Getting a Home Loan on Centrelink Benefits

• It can be possible to get a home loan on Centrelink benefits. Eligibility varies based on your overall situation.
• Approval depends on your full financial situation — income (including the type of Centrelink benefit), expenses, deposit, debts, and credit history.
• A mortgage broker such as Rapid Finance could compare lenders and help you explore suitable options.

Owning your home can bring security, comfort, and peace of mind to you and your family.

If you’re ready to take the next step, you’ll need to find a home loan that fits your budget.

If you have a limited or bad credit history, or you rely on Centrelink for part of your income, the process can feel daunting. Will lenders consider your application? Where do you start?

Good news: many lenders will consider applications where Centrelink payments form part of your income. What’s possible depends on the payment type and how much of your overall income it represents, plus other factors like employment, deposit, and credit profile. You may even be able to get a home loan with bad credit history.

Not sure what you’re eligible for? Talk to Rapid Finance. As a broker, we compare options from multiple lenders and can explain which payments lenders may count and what documentation you’ll need. Lending criteria and conditions apply.

Yes, it is possible to get a home loan while receiving Centrelink benefits, but outcomes will vary based on your circumstances.

What Centrelink benefits are accepted by lenders?

The key to whether or not you can get finance comes down to your ability to repay — that is, your total verified income versus expenses and debts.

Can you get a loan when on Centrelink benefits? Some payments are counted as income, while others are not. In most cases, you’ll need another primary source of income in addition to a Centrelink payment.

Common Centrelink benefits

Type of Centrelink Benefit	Accepted?	Conditions
Age Pension	Yes (with conditions)	Usually treated as secondary income. Strong overall position and/or other income sources are typically required. Shorter loan terms may apply in retirement.
Child Support*	Yes (with evidence)	Court order/CSA assessment or documented private agreement and proof of regular receipt generally required. Often counted as secondary income.
DSP (Disability Support Pension)	Yes (with conditions)	Commonly accepted as secondary income alongside employment or other ongoing income.
Family Tax Benefit	Yes (with conditions)	Applies to both FTB A and B. Typically treated as secondary income; documentation and child age tests may apply.
Veterans’ Affairs Pension	Yes (with conditions)	Usually considered as secondary income; provide DVA statements. Policy varies by lender.
Parenting Payment (Single/Partnered)	Yes (with conditions)	Typically treated as secondary income and assessed with other income sources. Child age and principal carer rules apply.
Carer Payment	Yes (with conditions)	Often counted as secondary income with evidence of ongoing eligibility. Provide Services Australia statements.
Carer Allowance / Carer Supplement	No	Supplementary/top-up payments. Specific-purpose support and not usually counted as income for borrowing capacity.
Commonwealth Rent Assistance	No	Non-taxable rent supplement. Not treated as income; some lenders may consider it when reviewing living expenses, but it generally ceases once you own a home.
Paid Parental Leave (Parental Leave Pay)	Usually no	Temporary payment; generally not accepted as ongoing income. May be considered only alongside strong, reliable primary income.
Youth Allowance	Usually no	Generally not acceptable as primary income for a home loan. Applications may be considered only where there is strong, reliable secondary income.
Austudy	Usually no	Student/apprentice payment; typically not accepted as primary income for a home loan.
ABSTUDY	Usually no	Student/apprentice payment; typically not accepted as primary income for a home loan.
Pharmaceutical Allowance	No	Specific-purpose supplement; not considered ongoing income for borrowing capacity.
JobSeeker Payment (formerly Newstart)	Usually no	Generally not accepted as primary income for a home loan. Some lenders may consider applications only where there is strong, reliable secondary income.

^*Child Support isn’t a Centrelink payment, but many lenders may count it as income if it’s documented and regularly received.

How to maximise your chances of getting a loan

If you receive a Centrelink benefit in addition to another source of income, you may be closer to a home loan than you think. Lenders assess your overall financial situation — income, expenses, existing debts, deposit, and credit history.

Making sure you meet common lending criteria is the best way to maximise your chances of a successful home loan application, even if you receive a Centrelink benefit.

Save up a good-sized deposit. As a general rule, the bigger the deposit, the better. A healthy deposit reduces risk for the lender and can improve your borrowing capacity. With a 20% deposit or more, you may be able to avoid paying Lenders Mortgage Insurance (LMI).

Show genuine savings. Regular contributions (typically 3–6 months) into a savings account can demonstrate budgeting discipline. Lenders often look for consistent saving patterns rather than one-off lump sums.

Keep steady employment. Stability matters. Continuous employment (and time in your current role) helps demonstrate reliable income, especially when Centrelink forms part of your total income.

Reduce existing debts and limits. Pay off personal loans, credit cards and Buy Now Pay Later balances, and consider lowering unused card limits. Lower monthly commitments can boost serviceability.

Keep bank statements clean. Avoid late payments, overdrawn fees, dishonours and visible gambling. Lenders review recent statements, so tidy spending helps.

Don’t ‘over-apply’ for loans. Each application can create a hard enquiry on your credit file. Multiple enquiries in a short time may hurt your chances. A broker can pre-assess and target suitable lenders to minimise unnecessary hits.

Get your documents ready. Have payslips, Centrelink income statements, child support evidence (if applicable), tax returns and bank statements organised. Clear documentation speeds up assessment.

Ask about government guarantee options. Depending on eligibility, certain government home guarantee schemes can help you buy with a smaller deposit and may reduce or remove LMI. A broker can explain what might apply in your situation.

Check out some more tips on how to finance a home loan with bad credit  or see what other Centrelink loans may be available to you.