Youngsters in Australia often have to wait until they finish university to purchase a property. However, what if you decide to buy a house while still pursuing your higher education?

Today, several young students with income from a scholarship want to buy their abode while still in university. But, are there any lenders who accept income from a scholarship while assessing your home loan?

student buy home

Luckily, the answer is yes. Some lenders consider University Scholarships and Commonwealth Scholarships while evaluating your home loan application. Some may even allow fellowships depending on the nature and duration of payments. Our brokers have access to several lenders who will take into account your scholarship income coupled with your partner’s income to help you get approved.

Aaron, a mortgage broker with HashChing, says: “Your scholarship income is usually not acceptable as income by lenders. But you should speak to a broker who could help your application get through if you have bank statements to prove your scholarship income.”

“Some lenders specialise in first home buyer loans for academics. Depending on your current liabilities that you may or may not have, a broker will assess your financial condition and look at the possibilities with you. The approval would depend on whether your remuneration is ongoing among other factors,” adds Melanie, another mortgage broker.

Thus, while it is true that many lenders do not consider income from a scholarship while assessing your home loan application, mortgage brokers have access to specialist lenders who may be able to lend to you depending on your overall financial situation.

Here’s what you need to keep in mind while applying for a scholarship home loan:

  • You would need to provide a letter from your university to confirm your scholarship while applying for a home loan.
  • The time remaining on the scholarship will affect your application. It helps to have at least 12 months remaining when you apply.
  • Even though some lenders take into account your scholarship income, it may not be enough to service your home loan. Having a partner who earns full-time and/or a part-time job will significantly increase your chances of home loan approval if everything else is in order.

How much can I borrow?

The amount that you could borrow depends on your particular situation. The time remaining on your scholarship and the deposit you have saved are two important factors. As a first home buyer, you may be eligible for a State Grant that could help with your deposit and other costs.

However, if you don’t have a deposit saved up, you may still be able to realise your home buying dream with a guarantor loan. Yes, by asking your parents to guarantee your home loan, it is possible to borrow up to 105% of the purchase price. (Read more about Guarantor Home Loans)

Good to know

According to Bulelwa, a HashChing mortgage broker, “It is always better to get a pre-approval even when you feel confident that you will be approved. You avoid the stress of over reaching and ending up not being able to complete the transaction because your borrowing capacity is less than you assumed. This approach also guarantees peace of mind.”

When you get in touch with our experts at HashChing, they will assess your unique financial situation to determine your borrowing capacity before suggesting any further course of action. Our verified mortgage brokers will also help you organise your paperwork, seek pre-approval for your home loan and assist you on each step of the financing process. We understand that your PhD takes up most of your time and are glad to save you time and money by doing all the legwork on your home loan and also offering you a competitive home loan deal from across Australia. Compare home loan deals here.

By Vidhu Bajaj
HashChing Content Writer

HashChing is helping Australians by providing access to the pre-negotiated home loan deals. Obligation free consultation with one of our partner brokers might save you time, hassle and money.