If you are relying on a single income and wondering whether buying a home is even realistic, you are not alone.
We often work with clients in exactly this position: single parents, recent graduates, newly separated individuals, all determined to get a foot on the property ladder.
The good news? Buying a home with one income is absolutely possible.
It might take a little more planning and a clear understanding of your options, but there is no reason you cannot own a home on your own terms.
Can I get a home loan on one income?
Yes, you can. Lenders assess loan applications based on your ability to meet repayments, not the number of people contributing to the household income.
So if your income is stable and your living expenses are under control, you have a solid foundation.
However, there are a few extra challenges to keep in mind. Here are some common hurdles that tend to come up for single-income borrowers:
- Lower borrowing power: With only one income stream, you may not be approved for the same loan size as a dual-income household.
- Closer scrutiny of spending: Lenders will go through your bank statements in detail to check for discretionary spending.
- Deposit challenges: Saving for a deposit alone can take longer, which may mean looking at alternative options to get in sooner.
None of these are deal-breakers, but they do require a strategic approach.
How much can I borrow on one income?
Your borrowing capacity will depend on a range of factors, and it is not just about how much you earn.
When we calculate borrowing potential for clients, we look at:
- Income stability: Full-time, part-time, or casual income sources, as well as how long you have been employed.
- Existing debts: Personal loans, car loans, HECS/HELP debts, and credit cards all impact your assessment.
- Living expenses: Lenders will benchmark your spending, so it is important to have a good handle on your budget.
- Deposit size: A larger deposit improves your position and opens up more lending options.
A personalised assessment can help you plan realistically. Online calculators are a start, but they often oversimplify the picture.
Smart strategies that make it work
You might not have two incomes, but with the right structure and support, you can absolutely make it work.
Here are some practical strategies we often suggest to single-income buyers:
1. Start small and build up
Consider units, townhouses, or properties in growing suburbs. It is about getting into the market first; upgrades can come later.
2. Make the most of government support
There are several initiatives that can give first home buyers on a single income a head start.
- The First Home Guarantee allows you to buy with as little as a 5 per cent deposit without paying Lenders Mortgage Insurance (LMI), which can save you thousands.
- The First Home Owner Grant (varies by state) could give you a cash boost toward a new build or newly built property.
- Stamp duty concessions may also apply if you’re a first home buyer, significantly lowering upfront costs.
These schemes can be game changers if you are eligible, so it is well worth checking early in your journey.
3. Explore guarantor options
A family member might be able to offer equity from their home as security. This can reduce your deposit needs and avoid LMI.
4. Focus on saving, not perfection
Even if you cannot save 20 per cent, do not let that hold you back. Schemes and low deposit options exist for a reason, so use them wisely.
5. Minimise other debts
Before applying for a loan, look at paying down car loans, credit cards, or buy-now-pay-later services. Every dollar of debt impacts your capacity.
6. Use offset and redraw features
These loan features can help manage repayments and build flexibility into your mortgage over time.
Buying a home with one income is not just possible, it is something we help clients achieve regularly.
The key is to understand your position, know what support is available, and work with someone who can tailor the right strategy for you.
This blog is intended for general informational purposes only. For personalised advice tailored to your unique financial situation, please contact NMC Finance.
