$12,400. On a $620,000 house in Ipswich, that can be a single parent's entire deposit under the federal government's single-parent guarantee. Not 20%. Not 5%. Two.
Saving a six-figure deposit on one income, while renting and raising kids, is the maths problem this pathway was built to solve. The single-parent pathway of the Australian Government 5% Deposit Scheme (formerly the First Home Guarantee), long known as the Family Home Guarantee, lets eligible single parents and single legal guardians buy with as little as a 2% deposit and no LMI. And you don't have to be a first home buyer.
Timing matters here. The RBA cash rate sits at 4.35% after hikes in February, March and May 2026, and the next decision lands on Tuesday 11 August 2026. Rising rates have thinned the buyer crowd: auction clearance rates are running in the low 40s on Cotality's June 2026 numbers. For a single-income buyer, that's the useful kind of market. Less competition, more negotiating room, and a window to get your paperwork sharp before the cycle turns.
What is the Family Home Guarantee, and does it still exist?
The name has been retired; the deal hasn't. From 1 October 2025, the federal government consolidated its home guarantees into the 5% Deposit Scheme, now with no income caps and no place limits. The single-parent 2% deposit is officially a pathway of that scheme, not a separate program, so "Family Home Guarantee" is the legacy name you'll still see in older coverage and search results. The label has shifted; the mechanics haven't.
The mechanics are simple. You bring at least 2% of the purchase price. Housing Australia guarantees up to 18% of the property's value to your lender, which then treats you the way it treats a 20%-deposit borrower: no LMI. At 98% borrowing, LMI would typically cost north of $25,000 on a $600,000-plus purchase, so the guarantee is worth more than most cash grants.
Without being cash. Nothing lands in your account under this scheme. You're borrowing up to 98% of the price, and your repayments are calculated on that. More on those numbers below.
Who qualifies for the 2% deposit?
You've been told government schemes are for first home buyers. This one isn't.
That's the detail most coverage buries, and it changes who should be reading. If a separation cost you the family home, prior ownership doesn't rule you out; the test is that you don't own property now. This pathway was designed for exactly that situation: one income, school-aged kids, starting again while Brisbane's median pushes $1.118 million on Cotality's June 2026 index.
The broad tests have been stable for years:
- You're a single parent, or a single legal guardian (grandparents, aunts and uncles with guardianship of a dependant are included), with at least one dependent child
- You'll live in the home as your own, not rent it out
- You're an Australian citizen or permanent resident
- You don't currently own any property, in Australia or overseas
- Your deposit sits between 2% and 20%, and you borrow through a lender on the scheme's panel
One caveat. The broader 5% Deposit Scheme dropped its income caps from 1 October 2025, but the single-parent settings have moved before and could move again: confirm the current rules on Housing Australia's site, or ask a broker who checks them weekly.
And a lending detail we've seen decide applications: panel lenders don't treat child support the same way. Some count it as income once you show it's regular and has years left to run. Others discount it heavily. On a single income, that one policy difference can swing borrowing power by tens of thousands of dollars.
How much home can you buy? The 2026 price caps
The scheme caps the purchase price, not your ambition. The capital-city caps under the consolidated scheme:
| State | Price cap |
|---|---|
| NSW | $1,500,000 |
| VIC | $950,000 |
| QLD | $1,000,000 |
| WA | $850,000 |
| SA | $900,000 |
| ACT | $1,000,000 |
Other states, territories and some regional areas carry their own caps; Housing Australia publishes the full table.
Read the caps against the medians and the strategy writes itself. Melbourne's median sits at $808,000 (Cotality, June 2026), comfortably under Victoria's $950,000 cap, so most of that city is in play. Sydney's $1.266 million median fits under the $1.5 million cap too. Perth is the squeeze: a $1.047 million median against an $850,000 cap points you toward units, townhouses and the outer ring. Pick the market where the cap clears the median, and the 2% pathway stops being theoretical.
What do the repayments look like on a 2% deposit?
Renae is 38, an office manager in Ipswich on $86,000 plus regular child support, with two kids in primary school. She's found a $620,000 house inside Queensland's $1 million cap.
- Her deposit: 2% is $12,400. Stamp duty and legals sit on top; our guide to how much deposit you need covers the full costs stack.
- Her loan: $607,600 at 98% LVR, with no LMI under the guarantee. Without it, the LMI bill at that LVR would typically top $25,000, if a lender would write the loan at all.
- Her repayments: at an illustrative 6.00% p.a. over 30 years, roughly $3,640 a month. Illustrative only; actual rates vary by lender, comparison rates apply, figures as at July 2026.
- The alternative: saving a 20% deposit ($124,000) at $700 a month would take her well past 2040, with prices moving the whole time.
Based on typical scenarios. Individual outcomes vary.
Two honest cautions. Borrowing 98% means bigger repayments and a thinner equity buffer than a larger deposit would give you, and lenders must stress-test Renae at her actual rate plus APRA's 3% serviceability buffer, reconfirmed on 28 May 2026. On one income, that test is where applications live or die. It's also where lender choice matters most: the Wity Borrowing Power Assessment models capacity across 45+ lenders rather than one bank's calculator, which is how a single parent finds the panel lender whose policy reads her child support, penalty rates or part-time hours most generously.
Can you stack it with other help?
Often, yes. Stacking is how single parents claw back the costs the deposit doesn't cover.
- First Home Super Saver: salary-sacrifice up to $15,000 a year (capped at $50,000 total) into super, then withdraw it at concessional tax rates for your deposit. Against a $12,400 target, FHSS can shave a year or more off the save. It does require first-timer status, so it's off the table if you've owned before.
- Stamp duty concessions: the ACT abolished all first home buyer duty from 1 July 2026, WA now exempts established homes to $600,000, and Queensland has abolished duty on new builds for first home buyers with no price cap. The catch for guarantee users who've owned before: most concessions require first-timer status, so budget duty in full unless you qualify.
- Help to Buy: the federal shared-equity scheme launched on 5 December 2025, with an income cap of $103,000 for singles and another 10,000 places from 1 July 2026. If the repayments on a 98% loan don't fit your budget, the government taking an equity stake might; the Help to Buy scheme suits some single parents better than the guarantee does.
Choosing between them is its own decision. Our comparison of FHG vs FHSS vs Help to Buy runs the numbers side by side.
What should you do this month?
Three moves, none of which commit you to anything.
First, confirm the current settings on Housing Australia's website; the single-parent 2% pathway now lives under the 5% Deposit Scheme, so look for it there rather than under the old name. Second, get your borrowing power modelled across lenders rather than guessed from one bank's calculator, because single-income capacity varies between lenders more than almost any other scenario. Wity's first home buyer service starts there. Third, read our first home buyer guide for 2026. The preparation steps are identical even if you're not a first-timer.
Rates may move again on 11 August 2026. The quieter market won't wait forever.
Want to see which panel lenders fit your numbers? Start the Wity questionnaire → Free, no credit check, two minutes.