You may believe that you won't be eligible for a home loan if you're on a low income. However, that's not always accurate. Even if you're unemployed, receiving a pension or government benefits, or have a low income and a bad credit, you can still get a home loan.
While it's true that lenders often perceive low income earners as high-risk borrowers, making getting a home loan harder, it's not impossible. There are some things you can do to increase the chances of your home loan approval.
Get a dual income
Most lenders will likely consider your income first while reviewing your home loan application. Most lenders don't limit what they consider income to just your wages and salaries for home loan applications. They also consider other regular payments that you receive, including Centrelink allowances, government payments and even child support.
This is why, if you have a low-paying job, you could improve the chances of getting home loan approval by having a dual-income when applying for a home loan. Continue reading "How can you get a home loan on a low income?"