Can You Get a Home Loan on a Benefit?
Sometimes, yes. It depends on which payment you receive, whether it's likely to continue, and what other income sits alongside it. Here's how lenders look at it.
The principle lenders apply
Lenders count income they expect to continue for a long time. Whether a payment comes from an employer or the government matters less than how permanent it is. That's why different payments are treated so differently.
How common payments are usually treated
| Payment | How lenders tend to see it |
|---|---|
| NZ Superannuation | Counted by most lenders, since it's ongoing. Loan term and age then become the question. |
| Supported Living Payment | Counted by some lenders, as it's intended for long-term conditions. Often needs supporting evidence. |
| Working for Families tax credits | Counted by many lenders, usually depending on the children's ages. |
| Accommodation Supplement | Counted by some lenders, sometimes in part. It's recalculated once you own, so the amount may change. |
| Child support | Counted by many lenders where there's a formal arrangement and a payment history. |
| Sole Parent Support | Some lenders will consider it, depending on the children's ages. Often not enough alone. |
| Jobseeker Support | Generally not counted, because it's designed to be temporary. |
These are general patterns. Each lender has its own policy, and some non-bank lenders are more flexible than banks. We check which lenders will count your particular mix before you apply.
What else you'll need
- A deposit. The same rules apply as for anyone: usually 20%, or less through a low-deposit route.
- A clean record. Bank statements without missed payments, and a tidy credit file.
- Low debts. Car finance and store cards take a large bite out of a modest income.
- A loan size that fits. The lender tests repayments at a rate above the real one, against your real budget.
In practice, a benefit alone rarely supports a home loan at today's prices. It's usually a benefit plus something: part-time wages, a partner's income, boarders, or a large deposit from a previous home or an inheritance.
Schemes worth knowing about
- The KΔinga Ora First Home Loan, for a 5% deposit if you're under the income caps.
- KΔinga Ora's KΔinga Whenua loans, for building or buying on multiply-owned MΔori land.
- Shared ownership and rent-to-buy programmes run by community housing providers and some iwi. Availability depends on where you live.
Tell Work and Income before you buy
Buying a home can change what you're entitled to. Cash assets used for a deposit, the switch from rent to mortgage costs, and any boarder income can each affect payments such as the Accommodation Supplement. Ask Work and Income how your payments would change so the budget you give the lender is the real one.
This article explains how New Zealand lenders generally assess these situations. It is general information, not personalised financial advice, and lender policy changes often β check your own position with a registered adviser. Official sources: Reserve Bank of New Zealand for lending policy and the OCR, and Sorted.org.nz for independent government-backed money guidance.
Home loans on a benefit: common questions
Not sure if your income will count?
Tell us what you receive, any other income and your deposit. We'll tell you plainly which lenders would count it and what you could borrow.
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