, and you should consult a financial adviser or home loan broker for tailored information that suits your circumstances.
