Step 1: Which centrelink benefits are accepted?
|Carer’s Allowance / Payment||Allowance is accepted if you also have a job|
|Child Support / Maintenance||Maintenance is accepted if you meet these conditions|
|Disability Support Pension||Pension is accepted if your co-borrower is working|
|Family Tax Benefits||FTB A & B are accepted if you meet these conditions|
|Foster Care Allowance||Allowance income is accepted if you also have a job|
|Large Family Supplement||Supplement is accepted if you meet these conditions|
|Pension: Age||Pension is accepted if your co-borrower is working|
|Pension: Overseas||Overseas pension is accepted if you meet these conditions|
|Pension: Veterans & Widows||We can accept your service, age or widow pension|
|All Other Benefits||Other benefits are not accepted|
If your benefit type is not shown above then we cannot assist you to apply for a home loan using that income.
Step 2: Calculate your borrowing power
If your income type is one that we can accept, next you should calculate your borrowing capacity.
- If there is a link next to your income type in the above table then follow that link and read the conditions.
- Look at your most recent centrelink statement and work out your fortnightly income.
- Multiply this by 26 to find your annual tax free income.
- Look at your payslips or your co-borrower’s payslips and calculate your annual taxable income.
- Use our How much can I borrow? calculator to work out how much you can afford.
Step 3: Find out which lenders can help
You can call us on 1300 889 743 or enquire online on our website. Our mortgage brokers know exactly which banks can accept which incomes types and can quickly find a solution for you.
We will complete a full assessment of your situation, identify which lenders can help and then let you choose from the two or three best home loans that you can qualify for.
Depending on the type of income that you receive, we may be able to get your loan approved with a major lender at a competitive interest rate.
Why might I also need a job?
Why do banks want me to have a job?
Our lenders will not accept these income types on their own. If you or your co-borrower has a job then they will accept your centrelink income as a secondary income only.
The reason for this is that a small number of people receiving benefits are unemployable, and if they stop receiving benefits they will not be able find a job. It is for this reason they want to see evidence that you are capable of working and that you have a second income source.
Is it okay if I am not working, yet my partner is?
Yes, as long as your partner is also on your loan application then this is fine. We can use your partner’s salary and your benefits will be included as a tax free secondary income.
Why is an age pension income not accepted on its own?
If you are receiving an age pension then our lenders will only help you if you are borrowing with someone who receives a salary. Sometimes we assist pensioners who are buying a new home together with their son or daughter, however we cannot assist if you are buying on your own.
Child support / maintenance
We can include child support income or child maintenance as part of your income.
When you call our mortgage brokers please let them know if the child support payments are via the Child Support Agency (CSA) or not, if the payments are court ordered or not and if you have been receiving regular payments over the last six months.
We may need some of the following documents to be able to get your mortgage approved:
- A copy of the Family Law Court Order.
- Bank statements showing credits to your account.
- A letter from your solicitor.
- A letter from the Child Support Agency (CSA).
You can then call us on 1300 889 743 or enquire online and one of our mortgage brokers will work out if we can include your income when applying for a home loan and which banks can assist you.
Family tax benefits (FTB)
Which benefits are accepted?
Family tax benefits part A and part B are accepted by many of our lenders. The large family supplement is accepted by two of our lenders.
However all other benefits such as rent assistance, parenting payments and the pharmaceuticals allowance are not acceptable. This is because they are to be used for a specific purpose (e.g. medicine) or will not be received if you buy a home (e.g. rent assistance).
Does the age of my children matter?
Yes it does. The older your children are the fewer the lenders who will accept your FTB income.
If your children are over 11 years old then the choice of lenders can become quite limited. Don’t worry, one of our lenders can accept 100% of your FTB income regardless of the age of your children.
Which documents do I need to provide?
You will need to provide your most recent Centrelink statement. Please be sure to include all pages, including blank ones.
You can often download a statement from the Department of Human Services website.
Overseas pension / foreign pension
Foreign pensions can be accepted as income by two of our lenders.
Currently we can only accept pensions from Austria, Belgium, Canada, Chile, Croatia, Cyprus, Denmark, Finland, Germany, Greece, Ireland, Italy, Japan, Korea Republic, Malta, The Netherlands, New Zealand, Norway, Poland, Portugal, Slovenia, Spain, Switzerland and the United States of America.
Our lenders will use 80% to 90% of the income that you receive so that if exchange rates move you will still be able to make repayments. One of our lenders will require evidence that your pension is ongoing for at least five more years.
If your documents are in another language then we may need to arrange a translation prior to the loan being unconditionally approved.
Apply for a home loan
Do you need our help to apply for a mortgage? We are experts in finding a bank that will accept your income.
Please call us on 1300 889 743 or enquire online and one of our mortgage brokers will call you to discuss your income.