Do I qualify for a loan while on a Disability Pension or Government Benefit?
Government income is not an automatic barrier to a home loan. A disability pension, and several other Centrelink benefits, can be valid income for a loan application — the question is which lender's policy counts that income, how much of it they count, and how the rest of your position is structured around it. Like any income source, a benefit affects how much you can borrow and the terms that follow. Loans assessed largely on benefit income are read more conservatively by lenders, so the rate and the loan-to-value ratio can sit a little higher than a prime application. That is a policy difference between lenders, not a verdict on whether the loan can be done.
The practical work is sorting which benefits a given lender will accept, at what percentage, and what documentation they will need to see. Below is how the main categories tend to be treated. Treat it as general guidance — the detail moves between lenders, so it is worth confirming against your actual circumstances before you build a plan on it.
Which benefits lenders will count
Family Tax Benefit. Family Tax Benefit Part A and Part B are accepted by a number of lenders, and the Large Family Supplement is accepted by some. The age of your children matters: fewer lenders will count the income once children are older than 11, though a small number will accept 100% of your FTB regardless of the children's ages. You will need to supply your most recent Centrelink statement — every page, including blank ones — which you can usually download from the Department of Human Services. Some family-related payments are not counted at all. Rent assistance, parenting payments and the pharmaceutical allowance are generally excluded, because they are tied to a specific purpose or will stop once you own a home.
Child support and maintenance. Many lenders will consider child support and maintenance payments when assessing a home loan. What matters is the detail: whether payments run through the Child Support Agency, whether they are court ordered, and whether you have received them consistently over the last six months. Those factors point to which lender and product fit. Expect to provide supporting evidence — a copy of the Family Law Court Order, bank statements showing the credits landing, and a letter from your solicitor or from the Child Support Agency.
Veterans and widows pensions. Service, age and widow pensions may be accepted as additional income by some lenders, provided you can show the income is permanent and ongoing and that you can meet the mortgage for the foreseeable future. The Department of Veterans' Affairs Service and Age Pension and the War Widow's or Widower's Pension are both commonly acceptable; other DVA pension types may be accepted where they are permanent. You will need a current DVA statement showing your name and the frequency and amount of payments, alongside a bank statement showing the direct credits identifiable as the government allowance.
Benefits as a secondary income. Lenders will often want a primary wage or salary in the picture and treat benefits as supplementary income on top of it. That is the common policy stance, though not a universal one — some lenders will work with benefit income as the main source under the right structure.
Where the lines are usually drawn
Family Tax Benefit, the Large Family Supplement, child support and maintenance, and veterans and widows pensions are the benefit types most often counted. Some benefits are generally not accepted as loan income: Carer's Allowance and Carer Payment, Foster Care Allowance, and most other standalone Centrelink benefits. The Disability Support Pension sits in a more nuanced place — exceptions can be available with certain lenders where you have been receiving the pension for at least five years before the application date. Income protection and workers' compensation payments may also be usable in some cases.
This is where lender selection does the heavy lifting. The same income can be declined by one lender and accepted by another, so the work is matching your particular mix of benefits to the lender whose policy reads them most favourably, then assembling the documentation cleanly so the assessment runs the first time. Getting the income evidence right early is usually what separates a smooth application from a stalled one.
If part or all of your income comes from a pension or government benefit, it is worth mapping which lenders will count it, at what percentage, and how to structure the borrowing around it. Book a strategy session and we will work through where you genuinely stand.
General information only — not personal financial product or credit advice. Lending is subject to each lender's policy, your full circumstances and responsible-lending assessment. AeFin is an Australian Credit Representative (CR 464548) of Finsure (ACL 384704).