Home Loan Support for Single Parents: How the Government’s 2% Deposit Scheme Works

For many single parents in Australia, saving for a home deposit can feel like an impossible hurdle. But thanks to the Australian Government’s Family Home Guarantee, eligible single parents and legal guardians can buy a home with as little as 2% deposit—without paying Lenders Mortgage Insurance (LMI).

At Rovo Finance, we help single parents navigate this scheme and connect with lenders who support it. Here’s what you need to know.

What Is the Family Home Guarantee?

The Family Home Guarantee is a government-backed initiative designed to help single parents and legal guardians of dependent children enter the property market sooner. It provides a guarantee to lenders, allowing eligible applicants to purchase a home with a minimum 2% deposit and no LMI.

Key Benefits

• Low Deposit: Buy with just 2% deposit, significantly reducing upfront costs.

• No Income Caps: Your income doesn’t affect eligibility.

• No LMI: Save thousands by avoiding Lenders Mortgage Insurance.

• Wide Property Options: Includes houses, townhouses, apartments, house-and-land packages, and off-the-plan purchases.

• Unlimited Spots: No waitlists or quotas—apply when ready.

Eligibility Criteria

To qualify, you must:

• Be an Australian citizen or permanent resident, aged 18 or older.

• Be a single parent or legal guardian of at least one dependent child.

• Have no ownership interest in any other property.

• Be buying a home below the location’s price cap.

• Plan to live in the home (no investment properties).

• Apply for an owner-occupier loan with principal and interest repayments.

• Apply solo (no joint applications).

You must also meet your lender’s credit and loan approval criteria.

What Counts as a Single Parent?

You must:

• Be single (not married or in a de facto relationship).

• Be the natural, adoptive, or legal guardian of a dependent child.

A dependent child is defined under the Social Security Act, including children receiving a disability support pension.

How to Apply

1. Check Your Eligibility: Use the government’s online tool or speak with Rovo Finance.

2. Speak to a Participating Lender: We’ll help you find one that supports the scheme.

3. Get Pre-Approved: Once eligible, you’ll have 90 days to find a home.

4. Buy and Move In: Your lender will manage final approvals and settlement.

What Documents You’ll Need

• Proof of citizenship or residency

• Medicare number or PMKey (if applicable)

• Evidence of single parent or guardian status

• Completed Home Buyer Declaration form

• Standard home loan documents

Ongoing Obligations

Once approved, you must:

• Live in the home as an owner-occupier

• Meet all loan repayment obligations

Failure to meet these may result in losing the government guarantee and incurring LMI.

How Rovo Finance Helps Single Parents

We guide you through:

• Eligibility checks and scheme understanding

• Lender selection that supports the Family Home Guarantee

• Document preparation and application strategy

• End-to-end support from pre-approval to settlement

Contact Rovo Finance: 
Jitendra – Mortgage Broker
📞 Mobile: 0494 394 747
📧 Email: jitendra@rovofinance.com.au