It is very difficult to qualify for a standard home loan with Centrelink payments as your sole income. Most mainstream lenders do not accept government benefits as assessable income. However, some specialist lenders and credit unions will consider Centrelink income - particularly Family Tax Benefit and parenting payments - as part of a broader income picture. If you receive Centrelink payments alongside employment income, child support, or other income, a broker can identify which lenders will assess your total income most favourably.
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Book a confidential chatOptions for Centrelink recipients
The Single Parent Stream allows eligible single parents to purchase with a 2% deposit and no LMI. If you are working part-time and receiving Centrelink top-up payments, some lenders will assess both income streams. Lendology checks your eligibility across our full lender panel - including specialist lenders that mainstream banks do not offer.
Can Family Tax Benefit count as income for a home loan?
Some lenders will include Family Tax Benefit as part of your assessable income.
It is not accepted by all lenders, and those that do accept it may only count a portion. Combined with employment income, it can help bridge the gap. A specialist broker can identify the most favourable lender for your income mix.
What deposit do I need if I am on Centrelink?
Under the Single Parent Stream, eligible single parents need just 2% deposit with no LMI.
Outside the guarantee, most lenders require 5% to 10% minimum deposit. Saving a deposit on a low income takes time, which is why government schemes can be transformative for single parents.
We are not just explaining the process. We arrange the actual finance: refinancing into your sole name, funding a partner buyout, or setting up a new loan independently after settlement. We work with a panel of over 60 lenders to find the one that fits your situation.
Once the legal side of your property settlement is resolved, the next step is usually a financial one. That is where we come in.
Jason and Steve also help clients with first home loans, refinancing, and investment lending at lendology.com.au.
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