By Jason Given - June 2026 - 7 min read
Lenders assess your ability to repay based on your net income after tax, not your gross salary. Government payments - Family Tax Benefit, parenting payments, child support - are accepted as income by most lenders. Overtime, bonuses, and rental income can also be included depending on the lender.
The key is matching you with the right lender. Some lenders are more generous with how they treat supplementary income, part-time hours, or casual employment. The difference in borrowing capacity between the most and least favourable lender can be $50,000 to $100,000 for the same income.
A credit issue does not automatically disqualify you. Lenders look at the type of issue, how long ago it occurred, whether it has been resolved, and the amounts involved.
The First Home Guarantee allows eligible first home buyers to purchase with as little as 5% deposit without paying LMI. The Family Home Guarantee goes further - single parents can buy with as little as 2% deposit. The Regional First Home Buyer Guarantee applies the same 5% benefit to regional areas.
These schemes are administered through participating lenders. Not every lender participates, so working with a broker who knows which lenders are in the scheme and still have spots available is important.
Specialist lenders (sometimes called non-conforming lenders) exist specifically for borrowers who do not fit the mainstream mould. They charge higher rates - typically 1-3% above standard - but they can get you into a property when mainstream lenders will not.
The strategy is often to start with a specialist lender, build 12-24 months of clean repayment history, and then refinance to a mainstream lender at a much better rate. Lendology plans this from day one so you have a clear path to a better rate, not just an approval.
Everyone's situation is different. Book a free chat and we will give you an honest assessment of where you stand, what is possible, and what steps you can take to improve your position.
Yes, but your options are more limited. Some specialist lenders specifically cater to borrowers with credit issues - defaults, judgments, or a low credit score. The rates are higher than mainstream lenders, but they can be a stepping stone. Once you have 12-24 months of clean repayment history, Lendology can look at refinancing you to a better rate.
There is no single cutoff. Each lender has its own criteria. A score above 600 will qualify you for most mainstream lenders. Between 500-600 you will have fewer options but it is still possible. Below 500, specialist lenders are typically the path. More important than the score itself is the story behind it - a paid default from three years ago is very different from an unpaid default from last month.
Absolutely. Single-parent income is assessed the same as any other income. Government payments like Family Tax Benefit are accepted by most lenders as supplementary income. The First Home Guarantee scheme is particularly useful for single parents, as it allows purchases with as little as 2% deposit without LMI.