Home loans on a low income: what's actually possible

There's no official dollar figure. A lender doesn't tick a "low income" box. They run your income against your commitments and see if the numbers work. That's why two people on the same wage can get very different answers. One has a car loan and a $10,000 credit card limit. The other has clean statements and no debts.

Two things quietly shrink every borrower's number. APRA requires lenders to test your repayments at your rate plus a 3% serviceability buffer, so a 6% loan is assessed at 9%. Since February 2026, APRA has limited each bank to writing no more than 20% of its new owner-occupier lending, and separately 20% of its new investment lending, at a debt-to-income ratio of six times or more. This is a bank-level limit rather than an automatic six-times-income cap for every borrower, although it may reduce options for some high-DTI applications. 

If you want a rough starting point before we speak, you can run your own borrowing power estimate.

This is where a broker earns their keep. Every lender treats income differently, and the difference between "no" and "yes" is often just picking the right lender for your mix.

To put real numbers behind the Centrelink line, Services Australia lists Family Tax Benefit Part A at up to $235.48 per fortnight for a child aged 0 to 12, and Part B at up to $200.34 per fortnight where the youngest is under 5. Over a year, that's meaningful income at the lenders who count it. If you'd like to see how to lift your borrowing capacity, a few small moves often add more than a pay rise would.

From 1 October 2025, the Home Guarantee Scheme was renamed the Australian Government 5% Deposit Scheme. Eligible first-home buyers, as well as applicants who have not held a property interest in Australia during the previous 10 years, may purchase with a minimum 5% deposit and no Lenders Mortgage Insurance. Eligible single parents and legal guardians may purchase with a minimum 2% deposit. Property price caps and participating-lender approval still apply. The Regional First Home Buyer Guarantee has closed to new applications.

The reason this matters on a low income is LMI. Without the scheme, borrowing above 80% of the property value usually adds several thousand dollars of insurance to your loan. The scheme wipes that cost by having the government guarantee the top portion of the loan for eligible buyers.

A few practical notes. Most lenders still want to see genuine savings, which usually means 5% of the purchase price built up over at least three months. Gifted deposits are accepted at some lenders but not all. Read the 5% Deposit Scheme in detail if you want the full eligibility rules, and our LMI explainer if you're weighing paying LMI as a plan B.

This is the number most people came for. The table below is indicative single-borrower servicing at current benchmark assessment rates, assuming no dependants, no other debt, a clean credit file and standard living expenses.

*Indicative only. Every lender calculates differently.*

Small changes shift these numbers more than people expect. One dependant might reduce your capacity by roughly $40,000 to $60,000. A $500 a month car loan trims around $70,000 to $80,000. A $2,000 credit card limit (even at a $0 balance) costs about $8,000 to $10,000 of borrowing power, because lenders assess the full limit. Use our borrowing power calculator to model your own mix. We'll then pressure test it against real lender policy.

Queensland is currently one of the more generous states for first home buyers, which stretches a small deposit further.

• $30,000 First Home Owner Grant on new builds valued under $750,000 (contracts signed on or after 20 November 2023), per Queensland Revenue Office.
• Nil transfer duty on existing homes up to $700,000 for first home buyers, under the first home concession for contracts from 9 June 2024. The concession tapers to nil relief at $800,000.
• Full transfer duty concession on eligible new homes and vacant residential land for contracts from 1 May 2025, with no price cap on the residential component.

These stack. A first home buyer building a new home in Brisbane could combine the 5% Deposit Scheme (no LMI), the $30,000 grant and full duty relief in the same transaction. See our guide to first home buyer financial assistance in Queensland for the full picture.

If servicing works but the deposit doesn't, a family guarantor can bridge it. A parent (usually) uses equity in their own property to guarantee a portion of your loan, which lets you borrow up to 100% (plus costs) without LMI.

A co-borrower is different. They're on the loan and their income is counted, but so is their debt. Guarantor is deposit help. Co-borrower is servicing help.

The honest part. If you can't make repayments, the guarantor is on the hook for the guaranteed portion. It can be unwound once you've built enough equity, usually when the loan drops below 80% of the property value. It's a good tool when the family is comfortable with the risk, and the wrong tool when they're not.

Income is the headline. These are the supporting checks that quietly decide the outcome.

• Credit file and score. Late payments, defaults and multiple recent applications all show up.
• Living expenses. Lenders use the HEM benchmark or your actual spending, whichever is higher. Three months of statements tells the story.
• Existing debts and limits. Credit card limits are assessed, not balances. BNPL counts.
• Employment stability. Time in role and industry, not just current pay.
• Savings pattern. Regular deposits into savings read better than a lump sum landing last week.

If you want to walk in ready, our guide on getting pre-approval in order covers what to have on hand.

Sometimes the honest answer is 6 to 12 months of prep. Here's what usually moves the number most:

• Close unused credit cards and reduce limits on the ones you keep.
• Clear small personal loans and BNPL accounts.
• Build 3 to 6 months of clean bank statements. No gambling, no overdrawn fees.
• Ask for extra hours, or convert casual work to permanent part-time.
• Keep your savings pattern consistent, even small amounts weekly.

Most people who can't borrow enough today can borrow meaningfully more within a year of doing these five things.

If you'd like a real answer on your situation, book a free 20-minute call with Victor. We'll map your income mix (including part-time, casual, FTB or child support) against the 50+ lenders on our panel, run real servicing numbers, and show you how to stack the 5% Deposit Scheme with Queensland grants and concessions.

Blackk has been helping Queensland families into homes since 2007, and Victor has 19+ years in lending under an Australian Credit Licence. In most cases, we’re paid a commission by the lender when your loan settles, so there is no service fee to you. If a fee applies in your circumstances, we’ll disclose it upfront. If you'd prefer to start with the local page, here's our Brisbane mortgage broker overview.