We are not currently accepting applications for this type of loan. We apologise for the inconvenience.

Not all lenders will accept government benefits as supplementary income when assessing your home loan application.

Generally speaking, if you receive either Family Tax Benefits (FTB) or a veterans pension, you’ll be in a good position to qualify with a number of lenders. Other types of Centrelink benefits are not accepted so read on to find out more.

Family Tax Benefits

Family Tax Benefits (FTB) Part A and B are accepted by a number of lenders. The Large Family Supplement, an extension of the FTB, is accepted by some lenders.

The following requirements will also apply:

  • Age of children matters: The older your children are, the fewer lenders will accept your FTB income, particularly children over the age of 11 years old. There is one lender that will accept 100% of your FTB income regardless of the age of your children.
  • 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.
  • Certain family-related benefits will not be accepted: Rent assistance, parenting payments and the pharmaceuticals allowance are not acceptable. This is because they are to be used for a specific purpose (such as medicine) or will not be received if you buy a home (such as rent assistance).

You can go to the Family Tax Benefit Home Loan page to find out more information about qualifying for a home loan and how much you can borrow.

Child support / maintenance

Some lenders will take into account child support income and child maintenance when assessing your income.

When you call our mortgage brokers please let them know whether the child support payments are via the Child Support Agency (CSA), whether the payments are court ordered and if you’ve been receiving regular payments over the last six months.

You may also be required to supply the following documents in order for your application to be assessed:

  • 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).

Pension: Veterans and Widows

Service, age or widow pensions may be accepted as extra income by some lenders.

The bank’s main requirement is that you can show proof that you can meet your mortgage repayments on a regular basis and for the foreseeable future.

Generally speaking:

  • Only certain types of veteran pensions are accepted: The ‘Department of Veteran Affairs – Service and Age Pension’ and the ‘Department of Veteran Affairs – War Widow’s or Widower’s Pension’ are both acceptable veteran pension types. Other pension types may be acceptable if they’re considered to be permanent and ongoing.
  • Supporting documents: Generally speaking, you’ll need to provide a current Department of Veterans Affairs statement that shows your name and the frequency and amount of your pension payments, as well as a current bank statement showing direct credits identifiable as the government allowance.

You can go to the Veteran Pension Home Loan to find out more information about qualifying for a home loan and how much you can borrow.

How much can you borrow?

If your income type is one that we can accept, here’s how to calculate how much you may be able to borrow:

  1. Look at your most recent Centrelink statement and work out your fortnightly income.
  2. Multiply this by 26 to find your annual tax free income.
  3. Look at your payslips or your co-borrower’s payslips and calculate your annual taxable income.
  4. Use our ‘How much can I borrow?’ calculator to work out how much you can afford.

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 but 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.

Do you receive anything other than Family Tax Benefits, Large Family Supplements, Child Support/Maintenance or a Veterans & Widows Pension?

Unfortunately, we are unable to help you qualify for a home loan if you receive any of the following Centrelink benefits:

  • Carer’s Allowance / Payment.
  • Disability Support Pension (exceptions may be made with one of our lenders if you have been receiving payments for at least 5 years from the date of your home loan application).
  • Foster Care Allowance.
  • Pension: Age.
  • Pension: Overseas.
  • Any other type of Centrelink benefit.

However, you can get a mortgage using income protection payments as well as workers’ compensation payments.

  • Tazewell

    I receive veteran’s benefits so can I use them to get an investment mortgage?

  • Hey Tazewell, yes you can use veteran’s benefits as assessable income for an investment loan. However, almost all lenders will need you to have a strong asset position and clear credit history to qualify.

  • Stang

    What method do banks use to calculate our borrowing power?

  • Hello Stang,

    Most lenders use the same basic formula when calculating your borrowing power:

    Gross income – tax – existing commitments – new commitments – living expenses – buffer = monthly surplus

    Although all lenders use this formula there is a lot of variation in the way that they assess your expenses and some lenders require a buffer, whereas others don’t. You can find out what other factors the lenders assess by checking out the calculating borrowing power page:

  • Weigell

    Do banks accept income protection payments?

  • Hi Weigel,

    Yes, there are lenders that can accept income protection payments. Some banks will only accept 50% of these payments but some of our lenders can use 100%. Do nte that applying with the right lender is key as there are lenders that may not approve your mortgage application if the your income protection payments are permanent and ongoing. Please check out this page for more info:

  • emma

    Hi im a single parent to 2 kids under the age of 6 with a near 30k deposit is there any kind of loan i might be able to get to buy a house.. Please help im desperate

  • Hi Emma
    It would depend on your income. If you have FTB A & B then that income can be considered along with income from your job. Usually single parents find it very hard to buy a house and some choose to wait until they have a new partner and a 2nd income.
    This calculator will help you to work out how much you can afford

  • emma

    What if i dont curruntly have a job? Im guessing my centrelink isnt allowed as its not enough, am i correct?

  • Unfortunately that’s correct.

  • emma

    How can i go about finding out what all the requirements are to be able to look into buying a home… So then i can do what i have to, to make it work.. Thank you :)

  • Hi Emma,
    We have a prepare to buy team that can help you with that. It’s a free service we provide to help people become home owners.

    If you just email with your full details such as name, phone number, deposit size, number of children, details of any debts you have, ideal purchase price and a recent centrelink statement then they can work out your current borrowing power AND what income you would need to qualify to buy the property that you would like to buy.

  • Steph Mclennan

    Hello, me and my partner want to buy a $100,000-$150,000 house (houses where we are are really cheep). He has a job and earns $400 a week. I however am on Looking for work allowance from center link which is $440 a fortnight. I also have money saved for a deposit. I was wondering if you think we could qualify for a home loan? Thanks

  • Hi Steph
    It would depend on the size of your deposit. If you had a 20% deposit we could likely get you approved. Whereas with a smaller deposit you may not qualify.
    I’d recommend that you find a job first and then we’ll have more lenders to choose from.

  • Lyndell

    Hi i need some help! I want to buy a small house. I am a carer,i have casual work and i also have a cabin that i would like to sell to use as a deposit(valued at $110,,000) and i don’t have any dependents at home. Do you think I would apply?

  • It’s difficult to say Lyndell. We’d need to see your full details to be sure. Please send us an enquiry form and someone will call you to discuss.
    The cabin would need to be freehold (torrens title) and unencumbered (no mortgage).

  • Lyndell

    Yes the cabin is owned outright. Could somebody please contact me to discuss my options further. Thanks.

  • Hi Lyndell. You’d need to complete this form

  • Lyndell

    Im looking at selling my cabin to put towards the deposit.  It would be about $70,000

    Sent from my Samsung device

    ——– Original message ——–

  • Christielee Plumridge

    Sorry if I have a guarantor and in the same position how would that work?

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  • Saturn

    My partner and I want to sell his house and buy another and want to borrow around $320,000 towards the cost of a $400,000 house. I’m employed full time and he is on Centrelink payments. To be clear, he receives a veteran pension through the Department of Affairs. My income alone is not sufficient to service the loan, so we have to use his. Can we get a home loan for this purchase by using his income?

  • Yes Saturn, veteran pensions are accepted by most of the lenders and you could can borrow up to 95% of the purchase price of the property. The ‘Department of Veteran Affairs – Service and Age Pension’ is a common veteran payment we deal with. Please note that the lenders may require the most recent Department of Veterans Affairs (DVA) statement showing name of the recipient, frequency and amount or a bank statement showing direct credits identifiable as the government allowance for such a pension in order for it to be accepted as income for a home loan. Call us on 1300 889 743 to find out more information about qualifying for a home loan and how much you can borrow.

  • Sharny Lewis

    I have been on a disability pension for 16 years. Aged 47. I have a deposit of 50000. The property value I’m looking at is 160000. This is my only source of income.
    Is it possible for me to buy a home?