Is it possible to buy a home on a single income? 

Buying a home solo in Australia can feel particularly challenging, especially with rising property prices and strict lending rules. However, owning a home on a single income is possible. This guide will walk you through how to plan and what you need to know.

Step 1: Set clear expectations

Start with a realistic, grounded view of what’s possible on your income. This doesn’t mean lowering your standards, it means tailoring them to your financial reality so you can make smart decisions. There are a few things in particular to consider when budgeting on a single income:

Location flexibility

Growth suburbs or regional areas may offer more affordable options upfront. This can help you get into the property market earlier and support you to buy in your ideal area later.

Property type

Consider townhouses, units, or apartments that may be more budget friendly. Make sure to factor in how the value in the property you choose may change over time.

Timing

Timing is key when buying a home – it's personal and depends on your situation. You might be ready sooner than you think or need more time to plan. Talk to a home loan expert to see where you stand.

Step 2: Understand your borrowing power 

Your borrowing power is how much a lender is willing to let you borrow — and it’s influenced by:

  • your net income (after tax)
  • existing debts and regular expenses
  • number of dependents
  • interest rates and loan type.

If you have children or other dependents, lenders assume your household expenses will be higher, which may lower your borrowing power. This doesn’t mean you won’t get approved but you may need to adjust your budget or property expectations accordingly. Use the borrowing power calculator to get an estimate and for a more tailored approach, you can speak to a lender.

Step 3: Organise your finances

Your borrowing power is only a part of the picture. Lenders want to see that you’re financially reliable and can handle repayments in the long-term. Here are some approaches:

Reduce debt

Reduce existing debts (for example, credit cards and personal loans) to demonstrate to lenders that you can manage your finances responsibly. This may involve consolidating debts or creating a strict repayment plan to pay off debts more quickly.

Build your savings

Save consistently using a dedicated high-interest savings account for your home deposit. Allocating even a small amount regularly can significantly strengthen your application over time.

Cut down on expenses

Create a detailed budget to identify areas where you can reduce spending. Lenders want to see that you can manage your finances and maintain a consistent lifestyle, which can improve your chances of getting a loan.

Maintain financial stability

Before applying for a home loan, avoid major financial changes (like switching jobs or taking out new loans). Stability demonstrates reliability to lenders, making you a more attractive candidate for a mortgage.

Step 4: Strengthen your loan application

When applying solo, lenders look even more closely at your overall risk profile. Here’s how to boost your chances:

Stable employment

Showing you have been in your current role for at least 6 to 12 months before you apply for a home loan shows you have a regular income stream and are more likely to meet your repayments. If you’re self-employed and looking to buy, speak to your lender for support.

Good credit history

Make sure you have no missed payments, defaults or large debts. Building your creditworthiness shows lenders that you can manage and repay your loans.

Larger deposit

Saving a larger deposit (15% or more) reduces the lender’s risk. While this can be tricky on a single income, building this into your buying timeframe can help you chances of securing a loan.

Consider co-borrowing

Partnering with a family member or friends can help make home ownership more affordable. A co-borrower can share the financial load of saving a deposit and can boost your overall loan application.

Step 5: Find government schemes and grants

If you’re a first-time buyer, there are a number of state and federal schemes that can make a big difference, especially on a single income. Some grants or schemes can be combined but others can’t, and it’s worth doing a bit of research so you know exactly what is available to you. Make sure you double-check eligibility before you apply.

Explore government home loan grants

Achieving homeownership on a single income

Buying a home on a single income may take extra planning, but it’s achievable. The right mindset, smart financial habits, and knowing your options can put the goal within reach.

Start where you are, take small steps and seek personalised financial advice. And remember, the right home doesn’t need to be your forever home. It just needs to be your next step forward.

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Other home and property guides

First home buyer’s guide

Our easy step-by-step guide to buying your first home.

How to get a home loan

See a full list of the information we'll request here.

How much do you need for a house deposit

Tips to help you save a deposit for a home loan.

Tools and calculators

Use a budget planner to help you save

Use our free budget planner to create a monthly budget.

Stamp duty calculator

Understand how much stamp duty you will have to pay on your property purchase.

Which home loan is right for me?

We’ll help you find a home loan that suits your needs.

First home buyer basics

Have more questions on your first home buyer journey? Our guides answer them all.

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Terms and Conditions

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.

Target Market Determinations for these products are available at nab.com.au/TMD.