If you're a single parent keen to buy a home, there may be some lenders who will accept your Centrelink payments as part of your income. If you're a single parent looking to buy a home, you have more options than you probably realise.
The Family Home Guarantee allows single parents to purchase a home with as little as a 2% deposit without paying Lenders Mortgage Insurance (LMI). Under the scheme, up to 18% of a single parent's home loan can be guaranteed by the Government. LMI is usually payable on home loans with deposits of less than 20%.
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.
at least 18 years of age. earning no more than $125,000 per year. intending to be the owner-occupier of the purchased property. NOT currently owning property, or upon settlement of the guaranteed property they're buying, not intending to own a separate property.
The current definition of 'Low income' households are those with incomes in the 3rd to 20th percentiles of equivalised disposable household income, that is, the lowest income quintile excluding the bottom two percentiles.
You and your partner must have no more than $5,000 in combined readily available funds. This includes any liquid assets you can sell. Liquid assets include cash you have on hand, money you have in the bank and financial investments you have. They also include gifts and other money available to you at short notice.
You can complete suitable paid work for at least 30 hours a fortnight. This can include self-employment. Your income must be no less than the national minimum wage, or relevant award wage.
On 1 December 2022, a one-off $4,000 income credit was added to the Work Bonus income bank of those at least pension age and in receipt of an Age Pension, Disability Support Pension, Carer Payment or certain Veterans entitlement. Prior to 1 December 2022, the Work Bonus income bank was capped at $7,800.
Mortgages. We only include the amount of the real estate you own in your assets test. If you have a mortgage, we work out the percentage you own. To do this, we take away the loan amount you owe for the property from your share of the total value.
Loans on Centrelink Benefits
Whether your income is 100% from Centrelink benefits or a mix of earnings and benefits, your combined or total income must be over $2,080 a month in order to qualify. If you are looking for a secured loan on Centrelink, then your weekly income must be over $480 a week to qualify1.
⦁ Parenting Payment Single (PPS) is an income support payment available to single parents and other principal carers who have sole or primary responsibility for the care of a young child. These parents may be eligible for PPS until their youngest child turns 8 (eligibility depends on income and other circumstances).
Shared Equity Home Buyer Helper
Help for eligible home buyers to buy their own home with as little as 2% deposit. The NSW Government contributes a part of the purchase price in exchange for an equal interest in the property. It's open to: single parents of a dependent child or children.
The Federal Budget 2023-24 will expand access to financial support by raising the age cut-off for the Parenting Payment (Single) from 8 to 14. Many single parents – overwhelmingly women – face difficulty balancing caring responsibilities and work. These difficulties do not end when their child turns eight.
In addition to raising the age cut-off to receive the Parenting Payment (Single) to 13 from seven for the youngest child, a single parent with one child will be able to earn $227.20 a fortnight before losing any of the payment, up from $202.60.
If you're a single parent and your child is between 8 and 14 years old and you're on Jobseeker, this will benefit you to the tune of $176.90 a fortnight. The changes are set to kick in from 20 September 2023. The base rate for the parenting payment (single) is $922.10 per fortnight until your child turns 14.
You must tell us about any lump sum you get, even if you think it's exempt from the income test.
If your parents or guardians earn too much, you won't be able to get a payment. Use our Payment and Service Finder to find out how much you could get. It will be an estimate only and depends on you entering accurate information.
If you withdraw money from your super fund, you must tell Centrelink within 14 days.
What is the poverty line? The OECD defines the poverty line as half the median household income. In Australia, the poverty line works out to be $489 per week for a single adult, and $1027 per week for a couple with two children.
The national minimum wage increase
Following the Fair Work Commission (FWC) Annual Wage Review 2022-23, the Australian national minimum wage has now increased to $23.23 per hour.
The average annual salary in Australia is $68,900 and $35.30 per hour. It is just the average salary for basic workers but skilled and experienced workers also earn around $108,980 annually. The average salary also varies depending on the field of work and the job role of workers.