Home Loan on Disability? Here's How to Secure It (2026)

For many Australians living with a disability, the dream of owning a home can feel daunting. The perceived barriers of income stability and lender requirements often seem insurmountable. However, securing a home loan while on disability support is not only possible but can be a rewarding path to financial independence and security. Let's explore how you can achieve this, armed with the right information and guidance.

Understanding Home Loans for Those on Disability Support

Home loans are financial products that allow individuals to purchase a property, with the loan amount being repaid over time with interest. For those receiving disability support, the process can appear complex due to income verification and lender criteria. However, many lenders understand the unique circumstances faced by Australians on disability support. It's essential to know that you can use your disability pension as part of your income assessment, and many lenders are willing to consider this as a stable income source.

Current Market Rates and Loan Requirements

As of 2026, the Australian home loan market remains competitive. Interest rates generally range from 6.49% to 9.75% for standard home loans. However, rates can vary based on the lender's policies, the borrower's credit history, and the type of loan product.

Key requirements for securing a home loan on disability support include:

• Proof of income: This includes your disability pension statements and any additional income sources such as part-time work or investments.
• Credit history: A good credit score enhances your chances of approval. Lenders will typically look for scores above 620.
• Deposit: A minimum deposit of 5% to 20% is generally required, but this can vary depending on the lender and your financial situation.
• Living expenses: You will need to demonstrate manageable living expenses to ensure you can meet loan repayments.

Lender	Interest Rate	Minimum Deposit
Lender A	6.49%	5%
Lender B	7.25%	10%
Lender C	9.75%	20%

Steps to Secure a Home Loan on Disability

Securing a home loan while on disability requires careful planning and preparation. Here are practical steps to guide you through the process:

1. Assess Your Financial Situation: Calculate your total income, including your disability pension and any supplementary earnings. Factor in your monthly expenses to determine how much you can realistically afford in loan repayments.
2. Improve Your Credit Score: If your credit score needs improvement, take steps to manage existing debts and make timely payments to boost your score.
3. Gather Required Documentation: Collect all necessary documents such as income statements, tax returns, and bank statements. This will facilitate a smoother loan application process.
4. Consult a Mortgage Broker: At Esteb and Co, our expert brokers can help you navigate the complexities of the home loan market, leveraging our network of 83+ lenders to find the right loan for your circumstances.
5. Apply for Pre-Approval: A pre-approval gives you a clear idea of how much you can borrow and shows sellers that you are a serious buyer.
6. Submit Your Loan Application: Once you find a property within your budget, submit a formal loan application with your chosen lender.

Expert Tips and Considerations

• Explore Government Assistance: Investigate any government programs or grants that may offer financial assistance or incentives for homebuyers with disabilities.
• Consider Long-Term Affordability: Focus on a loan structure that not only meets your current financial situation but also considers potential future changes in your income or expenses.
• Seek Professional Advice: Use the expertise of a mortgage broker to understand your options and negotiate better terms with lenders.
• Stay Informed: Keep up-to-date with market trends and interest rate changes that could impact your loan and financial planning.

Frequently Asked Questions

• Can I use my disability pension as income for a home loan? Yes, many lenders in Australia accept disability pensions as a valid source of income when assessing home loan applications.
• What is the minimum deposit required for a home loan? The minimum deposit typically ranges from 5% to 20%, but this depends on the lender and your financial situation.
• How can I improve my chances of home loan approval? Improving your credit score, maintaining a stable income, and consulting with a mortgage broker can enhance your loan approval chances.
• Are there specific lenders who specialise in loans for people on disability? While not all lenders specialise in this area, many are open to considering applications from those on disability support, especially with the help of a mortgage broker.
• What role does a mortgage broker play in this process? A mortgage broker can provide invaluable assistance in finding the right lender, preparing your application, and negotiating terms, drawing from their extensive network of lenders.
• Are there any additional costs I should be aware of? Be mindful of additional costs such as stamp duty, legal fees, and ongoing property maintenance, which should be factored into your budget planning.