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Single Income Home Loans

Just because your family lives on a single income doesn’t mean you won’t be able to find a home loan.

Single incomes and mortgages are not mutually exclusive, but it may require some extra planning to be approved for a loan and then be able to meet your monthly repayments. You just need to know where to look and what to look for.

Before you start, it might be wise to speak with a mortgage broker who understands the current market and can give you helpful advice. Be sure to do your homework, not just about the different rates and conditions offered by banks and lenders, but also about savings and budgeting tools like mortgage offset accounts, first home buyers grants and family home guarantees.

Rates last updated December 15th, 2018
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Loan purpose
Offset account
Loan type
Repayment type
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.59%
3.61%
$0
$0 p.a.
90%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.
3.59%
3.59%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
3.57%
3.58%
$0
$0 p.a.
80%
Get a very low interest rate and avoid big fees. Apply online for full approval in under 30 minutes and add a 100% offset account for $10 a month.
3.64%
3.66%
$0
$0 p.a.
80%
A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $2000000 from a convenient online lender.
3.64%
3.64%
$0
$0 p.a.
70%
A low interest rate home loan with no application or ongoing fees.
3.54%
3.58%
$0
$0 p.a.
80%
Get a competitive rate, save on fees and access a 100% offset account plus redraw facility. $900 cashback offer.
3.75%
3.75%
$0
$0 p.a.
70%
A simple mortgage with no application or ongoing fees that has extra repayments plus split and redraw options. Requires a 30% deposit.
3.54%
3.57%
$0
$0 p.a.
80%
A competitive variable essentials interest rate product aimed at refinancers looking to switch to a lower rate.
3.80%
4.05%
$0
$0 p.a.
70%
Earn tens of thousands of Qantas Points to spend on flights, hotels and more with this variable owner occupier mortgage. Competitive variable rate mortgage that requires a 30% deposit.
3.88%
4.51%
$0
$395 p.a.
90%
Lock in a very competitive 2 year rate and get package discounts on your credit card and offset account. $1,500 cashback available (conditions apply).
3.85%
3.85%
$0
$0 p.a.
80%
Low fee loan with extra repayments. Pay no application and ongoing fees and take advantage of split and redraw options.
3.59%
3.63%
$495
$0 p.a.
90%
Get a low variable interest rate and buy a property with just a 10% deposit. 100% offset account attached.
3.68%
3.82%
$0
$10 monthly ($120 p.a.)
80%
Earn Velocity Frequent Flyer Points with this mortgage to spend on flights and more (for a limited time, subject to eligibility requirements). Redraw facility available on this variable rate home loan. Competitive interest rate.
3.79%
3.80%
$0
$0 p.a.
90%
Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000. Plus $1,500 cashback offer for eligible refinancers.
3.69%
4.86%
$0
$395 p.a.
90%
Special discounted rate for first home buyers. Start your home buying journey with 2 years of fixed repayments at a competitive rate plus package discounts. Available with a 10% deposit.
3.74%
4.13%
$0
$349 p.a.
90%
Get a sharp rate plus package discounts and a 100% offset account.
3.69%
4.12%
$0
$395 p.a.
80%
Unlock a range of savings with this competitive package home loan offer. Offset account and redraw facility included.
3.68%
3.70%
$0
$0 p.a.
80%
A competitive variable rate mortgage for owner occupiers that comes with a no fee debit card with a $5,000 limit.
3.87%
3.91%
$600
$0 p.a.
95%
A home loan with no ongoing fee and a redraw facility that you can borrow up to 95% LVR.
3.74%
4.01%
$395
$0 p.a.
80%
A competitive fixed interest rate product with no ongoing bank fees.
3.79%
3.82%
$0
$0 p.a.
80%
An essentials variable investor mortgage with a high borrowing amount so you can fund a large purchase.
3.64%
3.78%
$0
$10 monthly ($120 p.a.)
80%
Earn Velocity Frequent Flyer Points on your mortgage (subject to eligibility requirements). Plus, access a 100% offset account to save on interest.
3.84%
3.85%
$0
$0 p.a.
70%
Keep your LVR at 70% or below and enjoy a special discounted rate. Also, pay no application or ongoing fees.
3.64%
3.59%
$0
$0 p.a.
80%
Fast, 100% online application process. Very limited fees. Optional offset account (with fee).
3.79%
3.79%
$0
$0 p.a.
80%
Access an offset account and pay no application or ongoing fees on this special variable rate for owner-occupiers.
3.71%
3.71%
$0
$0 p.a.
70%
A variable rate home loan that has a lot of flexible features. This loan has a 100% offset account.
3.98%
5.01%
$0
$395 p.a.
90%
Fix the rate on your investment property for 2 years with this competitive home loan package.
3.72%
3.74%
$0
$0 p.a.
80%
Save on interest by taking advantage of a 100% offset account along with no ongoing fees or application fees.
3.83%
4.89%
$0
$395 p.a.
80%
A flexible 3 year fixed rate loan you can use to buy your own home.
3.64%
3.64%
$0
$0 p.a.
70%
A basic variable home loan that offers a competitive interest rate with no application fees and no ongoing fees.
3.84%
3.84%
$0
$0 p.a.
80%
Pay no application or ongoing fees and get access to a free redraw facility with this innovative online lender.
3.87%
3.91%
$0
$10 monthly ($120 p.a.)
90%
Get Velocity Frequent Flyer Points at settlement, monthly and every three years, plus the option to make up to $10,000 a year in extra repayments.
3.59%
4.14%
$395
$0 p.a.
80%
A one year fixed rate offer with no ongoing bank fees.
3.85%
4.69%
$0
$0 p.a.
90%
A package home loan with a sharp fixed rate and a 10% deposit option for low deposit borrowers.
3.70%
3.90%
$0
$0 p.a.
70%
Enjoy all the benefits of the Basic Home Loan and take advantage of an offset account.
3.75%
4.72%
$0
$299 p.a.
95%
Owner-occupiers can enjoy a discounted fixed rate, a rate lock feature and the ability to make additional repayments.
3.74%
3.74%
$0
$0 p.a.
80%
A basic owner-occupier home loan with a low variable rate that requires a 20% deposit.
3.89%
4.27%
$0
$395 p.a.
80%
New borrowers or refinancers can get a discounted rate with this package loan.
3.59%
3.58%
$0
$0 p.a.
80%
Apply online and get fast approval for this fixed rate, low-fee loan with redraw facilities. Add a 100% offset account for a small fee.
3.99%
4.13%
$0
$10 monthly ($120 p.a.)
80%
A competitive variable rate home loan with no application fee.
3.62%
3.62%
$0
$0 p.a.
95%
A low deposit mortgage with a competitive rate and plenty of flexibility. QLD residents only. Eligible borrowers can get a 15% discount on home and contents insurance for the life of their loan.
3.84%
3.82%
$0
$0 p.a.
80%
A fixed rate loan with free redraws, few ongoing fees. Apply online with a fast approval process.
3.89%
3.94%
$0
$0 p.a.
80%
Pay no application or ongoing fee and borrow up to 80% LVR.
3.73%
3.87%
$0
$10 monthly ($120 p.a.)
80%
Borrow up to $500000 and earn Velocity Frequent Flyer Points (terms and conditions apply).
3.75%
4.00%
$0
$248 p.a.
70%
Borrowers with a 30% deposit can get this competitive rate. Cut down on interest costs with a 100% offset account.
3.69%
4.75%
$0
$395 p.a.
90%
Enjoy a competitive rate with no application fee for this package loan.
3.79%
4.87%
$0
$395 p.a.
95%
Low deposit home loan. Enjoy flexible repayment options while paying limited fees.
3.81%
3.81%
$0
$0 p.a.
80%
A home loan with a competitive rate and plenty of handy features. This product comes with a 100% offset account.
4.04%
4.07%
$0
$0 p.a.
90%
For a limited time, pay no application or settlement fees. You can also take advantage of a free redraw facility.
3.97%
3.99%
$0
$0 p.a.
80%
Package your owner occupied loan with investment loan and receive a discounted investment rate. 100% offset account included.
3.69%
4.08%
$0
$349 p.a.
90%
Package your loan with other AMP products and save on rates and fees.
3.89%
3.91%
$0
$0 p.a.
80%
This variable rate loan keeps the features simple and fees low. This loan is offered by a 100% online lender.
3.94%
3.94%
$0
$0 p.a.
70%
Investors with a 30% deposit can get this low rate loan to fund their property portfolio. Take advantage of split and redraw facilities.
3.89%
3.94%
$0
$0 p.a.
90%
Borrow up to 90% of the value of the property you're buying, and pay no application fee.
4.18%
4.18%
$0
$0 p.a.
80%
Investors get a 100% offset account and pay no application or ongoing fees on this loan from an innovative online lender.
3.94%
4.95%
$595
$0 p.a.
95%
Borrow up to 95% LVR of the value of the property you're buying and pay no application or ongoing fees.
3.70%
3.70%
$0
$0 p.a.
70%
Get a discount for keeping your LVR at $70% or below with this innovative online lender.
3.99%
4.86%
$0
$0 p.a.
80%
Access a fee-free 100% offset account and pay no application or ongoing fees.
3.99%
4.62%
$395
$0 p.a.
80%
Investors can enjoy flexible repayments and an easy application process with this pioneering online lender.
4.29%
4.26%
$0
$0 p.a.
95%
A competitive 3-year fixed rate loan with a high max insured LVR.
3.99%
3.99%
$0
$0 p.a.
80%
Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required.

Compare up to 4 providers

How much do I need to save?

Many costs associated with buying a home can be easily overlooked, but it’s these extra expenses that can really add up. If you weren’t expecting them and hadn’t included them in your home loan budget, they can come as a nasty surprise.

  • Deposit. The more money you have saved to pay upfront, the more likely you are to avoid charges like lenders mortgage insurance (LMI). While not applicable in some cases, LMI protects lenders when borrowers who pay less than 20% deposit default on their loan.
  • Aim to save 20% of the total cost of the home in order to avoid LMI.
  • Checks. Conveyancing, pest inspections and an independent valuation are all essential expenses that can really set you back.
  • Government costs. Stamp duty varies from state to state and is another cost that is often overlooked. You may also have to pay a mortgage registration or transfer fees and any applicable land taxes or rates. You can find out how much stamp duty you might have to pay using our stamp duty calculator.
  • Bank fees. Bank fees can be crippling so it really pays to shop around. The cost of application fees, bank valuation fees and lenders mortgage insurance can run into the thousands.
  • Set-up costs. Don’t be tempted to spend everything you have before you have even moved in. Costs like minor renovations, furniture, removalist fees and home and contents insurance are easy to overlook, but they generally come with the territory when you buy a home and can be expensive.
  • Loan repayments. You are moved in, insured, the fees are paid and you’ve painted the walls, but don’t forget about your regular repayments, which will come the moment you are settled in. If you have budgeted correctly you should be able to comfortably meet the monthly amount.

How to save for your deposit

Generally speaking, if you have a smaller amount saved for a deposit, you may incur extra fees and charges such as LMI. To avoid this, save as much as possible so that when the time comes you are prepared for the expenses. You need to save 20% of the total cost of your home as a deposit to avoid extra charges and be able to afford upfront fees. When you are saving for your deposit there are some tried and true tips and tricks to help you stay on track:

  • Goal setting. Make short, medium and long term goals for saving money and try to stick to them. Reward yourself with something non-financial as you achieve small milestones along the way.
  • Re-evaluate your expenses. When you are saving for a home loan deposit, every little bit counts. If you cut out the fluff, you’ll be surprised at how quickly you are able to save. Have a look at your major outgoings. One of your biggest expenses will most likely be rent. If it's possible for a short time, consider moving back home with your parents—the amount you will save in rent will help you take huge strides closer to that deposit.
  • Make use of designated savings and budgeting accounts. One helpful budgeting tool could be using a mortgage offset account, with the amount in your account being taken off the principal amount of your loan and reducing your interest. If you’re a first home buyer, first home saver accounts are dedicated accounts that allow you to keep a track of your savings and make reaching your financial goals a more manageable task.
  • Be aware of extra costs and utilise all of your options to save. If you think saving 20% of the total amount of your home will be hard to manage, options like a family guarantee could help you avoid crippling costs like LMI. If this will be your first home purchase, check the eligibility requirements for a first home owners grant.
How to manage your repayments

Tips

tips

Once you are settled in and have paid all the initial fees, mock up a weekly budget to help you keep on track with your repayments. Some tips for keeping up include:

Make use of a mortgage offset account. This can reduce the amount of interest you pay and shorten the length of your loan.

Communicate with your bank or lender. If you are struggling to make your repayments or think it's likely that you might miss a repayment, contact your bank or lender immediately to arrange a budgeting plan or alternative repayment options.

Make additional repayments whenever possible. This may especially come in handy if you are able to withdraw from your mortgage, or if personal circumstances require you to take a loan holiday.

Budget honestly and consider a savings account. When you are in debt, paying off that debt as quickly as possible seems like your most important financial goal, but saving for a rainy day is also worthwhile. If something goes wrong, not having to borrow from a family member or skipping a repayment for lack of funds will help you get back on track quicker.

If you do find yourself struggling, evaluate your current living situation and lifestyle. If you have a spare room, consider renting it out. Any extra income you make to help you stay on track and still allow you enough for a high quality of life will be worthwhile.

How to apply for a single income home loan

If you are considering taking out a loan, compare lenders to find the best rates and the most appropriate loan for your life and circumstances. If you are unsure about your options, speak with a mortgage broker to get some good advice.

To be eligible for a home loan you need to:

  • Have enough funds upfront, or a have a guarantor. You’ll usually need a deposit to be eligible for a home loan, with a 20% deposit helping you to avoid LMI. If you're having trouble saving a deposit, there may still be options open to you if a parent or close family member is willing to serve as a guarantor by providing their home as security.
  • Meet income requirements. In order to be eligible for a home loan, you may need to have a proven steady income. This is where some single income families can have trouble.
  • Meet credit requirements. You generally need to have a good credit history, although some lenders and mortgage brokers will specialise in helping borrowers with bad credit.

You will also be required to provide the following documents or evidence:

  • Proof of identity. This can include your driver’s licence, passport, medicare information or other similar documents.
  • Proof of income. You may need to provide payslips or tax information.
  • Debts and assets. You may also need to provide information about any assets you have, such as a car, a home or a trust. Any outstanding debts you have, such as credit cards, store cards or personal loans may also need to be disclosed.

Buying a home on a single income can be a scary proposition, but if you have the income and the deposit there is no reason why it can’t be done. Banks and lenders are competing for your business, which is an advantageous position to be in. Take the time to compare rates, fees and repayment options to make sure that that your home loan is specifically suited to your needs.

Marc Terrano

Marc Terrano is a Lead Publisher at finder. He's been writing and publishing personal finance content for over five years and loves to help Australians get a better deal.

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Home Loan Offers

Important Information*
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000

Take advantage of a low-fee mortgage with a special interest rate of just 3.59% p.a. and a 3.59% p.a. comparison rate.

HSBC Home Value Loan - (Owner Occupier P&I)

Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.

loans.com.au Essentials - Variable (Owner Occupier, P&I)

A competitive interest rate home loan with interest only options. Interest rate 3.64% p.a.
comp rate of 3.66% p.a.

Tic:Toc Live in Loan Variable Rate - Principal & Interest

Get a very low interest rate and avoid big fees. Apply online for full approval in under 30 minutes and add a 100% offset account for $10 a month.

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4 Responses

  1. 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 reaching out to finder.com.au a financial comparison website.

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

  2. 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?

    • finder Customer Care
      ShirleyMarch 19, 2015Staff

      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 broker or approach a bad credit specialist lender to see if they will consider your husband’s income. They’ll be able to help you further should need further help in narrowing down a suitable home loan option.

      Cheers,
      Shirley

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