Last updated: July 2026
Buying Your First Home on a Single Income in 2026
Buying solo is harder than buying as a couple, but Australian government schemes are designed to help. The FHBG lets you buy with just 5% deposit and no income cap. Help to Buy goes further: if your income is under $103,000, the government buys up to 40% equity in your home, cutting your mortgage repayments substantially. Combined with the FHSS and state grants, single buyers have more options than you might expect.
Your Government Scheme Options
Every major scheme is available to single buyers. Here is what each one offers:
FHSS
$50,000 per person (same entitlement as couples). Salary sacrifice into super at 15% tax instead of your marginal rate.
FHBG
No income cap, unlimited places. Buy with 5% deposit, government guarantees up to 15%. You own 100% of the property.
Help to Buy
Income cap $103,000 for singles. Government buys up to 40% equity on new builds (30% existing). Only 2% deposit required.
FHOG
Same as everyone. $10,000 to $50,000 depending on state, new builds only (NT's HomeGrown Territory Grant is $50,000 for new homes; its separate established-home grant ceased in September 2025).
Stamp duty concessions
Same as everyone. Full exemptions or reductions depending on state and property price.
Help to Buy May Be Your Best Option
If your income is under $103,000, Help to Buy can transform what you can afford. The government buys up to 40% equity on a new build (or 30% on an existing home), and you only need a 2% deposit.
Here is what that looks like on a $500,000 new home:
| Component | With Help to Buy | Without |
|---|---|---|
| Deposit | $10,000 (2%) | $100,000 (20%) |
| Government equity | $200,000 (40%) | $0 |
| Your mortgage | $290,000 | $400,000 |
| Monthly repayment at 6.5% | ~$1,834 | ~$2,528 |
The trade-off is that the government co-owns 40% of your home. When you sell, they receive 40% of the sale price (including any capital gains or losses). You can make a voluntary buy-back at any time, in increments of at least 5% of the home’s current value.
Use the Help to Buy calculator to model your scenario
How to Maximise Your Borrowing Power
On a single income, every dollar of borrowing capacity matters. Lenders assess your ability to repay at a stress-tested rate (typically your actual rate plus 3%), so small changes can make a meaningful difference.
- Reduce debts: Credit cards (even unused limits), personal loans, car loans, and HECS/HELP repayments all reduce your capacity. Closing unused credit cards can immediately increase your borrowing power.
- Minimise expenses: Lenders review your bank statements (usually 3 months). Reducing discretionary spending before your application helps your serviceability assessment.
- Consider buying below your maximum: A smaller mortgage means lower repayments and more breathing room in your budget. This is especially important on a single income where there is no second earner as a safety net.
Realistic Budget Planning
A common guideline is that mortgage repayments should stay under 30% of your gross income. Here is what that looks like at different income levels, assuming a 6.5% interest rate over 30 years:
| Gross Income | 30% Monthly Limit | Max Loan (approx.) | With Help to Buy (30% existing) |
|---|---|---|---|
| $70,000 | $1,750 | $277k | ~$413k property |
| $80,000 | $2,000 | $316k | ~$470k property |
| $90,000 | $2,250 | $356k | ~$530k property |
| $100,000 | $2,500 | $396k | ~$590k property |
Help to Buy effectively stretches your budget by 30-40% because the government covers a portion of the property price. The FHBG does not reduce your mortgage amount, but it removes the need for a 20% deposit.
Buying in Affordable Areas
Regional areas typically have lower property prices and are often well within FHBG and Help to Buy price caps. Regional centres like Geelong, Newcastle, and the Gold Coast receive the capital city price cap under the FHBG, giving you more room.
Read our guide to buying your first home in regional Australia
Salary Sacrifice Strategy for Solo Buyers
Even if you cannot contribute the full $15,000 per year, smaller amounts still generate meaningful tax savings. Here is what $10,000 per year looks like over three years for someone in the 30% marginal tax bracket:
- Total contributed: $30,000
- Tax saved: ~$5,100 (17 cents per dollar at 30% bracket + 2% Medicare minus 15% super tax)
- Released amount (85% of concessional): ~$25,500 plus deemed earnings
That $5,100 in tax savings is money you keep that would otherwise have gone to the ATO. Combined with your FHSS release, it meaningfully boosts your deposit.
Read the full FHSS salary sacrifice strategy guide
See which schemes you qualify for
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Frequently Asked Questions
Can I buy a home on a $70,000 salary?
Yes, particularly with government assistance. With the FHBG you can buy with 5% deposit and avoid LMI. With Help to Buy (if your income is under $103,000), the government buys up to 40% equity on a new build, reducing your mortgage significantly. A $70,000 income can realistically support a property in the $350,000 to $450,000 range depending on the scheme you use.
Is Help to Buy better than FHBG for single buyers?
It depends on your priorities. Help to Buy gives you lower repayments because the government co-owns part of your home, but you share future capital gains. The FHBG lets you own 100% of your property and keep all capital gains, but your mortgage and repayments are higher. Use our calculator to compare both scenarios for your situation.
How much deposit do I need as a single first home buyer?
As little as 2% with Help to Buy, or 5% with the FHBG. On a $500,000 property, that is $10,000 or $25,000 respectively. Without either scheme, most lenders require 5-20% plus Lenders Mortgage Insurance if under 20%.
Does HECS-HELP debt affect my ability to buy?
HECS-HELP does not prevent you from accessing any government scheme, but it does reduce your borrowing capacity. Lenders include your HECS repayment obligation (based on your income) when assessing how much you can borrow. You do not need to pay off HECS before buying.
Sources:
Housing Australia: First Home Guarantee | Housing Australia: Help to Buy | ATO: First Home Super Saver Scheme
Disclaimer: This information is general in nature and does not constitute financial, legal, or tax advice. Calculations are estimates only and may not reflect your exact circumstances. Eligibility criteria and dollar amounts may change without notice. Always verify with the relevant government authority, your mortgage broker, or a licensed financial adviser before making decisions.