Buying a home as a self-employed single parent using the Australian Government 5% Deposit Scheme
Self-employed single parents in Australia can access the Australian Government 5% Deposit Scheme (formerly the Home Guarantee Scheme) with as little as a 2 percent deposit and no Lenders Mortgage Insurance.
The scheme is scheme-agnostic about how you earn your income, meaning self-employed single parents qualify on the same basis as PAYG single parents, provided they meet the general eligibility criteria (Australian citizen or permanent resident, at least one dependent child, intending to live in the property). The application still needs to be made through a Participating Lender using standard self-employed income evidence (tax returns, BAS, and NOAs). Since the scheme's October 2025 expansion, income caps and waitlists have been removed, making it significantly more accessible than before.
The Australian Government 5% Deposit Scheme is one of the most powerful tools available to single parents trying to enter the housing market. Since it was expanded on 1 October 2025 (removing income caps, waitlists, and opening to previous homeowners), it has become genuinely accessible to a much broader group of Australians.
Self-employed single parents can absolutely use the scheme. But there are a few extra considerations because your income documentation is more involved than a PAYG applicant's, and because lender choice within the scheme's Participating Lender panel matters more when your income structure is complex. For the broader picture on government help available to single parents, Government help for single parents buying a home in 2026 is worth reading alongside this.
Here's how it actually works.
What is the Australian Government 5% Deposit Scheme?
The Australian Government 5% Deposit Scheme is a government-backed home buying initiative that allows eligible buyers to purchase a home with a smaller deposit than would normally be required, without paying Lenders Mortgage Insurance (LMI).
For single parents and legal guardians, the minimum deposit is 2 percent.
For first home buyers in general, the minimum deposit is 5 percent.
The scheme was previously known as the Home Guarantee Scheme. From 1 October 2025, it was renamed and significantly expanded:
Income caps were removed
Waitlists were removed (there are now unlimited scheme places)
The scheme was opened to previous homeowners, not just first home buyers (particularly relevant for separated women re-entering the market)
LMI is waived under the scheme
All of these changes make the scheme accessible to a much broader group than it used to be.
Do self-employed single parents qualify?
Yes. The scheme's eligibility criteria don't distinguish between PAYG and self-employed income. What matters is whether you meet the general eligibility criteria and whether a Participating Lender will approve your application.
General eligibility criteria include:
Australian citizen or permanent resident
Aged 18 or over
At least one dependent child (for the single parent stream)
Intending to live in the property as an owner-occupier
Buying a property within the price cap for your location
Not currently owning property in Australia (or being a previous homeowner re-entering the market, since the October 2025 changes)
You'll also need to have adequate income to service the loan (assessed by the Participating Lender using standard serviceability calculations).
Self-employed single parents will need to evidence income the same way any self-employed applicant does: through tax returns, Notices of Assessment, BAS statements, and (for some lenders) additional business financial documentation. If you want the broader picture on how self-employed income is assessed, Getting a home loan when you're self-employed covers the fundamentals.
What deposit will I actually need?
The scheme's headline is 2 percent for single parents. In practice, you'll want to have a bit more than that available. Here's why.
The 2 percent minimum covers the deposit toward the property price. It doesn't cover the additional costs of buying a home, which include:
Stamp duty (varies by state and whether you qualify for first home buyer concessions)
Legal and conveyancing fees (usually $1,500 to $3,000)
Building and pest inspections (usually $500 to $1,000)
Loan application fees (if any)
Moving costs and initial setup costs
So for a $600,000 property, the 2 percent deposit is $12,000, but you'll typically want another $10,000 to $25,000 available for these additional costs. First home buyer concessions on stamp duty (which vary by state) can reduce this significantly.
A Participating Lender or a mortgage broker can walk you through the full cost picture for your specific state and property type.
Which lenders participate in the scheme?
The scheme is administered through Participating Lenders (a panel of banks, non-bank lenders, and credit unions approved by Housing Australia to offer scheme loans). The panel changes over time and includes both major banks and specialist lenders.
For self-employed single parents, lender choice matters more than for PAYG applicants because different Participating Lenders treat self-employed income differently. Some are more comfortable with:
Newly self-employed applicants (less than two years of tax returns)
Variable business income across years
Mixed income structures (business income plus child support plus FTB)
Non-standard business structures
A mortgage broker with access to multiple Participating Lenders can identify which one is most likely to approve your specific application. This is one of the areas where broker choice matters most.
How does the application process actually work?
The scheme is not applied for directly through Housing Australia. It's applied for through a Participating Lender as part of your normal home loan application. The steps:
Step 1: Check your eligibility. Use the eligibility tool on firsthomebuyers.gov.au or read the Information Guide for Single Parents or Legal Guardians (also on the site).
Step 2: Prepare your documentation. For self-employed single parents, this means tax returns, NOAs, BAS statements, business bank statements, personal bank statements, evidence of any child support or FTB, ID and proof of residency, and evidence of your single parent status.
Step 3: Talk to a mortgage broker or Participating Lender. A broker can match you to the right Participating Lender for your self-employed income structure.
Step 4: Get pre-approved. Once approved under the scheme, you have 90 days to find a property and sign a contract.
Step 5: Search for a property within the price cap. Price caps vary by location. The most current caps for your area are on firsthomebuyers.gov.au.
Step 6: Settle and move in. Once you sign a contract, the lender finalises approval after valuation and settles the loan.
What are the ongoing obligations?
The scheme works by the government providing a guarantee to your lender, which is what allows you to buy with a smaller deposit and no LMI.
To maintain that guarantee, you have to:
Live in the property as an owner-occupier (the scheme is not for investment properties)
Continue to meet your loan repayment obligations
Notify your lender if you no longer meet the ongoing eligibility criteria
If you stop meeting the obligations (for example, by moving out and renting the property), the guarantee may no longer apply, and your lender may require you to pay LMI or other additional costs.
The loan itself is still your loan, with all the standard obligations of any mortgage. The government guarantee doesn't make the loan risk-free; it makes the deposit requirement smaller.
Frequently asked questions
Can I use the 5% Deposit Scheme if I'm self-employed and a single parent?
Yes. The scheme's eligibility criteria don't distinguish between PAYG and self-employed income. Self-employed single parents qualify on the same basis as PAYG single parents, provided they meet the general eligibility criteria and can evidence serviceability through standard self-employed documentation (tax returns, NOAs, BAS).
Do I need to be a first home buyer to use the scheme?
No, not since 1 October 2025. The scheme now applies to both first home buyers and previous homeowners re-entering the market, which is particularly useful for separated women. Different streams of the scheme have slightly different eligibility rules, so check firsthomebuyers.gov.au for the specifics.
How long do I need to have been self-employed to qualify for the scheme?
The scheme itself doesn't set a minimum self-employment period. Individual Participating Lenders do. Most want to see one to two years of self-employment history through tax returns and BAS. Some specialist Participating Lenders may accept shorter trading histories. A broker can identify which Participating Lenders suit your specific timing.
Can I combine the 5% Deposit Scheme with other supports?
Yes. The scheme can generally be combined with the First Home Owner Grant (state-based), stamp duty concessions (state-based), and the First Home Super Saver Scheme. Eligibility for each is separate and specific. A mortgage broker familiar with government schemes can help you understand which stacking combinations apply to your situation.
Rielle Berglund is a mortgage broker specialising in single parents, women, and self-employed Australians navigating home loans on a single income. She is the founder of Matilda Tree Finance and the creator of Runa, a free financial literacy app for Australian women.
Sources and references
All information about the Australian Government 5% Deposit Scheme in this article is drawn from the official government source:
Australian Government 5% Deposit Scheme (main page): firsthomebuyers.gov.au/australian-government-5-percent-deposit-scheme
First Home Buyers home page: firsthomebuyers.gov.au
This article also draws on Rielle Berglund's professional experience as a mortgage broker.
This article is general information only and does not constitute financial, legal or tax advice. Please speak to a licensed financial adviser, solicitor and your accountant about your specific circumstances. Scheme rules and price caps are subject to change. Always confirm current eligibility and details with a Participating Lender or via firsthomebuyers.gov.au before applying.