The short answer: yes
Getting a mortgage on a single income after divorce is absolutely possible, and it happens more often than most people realise. The key is understanding what income lenders will count, which lenders are most favourable for your situation, and what government support is available to reduce your deposit requirements. We help people in this exact situation every day.
What income counts?
After separation, your income picture often includes a mix of employment income and support payments. The good news is that most lenders will count several of these income types. The challenge is that every lender assesses them differently.
| Income Type | How Lenders Assess It |
|---|---|
| PAYG full-time | Assessed at 100% of gross income. The most straightforward income type. Lenders typically require your two most recent payslips and your latest tax return or PAYG summary. |
| Part-time or casual | Part-time is generally assessed at 100% if you have been in the role for at least 12 months. Casual employment usually requires at least 12 months in the same role, and some lenders will only use 80% of the income or average your earnings over the past 12 months. |
| Child support | Accepted by many lenders. Some use 100% of the amount, others discount it to 80%. Most require the child support agreement to have at least 2 to 3 years remaining. Private agreements and CSA-assessed amounts are both accepted by different lenders. |
| Centrelink FTB | Family Tax Benefit Part A and Part B are accepted by most major lenders. Typically assessed at 100% of the amount received. Some lenders require evidence of at least 3 months of payments. You will need your Centrelink Income Statement. |
| Spousal maintenance | Accepted by some lenders, particularly if formalised through Consent Orders or a BFA. Lenders want to see that it will continue for a sufficient period. Informal arrangements are harder to use as assessable income. |
| Self-employed | Assessed on the last two years of tax returns and business financials. Lenders look at your net profit (sole trader) or salary plus distributions (company/trust). Some lenders accept one year of financials if you have been in the same industry for longer. |
| Rental income | If you own an investment property, most lenders will use 80% of the gross rental income. If you are receiving rent from a boarder in your own home, fewer lenders will accept this but some do. |
Borrowing capacity example
A single parent earning $65,000 per year in part-time employment, receiving $18,000 per year in child support and $8,000 per year in Family Tax Benefit, with minimal existing debts, could potentially borrow in the range of $420,000 to $480,000 depending on the lender, their living expenses, and current interest rates.
This is a general illustration only. Your actual borrowing capacity will depend on your full financial picture, including all debts, credit cards, living expenses, and the number of dependants. We can give you a clear picture in our first conversation.
Government support available
If you are buying after separation on a single income, there are several government schemes that can significantly reduce the cost and deposit requirements.
Family Home Guarantee
The Family Home Guarantee is specifically designed for single parents and eligible single legal guardians. It allows you to purchase a home with as little as a 2% deposit without paying Lenders Mortgage Insurance (LMI). The government guarantees up to 18% of the property value, which means you avoid the usual requirement of a 20% deposit to escape LMI. This scheme alone can save you tens of thousands of dollars.
First Home Owner Grant
If you have never owned property in your own right, you may qualify for the First Home Owner Grant even after divorce. Grants range from $10,000 to $30,000 depending on your state, and apply to new homes only. This can be combined with the Family Home Guarantee.
Stamp duty exemption on separation transfers
If you are keeping the family home and buying your ex out, every state provides a stamp duty exemption for property transfers that happen as part of a separation settlement. This can save you tens of thousands of dollars on the transfer, but the timing and documentation requirements vary by state.
Common concerns we hear
"I cannot save a 20% deposit on my own"
You may not need to. With the Family Home Guarantee, eligible single parents can buy with just 2% deposit. Even without the guarantee, many lenders will approve a loan with a 5% to 10% deposit if you are willing to pay Lenders Mortgage Insurance. And if you are receiving a cash settlement from your property division, that settlement money can form part or all of your deposit.
"My credit score took a hit during the separation"
This is common. Joint debts, missed payments during a difficult period, or credit cards that were maxed out can all leave a mark on your credit file. We work with lenders who take a pragmatic approach to credit history that was impacted by relationship breakdown. Some specialist lenders will look past minor defaults if you can explain the circumstances and show that your current financial position is stable.
"Lenders will not count my child support"
Some will not, but many will. The difference between lenders on this point is enormous. One lender might ignore child support entirely while another counts 100% of it. A third might count it but require three years remaining on the agreement. This is exactly why working with a specialist broker matters. We know which lenders have the best policies for your specific income mix.
"I do not have a permanent full-time job"
You do not necessarily need one. Part-time employment, casual work (with 12 months in the role), and even contract work can all be used for loan qualification. When combined with child support, FTB, and other income sources, many people on non-traditional employment arrangements have more borrowing capacity than they expect. The key is packaging all of your income sources together with the right lender.
"I am still on the old joint mortgage"
Being named on a joint mortgage does not prevent you from getting a new loan, but the existing debt will affect your borrowing capacity. If your property settlement includes your ex taking over the joint mortgage, we coordinate the timing so that the old loan is discharged at the same time your new loan settles. If you are waiting for Consent Orders, we can still start the process and have everything ready to go when the legal side is finalised.
How we help
Getting a mortgage on a single income after divorce requires a broker who understands the unique challenges of separation finance. Here is what we do differently.
- We assess all your income sources. We look at your complete income picture, including employment, child support, Centrelink payments, spousal maintenance, and any other sources, and identify the lenders who will give you the best result.
- We check every government scheme. Family Home Guarantee, FHOG, stamp duty exemptions, first home buyer concessions. We make sure you are not leaving money on the table.
- We know the lender policies. Every lender has different rules for child support, casual income, and self-employed borrowers. We match your income profile to the lender most likely to approve you at the best terms.
- We coordinate with your legal team. Your loan application, property settlement, and Consent Orders all need to move in the right sequence. We work alongside your family lawyer to make sure the timing works.
- We handle the paperwork. We prepare your full application, manage the lender relationship, and keep you informed at every step. You do not need to chase anything.
Frequently asked questions
What is the minimum income needed to get a home loan?
There is no fixed minimum income. Your borrowing capacity depends on the total of all assessable income minus your living expenses and existing debts. Someone earning $55,000 per year with low expenses may borrow more than someone earning $80,000 with high credit card debt and car loans. The best way to find out is to speak with us for a quick assessment.
Can I use child support to qualify for a mortgage?
Yes, many lenders accept child support as assessable income. Some lenders use 100% of the amount, while others discount it to 80%. Most require at least two to three years remaining on the agreement. We know exactly which lenders have the most favourable child support policies and can match you to the right one.
Do lenders count Centrelink Family Tax Benefit?
Yes, most lenders will count Family Tax Benefit Part A and Part B as assessable income. Some lenders only count it if it has been received for at least three months. The amount assessed depends on the lender and whether they use the full amount or apply a discount. Your Centrelink Income Statement is the key document.
How soon after separation can I apply for a home loan?
You can apply as soon as you have separated. You do not need to wait for your divorce to be finalised. Most lenders require a Separation Declaration or Consent Orders to verify your changed circumstances, but you do not need a divorce certificate. Many of our clients start the process months before their divorce is granted.
What if I have bad credit from my marriage?
Joint debts that went into arrears during the relationship can affect your credit score. We work with lenders who take a common-sense approach to credit history that was impacted by separation. Some specialist lenders will consider the circumstances behind any defaults and weigh your current financial stability more heavily than past events.