Home Loans For Students And Graduates

Buying a home while studying or soon after graduation might seem out of reach, but it’s possible with the right approach. Although lenders often see students and recent graduates as higher-risk borrowers, careful planning and financial preparation can make approval easier. Understanding your options, eligibility, and the steps to strengthen your application can help you move closer to owning your first home.

Can Students Apply For A Home Loan In Australia?

Yes, both domestic and international students can apply for a home loan in Australia, provided they meet lender requirements.

To qualify, students must:

• Be at least 18 years old
• Provide valid ID (driver’s licence, passport, or similar)
• Demonstrate a reliable source of income
• Show evidence of savings for a deposit

Lenders assess students the same way as all borrowers, based on their ability to service the loan. However, students often face extra scrutiny around income stability, visa restrictions, and credit history.

Student Home Loan Eligibility: Domestic And International Students

Both domestic and international students can apply for a home loan in Australia, but the eligibility requirements are quite different.

Domestic students including Australian citizens and permanent residents are generally eligible for standard mortgages. The main challenge is proving a stable income, as scholarships, parental allowances, and casual work don’t always count as acceptable income sources. Some non-bank lenders may consider Centrelink benefits, and having consistent savings and a good credit history can make approval easier.

International students can also apply, though the process is more complex. Lenders usually require a larger deposit (20–30% or more), proof of stable income earned in Australia, and Foreign Investment Review Board (FIRB) approval before purchasing. Eligible visa types include the Student Visa (Subclass 500), Skilled Recognised Graduate Visa (Subclass 476), Skilled Graduate Visa (Subclass 485), and Skilled Regional Visa (Subclass 489). Some students may need an Australian co-borrower or guarantor, and many are limited to buying newly built properties rather than existing homes. Find out more about student visa mortgages here.

How To Improve Your Home Loan Approval Chances

Even as a student or graduate, you can boost your approval odds by planning strategically.

Secure Stable Income

Lenders value consistency, so holding a steady job for at least six months with the same employer strengthens your application. Applying jointly with a partner in full-time work can also improve your chances, especially if they are a permanent resident or citizen in the case of international students.

Use A Guarantor

Having a parent or close relative act as a guarantor can reduce the deposit you need and may even remove the requirement for Lender’s Mortgage Insurance (LMI). However, it’s important to remember that guarantors take on risk, so this option requires careful consideration.

Consider Interest-Only Loans

Interest-only loans allow you to make lower repayments initially, which can be ideal during your study years. These loans typically run for up to five years before switching to principal and interest repayments, so you’ll need to plan ahead for the increase later.

Build Credit History Early

Start by putting bills in your name and always paying them on time. Avoid submitting multiple credit applications, as frequent rejections can hurt your score. Regularly checking your credit report through free services like Equifax, Illion, or Experian will help you stay on top of your financial profile.

Show Strong Savings Habits

Lenders want to see that you can manage money consistently over time. Building a track record of saving, supported by budgeting tools or apps, shows financial discipline and improves your credibility as a borrower.

Government Grants And Schemes For Students

Even if you’re still studying or just starting your career, you may be able to take advantage of the same first-home buyer schemes and grants available to all Australians. These programs are designed to reduce upfront costs and make it easier to buy your first home sooner. You may qualify for:

• First Home Guarantee: Buy with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). From 1 October 2025, there are no income caps and more flexible eligibility rules.
• First Home Super Saver Scheme (FHSSS): Save up to $50,000 for your deposit through your super account and benefit from tax concessions.
• Help To Buy Scheme: A shared equity program where the government contributes up to 40% of the price of a new home (or 30% for existing homes).
• First Home Owner Grant (FHOG): A one-off payment from your state or territory government, ranging from $10,000 to $30,000 (or more in some regions).
• Stamp Duty Concessions/Exemptions: Many states waive or reduce stamp duty for eligible first-home buyers, saving you thousands.

Scholarship Income For A Home Loan

Most major lenders in Australia don’t count scholarship income when assessing home loan applications, which often prevents talented students and researchers from buying a home until after university. However, we work with lenders who accept scholarship income, particularly if there’s more than 12 months remaining on the scholarship. The lender will verify this through a university letter confirming the scholarship’s terms and duration.

Your borrowing capacity depends on how long your scholarship runs for. With over 12 months of scholarship remaining, borrowers may access up to 90–95% of the property value. Those with less than 12 months left may still qualify for up to 80%, depending on the strength of their application. Scholarship income alone is rarely enough, so most successful applicants combine it with a partner’s or part-time job income.

Only certain types of scholarships are accepted; usually Commonwealth, university, or research fellowships that provide regular, ongoing income. Benefits like fee exemptions, tuition payments, or accommodation perks don’t count toward income.

Should You Buy While Studying or Wait Until After Graduation?

Buying As A Student

Buying After Graduation

For most, the prudent path is to wait until after graduation. Stability in income and savings provides a stronger foundation for such a significant commitment. Yet, wisdom also allows for nuance: if you have the support of family, a guarantor, or possess exceptional financial discipline, entering the market earlier can still be a sound decision.

Ultimately, the right choice depends less on timing itself, and more on the strength of your financial footing when you decide to step forward.

Connect With An Expert

Buying a home as a student or graduate in Australia can feel challenging, but you don’t have to do it alone. We’re here to guide you every step of the way. Our mortgage experts take the time to understand your goals, income, and future plans so we can find a loan that truly fits you.

Call us on 1300 889 743 or complete our free online assessment form today.