---
title: Buying a Home on a Single Income in Melbourne | GNT Finance
description: Buying on one income in Melbourne is realistic with the right loan size, scheme and property. Budgets, Help to Buy, guarantors and house-and-land explained.
url: https://gntfinance.com.au/blog/buying-a-home-on-a-single-income-in-melbourne/
author: Gorakh Timilsina
published: 2026-09-16
category: First home buyers
---

# Buying a home on a single income in Melbourne: a realistic plan

**In short:** A single buyer in Melbourne can realistically own a home by matching the purchase to their servicing capacity rather than stretching to the maximum. On one average full-time salary, a loan in the $350,000 to $450,000 range is typical, which means a unit, townhouse, or a house-and-land package in the outer north. The First Home Guarantee, Help to Buy, a guarantor or a longer savings runway each close part of the gap.

Every second week someone sits in our Mickleham office and says the same thing: "I earn decent money, but on my own I can't see how it works." It does work, but not by copying what a dual-income couple does. This post lays out the honest arithmetic, the schemes that favour single buyers, and the property types where the numbers actually close.

## Key takeaways

- Lenders test single applicants at the same rate-plus-3% buffer as everyone else, so your comfortable repayment sets your ceiling, not the advertised rate.
- On a net income of roughly $5,600 a month, a loan of about $400,000 is a sensible target; at 6.00% p.a. that is $2,398 a month.
- Help to Buy is designed for exactly this situation: 2% deposit, government equity of up to 40%, income cap $100,000 for singles.
- A guarantor removes LMI and can lift you into a house, but it is the guarantor's home on the line, not just their signature.
- House-and-land packages in the north combine a $10,000 grant, no duty on the build and often a price under the stamp duty exemption threshold.

## What one income actually supports

Start from take-home pay, not gross. At 2026–27 resident tax rates plus the 2% Medicare levy:

| Gross salary | Net per month | Comfortable repayment (about 35% of net) | Loan at 6.00% p.a. over 30 years |
|---|---|---|---|
| $70,000 | $4,757 | $1,665 | about $278,000 |
| $85,000 | $5,607 | $1,960 | about $327,000 |
| $95,000 | $6,173 | $2,160 | about $360,000 |
| $110,000 | $7,023 | $2,460 | about $410,000 |

These are comfort figures, not lender maximums. A lender may approve more, but it will also assess your $400,000 loan at 9.00% p.a., which is $3,218 a month. Any HECS debt, car loan or credit card limit comes off first. Check your own numbers with the [borrowing power calculator](/calculators/borrowing-power/), then read [how to improve borrowing power](/guides/how-to-improve-borrowing-power/) before you apply.

## The schemes that favour single buyers

### Help to Buy

Help to Buy suits single buyers better than almost anyone. With a 2% deposit and a government equity contribution of up to 40% on a new home (30% on an existing one), a $600,000 new townhouse becomes a $348,000 loan. For illustration, at 6.00% p.a. that is about $2,086 a month, which fits comfortably inside the $85,000 salary row above. The income cap for singles is $100,000, and the Victorian price cap is $950,000 at the time of writing. Details are in our [Help to Buy guide](/guides/help-to-buy-shared-equity-scheme/) and on [Housing Australia's site](https://www.housingaustralia.gov.au/).

### First Home Guarantee

If you earn above $100,000, or you want to own 100% of the property, the First Home Guarantee gets you in with a 5% deposit and no LMI. There is no income cap and no place limit. The trade-off is the bigger loan: $570,000 on a $600,000 purchase, or $3,417 a month at 6.00% p.a. That needs a salary well above $110,000 to sit comfortably. See the [5% deposit guide](/guides/first-home-guarantee-5-percent-deposit/).

### Victorian grants and duty

A new home under $750,000 attracts the $10,000 First Home Owner Grant if you live in it for 12 continuous months. First home buyers pay no stamp duty up to $600,000 and a reduced amount up to $750,000. Both apply regardless of how many incomes are on the application. Our [stamp duty guide for first home buyers](/guides/stamp-duty-victoria-first-home-buyers/) has the detail.

## Guarantor: the family route

A parent or close relative can offer equity in their own home as extra security. This lets you borrow the full purchase price plus costs without LMI, and it opens up houses rather than units. Two things matter before you ask:

- The guarantor's property is genuinely at risk if you default. Read our [guarantor legal responsibilities page](/legal/guarantor-legal-responsibilities/) with them, and encourage them to get their own advice.
- The guarantee should be limited (typically to 20% of the purchase plus costs) and released once you reach 80% LVR through repayments or growth.

Many of the Nepali and South Asian families we work with in [Craigieburn](/mortgage-broker/craigieburn/) use a parent's guarantee for the first child and release it within a few years so the next sibling can use the same equity. It works well when everyone understands the structure. Our [guarantor home loans page](/services/guarantor-home-loans/) explains how we set it up.

## House-and-land packages: where single incomes buy houses

A house-and-land package is often the only way a single buyer gets a detached home. The reasons are structural:

- Stamp duty is charged on the land only, because the house does not exist at contract. On a $300,000 block the general duty would be $13,070, but a first home buyer pays nothing at all under $600,000.
- The $10,000 grant applies because the home is new.
- Titled land in [Kalkallo](/mortgage-broker/kalkallo/), [Donnybrook](/mortgage-broker/donnybrook/) or [Mickleham](/mortgage-broker/mickleham/) is still priced within reach of a single income when paired with a modest build.

The finance is a construction loan: you draw down in stages and pay interest only on what has been drawn during the build. That keeps repayments low while you are still paying rent. See our [house-and-land packages service](/services/house-and-land-packages/) and the [progress payments guide](/guides/construction-loan-progress-payments/).

### Worked example: single buyer, $95,000 salary, Kalkallo package

| Item | Figure |
|---|---|
| Land | $310,000 |
| Build contract | $290,000 |
| Total | $600,000 |
| Stamp duty (first home buyer, land only) | $0 |
| First Home Owner Grant | $10,000 |
| Deposit under First Home Guarantee (5%) | $30,000 |
| Loan | $570,000 |
| Repayment at 6.00% p.a. once fully drawn | $3,417 a month |

That repayment is tight on $95,000. The same buyer under Help to Buy with a 40% government contribution would carry a loan of $348,000 and a repayment of about $2,086. This is why the scheme choice, not the suburb, is usually the first decision for a single buyer.

## A single-income checklist

1. Work out your comfortable monthly repayment from net pay.
2. Convert it to a loan size at 6.00% and check it at 9.00%.
3. Clear cards and small loans; hold your deposit for at least three months.
4. Decide between Help to Buy, the First Home Guarantee and a guarantor.
5. Pick the property type that fits the loan size, not the other way round.
6. Get a written pre-approval before you fall for anything. Our [pre-approval guide](/guides/home-loan-pre-approval/) explains the process.
7. Build a buffer: two months of repayments in an offset account before settlement. [Moneysmart's home loan tools](https://moneysmart.gov.au/) help with the budgeting.

## Frequently asked questions

### Is it harder to get approved on a single income?

Not harder in policy terms, but there is less margin. Lenders apply the same buffer, expenses and buffer rules. With one income there is no second salary to absorb childcare, a car or a rate rise, so lenders and brokers look harder at your buffer and statement conduct. Clean statements and a clear savings pattern carry more weight than they would in a couple's application.

### Should I buy a unit now or wait and save for a house?

Waiting costs you rent and, in a rising market, purchasing power. Buying a unit or townhouse now builds equity you can later use to move up. That said, if a house-and-land package or Help to Buy already gets you a house within your comfort range, there is no reason to take the intermediate step. Run both scenarios with the [rent vs buy calculator](/calculators/rent-vs-buy/).

### Can a friend or sibling go on the loan with me instead of a guarantor?

Yes, and it can lift borrowing power substantially, but you are then co-owners and jointly liable for the whole loan. It needs a written agreement, a tenants-in-common structure and an exit plan. We cover the pros and traps in our post on [buying property with parents or siblings](/blog/buying-property-with-parents-or-siblings/).

## Talk to GNT Finance

Single-income buying is a matter of matching the scheme and the property to your real numbers, and that is what Gorakh Timilsina does every day for buyers across Melbourne's north. There is no cost to you for our home-loan service in most cases. [Book a free consultation](/contact/) or call 0426 403 703.