Solo income? Child support, Family Tax Benefit, and Centrelink payments can boost your borrowing power. You can do this.
Lenders can include more than just your salary. Every dollar counts.
Your salary, wages, or business income forms the foundation of your borrowing capacity.
Court-ordered or CSA-administered child support is treated as reliable income by most lenders.
Government family payments can significantly boost your borrowing capacity.
If you're receiving Parenting Payment Single, some lenders will include this in serviceability.
Renting out a spare room or granny flat? That income counts.
Real scenarios showing how multiple income sources combine.
With 10% deposit ($50K): Can purchase property up to $500K. Likely need LMI but eligible for First Home Guarantee to avoid it.
With 15% deposit ($90K): Can purchase property up to $600K in many markets. Strong serviceability from multiple income streams.
Guarantor strategy: Parent guarantees $150K using their property equity. You need minimal deposit. As you pay down loan and build equity, guarantor is released after 2-3 years.
Single income reduces borrowing capacity by 40-60% compared to dual income households.
Ex-partner misses payments or pays irregularly. Lenders need 6-12 months consistent history.
You took time off to raise children. Now returning to work but only have 1-3 months employment history.
All money goes to rent and raising kids. Hard to save 5-20% deposit.
Single parents may qualify for additional assistance.
Buy with just 5% deposit. Government guarantees remaining 15%, so no LMI required.
Eligibility:
$10K-$15K grant for buying or building new home. Varies by state.
Grant Amounts:
First home buyers get stamp duty discounts or exemptions in most states.
Potential Savings:
This is very difficult with mainstream lenders. Most don't lend based solely on Centrelink income. Your best options: (1) Combine Centrelink with part-time work (even 15-20 hrs/week helps), (2) Use guarantor (parent guarantees loan), (3) Specialist lenders who accept Centrelink but expect higher rates and 20-30% deposit. If you're able to return to work part-time, this dramatically improves your chances.
Lenders only count child support if it will continue for at least 3 years. If your child is 16 and child support ends at 18, most lenders won't include it. However, some lenders may accept with strong overall serviceability. Alternative: Show that when child support ends, you'll have more capacity to work (child older/independent), or demonstrate your employment income alone can service the loan.
Yes! Joint applications combine both incomes. Common scenarios: (1) Buy with a parent (they go on title and loan temporarily), (2) Buy with a sibling (both live in property or one lives, one invests), (3) Buy with trusted friend (split ownership 50/50). Make sure to get legal advice on ownership structure and what happens if one person wants out. This can be smart way to enter market sooner.
Lenders include childcare costs as an expense if you're working and kids are in care. However, the income you earn from working almost always outweighs the childcare expense impact. For example: You earn $60K, childcare costs $15K/year. Lenders assess $60K income - $15K expense = $45K net benefit. This still significantly improves borrowing capacity vs not working. Government childcare subsidies reduce your actual costs too.
If you're comfortable with it, boarder income helps! Lenders typically count 75-80% of boarder/lodger rental income. Having a long-term boarder ($200/week = $10,400/year, lenders count ~$8,000) can boost borrowing by $40K-$50K. You'll need: (1) Rental agreement showing amount, (2) 6 months bank deposits, (3) Evidence boarder will continue. Many single parents successfully use this strategy.
Depends on your situation: First home buyer with FHG: 5% deposit (save $25K-$40K depending on price). General purchase: 10% deposit + LMI ($50K-$80K for $500K-$800K property). Avoid LMI: 20% deposit ($100K-$160K). Using guarantor: Potentially $0-5K deposit. The 5% FHG route is most achievable for many single parents. Also consider gifts from family or settlement funds from separation.
Single parent home ownership is achievable. We'll help you maximize every dollar of income, explore government schemes, and find lenders who understand your situation.
✓ Child support income expert • ✓ Government scheme specialist • ✓ Supportive, judgment-free advice