Can you get a mortgage if you are on benefits in Australia?

Securing a mortgage while receiving government benefits in Australia involves understanding how lenders view these benefits as part of an applicant's income and overcoming challenges such as perceived lower income levels. By maintaining a good credit score, saving for a larger deposit, and seeking professional advice, individuals on government assistance can improve their chances of mortgage approval and move closer to homeownership.

In Australia, the question of whether receiving government benefits affects your ability to secure a mortgage is an important one. Given the diverse society we live in, a significant number of Australians rely on some form of government assistance, ranging from disability support to family allowances. This article delves into the possibility of obtaining a mortgage on benefits, shedding light on the considerations and strategies involved.

Understanding Government Benefits in Australia

Australia offers a variety of government benefits designed to support individuals and families in different circumstances. These include Centrelink payments for the unemployed, disability support pensions, and family tax benefits, among others. While these payments are crucial for the livelihood of many, questions often arise about their recognition as regular income by financial institutions when applying for a mortgage.

Mortgage Eligibility and Government Benefits

When it comes to mortgage eligibility, the key question is whether lenders consider government benefits as stable and ongoing income. The good news is that many lenders in Australia do recognise certain types of government benefits as part of an applicant's income. However, this is subject to the nature of the benefits, their duration, and how they fit into the lender's criteria for stable income.

Challenges in Securing a Mortgage on Benefits

Securing a mortgage while on government benefits is not without its challenges. The primary hurdle is the perception of lower income levels and potentially stricter lending criteria. Lenders often undertake a detailed assessment to determine if the benefits are long-term and reliable enough to support mortgage repayments. Additionally, the type of benefit received can significantly impact the application; for instance, temporary assistance may not be regarded as favourably as a permanent disability pension.

Tips for Improving Chances of Mortgage Approval

For individuals on government benefits looking to improve their mortgage approval chances, several strategies can be effective. First and foremost, maintaining a good credit score is crucial, as it demonstrates financial responsibility. Saving for a larger deposit can also make a significant difference, as it reduces the loan-to-value ratio and the lender's risk. In some cases, having a guarantor can enhance the application's strength, providing additional security to the lender.

Moreover, it's important for applicants to articulate their financial stability convincingly. This might involve providing a detailed budget that shows careful financial planning and the ability to manage mortgage repayments effectively.

Case Studies: Success Stories

There are numerous success stories of individuals on government benefits who have successfully navigated the mortgage process. One such story is of a single parent on a family tax benefit who worked with Principal Mortgages to secure a mortgage. She demonstrated a strong record of savings and a flawless credit history. Another example is of a person on a disability support pension who, with the help of a guarantor, was able to purchase a home suited to his needs. These cases highlight the importance of preparation, financial management, and enlisting the services of a top mortgage broker.

Seeking Professional Advice

Navigating the mortgage process while on government benefits can be complex, making professional advice invaluable. Financial advisors and mortgage brokers with experience in this area can provide tailored advice, helping applicants understand their options and prepare their applications effectively. They can also recommend lenders known to be more receptive to applicants receiving government benefits.

To find a reputable professional, look for those with positive reviews and a track record of helping similar clients. Many advisors and brokers offer initial consultations free of charge, providing an opportunity to assess their suitability without commitment.


Securing a mortgage while on government benefits in Australia is challenging, but it is possible. With the right approach—comprising thorough preparation, strategic financial planning, and professional guidance—receiving government assistance need not be a barrier to homeownership. By understanding how benefits are viewed by lenders and employing strategies to bolster their mortgage application, individuals can navigate their way towards achieving their dream of owning a home. This journey underscores the importance of not being deterred by your benefit status and exploring all avenues to secure a mortgage.

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