Can I Get a Home Loan on a Single Income in Australia? (2026)

Updated

Can I Get a Home Loan on a Single Income in Australia? (2026)

Yes — single-income borrowers get home loans every day in Australia. The challenge is that borrowing capacity is lower than for dual-income households, which can make it harder to buy in high-cost markets. Understanding what you can borrow and how to maximise it makes the goal more achievable.

How Borrowing Power Is Calculated on a Single Income

Lenders assess how much you can borrow based on your net income after living expenses and existing debt repayments, at a test rate (your interest rate + 3% buffer).

Rough borrowing capacity by income (single borrower, no other debts, April 2026):

Annual income (before tax)Approximate borrowing capacity
$60,000$290,000–$350,000
$75,000$380,000–$450,000
$90,000$460,000–$540,000
$110,000$550,000–$650,000
$130,000$650,000–$760,000
$150,000$740,000–$870,000

Estimates only — actual borrowing capacity depends on living expenses, other debts, deposit, and lender-specific policies. Use a borrowing calculator or speak with a broker for a personalised figure.

The Single Income Reality

Major Australian capital city median house prices (2025–26 context):

  • Sydney: ~$1.4M (houses); ~$800k (units)
  • Melbourne: ~$950K (houses); ~$600k (units)
  • Brisbane: ~$850k (houses); ~$550k (units)
  • Perth: ~$700k (houses); ~$450k (units)

A single income earner on $90,000 per year may borrow around $500,000. At an 80% LVR, this implies a purchase price of $625,000 — attainable for units in most capital cities and houses in regional areas, but challenging for houses in Sydney and Melbourne.

Strategies to Increase Borrowing Capacity on a Single Income

1. Reduce other debts Credit card limits, car loans, and HECS all reduce what you can borrow. Every $1,000 of credit card limit reduces borrowing capacity by approximately $4,500–$5,000.

2. Save a larger deposit A larger deposit means a smaller loan required. It also eliminates LMI at 80% LVR.

3. Maximise genuine savings history Demonstrated savings discipline (regular savings over 3–6+ months) strengthens applications and opens LMI-waived options.

4. Government schemes The Family Home Guarantee is specifically available to single parents — allows purchase with 2% deposit and no LMI. The First Home Guarantee is available to single first home buyers with 5% deposit and no LMI.

5. Consider a guarantor A parent or family member providing a security guarantee over their property can help a single income buyer access a larger loan or avoid LMI. See Guarantor Home Loans Explained.

6. Consider properties in more affordable markets Regional areas, outer suburbs, or lower-priced property types (units, townhouses) offer entry points accessible on a single income in most Australian capitals.

The Borrowing Calculator

Use the Peakifi Mortgage Calculator to estimate repayments for different loan amounts on your income.

Frequently Asked Questions

Is it harder to get a home loan alone than with a partner?

The lender approval process is the same — you simply have lower borrowing capacity than two incomes combined. Approval itself is not harder, just the maximum loan amount is lower.

I’m separating from my partner. Can I refinance the mortgage into my name alone?

Yes — if your income is sufficient to service the loan on a single-income basis. This is called a refinance to single name. If borrowing capacity on your single income is insufficient for the existing loan balance, you may need to sell or restructure. Speak with a broker.

What is the Family Home Guarantee?

The Family Home Guarantee allows single parents (not necessarily first home buyers) to purchase with a 2% deposit with no LMI, backed by the Australian Government. It is limited in total places each year. Check the Housing Australia website for current availability and eligibility.

This article provides general information about home loan eligibility on a single income in Australia. Borrowing capacity estimates are indicative. Speak with a licensed mortgage broker for a personalised assessment. Find one through MoneySmart.