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Buying a House as a Single Mother

Buying a house as a single mother has always been tough. In today’s challenging market, however, it’s a mountain to climb.

The housing affordability crisis is a major hurdle, along with potential discrimination from banks and real estate agents. Add in the gender pay gap, and it’s a big ask. According to ABS statistics, Australia’s national gender pay gap is 13%, as of May 2023.

But while times are hard, there are ways that single mothers can unlock the home ownership dream.

The meaning of owning a house for single mothers

While everyone dreams of a stable future, it’s perhaps especially important for single mothers to own their own home, with the security that provides to them and their dependents.

By necessity, single mums raising children alone place a high priority on the financial safety of their family.

Home ownership offers stability, a chance to build equity for the long term, dignity, and a sense of peace that they are taking care of their family. It’s also a joy – giving families the ability to make a home to suit them!

The impact of knowledge on the buying journey

If you’re a single mum, the more knowledge and financial awareness you have before you dive into the market, the better.

When you educate yourself about your financial options, you are in a far stronger position to make a sound investment.

The federal government’s moneysmart resource is a great place to start. It explains things like loan-to-value ratio and lenders mortgage insurance, runs through some loan options, and offers tips on how to budget and save the deposit.

It’s also important to work with trusted and transparent mortgage brokers, who have your best interests at heart. You need a broker who understands the unique challenges you face as a single mother.

Finding home loans for single mothers

Suitable home loans for single mothers can be hard to find. The Family Home Guarantee has limited places, while low deposit loans can attract higher interest rates and lenders mortgage insurance.

That’s why HAS focuses on helping hard-working single mums enter the property market and get into their own homes sooner. Our home affordability solutions mean you can purchase a property using shared equity, and an exceptionally low deposit.

We understand the importance of home loans for single mothers, and the discrimination that you can face. With our loans, you don’t have to have genuine savings or be means tested.

So how much deposit does a single mum need to buy a house?

If you are a single mother needing to buy a house, you can forget the long wait to save up that hefty 20% deposit.

With HAS, you only need a 2.5% home loan deposit and a sponsor investing alongside you. We provide the 17.5% remainder, which brings your total deposit up to the standard 20%.

The bank will put up the 80% portion of the loan, meaning you avoid expensive lender’s mortgage insurance.

How to get a home loan with a low deposit?

If you want to get a home loan with a low deposit, shared equity is a great option, with multiple benefits over a traditional home loan.

HAS shared equity allows you to enjoy reduced monthly repayments over the first five years of your loan. If you are eligible for the First Home Buyers grant and stamp duty concessions, they can form part of your 2.5% deposit.

You pay a low 3.25% fixed interest on the shared equity portion of your loan, for five years. Sponsorship can boost the shared equity percentage to 37.5%, helping you service the loan.

It works for everyone. You get the benefit of an exceptionally low deposit, while the sponsor gets a return on their investment.

Anyone can be a sponsor – your parents, friends, an employer, or a property group. You can even sponsor yourself. If your parents sponsor you, they enjoy the advantages too, with a return on their investment that doesn’t involve signing up for a risky parental guarantee home loan. They can also help multiple children in this way.

To all single mums buying a house!

If you’re a single mum buying a house, you know just how difficult it can be to clinch the deal.

HAS shared equity is a smart solution that can assist you in entering the property market, helping you secure your family’s future.

Check out our eligibility page, to see if you fit the criteria for a shared equity home loan. Why not get in touch? We’d love to chat about your home loan options.

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Buying a House as a Single Mother

Buying a house as a single mother has always been tough. In today’s challenging market, however, it’s a mountain to climb. The housing affordability crisis