Can You Get a Home Loan with Centrelink Income in Australia?

Getting a Home Loan with Centrelink Income in Australia

You may be able to get a home loan with Centrelink income, but it depends on the type of payment, how long it will continue and whether the lender accepts it for servicing.

Some Centrelink payments may be accepted by certain lenders. Others may be excluded, treated as temporary, or only used when they are supported by another income source.

This is where many borrowers get confused.

You may receive regular government income every fortnight, but that does not mean every lender will use it in a home loan application. Lenders often look closely at whether the payment is taxable, ongoing, age-dependent, child-dependent, temporary or linked to another person in the household.

This guide explains how Australian lenders may assess Centrelink income for a home loan, based on current policy research.

Can Centrelink income be used for a home loan?

Yes, some Centrelink income may be used for a home loan.

A lender may consider Centrelink income if it is:

• regular
• ongoing
• verifiable
• likely to continue
• paid into your bank account
• supported by an official Centrelink statement
• acceptable under that lender’s policy

The payment type matters. A long-term payment may be treated differently from a short-term or transitional payment.

What types of Centrelink income may lenders consider?

Lenders may assess different government payments in different ways.

Depending on the lender, assessable income may include:

• Family Tax Benefit Part A
• Family Tax Benefit Part B
• Parenting Payment
• Disability Support Pension
• Carer Payment
• Carer Allowance
• Age Pension
• Veterans’ pension income
• Child support
• Paid parental leave
• JobSeeker, in limited situations
• Youth Allowance, in limited situations
• Austudy or study-related payments, in limited situations

Not every lender accepts every payment. Some lenders may accept one Centrelink payment type but not another.

Why lenders treat Centrelink payments differently

Lenders need to know whether the income is likely to continue for the life of the loan.

Some Centrelink payments are long-term. Others can reduce, stop or change when a child reaches a certain age, household income changes, work status changes, relationship status changes or eligibility rules change.

A lender may ask:

• what type of payment is it?
• who receives the payment?
• how long will it continue?
• is the payment taxable?
• is it linked to a child’s age?
• is it linked to a temporary situation?
• is it the main income or supplementary income?
• is there another borrower with employment income?
• does the payment appear on bank statements?
• does the loan still pass servicing if the payment is shaded or excluded?

The lender’s main concern is whether the income can reasonably support repayments over time.

Can Family Tax Benefit be used for a home loan?

Family Tax Benefit may be accepted by some lenders, but there are usually conditions.

A lender may look at:

• whether it is Family Tax Benefit Part A or Part B
• the age of the children
• how long the payment is expected to continue
• whether the amount is regular
• whether it appears on bank statements
• whether Centrelink documentation confirms the payment
• whether the borrower has employment income as well

Some lenders may accept Family Tax Benefit only if the children are under a certain age. Others may require the payment to continue for a minimum period.

This is because Family Tax Benefit can reduce or stop as children grow older or household income changes.

Can Parenting Payment be used for a home loan?

Parenting Payment may be accepted by some lenders, but it is often reviewed carefully.

The lender may consider:

• whether the payment is single or partnered
• the age of the youngest child
• how long the payment is likely to continue
• whether the borrower has other income
• whether the payment is regular
• whether the amount is verified by Centrelink
• whether the income will continue after settlement

Parenting Payment can be useful in servicing where it is stable and supported by evidence, but some lenders may not rely on it heavily if it is expected to end soon.

Can Disability Support Pension be used for a home loan?

Disability Support Pension may be accepted by some lenders, depending on the application.

A lender may want to verify:

• the payment amount
• whether the payment is ongoing
• whether it appears on bank statements
• whether a Centrelink statement confirms it
• whether there are other income sources
• whether expenses are manageable
• whether the loan is affordable

Some lenders may be more comfortable using Disability Support Pension where it is long-term and clearly evidenced.

Can Carer Payment or Carer Allowance be used?

Carer Payment and Carer Allowance may be considered by some lenders.

The lender may look at:

• whether the payment is ongoing
• whether the caring arrangement is likely to continue
• whether the payment amount is stable
• whether the payment is confirmed by Centrelink
• whether the borrower has other income
• whether the person being cared for is part of the household
• whether the income is likely to continue for an acceptable period

These payments can be more complex because they may depend on another person’s care needs and eligibility.

Can Age Pension be used for a home loan?

Age Pension may be accepted by some lenders, but the broader application still needs to fit.

A lender may consider:

• the borrower’s age
• loan term
• exit strategy
• repayment affordability
• pension amount
• other retirement income
• assets
• superannuation income
• living expenses
• existing debts

Age Pension income may be stable, but borrowing in retirement can involve extra questions about loan term and how the loan will be repaid over time.

Can JobSeeker be used for a home loan?

JobSeeker is more difficult.

Some lenders may not accept JobSeeker income because it can be temporary and linked to unemployment or underemployment. It may be treated differently if there is another stable income source in the application.

A lender may ask:

• is JobSeeker the main income?
• is there another borrower with employment income?
• is the payment temporary?
• is the borrower returning to work?
• is there evidence of future income?
• does the loan pass without JobSeeker income?

In many cases, JobSeeker alone may not be enough to support a standard home loan application.

Can child support be used with Centrelink income?

Child support may be accepted by some lenders, but it usually needs to be verified.

A lender may ask for:

• child support agreement
• Services Australia child support statement
• bank statements showing regular payments
• evidence of payment history
• age of the children
• how long the payments will continue
• whether payments are formal or informal

Some lenders may only use child support if it is paid through a formal arrangement and has been received consistently for a minimum period.

What documents do you need for Centrelink income?

Centrelink income applications usually need clear evidence.

You may need:

• Centrelink income statement
• Services Australia statement
• bank statements showing payment credits
• myGov income confirmation
• family assistance payment details
• child support statement
• child support agreement
• pension statement
• tax return or Notice of Assessment, where relevant
• evidence of other income sources
• details of dependants
• evidence of rent history or savings, where useful

The documents need to show the payment type, payment amount and whether the income is ongoing.

How do lenders calculate Centrelink income?

Lenders may calculate Centrelink income in different ways.

A lender may use:

• 100% of the payment
• a shaded percentage of the payment
• the lower amount shown across documents
• the amount shown on bank statements
• the amount confirmed by Centrelink
• only the portion expected to continue
• none of the payment if it does not meet policy

Some lenders may use certain payments only as supplementary income, especially where there is another borrower with PAYG or self-employed income.

What if Centrelink income is your only income?

It may be possible in limited cases, but it can be harder.

A lender will need to be comfortable that the income is stable and sufficient to support the loan.

Centrelink-only applications may be stronger where:

• the payment is long-term
• the payment is clearly verified
• expenses are low
• debts are minimal
• deposit is strong
• credit history is clean
• loan size is modest
• the property is suitable
• there is a clear repayment position

Centrelink-only applications may be harder where:

• the payment is temporary
• income is low
• debts are high
• deposit is small
• living expenses are tight
• dependants increase expenses
• the payment is due to end soon
• the lender does not accept the income type

Can Centrelink income help if you also work?

Yes, Centrelink income may help if you also have employment income.

For example, you may have:

• part-time employment income
• casual income
• self-employed income
• pension income
• child support
• Family Tax Benefit
• Parenting Payment

In these cases, the lender may assess the employment income first and then decide whether the Centrelink income can also be used.

This can help borrowing power if the Centrelink payment is acceptable and likely to continue.

Can single parents use Centrelink income for a home loan?

Single parents may be able to use some Centrelink income, depending on the payment type and lender policy.

A single parent application may include:

• wages or salary
• casual income
• Family Tax Benefit
• Parenting Payment
• child support
• rental history
• savings
• government benefits

The lender may review the age of the children, ongoing payment eligibility and household expenses.

Single-parent applications can work, but they need to be assessed carefully because dependants, childcare costs and living expenses can all affect borrowing power.

Can Centrelink income be used with a small deposit?

It may be possible, but small-deposit loans can be harder.

If you are borrowing above 80% of the property value, lenders mortgage insurance may apply. The lender and mortgage insurer may both need to accept the income.

A small-deposit application may need stronger evidence of:

• stable income
• genuine savings
• clean credit history
• low debts
• regular payment history
• acceptable Centrelink income
• manageable living expenses
• consistent rent payments

If the application is already tight, the way Centrelink income is treated can make a big difference.

Does Centrelink income affect borrowing power?

Centrelink income can increase borrowing power if the lender accepts it.

But borrowing power may still be limited if:

• only part of the payment is used
• the payment is temporary
• the payment is due to end
• the lender excludes the payment
• the borrower has several dependants
• living expenses are high
• other debts reduce servicing
• the deposit is small

The income may help, but it does not override the lender’s full servicing assessment.

Related research: Do Credit Card Limits Affect Your Home Loan Borrowing Power?

What if your Centrelink payment will stop soon?

If a payment is due to stop soon, the lender may not use it.

This can happen where:

• a child is nearing the age cut-off
• a temporary payment is ending
• paid parental leave is finishing
• household income is changing
• eligibility is expected to change
• the borrower is returning to work
• the care arrangement is changing

The lender may only use income that is expected to continue for an acceptable period.

If a payment is about to end, the application may need to rely on other income.

What if your payment amount changes?

Centrelink payments can change when income, family circumstances or eligibility changes.

A lender may use a conservative amount if the payment varies.

They may look at:

• current payment amount
• regular payment history
• future eligibility
• bank statement credits
• Centrelink statement amount
• tax or family income estimates
• child ages
• household income changes

If your payment recently increased, the lender may want evidence that the new amount will continue.

If your payment is expected to decrease, the lender may use the lower amount.

10 common mistakes to avoid

1. Do not assume every Centrelink payment can be used.
2. Do not assume every lender treats Centrelink income the same way.
3. Do not rely on an outdated Centrelink statement.
4. Do not ignore child age limits for family payments.
5. Do not forget to disclose all dependants.
6. Do not assume JobSeeker income will be accepted.
7. Do not leave child support undocumented.
8. Do not hide payment changes that are likely to happen.
9. Do not apply before checking whether the lender accepts your income type.
10. Do not assume a bank decline means no lender will consider your application.

How to improve your chances before applying

Before applying, it helps to prepare clear income evidence.

Useful steps include:

• download a current Centrelink income statement
• keep recent bank statements showing payment credits
• confirm which payments are ongoing
• check whether any payment is due to stop soon
• collect child support evidence if relevant
• keep employment income documents ready
• reduce unnecessary debts where practical
• keep rent payments consistent
• build savings history where possible
• update your living expenses accurately
• disclose all income sources early
• compare lender policy before submitting the application

A clear application can make it easier for the lender to assess your income fairly.

Should you wait before applying?

Sometimes waiting can help.

Waiting may improve your options if:

• your payment has only recently started
• your Centrelink statement is not current
• you are about to return to work
• your employment income will increase soon
• you are close to saving a larger deposit
• your debts will reduce soon
• child support payments need more history
• your bank conduct needs time to improve

But waiting is not always necessary.

You may be ready to apply if:

• your income is stable
• your Centrelink payment is ongoing
• your documents are current
• your debts are manageable
• your deposit is suitable
• your expenses are realistic
• the right lender accepts the income type

A broker can compare whether applying now or waiting would give you better options.

Example scenarios

Scenario 1: Working parent with Family Tax Benefit

You work part-time and receive Family Tax Benefit.

Your payment is regular and supported by a Centrelink statement.

Some lenders may use the employment income and include acceptable family benefits if they are likely to continue.

Scenario 2: Single parent with child support

You receive wages, Family Tax Benefit and child support.

The lender may ask for payslips, Centrelink evidence, child support statements and bank statements showing regular payments.

Scenario 3: Disability Support Pension

You receive Disability Support Pension and have low debts.

Some lenders may consider the pension income if it is ongoing, verified and the loan is affordable.

Scenario 4: JobSeeker as main income

You are receiving JobSeeker and do not have other income.

This may be difficult with many lenders because the income may be treated as temporary or not acceptable for home loan servicing.

So, can you get a home loan with Centrelink income?

Yes, you may be able to get a home loan with Centrelink income.

The strongest applications usually have:

• Centrelink payments that are ongoing
• current income statements
• bank statements showing payment credits
• stable employment income, where available
• clear child support evidence, where relevant
• clean credit history
• manageable debts
• realistic living expenses
• suitable deposit
• a lender whose policy accepts the payment type

Centrelink income can be part of a home loan application, but the payment type and lender policy matter.

Need help applying with Centrelink income?

A mortgage broker can help compare lenders that may accept Centrelink income, Family Tax Benefit, Parenting Payment, Disability Support Pension, Carer Payment, Age Pension or child support.

We can review your income evidence, payment type, deposit, debts, expenses and borrowing position before you apply.

If you receive government income and want to buy or refinance, speak with a mortgage broker who understands how different lenders assess Centrelink payments.