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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 June 25th, 2018
$
Loan purpose
Offset account
Loan type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.69%
3.69%
$0
$0 p.a.
80%
Get $1,000 cash into a USaver account when you apply for a loan of $200,000 or more (new or refinance). Terms and conditions apply. Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
3.64%
3.66%
$0
$0 p.a.
80%
Pay no ongoing fees and enjoy a flexible repayment schedule, including the ability to make unlimited additional repayments without penalty.
3.69%
3.69%
$0
$0 p.a.
70%
Pay no application or ongoing fees and get a flexible loan with the ability to split up to 6 times.
3.69%
4.11%
$0
$395 p.a.
80%
Save on interest with a 100% offset account and save on other ME products with this package loan.
3.64%
3.67%
$0
$0 p.a.
80%
This loan offers a competitive variable rate and a 100% offset account to help save you on interest repayments.
3.52%
3.53%
$0
$0 p.a.
80%
Go from application to approval in as little as 20 minutes with a variable rate loan from this innovative online lender. Add a 100% offset account for $10 a month.
3.49%
4.49%
$0
$395 p.a.
90%
Loans over $150k get a discount off an already low fixed rate. Available for NSW, Qld and ACT residents only.
3.89%
4.88%
$0
$395 p.a.
95%
Low deposit package loan with a range of discounts. Earn up to 500,000 Velocity Points to spend on flights, hotels and more.
3.69%
3.70%
$0
$0 p.a.
90%
Package your loan and get an interest rate discount, a 100% offset account and help from an HSBC relationship manager.
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.
3.73%
3.76%
$0
$0 p.a.
80%
This basic loan offers discounts for higher borrowing amounts and carries no ongoing fees.
3.64%
3.67%
$0
$0 p.a.
80%
A mortgage with a competitive variable rate, limited fees and plenty of flexibility.
3.79%
3.79%
$0
$0 p.a.
80%
Pay no application and ongoing fees with Macquarie Bank Basic Home Loan.
3.84%
3.87%
$0
$0 p.a.
90%
Save on interest with a free 100% offset account and buy your property with just a 10% deposit.
3.49%
3.52%
$500
$0 p.a.
95%
This mortgage combines a very sharp interest rate with a 100% offset account and it's available with a 5% deposit.
3.54%
3.58%
$0
$0 p.a.
80%
Eligible borrowers can get $900 cashback on this loan with a 100% offset account and a redraw facility.
3.99%
4.85%
$0
$395 p.a.
95%
Competitive fixed rate package loan. For a limited time you can earn Velocity Points to spend on hotels and flights.
3.65%
3.66%
$0
$0 p.a.
80%
This special rate mortgage has no ongoing fees and offers flexible repayments. Save $595 in establishment fees before 30 June.
3.68%
3.83%
$0
$10 monthly ($120 p.a.)
80%
Get a 100% offset account to save on interest charges, and pay no application fee.
3.68%
4.00%
$0
$299 p.a.
80%
Get a 100% offset account and rate discounts for higher borrowing amounts.
3.64%
3.69%
$600
$0 p.a.
80%
A competitive variable rate for borrowers with a 20% deposit or more. Guarantor option available.
3.69%
3.74%
$600
$0 p.a.
80%
A low rate variable home loan offer with no monthly fees or application fee charge.
3.62%
3.62%
$0
$0 p.a.
95%
A low deposit mortgage with a competitive rate and plenty of flexibility. QLD residents only.
3.62%
3.62%
$0
$0 p.a.
80%
Pay no application or ongoing fees and get access to a redraw facility and flexible repayment schedule. Get $1,000 cash into a USaver account when you apply for a loan of $200,000 or more. Terms and conditions apply.
3.64%
3.84%
$0
$0 p.a.
70%
Enjoy all the benefits of the Basic Home Loan and take advantage of an offset account.
3.96%
3.98%
$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.
3.68%
4.00%
$0
$299 p.a.
80%
Get a 100% offset account and rate discounts for higher borrowing amounts.
3.74%
3.74%
$0
$0 p.a.
110%
Pay no deposit or LMI and get a discounted rate with this family pledge loan. Requires a family member to act as guarantor. NSW, Qld and ACT only.
3.73%
3.76%
$0
$0 p.a.
80%
This basic loan offers discounts for higher borrowing amounts and carries no ongoing fees.
3.70%
4.13%
$0
$395 p.a.
90%
Package your loan with an eligible credit card for discounts on rates and fees, and get a 100% offset account.
3.64%
4.03%
$0
$349 p.a.
90%
Package your loan with other AMP products and save on rates and fees.
3.77%
3.81%
$200
$0 p.a.
95%
A simplified mortgage with a low interest rate and a 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.
3.64%
3.96%
$0
$299 p.a.
80%
Get a fully-featured loan with a 100% offset account and discounts for higher borrowing amounts.
3.68%
3.69%
$0
$0 p.a.
95%
This variable rate loan offers flexible repayments and a redraw facility. Available with a 5% deposit.
3.69%
3.94%
$0
$248 p.a.
70%
Get a sharp rate and a 100% offset account. Borrowers must have a 30% deposit.
3.59%
3.99%
$600
$395 p.a.
95%
Get interest rate discounts and waived fees on this package loan with a 100% offset account.
3.68%
3.69%
$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.
3.87%
3.87%
$0
$10 monthly ($120 p.a.)
90%
Get Virgin Velocity Points at settlement, monthly and every three years, plus the option to make up to $10,000 a year in extra repayments.
4.09%
4.11%
$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.
3.69%
4.04%
$0
$350 p.a.
95%
A competitive rate with no application fee.
3.83%
4.49%
$0
$299 p.a.
95%
Owner-occupiers can enjoy a discounted fixed rate, a rate lock feature and the ability to make additional repayments.
3.99%
3.74%
$0
$0 p.a.
90%
2 years fixed interest terms with no application fee or ongoing fees, loans.com.au has won a range of awards for their home loans.
3.79%
3.79%
$0
$0 p.a.
80%
Get a 100% offset account and pay no application or ongoing fees on this special variable rate for owner-occupiers.
3.89%
3.92%
$0
$0 p.a.
80%
A low-fee line of credit loan from an online lender. Unlock the equity in your home and make interest-only repayments with a competitive rate.
3.79%
3.83%
$600
$0 p.a.
80%
A low interest rate loan with limited fees and a redraw facility. Principal and interest repayments only.
4.09%
4.12%
$0
$0 p.a.
90%
Access a fee-free offset account and a special interest rate for investors.
3.78%
3.78%
$0
$0 p.a.
80%
Pay no application or ongoing fees and get access to a free redraw facility with this innovative online lender.
3.89%
3.89%
$0
$0 p.a.
70%
Investors with a 30% deposit can get this low rate loan to fund their property portfolio.
3.99%
5.17%
$600
$0 p.a.
90%
Competitive rates for fixed for 3 years with redraw facility.
3.90%
4.78%
$600
$0 p.a.
95%
A competitive fixed rate mortgage with split facilities and extra repayments. You can get this loan with a 5% deposit.
3.74%
3.74%
$0
$0 p.a.
90%
New customers can get a discounted variable rate and a fee-free redraw facility. NSW, QLD and ACT residents only.
4.09%
4.12%
$0
$0 p.a.
95%
Buy a home with just a 5% deposit and get flexible repayment options and a redraw facility.
3.59%
4.14%
$395
$0 p.a.
80%
A one year fixed rate offer with no ongoing bank fees.
4.14%
4.14%
$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.
3.99%
4.62%
$395
$0 p.a.
80%
Investors can enjoy flexible repayments and an easy application process with this pioneering 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.
3.74%
4.01%
$395
$0 p.a.
80%
A competitive 3 year fixed rate with no ongoing bank fees.
3.64%
3.64%
$0
$0 p.a.
70%
Get a discount for keeping your LVR at 70% or below with this innovative online lender.
3.85%
4.05%
$0
$350 p.a.
95%
This high LVR fixed rate loan allows you to borrow up to 95% of the value of the property you're buying.
3.99%
3.99%
$0
$0 p.a.
80%
Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required. Get $1,000 cash into a USaver account when you apply for a loan of $200,000 or more (new or refinance). Terms and conditions apply.
3.69%
4.47%
$0
$395 p.a.
90%
A fixed rate loan with a 100% offset account and the option to make additional repayments. Loans over $150k receive a discounted rate. NSW, QLD and ACT residents only.
3.85%
4.82%
$600
$35 monthly ($420 p.a.)
90%
Make up to $10,000 in extra repayments per year and take advantage of a flexible repayment schedule.
3.69%
3.70%
$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.
3.99%
4.03%
$0
$0 p.a.
95%
Buy a home with just a 5% deposit and pay no application or ongoing fees.
3.89%
4.96%
$0
$395 p.a.
95%
Switch to this loan and can get $1,500 cashback. Conditions apply. Package your home loan with a Qantas rewards earning Amplify credit card.
3.89%
4.97%
$0
$395 p.a.
95%
Get discounts on a range of Commonwealth Bank products and enjoy the option of fee-free extra repayments during the fixed term.
3.64%
3.65%
$500
$0 p.a.
95%
Family pledge option available. Get a special discount off Bank of Melbourne's basic variable rate.

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 content marketer manager 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*
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.

UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupied Variable P&I Rate — borrowing $700,000 or more

Pay no application or ongoing fees and get access to a redraw facility and flexible repayment schedule. Get $1,000 cash into a USaver account when you apply for a loan of $200,000 or more. Terms and conditions apply.

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤90% ($150K+ Owner Occupier)

Loans over $150k get a discount off an already low fixed rate. Available for NSW, Qld and ACT residents only.

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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

    • finder Customer Care
      JodieOctober 14, 2015Staff

      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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