Can I get a home loan with low income?
Estimated read time: 2 Minutes
Many people believe that if you have a low income, you’re not eligible for a home loan. But all is not lost - if your household income is supported by benefits outside of your standard employment income then your home loan dreams could still become a reality.
Can I get a home loan with government benefits as my income source?
You might find it difficult to obtain a home loan if Centrelink or other regular government payments are your only source of income.
The government benefits that may count as valid income include:
- Carers allowance
- Disability support
- Long term pensions (War/Widow's pension)
- Family Tax Benefits (Parts A & B)
Preparing for a home loan with low income
While having low income can make things challenging, there are some simple strategies you could implement to put you on the front foot when looking to secure a home loan.
Understand your cashflow
Reduce debt
Saving for a deposit
Help from a guarantor
Low income? We’re here to help
As a specialist lender, we consider alternative income sources, including government benefits when evaluating your loan application. Find out more information about the types of income we accept towards a home loan.
We’ll talk to you to fully understand your individual situation, as well as completing a personal credit assessment of each application to make sure we’re able to provide you with a loan that’ll meet your specific needs.
And most importantly, that won’t put you in a loan that you can’t afford. Want to know more? Read about our responsible lending practices.
Contributor | Neil Culkin, Head of Credit and Settlements
Neil has a 20-year career in credit provision. At Pepper Money, he oversees the underwriting and credit control of all consumer finance loan applications. He is also responsible for updating lending policies and guidelines. Read more.
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Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.
All applications for credit are subject to credit assessment, eligibility criteria and lending limits. Terms, conditions, fees and charges apply.
The results of the borrowing power calculator are based on information you have provided and is to be used as a guide only. The output of the calculator is subject to the assumptions provided in the calculator (see 'about this calculator') and are subject to change. It does not constitute a quote, pre-qualification, approval for credit or an offer for credit and you should not enter commitments based on it. The interest rates do not reflect true interest rates and the formula used for the purpose of calculating estimated borrowing power is based on the assumption that interest rates remain constant for the chosen loan term. Your borrowing power amount will be different if a full application is submitted and we complete responsible lending assessment. The results in the calculator do not take into account loan setup or establishment fees nor government, statutory or lenders fees, which may be applicable from time to time. Calculator by Widgetworks.
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