Single parent home loans with Centrelink payments
If you're a single parent buying a home, some lenders will accept your Centrelink payments as part of your income.
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The lenders in the table below accept Centrelink payments when assessing your income as part of a mortgage application. Most lenders will only accept certain types of Centrelink payments and may not take the whole amount of your payment.
You'll also need to have sufficient income and meet the lender's credit criteria, just like any other loan. Start comparing loans below or skip ahead to read more about single parent payments and eligibility.
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Using Centrelink payments as income
As a single parent, you may be eligible to receive the Parenting Payment from Centrelink, and most lenders will accept it as part of your income. In addition to this, you may be eligible for the Childcare Benefit, which is also an acceptable form of income.
The federal government also offers the Family Tax Benefit, depending on your income. Once again, most lenders will accept this as a form of income, depending on the age of your children.
If you're receiving child support payments from a former partner, these are also taken into accou[/fin_hide]nt when assessing your income.
For a full list of the Centrelink benefits lenders accept as income, read our guide.
Tips for saving a deposit on a single income
Trying to put together a deposit for a home while raising a child on a single income can be difficult, especially as the costs of both are increasing. Take note of the following if you're looking for ways to save for a home and you're the provider for a dependent child.
- Government assistance. Single income parents may be eligible for the federal government’s Family Tax Benefit A & B, Parenting Payment and the Child Care Benefit. Government assistance can help cover the incidental day-to-day expenses and larger expenses like rent and child care, which can give you a little more room in the budget to save.
- How much do you earn? When it comes time to apply for your home loan, you will want to know how much you can borrow. A higher income means you can borrow more, and pre-approval will give you a ballpark figure. Once you’ve done a comparison of home loans, speak to the lender directly to find out whether parenting-related payments can be included on your home loan application.
- Budgeting. A budget is essential to any financial plan. List all the money you get, your income, and look at ways to cut down on the money going out.
- Get a savings account. High-interest savings accounts are great if you’re saving for a goal, such as a mortgage deposit. Not only do the accounts let you earn interest, they also come with features to help you save. Automatic savings plans are a great way to save for a goal.
- Get the right home loan. Spend some time comparing home loans and find the loan that’s the right fit for you. The right loan charges less in fees and gives you the flexibility to change the features as your situation changes in the future. A comparison of fees versus features now will save you time and money later.
Get free, personalised help from a mortgage broker
Mortgage brokers specialise in helping borrowers in difficult or unique circumstances, including borrowers with Centrelink payments. They can help you find lenders who accept government assistance as a source of income, and will help you work out how much you'll realistically be able to borrow to avoid being rejected for a loan. Mortgage brokers get a commission from the lender, meaning you don't have to pay for their help.
You can compare brokers in the table below. Simply click Enquire now and fill in your details to lodge an obligation-free enquiry.
Compare more brokers in the table below
Home Loan OffersImportant Information*
Up to $3,000 refinance cashback. A flexible and competitive variable rate loan. Eligible borrowers refinancing $250,000 or more can get $2,000 cashback per property plus a bonus $1,000 for their first application. Other conditions apply.
Up to $4,000 refinance cashback. A competitive variable rate loan from St.George. Refinancers borrowing $250,000 or more can get up $4,000 cashback for their first application (Other terms, conditions and exclusions apply).
A competitive variable rate mortgage for owner occupiers $0 application and $0 ongoing fees. This interest rate falls over time as you pay off the loan.
Take advantage of a low-fee mortgage with a special interest rate of just 2.49% p.a. and a 2.49% p.a. comparison rate.
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