Home loans for single mothers in Australia

Few things can match the feeling of owning a home. It creates a sense of stability and security, gives you personal satisfaction and provides unparalleled privacy. There are also a range of potential financial gains to consider as well, including the future growth in the value of the property and tax benefits.

A home loan is a great way to get your dream house, but you might face some challenges if you’re looking for a home loan as a single mother.

Between raising children and paying all the bills with a single income, finding the right home loan may be daunting. However, there are loans available for single mothers who meet lenders’ criteria.

What is the eligibility to apply for single mothers’ home loan in Australia?

While the eligibility usually differs from provider to provider, to apply for a single parent home loan, you’ll most likely need to be:

• Over 18 years old
• An Australian resident
• Receiving a regular income, for example, regular wages, self-employment or Centrelink pension

Does child support count as regular income for single mothers?

The amount that you can borrow for your home loan depends on your total income and commitments. For example, your salary and monthly spending may affect how much money you have available to meet loan repayments.

For some single mother home loan programs, parenting-related payments can also be considered as regular income. For example, maintenance and child support may also be included as part of your income, provided you’re able to prove that these payments are regular and on a long-term basis.

Single mothers may wish to speak to the loan provider about their policies or contact a broker to know more about how these payments can affect eligibility.

Are government concessions considered?

As a single parent, you may be eligible for additional support. The measures offered will vary by state, but may include government-aided home loans for single mothers in Australia. An example of this is Victoria’s HomesVic Shared Equity Initiative, where the government helps low income earners with part of the deposit.

In Australia, some single parents are eligible for the Parenting Payment from Centrelink. The good news is that some lenders do accept this as part of your income. In addition to this, if you have any Childcare Benefits, they are also often an acceptable form of income.

You may also qualify for the Family Tax Benefit (FTB) offered by the Federal Government, which might be accepted as part of your income, depending on the age of your children. Family Tax Benefits come in two parts:

• FTB A: This is generally paid to single parents per child, based on the family’s circumstances.
• FTB B: This is generally given to families that consist of single parents or couples who have only one main income.

Lenders may also consider a multiple birth allowance for single mothers of triplets and quadruplets.

How to save for your home loan deposit with a single income?

Putting together a deposit for your house while single-handedly raising a child on a single income can be extremely difficult. Here are some tips you could consider if you’re parenting solo and need to save for a home loan deposit.

• Government assistance:Single parents in Australia may be eligible for multiple benefits offered by the Federal Government, including Family Tax Benefit A & B, Parenting Payment and Child Care Benefit. If available, this may offer home loan assistance for single mothers on top of regular income.
• Learn how to budget:Being able to budget your money effectively is key to handling the expenses of your children while saving for the deposit. You can start by listing all the money you get in a month and how much you need to save for a deposit. s. Then, look for ways to cut down on spending.
• Get a savings account:A savings account may help to save more, while offering a bit of extra interest each month.
• Find the right home loan: There are multiple lenders that offer different home loan grants for single mothers, so you could consider comparing different options to find the one which suits your requirements the most.

To find home loan options for single mothers that are suitable for you, you can compare a range of options on our website. 

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