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Home hub Eligible single parents can buy with 2% deposit
Buying a home as a single parent can feel like an uphill battle. You’re managing everything on one income — the school runs, the bills, the grocery shop — and somehow trying to save a deposit at the same time. It’s a lot. It can feel like homeownership is something that happens to other people.
But here’s something worth knowing: the Australian Government 5% Deposit Scheme was designed specifically for people with a deposit less than 20% of the property value, that requires no Lenders Mortgage Insurance (LMI). At Community First Bank, we’re a participating lender, which means we can help you access it.
Here’s what you need to know.
What’s the 5% Deposit Scheme?
The Australian Government 5% Deposit Scheme offers pathways to home ownership for first home buyers and single parents. Single parents, or single legal guardians of at least one dependent child can access the Scheme with a deposit as little as 2%.
The big headline: eligible single parents or legal guardians can purchase a property with as little as a 2% deposit — and you won’t need to pay Lenders Mortgage Insurance (LMI).
That last part matters more than it might sound. LMI is a cost to borrowers who have less than a 20% deposit — it’s essentially insurance protecting the lender, and it can add thousands of dollars to the cost of buying a home. For eligible borrowers, the Scheme removes that hurdle entirely.
How Does It Work?
Under the Scheme, the Australian Government acts as a guarantor for the difference between your deposit and 20% of the property’s value. This gives the lender security, so they can offer you a loan without requiring LMI, even though your deposit is small.
In practical terms, that means:
- You save a 2% deposit instead of 20%
- The Government guarantees up to 18% of the property value
- You take out a standard home loan for the rest
- No LMI payable, saving you potentially thousands upfront
Who Is Eligible?
To qualify for the Scheme as a single parent or legal guardian, you’ll need to meet the following criteria:
- Australian citizen or permanent resident, aged 18 years or over
- A single parent or single legal guardian of one or more dependent children
- You have saved a minimum deposit of 2% of the property value
- You do not own any other property at the time of settlement
- You intend to live in the home as your primary place of residence
- You meet our standard lending criteria
You don’t need to be a first home buyer. If you previously owned property but no longer do, you may still be eligible.
How Many Places Are Available?
Good news here. From 1 October 2025, the number of places for the 5% Deposit Scheme became unlimited. There are no caps, no waitlists, no annual quotas to race against. If you meet the eligibility criteria, the scheme is open to you.
What Properties Qualify?
The property you purchase needs to fall within the price caps set by the Government, which vary by location. These caps were increased in late 2025 to reflect current market conditions, meaning more homes in more areas now qualify under the scheme.
You can check the property price cap that applies to your area using our Property Price Caps tool.
What Are the Next Steps?
You must apply for the 5% Deposit Scheme through an approved participating lender, and Community First Bank is on that panel.
Here’s how to get started:
- Check your eligibility using the Housing Australia eligibility tool
- Check property price caps for the area you’re looking to buy
- Speak with one of our Mortgage Specialists — we’ve been helping Australians into homes for over 60 years, and we can walk you through your options, what you can afford to borrow, and how to apply
Not Eligible? There Are Still Options
If you don’t meet the Scheme eligibility criteria, there are other ways Community First Bank can help:
- 5% Deposit Scheme — if you’re not eligible as a single parent, you may still qualify for the Scheme under other eligibility pathways. Eligible buyers can purchase with as little as a 5% deposit and pay no LMI.
- Family Guarantee — if a parent or family member can act as guarantor for 20% of your home’s value, you may be able to borrow the full purchase price without LMI
- Standard home loans with LMI — we offer some home loans that allow you to borrow with as little as 5% deposit
Ready to Take the Next Step?
Homeownership as a single parent isn’t just possible, with the right support, it might be closer than you think. Our Mortgage Specialists are here to help you navigate every step of the process, from understanding your borrowing power to submitting your application.
Call us on 1300 13 22 77 or get in touch online to speak with a Mortgage Specialist today.
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