Single Income Home Loan

Want to buy a home on a single income? Home loan options may be broader with two borrowers, but you can get a home loan on a single income.

Getting approved for a home loan on a single income is definitely an option, though your success depends on how much you earn and your current cost of living. You'll need to carefully work out how much you can borrow and repay comfortably and make sure that your spending is under control before you apply.

Follow our tips below and you'll find yourself in a much better position.

Work out your borrowing power

Your chances of approval depend in large part on how much money you want to borrow. From a lender's point of view, a realistic borrowing amount takes into things like:

  • Your income - generally, banks want to see you spend no more than 30% of your income on a home loan
  • Your expenses - lenders will look through your bank statements carefully to see how you spend
  • Your deposit size - the bigger your deposit, the more likely it will be that a bank will approve your loan
  • The value of the property you're buying - the property value needs to be in line with your income

Use a borrowing power calculator to estimate how much a lender will give you.

Save a 20% home loan deposit

The bigger the home loan deposit you can save, the easier the home loan approval process becomes. If you had a 60% deposit, lenders wouldn't think twice about lending to a borrower on a single income. Of course, that's not very realistic for the average borrower.

Saving a 20% deposit, however, is more realistic and a good way to strengthen your application as a single income applicant. It's not essential, as low deposit home loans are available for borrowers with deposits as low as 5%. But approval does get a lot harder, especially on a single income.

Check out our complete deposit saving guide

Get your debt and spending under control

In the months leading up to submitting your home loan application, get your spending under control. Review how much you're spending each month, identify areas where you can cut back (if any), set a budget and stick to it. This will make your lender happy and makes you a more reliable borrower, whether you're on a single income or not.

If you have urgent debts, such as personal loan or credit card debt, you should focus on paying them down before anything else. These debts will weigh against you in any mortgage application.

Read Finder's expert money saving tips

Choose your property carefully

The property you wish to buy is your lender's security in the event you can't repay your loan. It minimises the lender's risk because they can take the property (in a worst case scenario).

This means your lender cares about the property you're buying. Your lender will have the property valued to make sure you're not paying too much for the property. And if the property is in a poor condition or in an undesirable location the lender may reject your application or limit how much they can lend you.

Some lenders also have postcode restrictions for apartments, meaning they are more cautious about lending to people buying apartments in areas with a high saturation of such buildings.

Check what help is available

You might be buying a property on one income but you're not alone. There may be help available in the form of government grants and concessions.

Depending on your circumstances you may be able to get help from your family in the form of a guarantee.

  • First home owner grants. If you're a first home buyer you may qualify for a first home owner grant in your state or territory. You can even use the grant to form part of your deposit.
  • Stamp duty concessions. Also for first home buyers, you may qualify for a stamp duty concession. This could reduce your stamp duty costs significantly.
  • Parental guarantor. If you have parents who own their own property and are willing to help, they could guarantee part of your deposit. They don't have to pay anything, but they agree to pay some of the mortgage if you can't. This makes your application stronger and means you can potentially buy a property with a smaller deposit while on one income. It's not without risks and it's not an option for everyone though.

Speak to a mortgage broker

Before applying anywhere as a single income home loan applicant, consider speaking to a mortgage broker.

Brokers are experts at helping borrowers find home loans they can qualify for and then guiding them through the application process. If you don't feel confident and want some help with the process a broker is a good starting point.

They might even be able to help you boost your borrowing capacity and get a slightly larger home loan.

Need a competitive home loan? Compare your options

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1 - 19 of 19
Name Finder Score Interest Rate p.a. Comparison Rate p.a. Fees Monthly Payment
Unloan logo
Principal & Interest20% min. depositOwner-occupier
Unloan logo
Principal & Interest20% min. depositOwner-occupier
Go to site
Product NameUnloan Variable Home Loan
Interest Rate Typevariable rate
Repayment Type Principal & Interest
Interest Rate p.a.5.99%
Comp. Rate p.a.5.90%
Minimum Loan Amount$10,000
Maximum Loan Amount $10,000,000
Maximum Loan Term30 years
Maximum LVR 80%
Loan Redraw FacilityYes
Offset AccountNo
Split Loan FacilityNo
Fixed Interest OptionNo
Loan Portable
Extra Repayments Yes
Finder score
Interest Rate
5.99%
Comparison Rate
5.90%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$900
Go to site
loans.com.au logo
Principal & Interest10% min. depositOwner-occupierOffset account
loans.com.au logo
Principal & Interest10% min. depositOwner-occupierOffset account
Go to site
Product Nameloans.com.au Solar Home Loan
Interest Rate TypeVariable rate
Repayment Type Principal & Interest
Interest Rate p.a.5.99%
Comp. Rate p.a.6.44%
Minimum Loan Amount$50,000
Maximum Loan Amount $1,500,000
Maximum Loan Term30 years
Maximum LVR 90%
Loan Redraw FacilityYes
Offset AccountYes
Split Loan FacilityYes
Fixed Interest Option
Loan Portable
Extra Repayments Yes
Finder score
Interest Rate
5.99%
Comparison Rate
6.44%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$900
Go to site
loans.com.au logo
Principal & Interest10% min. depositInvestmentOffset account
loans.com.au logo
Principal & Interest10% min. depositInvestmentOffset account
Go to site
Product Nameloans.com.au Solar Home Loan
Interest Rate TypeVariable rate
Repayment Type Principal & Interest
Interest Rate p.a.6.19%
Comp. Rate p.a.6.53%
Minimum Loan Amount$50,000
Maximum Loan Amount $1,500,000
Maximum Loan Term30 years
Maximum LVR 90%
Loan Redraw FacilityYes
Offset AccountYes
Split Loan FacilityYes
Fixed Interest Option
Loan Portable
Extra Repayments Yes
Finder score
Interest Rate
6.19%
Comparison Rate
6.53%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$919
Go to site
ANZ logo
Principal & Interest20% min. depositOwner-occupierOffset account
ANZ logo
Principal & Interest20% min. depositOwner-occupierOffset account
Go to site
Product NameANZ Plus Home Loan Variable Rate
Interest Rate TypeVariable
Repayment Type Principal & Interest
Interest Rate p.a.6.09%
Comp. Rate p.a.6.10%
Minimum Loan Amount$10,000
Maximum Loan Amount $2,000,000
Maximum Loan Term30 years
Maximum LVR 80%
Loan Redraw FacilityYes
Offset AccountYes
Split Loan FacilityNo
Fixed Interest OptionNo
Loan Portable
Extra Repayments Yes
Finder score
Interest Rate
6.09%
Comparison Rate
6.10%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$909
Go to site
$2,000 cashback
Borrowers refinancing $250k or more to ANZ Plus before 31st March 2025 could get a cashback of $2,000. Excl. refinancers from ANZ or Suncorp. Other terms and conditions apply.
Unloan logo
Principal & Interest20% min. depositInvestment
Unloan logo
Principal & Interest20% min. depositInvestment
Go to site
Product NameUnloan Variable Home Loan
Interest Rate Typevariable rate
Repayment Type Principal & Interest
Interest Rate p.a.6.29%
Comp. Rate p.a.6.20%
Minimum Loan Amount$10,000
Maximum Loan Amount $10,000,000
Maximum Loan Term30 years
Maximum LVR 80%
Loan Redraw FacilityYes
Offset AccountNo
Split Loan FacilityNo
Fixed Interest OptionNo
Loan Portable
Extra Repayments Yes
Finder score
Interest Rate
6.29%
Comparison Rate
6.20%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$929
Go to site
P&N Bank logo
Principal & InterestInterest only40% min. depositOwner-occupier
P&N Bank logo
Principal & InterestInterest only40% min. depositOwner-occupier
Go to site
Product NameP&N Bank & Basic Home Loan
Interest Rate Typevariable rate
Repayment Type Principal & Interest Interest Only
Interest Rate p.a.6.13%
Comp. Rate p.a.6.16%
Minimum Loan Amount$150,000
Maximum Loan Amount N/A
Maximum Loan Term
Maximum LVR 60%
Loan Redraw FacilityNo
Offset AccountNo
Split Loan FacilityYes
Fixed Interest OptionNo
Loan Portable
Extra Repayments Yes
Finder score
Interest Rate
6.13%
Comparison Rate
6.16%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$913
Go to site
This is a competitive, low-fee interest-only loan for borrowers with 40% deposits.
P&N Bank logo
Principal & InterestInterest only 2Y Fixed20% min. depositOwner-occupier
P&N Bank logo
Principal & InterestInterest only 2Y Fixed20% min. depositOwner-occupier
Go to site
Product NameP&N Bank Fixed Home Loan
Interest Rate Typefixed rate
Repayment Type Principal & Interest Interest Only
Interest Rate p.a.5.74%
Comp. Rate p.a.6.21%
Minimum Loan Amount$20,000
Maximum Loan Amount N/A
Maximum Loan Term30 years
Maximum LVR 80%
Loan Redraw FacilityNo
Offset AccountNo
Split Loan FacilityYes
Fixed Interest OptionYes
Loan Portable
Extra Repayments No
Finder score
Interest Rate
5.74%
Comparison Rate
6.21%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$876
Go to site
Homeowners can lock in this competitive fixed rate for 2 years and make interest-only repayments.
loans.com.au logo
Principal & Interest10% min. depositOwner-occupierOffset account
loans.com.au logo
Principal & Interest10% min. depositOwner-occupierOffset account
Go to site
Product Nameloans.com.au Variable Home Loan
Interest Rate Typevariable rate
Repayment Type Principal & Interest
Interest Rate p.a.6.04%
Comp. Rate p.a.6.08%
Minimum Loan Amount$50,000
Maximum Loan Amount $2,000,000
Maximum Loan Term30 years
Maximum LVR 90%
Loan Redraw FacilityYes
Offset AccountYes
Split Loan FacilityYes
Fixed Interest Option
Loan Portable
Extra Repayments Yes
Finder score
Interest Rate
6.04%
Comparison Rate
6.08%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$905
Go to site
loans.com.au logo
Principal & Interest10% min. depositInvestmentOffset account
loans.com.au logo
Principal & Interest10% min. depositInvestmentOffset account
Go to site
Product Nameloans.com.au Variable Home Loan
Interest Rate TypeVariable rate
Repayment Type Principal & Interest
Interest Rate p.a.6.34%
Comp. Rate p.a.6.38%
Minimum Loan Amount$50,000
Maximum Loan Amount $2,000,000
Maximum Loan Term30 years
Maximum LVR 90%
Loan Redraw FacilityYes
Offset AccountYes
Split Loan FacilityYes
Fixed Interest Option
Loan Portable
Extra Repayments Yes
Finder score
Interest Rate
6.34%
Comparison Rate
6.38%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$934
Go to site
People's Choice Credit Union logo
Principal & Interest30% min. depositOwner-occupierNT, VIC & SA only
People's Choice Credit Union logo
Principal & Interest30% min. depositOwner-occupierNT, VIC & SA only
Go to site
Product NamePeople's Choice Credit Union Basic Variable
Interest Rate TypeVariable rate
Repayment Type Principal & Interest
Interest Rate p.a.5.89%
Comp. Rate p.a.5.90%
Minimum Loan Amount$150,000
Maximum Loan Amount N/A
Maximum Loan Term30 years
Maximum LVR 70%
Loan Redraw FacilityYes
Offset AccountNo
Split Loan FacilityYes
Fixed Interest OptionNo
Loan Portable
Extra Repayments Yes
Finder score
Interest Rate
5.89%
Comparison Rate
5.90%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$890
Go to site
Newcastle Permanent logo
Principal & Interest20% min. depositOwner-occupierOffset account
Newcastle Permanent logo
Principal & Interest20% min. depositOwner-occupierOffset account
Go to site
Product NameNewcastle Permanent Real Deal Home Loan
Interest Rate Typevariable rate
Repayment Type Principal & Interest
Interest Rate p.a.5.99%
Comp. Rate p.a.6.03%
Minimum Loan Amount$150,000
Maximum Loan Amount N/A
Maximum Loan Term30 years
Maximum LVR 80%
Loan Redraw FacilityYes
Offset AccountYes
Split Loan FacilityYes
Fixed Interest OptionYes
Loan Portable
Extra Repayments Yes
Finder score
Interest Rate
5.99%
Comparison Rate
6.03%
Fees
Application: $595
Ongoing: $0 p.a.
Monthly Payment
$900
Go to siteMore Info
$3,000 cashback offer
Eligible purchasers and refinancers can get $2,000 or $3,000 depending on loan value, as long as LVR is 80% or lower. Terms and conditions apply.
loans.com.au logo
Principal & Interest 3Y Fixed10% min. depositOwner-occupierSpecial
loans.com.au logo
Principal & Interest 3Y Fixed10% min. depositOwner-occupierSpecial
Go to site
Product Nameloans.com.au Fixed
Interest Rate Typefixed rate
Repayment Type Principal & Interest
Interest Rate p.a.5.69%
Comp. Rate p.a.6.13%
Minimum Loan Amount$50,000
Maximum Loan Amount $1,000,000
Maximum Loan Term30 years
Maximum LVR 90%
Loan Redraw FacilityNo
Offset AccountNo
Split Loan FacilityYes
Fixed Interest OptionYes
Loan Portable
Extra Repayments Available up to $10,000 per year
Finder score
Interest Rate
5.69%
Comparison Rate
6.13%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$871
Go to site
Ubank logo
Principal & Interest40% min. depositOwner-occupier
Ubank logo
Principal & Interest40% min. depositOwner-occupier
Go to site
Product NameUbank Neat Variable Home Loan
Interest Rate Typevariable rate
Repayment Type Principal & Interest
Interest Rate p.a.6.09%
Comp. Rate p.a.6.11%
Minimum Loan Amount$80,000
Maximum Loan Amount $5,000,000
Maximum Loan Term30 years
Maximum LVR 60%
Loan Redraw FacilityYes
Offset AccountNo
Split Loan FacilityNo
Fixed Interest OptionNo
Loan Portable
Extra Repayments Yes
Finder score
Interest Rate
6.09%
Comparison Rate
6.11%
Fees
Application: $250
Ongoing: $0 p.a.
Monthly Payment
$909
Go to site
bcu logo
Principal & Interest 2Y Fixed5% min. depositOwner-occupier
bcu logo
Principal & Interest 2Y Fixed5% min. depositOwner-occupier
Go to site
Product NameBCU Fixed Rate Home Loan
Interest Rate Typefixed rate
Repayment Type Principal & Interest
Interest Rate p.a.5.74%
Comp. Rate p.a.6.16%
Minimum Loan Amount$20,000
Maximum Loan Amount $2,500,000
Maximum Loan Term30 years
Maximum LVR 95%
Loan Redraw FacilityNo
Offset AccountNo
Split Loan FacilityYes
Fixed Interest OptionNo
Loan Portable
Extra Repayments No
Finder score
Interest Rate
5.74%
Comparison Rate
6.16%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$876
Go to site
loans.com.au logo
Interest only20% min. depositOwner-occupier
loans.com.au logo
Interest only20% min. depositOwner-occupier
Go to site
Product NameLoans.com.au Bridging Loan
Interest Rate TypeVariable
Repayment Type Interest Only
Interest Rate p.a.7.75%
Comp. Rate p.a.6.54%
Minimum Loan Amount$50,000
Maximum Loan Amount $3,000,000
Maximum Loan Term30 years
Maximum LVR
Loan Redraw FacilityNo
Offset AccountNo
Split Loan FacilityNo
Fixed Interest OptionNo
Loan Portable
Extra Repayments Yes
Finder score
Interest Rate
7.75%
Comparison Rate
6.54%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$1,076
Go to site
Heartland Reverse Mortgages logo
Principal & InterestInterest only50% min. depositOwner-occupier
Heartland Reverse Mortgages logo
Principal & InterestInterest only50% min. depositOwner-occupier
Go to site
Product NameHeartland Standard Reverse Mortgage
Interest Rate Typevariable rate
Repayment Type Principal & Interest Interest Only
Interest Rate p.a.9.75%
Comp. Rate p.a.9.78%
Minimum Loan Amount$5,000
Maximum Loan Amount N/A
Maximum Loan Term
Maximum LVR 50%
Loan Redraw FacilityYes
Offset AccountNo
Split Loan FacilityNo
Fixed Interest OptionNo
Loan Portable
Extra Repayments Yes
Finder score
Interest Rate
9.75%
Comparison Rate
9.78%
Fees
Application: $0
Ongoing: $0 p.a.
Monthly Payment
$1,290
Go to site
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The Finder Score crunches 7,000 home loans across 120+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

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Richard Whitten is Finder’s Money Editor, with over seven years of experience in home loans, property and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Graduate Certificate in Communications from Deakin University. See full bio

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4 Responses

    Default Gravatar
    JaneOctober 13, 2015

    I have split up from my partner and now need to find a home for myself and my son. I only work part time, I may be able to borrow from a family member for a deposit, but is it likely that anyone would give me a home loan on a such a low wage? Thanks

      Default Gravatar
      JodieOctober 14, 2015

      Hi Jane,

      Thank you for your inquiry.

      There are lenders out there that would be willing to offer you a home loan and there are multiple ways that you can learn about this, as well as the information on this page, we also have low-income home loans and also guarantor home loans, if you are able to get a family member co-guarantor on your loan.

      You might also find it helpful to speak to a mortgage broker as they can take all your circumstances into consideration and offer you advice on the options that are best for your specific needs.

      I hope this helps.

      Regards
      Jodie

    Default Gravatar
    CaraMarch 19, 2015

    My husband is bankrupt and I wanted to go for a home loan. am I able to take into account his wages or not?

      AvatarFinder
      ShirleyMarch 19, 2015Finder

      Hi Cara,

      Thanks for your question.

      If you apply with your husband as a joint application, his credit history will have an impact on the application.

      In this unique situation, it may be best to speak to a mortgage broker or approach a bad credit lender to see if they will consider your husband’s income. They will be able to help you further in narrowing down a suitable home loan option for you.

      Cheers,
      Shirley

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