Single income home loans: 6 steps to success
Want to get a home loan on a single income? Be realistic with your budget, build your deposit and take advantage of government support wherever you can.
Key takeaways
- Borrowers on a single income have a lower borrowing power than couples with a combined income.
- To maximise their chances of success, a single income borrower needs to budget really carefully and get their finances in good shape first.
- There are also support schemes to lower your entry costs, like first home owners grants, stamp duty discounts and the Australian Government 5% Deposit Scheme.
1. Work out your borrowing power
Your chances of approval depend in large part on how much money you want to borrow. This is determined by:
- Your income. Generally, banks want to see you spend no more than 30% of your income on a home loan.
- Your expenses. Lenders 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. The value of the property you're buying needs to be in line with your income.
Use a borrowing power calculator to estimate how much a lender will give you.
2. Save a 20% home loan deposit
The bigger the home loan deposit you can save, the easier the home loan approval process becomes. While saving a 20% deposit can be a tall order, it does strengthen your application as a single income applicant.
It also removes the added cost of lenders mortgage insurance, which you have to pay when your deposit is below 20%.
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
3. 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 shows you're a 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.
Read Finder's expert money saving tips
4. Choose your property carefully
The property you wish to buy is your lender's security in the event you can't repay your loan. 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.
One income, bigger worries: the mortgage gap for women
On a single income, affordability worries hit differently. Just 29% of women say they can comfortably afford their mortgage repayments, compared to 40% of men. Choosing a lender that assesses single-income applications fairly, and borrowing conservatively against your own budget, can make a real difference to how manageable repayments feel.
Source:
Finder's 2026 Home Loan Report
5. Check what support is available
You might be buying a property on one income but you're not alone. There is help available in the form of government grants and concessions.
The Australian Government 5% Deposit Scheme
The main federal government support for single income borrowers with children is the Australian Government 5% Deposit Scheme (formerly the Home Guarantee Scheme, which included the Family Home Guarantee).
Under this scheme eligible single parents or legal guardians can get a home loan with just a 2% deposit and borrow the rest. Since 1 October 2025 there are no income caps or waitlists, but property price caps still apply. The scheme lets the borrower avoid lenders mortgage insurance (LMI), a hefty charge for borrowers with smaller deposits.
This can lower your costs. But keep in mind that borrowing 98% of a property's value is a risky proposition as you'll have larger loan repayments and you won't have much equity at the start.
And if you're not a single parent but you're a first home buyer, the same 5% Deposit Scheme lets you buy with a 5% deposit and avoid LMI.
Other grants and support options
- 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 hard to buy on your own
17% of Australian first home buyers in 2025 relied on some level of financial support from their parents to enter the property market. This is up from 11% in 2022. And the number of Australians who enter the property market on their own continues to fall. 45% of first home buyers in 2021 were single borrowers. Today it's 39%.
6. 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.
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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
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
My husband is bankrupt and I wanted to go for a home loan. am I able to take into account his wages or not?
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