- Students can get home loans in Australia, but approval depends on meeting standard requirements like deposit savings, income stability, and managing HECS debt.
- International students face tougher hurdles, often needing larger deposits, guarantors, or FIRB clearance to secure a mortgage.
- Strategies like scholarships, guarantors, and government schemes can improve approval chances, though buying while studying requires careful financial planning.
Australians love their tertiary education, whether that’s going to university or taking vocational courses.
According to ABS data, more than 3.2 million Australians aged 15–74 were enrolled in study in 2025. Nearly half (44%) were at universities, while 14% attended TAFE and 11% pursued courses at other training providers.
One thing Aussies love equally, if not more than learning, is property.
Securing a home loan as a student in Australia isn’t easy — but it can be done. In this article, we’ll look at how students can make it happen, and whether it’s the right move for them.
Can students get a home loan?
According to Laura Osti, Chief Marketing Officer at online lender Tiimely Home, it is absolutely possible for a student to get a home loan in Australia.
“Being a student doesn’t impact your eligibility for a home loan, but you’ll need to meet the usual requirements – including savings for a deposit and an income to debt ratio that can service the loan – which can be tough when you’re studying,” Ms Osti told Savings.com.au.
“Any student loans or HELP debt will also be taken into account, which may limit the customer’s borrowing amount.”
So in summary, yes, a university/TAFE student in Australia can buy a home and get a home loan. They just might find it harder to get approved, but there is no hard rule for banks and lenders that says they have to say no to a student.
Read more: A guide to how HECS-HELP works in Australia
What’s the biggest misconception about student home loans?
One of the biggest misconceptions students have about buying property is that lenders will assess them based on the income they expect to earn after graduation. In reality, lenders generally assess borrowers on the income they are earning right now, not what they may earn in the future.
The main challenge for students trying to secure a home loan is servicing capacity. Even if someone is studying towards a high-income profession, lenders usually won’t rely on projected future income until the borrower has actually commenced employment and is receiving pay slips.
The encouraging part is that once a graduate starts in their new role, many lenders can move surprisingly quickly. In some cases, borrowers may become eligible for finance after as little as one day in the new position, particularly where the role is permanent and aligned with their qualifications and especially if they have been working in the field prior to graduation.
Can international students secure a home loan in Australia?
Yes, it is also possible for international students to buy a home in Australia and get a home loan.
Generally, students on the following types of Visas can be accepted for a loan:
- Student Visa (Subclass 500)
- Skilled Recognised Graduate Visa (Subclass 476)
- Skilled Graduate Visa (Subclass 485)
- Skilled Regional (Provisional) Visa (Subclass 489
However, it can be very difficult to be approved for a loan as a student on a visa, as lenders may view international students as riskier customers. In addition to uprooting their lives to move to a new country, they still live a student’s lifestyle and are less likely to work more than 20 hours per week.
One of the best ways for international students to boost their chances of approval, however, is to have parents overseas who are willing to act as a guarantor on the loan for them, or have their parents service part of the loan itself.
Other ways international students can boost their chances of home loan approval include:
- Having a higher deposit (at least 20% plus 5% to cover extra costs like stamp duty)
- Have a partner working full-time
- Have a good credit history in Australia
- Demonstrate good savings habits while studying
International students may also need clearance from the Foreign Investment Review Board (FIRB) to buy a residential or investment property in Australia.
Options for students seeking home loans
Although it’s a fair bit harder for a student to get approved for a home loan compared to someone with stable, full-time work, it’s not impossible. There are a number of things you can do as a student that can help you enter the property market, some of which also work generally for people on low incomes.
How to boost your loan chances as a student
The best way to improve your chances is to get into a good savings pattern and curb spending and debt. Most lenders will want to see three months’ worth of living expenses as part of the application, so it’s a good idea to limit your expenses in the lead up to your application, as well as closing (or reducing the limit on) your credit cards.
We know the biggest challenge for first-time buyers is saving enough for a deposit, so finding a good budgeting app is a great idea, as well as looking for home loans that accept lower than the standard 20% deposits.
Receive a scholarship income
Although many lenders won’t consider it income, there are some who will accept income you receive from a scholarship. Depending on the type of scholarship, they can provide you with up to thousands of dollars in income for each semester of study, which could help boost your chances of approval with a lender.
The types of scholarships that are likely to be approved include:
- Fellowships
- University scholarships
- Commonwealth scholarships
Other types of scholarships are unlikely to be accepted, like HECS exemptions, fee exemptions, additional allowances, direct payments of tuition etc.
Lenders will expect clear proof of your financial support. To strengthen your application, make sure you:
Provide a letter from your university confirming your scholarship status.
Specify how much time remains on your scholarship — having at least 12 months left is generally viewed more favorably.
Since the majority of lenders won’t accept direct applications for scholarship recipients, you may be better served by going to a mortgage broker who can help you find an appropriate one through their network. You can also boost your chances of approval by having another income stream on the application.
Have a partner working full-time (or have a steady income yourself)
Lenders assess the household income when applying for a loan, which is why it’s generally much easier for two applicants to be approved instead of one.
If you’re still at university or TAFE, but have a partner or joint applicant earning a steady full income, then a lender is generally more likely to give you the go-ahead. The same applies if you have an income yourself, whether that’s a side-hustle, part-time job or a small business you own.
“Another tip would be to stick with the same job before you apply because most lenders will require you to have the same employer for at least 6 months, and longer if you’re in a casual role,” Ms Osti said.
The more your household earns, the greater the chances of approval. Try out our Borrowing Power Calculator to see how much you could qualify for and plan with confidence.
Read more: Should you buy a property with a friend or family member?
Go interest-only
Interest-only (IO) home loans generally have lower initial repayments than principal and interest (P&I) home loans.
For a period of time (1-5 years generally), you only have to pay the interest component of the loan, not the principal borrowed, meaning your repayments are significantly reduced.
Over the life of the loan, however, your interest bill is likely to be higher than if you’d paid P&I for the entire loan period. You may also need a bigger deposit.
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner-occupiers looking to pay interest-only.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.10% p.a. | 6.10% p.a. | $3,030 | Principal & Interest | Variable | $0 | $0 | 80% | |||||||||||||
6.19% p.a. | 6.11% p.a. | $2,579 | Interest-only | Variable | $0 | $0 | 80% | |||||||||||||
6.29% p.a. | 6.57% p.a. | $2,621 | Interest-only | Variable | $395 | $0 | 80% | |||||||||||||
6.35% p.a. | 6.40% p.a. | $2,646 | Interest-only | Variable | $0 | $0 | 59% |
Your ability to meet repayments is one of the biggest concerns a lender will have when it comes to assessing your application, so applying for an interest-only loan to start with (or switching to one if you return to uni while already paying off a mortgage) can help you manage the expenses. In fact, Commonwealth Bank’s website mentions the following:
An interest only home loan may be suitable if you’re looking for… a temporary way to reduce your outgoing expenses as well as manage a temporary income reduction (e.g. if you're receiving parental leave or paying educational costs while you’re studying).
While going interest-only doesn’t guarantee approval if you’re studying, it can make your mortgage repayments more affordable for the duration of your degree.
“Some students may feel it [paying interest-only] could be a good option to help manage lower repayments when their income is lower, and that they can switch to principal and interest when they are in a higher paying job,” Ms Osti said.
“However, we would not advise customers to apply for a home loan if they could not afford the principal and interest payments.”
See also: Pros and cons of interest-only loans.
Use the Home Guarantee Scheme
You may be able to qualify for government support if you’re buying your first home, such as the First Home Guarantee. Under the First Home Guarantee, first home buyers can purchase a home with a deposit as low as 5%, without the need to pay Lenders Mortgage Insurance (LMI).
Applying for this government guarantee should help you get approved for a home loan while studying, as there’s nothing in the eligibility criteria outlawing students from applying. The requirements are simple:
- applying as an individual or two joint applicants
- an Australian citizen(s) or permanent resident(s)* at the time of entering the loan
- at least 18 years of age
- earning up to $125,000 for individuals or $200,000 for joint applicants, as shown on the Notice of Assessment (issued by the Australian Taxation Office)
- intending to be owner-occupiers of the purchased property
- First home buyers or previous homeowners who haven't owned or had an interest in a real property in Australia (this includes owning land only) in the past ten years.
You can also knock a few thousand off that initial deposit if you use one of the First Home Owner Grants, which provide cash grants to first home buyers, assuming the house they’re buying is under a certain value, along with other requirements.
Use a guarantor
Lenders are generally more inclined to approve you if you have a guarantor for your loan. That’s someone (usually a parent), who agrees to take responsibility for repaying the home loan if you fail to make the repayments and usually offer up their own property as a security for the loan.
This can present a degree of risk for the guarantor, as they could lose their property in a worst-case scenario, but if you have a willing guarantor available to you, this strategy is worth checking out. Using a guarantor can also mean you’re able to skate around the usual deposit requirements, such as requiring a 20% deposit to avoid the dreaded Lenders Mortgage Insurance (LMI).
Look for houses within your means
Arguably the most important thing you can do when purchasing a home at any time, not just as a student, is to be realistic and not buy outside your means.
What this means is you need to maybe reconsider buying an expensive property close to the city - you aren’t likely to have a massive income as a student, so the bank is more likely to approve you for a cheaper home with more manageable repayments.
As at July 2024, the national median dwelling price in capital cities is $878,414 according to CoreLogic, while in regional areas it’s $627,872. Combined, Australia’s national median dwelling price is $793,883.
Of course, these figures will differ depending on whereabouts in Australia you are looking to buy, but as a general rule it’s pretty expensive everywhere. A 20% deposit on that national median would be $158,776. The monthly repayments on the loan for the remaining 80% ($635,066) - assuming a 6.20% p.a. principal and interest home loan over a 30 year loan term - would be $3,890.
That’s a hefty chunk of cash, and if you’re temporarily on a student’s budget, you might be better off looking for houses below the average, as this can not only make your life easier but could boost your chances of approval too.
Besides, depending on your income while you’re a student and whether or not you’re in a double income household, your borrowing power likely wouldn’t extend that far anyway.
More first-home buyer programs in Australia
Apart from the First Home Guarantee and the First Home Owner Grant, there are several other initiatives designed to cut upfront costs and help first-time buyers, including students, step into the property market sooner. Here’s a breakdown:
First Home Super Saver Scheme - Use your superannuation account to turbocharge your deposit savings. You can withdraw up to $50,000, benefiting from lower tax rates compared to regular savings. This scheme is especially useful for younger buyers who want to leverage their super early without waiting decades.
Help to Buy Scheme - A shared equity program where the government co-invests in your property purchase, up to 40% for new builds and 30% for existing homes. You’ll own the majority share, but the government’s contribution reduces your mortgage size, repayments, and interest costs. Importantly, you can buy back the government’s share over time as your financial situation improves.
Stamp Duty Concessions - Stamp duty is one of the highest upfront costs in buying property. Many states and territories waive or heavily discount this tax for eligible first-home buyers, saving you significant money depending on the property's value. Some jurisdictions also offer full exemptions for homes priced below a certain threshold.
Is it a good idea to buy a home while studying?
This will depend on your financial situation, but generally speaking, buying a home while you’re studying can be a harder sell than buying while working.
Paying off a home loan is a big commitment compared to renting. While renters can move at the end of their lease, homeowners generally have to sell the home if they want to move, which can be a lengthy process. You’re also obliged to repay your mortgage each month unless you want to default on the loan, which would have terrible repercussions for your credit history.
So if you’re thinking about returning to university or TAFE soon or are a current student, you should seriously consider whether you’d be able to actually pay off a mortgage as well as the costs of buying a house itself. If not, continuing to rent or live at home might be the way to go.
If you do decide to go through with buying a home while studying though, there are a few things you can consider doing which may not only boost your chances of loan approval, but help ensure you meet your repayments too:
- Hold onto any work you can, or buy-in with someone who has a regular income themselves;
- Consider an interest-only loan (but make sure you could meet the repayments at the end of the IO period);
- Use the government grants available;
- Use a guarantor if you have one; and
- Look for a cheaper house that’s within your budget
Savings.com.au’s two cents
There’s no doubt that the property market is a goal for many people to enter, and buying that home is what many would call the Australian dream.
Choosing to buy a home has many ongoing and upfront costs, and as one of, if not the single biggest expenses of your lifetime, it’s not a decision you should make lightly. Being a student can complicate what can already be a difficult process, so you need to be 110% certain buying a home is what you want to do, and that you can do it.
For help finding the right home and home loan that meet your needs as a student, consider seeking the help of either a buyers agent or a mortgage broker (or both).