If you currently receive Centrelink benefits, you may be able to borrow money from a bank for a small home loan. There are some lenders who accept some Centrelink payments as part of your income, but it's likely you'll need to purchase with another buyer in order to have enough income to satisfy a loan assessment.
If you're receiving a Centrelink benefit, your home loan application will be processed the same as any other: you save a deposit and then borrow money from the lender, which you pay back with interest. However, not all lenders accept Centrelink payments as income and those that do, have a stricter application process.
Getting in touch with a mortgage broker is a good idea. Brokers specialise in finding loans for borrowers in unique circumstances such as this, and their services are 100% free. They get paid in commission from the bank for successfully settling the loan, so you can get access to a service that helps you find the right lender without it costing you any money.
If you receive a pension, check out our home loans for pensioners guide
The following Centrelink benefits may be considered as an acceptable form of extra income. The information below is a general guide only; please remember that each lender treats Centrelink income differently:
| Type of benefit | Accepted? | Notes |
| Age pension | Yes - secondary income | Age pension will only be considered as a secondary form of income. You must have another source of earnings in addition to the benefit. |
| Carer's Allowance | Yes - secondary income | This type of benefit will require that you have an additional source of income. Earnings from a job would be your primary source, while the allowance is considered supplemental. |
| Child Support | Yes - primary income | You will need to provide documentation including the Family Law Court Order, bank statements showing a steady deposit history, a letter from your solicitor and a letter obtained from the Child Support Agency (CSA). |
| Disability Pension | Yes - secondary income | If you receive a disability pension you will need to show proof of a second source of income. |
| Family Tax Benefits | Yes - primary income | This applies if you are receiving Family Tax Benefits part A and B. Lenders will look at the age of your children before deciding if this is an acceptable form of income. |
| Foster Care Allowances | Yes - secondary income | Allowances for foster care are accepted so long as you are receiving another source of income. |
| Overseas Pension | Yes - primary income | Only in the event that your pension is coming from one of the following countries: Austria, Belgium, Canada, Chile, Croatia, Cyprus, Denmark, Finland, Germany, Greece, Ireland, Italy, Japan, Korea Republic, Malta, Netherlands, New Zealand, Norway, Poland, Portugal, Slovenia, Spain, Switzerland or the United States of America. |
| Veterans and Widows Pension | Yes - primary income | While there are typically no conditions to be met, but your application is more likely to be approved if you have another form of income as well. |
If the benefit you receive from Centrelink is not listed on the chart above, then it may not be considered by lenders as a genuine form of income. In this case it might be best to speak to a lender directly about your options and eligibility.
To ensure that you are getting the right home loan for your circumstance make sure that you are comparing the criteria and what is being offered by different lending institutions.
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