How single mum bought $400k home with just a $9k deposit

The single mum thought her dream of home ownership would be “impossible” but she saved for two years and made it happen. Here’s how.

Cindy Chalker never thought she would be able to buy her own home as a single mum having rented for her entire adult life.

“I just thought it would be impossible to be able to save up the 10 to 20 per cent deposit, while bringing my kids up,” she told news.com.au.

“Things always pop up – my son went to the orthodontist and that was $1300.”

Her parents were also late to the property game, she added, but it made her determined to follow in their footsteps.

“I was in grade 9 when they purchased their first house, so that’s always been a dream of mine,” Ms Chalker said.

“I decided to go back to uni part-time while I was working and finish my accounting degree. I finished that just after my son was born, so I was working, pregnant and getting it done.”

The Brisbane local was worried she wouldn’t be welcomed by the banks either.

“It sounds silly, but when you’re a single parent and you’re renting, some places can make you feel like a second-class citizen or like you’re not as important as homeowners or a married couple,” she said.

Ms Chalker began saving two years ago when she started a new job at a superannuation company. It was “compulsory” to invest 6 per cent of her wage into her super and she used this as an opportunity to put money away – managing to save $9000.

The 46-year-old also started a side hustle selling tarot cards which has helped boost her savings too.

The 46-year-old also started a side hustle selling tarot cards which has helped boost her savings too. Picture: Supplied

The schemes

Then she stumbled on the Federal Government’s Family Home Guarantee (FHG). It allows eligible single parents to purchase a family home with a deposit of as little as 2 per cent, without having to pay Lenders Mortgage Insurance.

She also combined this with the First Home Super Saver Scheme and the Queensland first home concession, which gives her an exemption from paying stamp duty.

The accountant’s mortgage broker recommended Great Southern Bank and there were jubilant scenes when she was approved for a home loan.

“It was such a big deal when I got the approval email. I was jumping around the house. Both the kids were hugging me and jumping around,” Ms Chalker said.

She used three different schemes to make her property dream a reality in Brisbane. Picture: John Gass/NCA NewsWire

Competing in the real estate jungle

The mum of a 12 and 21-year-old then had the daunting task of tackling the competitive market.

“I went to a townhouse opening just down the road and I think they had offers of $475,000 and when we got there, there was about 20 other groups when it first opened and when we left there was a line up of people,” Ms Chalker said.

“The real estate said they had 17 offers, most in the $500,000 range, and one offer that blew it out of water so I’m assuming it went close to $600,000.

“Every open house I went to there was always loads of people, so it was a bit daunting. All the places seemed to be either under contact or someone offered a larger amount than what I could offer.

“One of real estate agents said people from NSW were buying investment properties sight unseen, which makes it difficult.”

But she got lucky by sweet talking a real estate agent into allowing her to inspect a unit 15 minutes before it was open for inspection.

She put in an offer just above $400,000 and is now preparing to move into her three bedroom unit in November.

The kids are excited to have a room they can do “whatever they want” to, Ms Chalker said.

“They can paint it if they want, put hooks in the walls and we don’t have to have an inspection every three months. I told them (we’re) still doing that and there will be eviction notices if rooms are not up to standard,” she joked.

“But there’s that comfort of having your own home and you don’t have to have someone inspecting everything and taking photos – I’m very excited about that.”

She picked up a three bedroom unit in Brisbane for $400,000. Picture: John Gass/NCA NewsWire

Cindy’s tips for buying a home

1. Determination is everything. The aim of the game is to never ever give up. “For many years I thought this wasn’t going to happen, but I didn’t give up and was looking for strategies to actually do it.”

2. Get creative. “Start a side hustle. Find something that you enjoy doing after a day’s work, because sometimes that is a struggle. You get home from a day’s work and don’t feel like doing anything, but when it’s something you that you enjoy and you’re able to monetise it … things tend to work out.”

3. Find ways to save where you’re not tempted to dip into your deposit. “Put your money into super. Talk to your employer because it’s effective having savings that you can’t touch.”

4. Research what government schemes are available.

5. Make friends with the real estate. “I had spoken to the real estate agent the day before I went to look at my place and it really helps if you can build a bit of rapport before you go there. The more real estate agents you can speak to the more that know what you are looking for the better.”

6. Make sure you’re with a supportive bank. “When you’re juggling life as a single parent, you don’t need anything else getting in your way.”

7. Buy where you can afford. Sometimes a little compromise is necessary. “The area I’m in now is out of my price range, but adjoining suburbs are within my reach.”

8. Get finance pre-approval to move quickly.