10 Steps to Qualify for Home Loans for Low Income Earners in 2025

In Queensland, homeownership feels increasingly out of reach for many, with rising house prices, limited supply, and cost-of-living pressures making it harder to break into the market. 

For low income earners, the challenge is even greater. Strict lending criteria, high deposit requirements, and the added hurdle of lenders mortgage insurance can make traditional home loans feel out of reach. 

In Greater Brisbane, where property values have jumped sharply in recent years, the gap between income and affordability continues to grow. That’s why home loans for low income earners play such an important role. 

These loans offer lower deposits, access to government schemes, and flexible criteria, helping everyday buyers transition from renting to owning on a modest income.

This guide walks you through exactly how to qualify for one in 2025 with real, actionable steps.

Personalised Help for Low Income Home Buyers in North Brisbane. Kelly Brothers Finance’s North Brisbane mortgage brokers help low income earners access government schemes, low deposit loans, and flexible lenders. Whether it’s your first home or an upgrade, we guide you through the entire application process. Call (07) 3847 9450 today to get started. 

What are Home Loans for Low Income Earners?

Home loans for low income earners are mortgage options designed to make buying a home more achievable for people earning below-average wages. These loans consider the financial challenges faced by low-income households and offer features that alleviate the upfront and ongoing costs of homeownership.

Key features often include:

• Lower deposit requirements (as little as 2–5% in some cases)
  
  
• Access to government support schemes like the First Home Guarantee or Shared Equity programs
  
  
• Flexible income assessments, including consideration of government benefits and part-time or casual work
  
  
• Reduced or waived lenders mortgage insurance (LMI) under specific schemes
  
  
• Support for regional and remote buyers through programs like the Regional First Home Buyer Guarantee

These loans aim to support financial stability while giving more Australians a fair shot at entering the property market.

Low Income Earners Home Loans vs Traditional Home Loans

Traditional home loans usually require a stable full-time income, a strong credit score, and a 20% deposit. Lenders often stick to standard debt-to-income ratios and may overlook Centrelink payments or casual work.

Home loans for low income earners, on the other hand, offer more flexibility, accepting smaller deposits, lower credit scores, and government payments like the Disability Support Pension or Family Tax Benefit. Some are backed by government guarantees, making approval more achievable.

While traditional loans suit high earners with clean financial records, low-income loans are built for real-world situations and offer more ways in.

Eligibility Requirements for Low Income Earners

• Minimum income requirements (if applicable): Some schemes don’t require high income but may cap income, under a certain threshold, to qualify for First Home Guarantee or Shared Equity Schemes.
• Employment status and stability: Full‑time, part‑time, casual, or even long‑term pension income counts, though contract of sale, group certificate, payslips, dividend statements, Notice of Assessment and bank statements will be needed.
• Credit score expectations: Lenders will perform credit assessment. A modest credit score can still work if you fix credit issues first.
• Residency or citizenship requirements: Must be an Australian citizen or have a permanent residency visa. You’ll need ID like an Australian passport or permanent residency visa documents.
• Documentation needed: Expect to supply bank statements, payslips, group certificates, notice of assessment, share certificates, dividend statements, Home Buyer Declaration, and loan application form.

Low Income? Let’s Talk Real Home Loan Options That Work. You don’t need a big income to get a home loan in North Brisbane. You need a broker who knows how to make it work. At Kelly Brothers Finance, our North Brisbane mortgage brokers know which lenders are open to Centrelink income, casual jobs, and small deposits. Call us for a free chat at (07) 3847 9450. 

10 Steps to Qualify for Home Loans for Low Income Earners

You don’t need a huge salary to buy a home, but you do need a solid plan. These 10 practical steps will help you improve your chances and move closer to homeownership in 2025.

1. Check Your Credit Score First

Your credit score gives lenders a snapshot of how reliable you are with money. You can access your credit report for free through services like Equifax, Experian, or Illion once a year. 

Aim for a score above 625, though some non-bank lenders will consider lower if everything else checks out. Look for any errors or unpaid defaults, and if you find mistakes, lodge a dispute immediately. A clean report makes you a much safer bet for lenders.

2. Reduce Existing Debts

Lenders assess how much debt you already carry to decide if you can manage a mortgage. The less you owe on things like credit cards, car loans, or buy-now-pay-later services, the better your application will look. 

Focus on paying off small debts first to free up your income. Avoid taking on new loans or credit cards during this time, as it signals financial strain. The lower your debt-to-income ratio, the more confident lenders will be.

3. Build a Steady Employment History

Consistency matters more than the size of your pay. Most lenders want to see at least 6–12 months in your current job, or 2 years of steady income if you’re casual or self-employed. If you work multiple jobs or receive Centrelink benefits, document all your expenses clearly. 

Keep records such as payslips, group certificates, or Notice of Assessment to show your income stability. This reassures lenders that you can meet repayments long-term.

4. Start Saving for a Deposit

Even with government help, you’ll still need some savings. A 5% deposit is the minimum for many schemes like the First Home Guarantee, but aiming for 10% gives you more options.

Set a weekly savings target; even small amounts add up. Use a separate high-interest savings account or offset account to avoid spending it. Track your progress with savings calculators and stay consistent, even if you're on a tight budget.

5. Understand Your Borrowing Power

Knowing how much you can realistically borrow keeps you from wasting time on homes you can’t afford. Use a borrowing power calculator online to estimate your limit based on income, expenses, and deposit size. 

Don’t forget to factor in things like stamp duty, application fees, and moving costs. If you're relying on government benefits or part-time work, double-check that lenders will count that income. Knowing your limits upfront makes the rest of the process smoother.

6. Look Into Government Home Loan Programs

There are several government-backed schemes designed to help low income earners buy a home. These include the First Home Guarantee, Family Home Guarantee, Regional First Home Buyer Guarantee, and Shared Equity Schemes in some states. They often let you buy with a smaller deposit and no lenders mortgage insurance. 

Check the eligibility criteria, such as income caps and property price caps, to see what fits your situation. You can apply through participating lenders or speak with a mortgage broker who’s familiar with these programs.

7. Get Pre-Approval from a Lender

Pre-approval shows sellers and agents that you’re a serious buyer. It also gives you a clear idea of your price range and loan terms. To apply, you’ll need documents like ID, payslips, bank statements, and your most recent tax return. 

Pre-approval typically lasts 90 days and is conditional; it can be changed if your financial situation changes. It’s a smart step to take before you start house hunting seriously.

8. Choose the Right Type of Home Loan

Not all loans are the same, and picking the right one can save you thousands. Fixed interest rate loans give you predictable repayments, while variable rates offer flexibility if rates drop. 

Some lenders offer interest-only home loans for short-term relief, but these cost more over time. Look for loans with features like redraw facilities or offset accounts if you want flexibility. Always compare loans using trusted comparison websites and watch out for hidden fees.

9. Apply with a Co-Borrower or Guarantor

If your income or credit score is holding you back, a co-borrower or guarantor could help strengthen your application. A co-borrower shares the responsibility and boosts your borrowing power, while a guarantor (usually a family member) offers extra security without making repayments. 

The guarantor needs good equity in their own home and must understand the risk. Be clear about expectations and talk through the legal side before committing. This option isn’t for everyone, but it can be a game-changer.

10. Work with a Mortgage Broker

A broker who understands low-income lending options, such as Kelly Brothers Finance, can save you time and stress. They have access to non-bank lenders, government schemes, and know which banks accept Centrelink income or part-time work. 

Ensure your broker is accredited and inquire about their compensation structure. Some charge a fee, others get a commission from lenders. Ask them to explain the loan features clearly, including interest rates, loan term, and potential fees. A good broker can be your biggest ally in finding the right home loan.

Your Income Doesn’t Have to Hold You Back. If you’re a low income earner looking to buy in North Brisbane, don’t guess your way through the loan process. Our North Brisbane mortgage brokers know which lenders accept non-traditional income and how to position your application to give it the best shot. Book a free, personalised consultation today by calling us at (07) 3847 9450. 

FAQs

What is the lowest income to qualify for a mortgage?

There’s no fixed minimum income, but you must show that you can meet loan repayments after expenses. Some lenders work with incomes as low as $30,000–$40,000 per year, especially when applying under government-backed schemes.

Can low income earners get a home loan?

Yes. Many lenders offer home loans for low income earners, especially when paired with government schemes like the First Home Guarantee or Shared Equity options. You'll need a steady income, manageable debts, and a small deposit.

What is the best mortgage loan for low income people?

Loans backed by government schemes (e.g. First Home Guarantee, Family Home Guarantee, Shared Equity Schemes) are often best, as they require smaller deposits and may waive lenders mortgage insurance.

How can I buy a house with low income in Australia?

Start by checking your credit score and reducing existing debts. Save for a deposit, apply for government programs, and speak with a broker who understands low-income lending. Look at homes in regional areas or under property price caps.

What deposit do I need as a low income earner?

If you're eligible for schemes like the First Home Guarantee, you may only need 5% deposit. Without support, most lenders require 10–20%, plus enough to cover fees and stamp duty (unless concessions apply).

What if my credit score is low or I have credit issues?

You can still apply, especially with non-bank lenders or specialist loans. Take steps to improve your credit. Pay off debts, fix errors on your report, and avoid new credit until your application is submitted.

Can someone on government benefits qualify for a home loan?

Yes, depending on the lender and the type of benefit. Some accept payments like the Disability Support Pension, Family Tax Benefit, or Carers Allowance as valid income, especially if it’s stable and ongoing.

Conclusion

Buying a home on a low income might feel out of reach, but with the right plan and the right support, it’s more achievable than ever. By following these steps, exploring home loans for low income earners, and using government support, you can move closer to home ownership - no high salary needed.

 If you're planning to purchase a home in North Brisbane on a low income, now is the time to take action. Start by checking your credit score, setting a deposit goal, or speaking with experienced North Brisbane mortgage brokers who understand your situation. 

The team at Kelly Brothers Finance specialises in helping first-home buyers and low income earners find the right loan strategy towards homeownership. Call us today at (07) 3847 9450 to get personalised advice and see what’s possible for you.