Home Loans on a Single Income

Yes, you can buy solo

Let us clear this up first: being a single-income buyer does not disqualify you from anything. Lenders assess one income the same way they assess two, they just have one income to work with instead of two. Plenty of nurses, teachers, tradies, professionals and sole parents buy on their own every year.

What changes is the margin. With one income there is less buffer, so lenders look closely at your expenses and existing commitments, and you will want to buy within a repayment you are genuinely comfortable carrying alone. The upside is that every improvement you make, a bit more deposit, a cleared debt, the right scheme, has an outsized effect.

What decides your borrowing power

Your borrowing power on a single income comes from four things: your assessable income, your regular living expenses, your existing debts and credit card limits, and the serviceability buffer the lender adds on top of the actual rate. With only one income covering the loan, lenders are careful that the repayment fits comfortably even if rates rise.

Because different lenders treat income and expenses differently, and apply different buffers, your borrowing power can vary meaningfully between them. That variation matters even more for solo buyers, where every dollar of capacity counts. Start with the borrowing power calculator for a realistic estimate, then a broker sharpens it against real policy. Our how much can I borrow guide explains the mechanics in full.

Managing expenses and debts

On a single income, your expenses and debts do more to shape your borrowing power than almost anything else. Lenders count your living expenses and treat your credit card limits as if fully drawn, even if you never use them. So a large unused credit card can quietly cost you a chunk of borrowing power.

Two moves make a real difference before you apply: reduce or close unused credit card limits, and clear small personal loans and buy-now-pay-later accounts. Tidying your everyday spending in the months before you apply also helps, because lenders review your actual statements. These steps often lift a solo buyer’s capacity by more than expected.

Low deposit options

Saving a full 20 per cent deposit on one income takes time, so low deposit paths are often where solo buyers make the leap. With less than 20 per cent, most loans attract Lenders Mortgage Insurance, which protects the lender and adds to your cost, but there are ways to reduce or avoid it. The First Home Guarantee lets eligible first home buyers purchase with as little as a 5 per cent deposit and no LMI. In South Australia, HomeStart Finance offers loans designed for smaller deposits. Our LMI guide covers the trade-offs.

Guarantor loans

If saving the deposit is the main hurdle, a guarantor loan can be transformative for a single-income buyer. A family member, usually a parent, uses the equity in their own property as additional security, which can let you borrow up to the full purchase price and often avoid LMI entirely. The guarantor is liable only for a limited guaranteed portion, not your whole loan, and can be released once you have built enough equity.

It is a serious commitment on both sides and requires independent advice for the guarantor, but for many solo buyers it is the difference between buying now and saving for years. Read the full detail in our guarantor home loans guide.

Single parents and the Family Home Guarantee

If you are a single parent, there is a scheme designed specifically for you. The Family Home Guarantee allows eligible single parents and eligible single legal guardians of dependants to buy with as little as a 2 per cent deposit and no LMI, subject to eligibility and property price caps. It is one of the most powerful tools available to solo buyers with children, and many people simply do not know it exists.

Eligibility rules and caps apply and change over time, so it is worth checking your position rather than assuming. This is exactly the kind of scheme a broker makes sure you do not miss.

First home buyer help

As a single-income first home buyer you can access the same support as anyone, and it can be substantial. Depending on your state, that may include a First Home Owner Grant for new homes, stamp duty exemptions or concessions, and the schemes above. Stacking the right combination, for example a low deposit scheme plus a stamp duty concession, can dramatically reduce the cash you need upfront. Our first home buyer guide and upfront costs guide lay out the full picture.

How to strengthen your application

A few steps make a single-income application noticeably stronger. Build as much genuine savings history as you can, since lenders like to see you can consistently set money aside. Keep your accounts clean and avoid new debts in the months before applying. Reduce unused credit limits. And be realistic about the repayment you can comfortably carry alone, rather than stretching to a lender’s maximum. A sustainable loan you can service through ups and downs beats a bigger one that leaves no breathing room.

How we help

On a single income, the lender you choose and the schemes you use are everything, and that is exactly what a broker is for. We work out your genuine borrowing power, identify every grant, scheme and structure you qualify for, from the First Home Guarantee to guarantor and the Family Home Guarantee, and match you to the lender most likely to say yes on the best terms. It costs you nothing, and it can be the difference between waiting and buying.

Common questions