Being a single parent is a tough job and can really stretch
1. Know what counts as income
How much you can borrow is usually based on your total income and total
debt commitments. Depending on which lender you speak to, this might
include Newstart allowance or Austudy.
At Home Loans Melbourne, you may also be able to use parenting related payments such as:
You may not be able to include the full amount of these payments as part of your total income and there could be conditions associated, such as how many children you have.
Maintenance and child support may also be included as income, but there are requirements around providing evidence that you receive these payments regularly and on a long term basis.
The best way to find out exactly what counts as income in your situation is to contact a loan consultant. They’ll be able to explain the ins and outs of how each type of payment is treated. – Parenting payments
– Family tax benefit parts A & B
– Large family and multiple birth allowance
2. Decide on your priorities
Renting can be hard on families – kids and house inspections don’t
always mix well, and knowing you might have to move when a rental
agreement expires can erode your sense of security.
However, buying a home is a big financial commitment and finding the right place at the right price can be a serious challenge.
Many people on a single income looking to buy simply can’t afford a home that ticks every box at once, so you might still find yourself needing to decide what’s important. For example;
Deciding on your priorities gives you a more realistic idea of what’s achievable right now.
– Is it more important to have a home in a suburb close to the kids’
schools or extended family, or a house big enough for everyone to have
their own bedroom?
– Is it more important to have a backyard and space to play or for you to be close to your work to cut down on commute time?
– Is it more important to have a newer home that needs little
maintenance, or a house that needs more work but has greater potential
for you to increase its value?
3. Learn from people who’ve done it
Do you know of other single parents who’ve become home owners? Maybe
there’s someone at your mother’s group or footy team who has been
through it all before. There’s nothing like insider knowledge to help
give you insight into how it can be done.
Ask around, many people will be happy to share their story for you and might even have a few tips of their own.
To be eligible for a home loan, you will need:
Other criteria may apply, depending on which loan you choose.
The type of things we will ask you about when you call to get a quote will be:
Want to see how someone else started over on a single income? Watch
Moira’s story to see how she achieved her home ownership aspirations.
– to be buying a home in South Australia, for residential use only
– to be an Australian citizen or hold Permanent Residency or skilled migrant status in Australia
– to be over 18 years of age
– $3,000 of savings held for at least three months, or twelve months of good rental history.
– details of your income (e.g. salary and/or Centrelink income)
– if you’re employed, your employment type (e.g. full-time, part-time, casual, contract)
– details of your debt commitments (e.g. personal loans, car loans, credit and store cards).