If you currently receive Centrelink benefits, you may be able to borrow money from a bank for a small home loan. There are some lenders who accept some Centrelink payments as part of your income, but it's likely you'll need to purchase with another buyer in order to have enough income to satisfy a loan assessment.
If you're receiving a Centrelink benefit, your home loan application will be processed the same as any other: you save a deposit and then borrow money from the lender, which you pay back with interest. However, not all lenders accept Centrelink payments as income and those that do, have a stricter application process. Some Centrelink payments are also only accepted as additional income, rather than your main source of income (more on that below).
If you receive the age pension, there are specific home loan options for you. Check out our guide on getting a home loan as a pensioner.
"Getting in touch with a mortgage broker is a good idea if you're ever unsure about how your income will be assessed: whether you're self-employed or you receive Centrelink payments. Brokers specialise in finding loans for borrowers in unique circumstances such as this and their services are 100% free. They get paid in commission from the bank for successfully settling the loan, so you can get access to a service that helps you find the right lender without it costing you any money."
You may find it harder to get a loan if your entire income is from Centrelink payments. While some payments can be accepted as your main (primary) source of income, others will only be considered if they are additional (secondary) sources. That means you'll need another steady income, usually from employment.
Here's a general guide, but remember that each lender treats Centrelink income differently and while some accept these payments as a primary source of income, others will not. You should always speak to individual lenders to be clear on their criteria.
| Type of benefit | Accepted? | Notes |
| Age pension | As secondary income | Age pension will only be considered as a secondary form of income. You must have another source of earnings in addition to the benefit. |
| Carer's Allowance | As secondary income | This type of benefit will require that you have an additional source of income. Earnings from a job would be your primary source, while the allowance is considered supplemental. |
| Child Support | As primary income | You will need to provide documentation including the Family Law Court Order, bank statements showing a steady deposit history, a letter from your solicitor and a letter obtained from the Child Support Agency (CSA). |
| Disability Pension | As secondary income | If you receive a disability pension you will need to show proof of a second source of income. |
| Family Tax Benefits | As primary income | This applies if you are receiving Family Tax Benefits part A and B. Lenders will look at the age of your children before deciding if this is an acceptable form of income. |
| Foster Care Allowances | As secondary income | Allowances for foster care are accepted so long as you are receiving another source of income. |
| Overseas Pension | As secondary income | This will depend not only on your residency status in Australia, but also on which country you're receiving the pension from. Lenders will assess this on a case-by-case basis. |
| Veterans and Widows Pension | As primary income | Not accepted by all lenders. Your application is more likely to be approved if you have another form of income as well and there may be age restrictions. |
If the benefit you receive from Centrelink is not listed on the chart above, then it may not be considered by lenders as a genuine form of income. For example, you will likely not be approved for a home loan if you receive Jobseeker payments.
In these cases it might be best to speak to a lender directly about your options and eligibility, or book an appointment with a mortgage broker.
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