Key takeaways
- Lenders apply a single-person expense benchmark, which is lower than a couple's, so your income goes further than you might expect.
- Existing debts and credit card limits hit single-income borrowers hardest. Clearing them first can lift borrowing power noticeably.
- The federal 5% Deposit Scheme removes LMI for eligible buyers, and single parents can buy with a deposit from 2%.
- Lender policy on overtime, bonuses and second jobs varies widely, which can change what you can borrow.
Planning to buy? See how we help buyers find the right home loan.
Can you buy in Adelaide on one income?
Yes. Adelaide remains more affordable than Sydney or Melbourne, and many solo buyers purchase a unit, townhouse or house in the outer and middle-ring suburbs on a single salary. The question isn't whether it's possible, but what price range is realistic and which lender will give you the most room.
How do lenders assess a single income?
Lenders look at your after-tax income, subtract your living expenses (or a benchmark for a single-person household if higher), subtract your other debt repayments, and test whether what's left covers the loan at a buffered interest rate. Because a single person's expense benchmark is lower than a couple's, the gap is often smaller than people expect. See serviceability explained.
How can a single-income buyer borrow more?
- Reduce card limits. Lenders count a percentage of the limit as a monthly commitment, even if the balance is zero. See credit cards and your borrowing power.
- Clear small debts. A car loan or buy now pay later accounts can cost more borrowing power than the balance suggests.
- Count all your income. Overtime, allowances, bonuses and second jobs are treated differently by each lender. See overtime and bonus income.
- Consider rental income. Some buyers take a housemate or buy a property with a granny flat. Some lenders count boarder or rental income.
- Choose the lender carefully. The difference between lenders for the same single-income borrower can be significant.
Which schemes help solo buyers?
The federal 5% Deposit Scheme lets eligible first home buyers purchase with a 5% deposit without LMI, within a $900,000 price cap in Adelaide. Eligible single parents and legal guardians can buy with a deposit from 2%, and the scheme isn't limited to first home buyers in that case.
If you're buying new or building, South Australia's $15,000 First Home Owner Grant and full stamp duty relief can make a large difference to the cash you need. See SA first home buyer grants and stamp duty.
Is a guarantor worth considering?
A family guarantor can let you buy with little or no deposit and avoid LMI, but it doesn't increase your borrowing power. You still need to service the loan on your income. It's most useful when saving the deposit is the barrier rather than the repayments. See guarantor home loans.
Build in a buffer
With one income, there's no second salary to fall back on. Aim for savings or an offset balance that covers a few months of repayments, and check your income protection cover. Lenders already test at a higher rate, but your own buffer matters just as much.
Find out what you can borrow on your own
We'll run your income across lenders, check the schemes you qualify for and show you a realistic price range in Adelaide.
Book your free game plan callGeorge Karpathakis, Co-Founder & DirectorYour enquiry comes straight to our team. We usually reply within one business day.
Frequently asked questions
How much can I borrow on a single income?
It depends on your income, expenses, debts and the lender. Try our borrowing power calculator for a rough guide, then we can run it across lenders.
Can single parents use the 5% Deposit Scheme?
Eligible single parents and legal guardians can buy with a deposit from 2% without LMI, and don't need to be first home buyers.
Does a housemate's rent count as income?
Some lenders will count boarder or rental income, usually with evidence and at a discount. Policy varies.
The 7 things every lender checks before they say yes
A one-page checklist to get your application lender-ready. Free and instant.
This guide is general information only and does not take your personal circumstances into account. It is not financial, credit, tax or legal advice. Examples are illustrative only. Government schemes, lender policies and rates change over time and eligibility criteria apply. Speak with us for advice tailored to your situation. LendQuest Pty Ltd is a credit representative (555514) of BLSSA Pty Ltd, Australian Credit Licence 391237.