Budgeting for a Car Loan and Home Loan Together in Australia

💾 Two Big Loans — Can You Handle Both?

Buying a home and a car often happen close together — but can you really afford both?

The answer: yes, if you budget smartly.
Many Australians successfully manage both a mortgage and a car loan — as long as they stay on top of repayments, debt limits, and income planning.

Here’s how to structure your finances so lenders say “yes” to your next car loan, even if you're already paying off a home.

📊 What Lenders Look for When You Have a Mortgage

When assessing your car loan application, lenders will review:

  • Your monthly mortgage commitment

  • Your income and job stability

  • Your total monthly debt repayments (including credit cards, BNPL, etc.)

  • Whether you’ll still have a healthy disposable income after both loans

The good news? Many homeowners still qualify for low rate car loans — especially if they’ve got a reliable income stream and low consumer debt.

🧠 Tips for Managing Both Loans at Once

  1. Use a car finance calculator before applying — make sure repayments fit into your post-mortgage budget.

  2. Limit other debts — such as personal loans or high-limit credit cards.

  3. Avoid overlap — don’t apply for both loans in the same week.

  4. Leave a buffer — banks like to see you have money left over each month after repayments.

Need help understanding how lenders view your financial profile?
👉 See our car finance guide for Australian borrowers

🏠 Renting Now But Budgeting for Both?

Even if you’re still renting now, some buyers plan ahead for life after settlement. You can still apply for car finance now — just make sure you’re not overcommitted once your mortgage kicks in.

If you're self-employed and managing both expenses, consider:
👉 Small Business Car Loans for ABN Holders

🔄 Just Bought a House or Changed Jobs?

It’s common to buy a car after moving homes or switching roles — but it changes how lenders view your application.

👉 Car Loans for Australians Who’ve Just Changed Jobs

✅ Final Tip: Don’t Guess — Do the Math

Managing a mortgage and car loan is doable, but only with a clear plan. Lenders want to see that you’re financially responsible — not just eligible.

Use this free tool to check your car finance readiness:
👉 Get started here

 

DISCLAIMER

The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.

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All Your Questions Answered

What is a car loan and how does it work?

A car loan is a finance product where a lender provides funds for you to purchase a vehicle, which you repay over time with interest.

What’s the difference between secured and unsecured car loans?

Secured loans use the car as collateral, often leading to lower interest rates. Unsecured loans don’t, but usually have higher rates.

What loan terms are available for car finance?

Most car loans offer terms from 3 to 7 years. Find out what term suits you best.

How is interest calculated on a car loan?

Interest is based on the loan amount, term, and rate. Fixed-rate loans have predictable repayments, while variable rates can change.

Can I get a car loan for a private sale?

Yes, many lenders accept private sellers. You’ll need to provide extra documents.

Do government employees get lower interest rates on car loans?

Yes — many lenders offer better rates due to your stable income. Explore finance options for government employees.

Can I apply for a car loan while on probation?

Yes. Many workers are approved during probation.

What credit score do I need as a government employee?

A score of 650+ is ideal, but lower scores may still be considered.

Are corporate professionals eligible for low-rate finance?

Yes, especially if you're full-time with strong income.

Can I get car finance with a novated lease?

Yes, many government departments support novated leasing.

Can I get a car loan with no credit history?

Yes, it's still possible to get a car loan with no credit history.

What if I’ve been declined elsewhere?

A broker can help restructure your application for better results.

How do I check my credit score?

Use Equifax, Experian, or Illion for a free check.

Can I get finance if I have a current personal loan?

Yes, if your income supports both loans. A broker will assess your capacity.

What documents do I need to apply?

Typically: ID, payslips, and bank statements.

Can casual workers get car loans?

Yes, if you’ve worked consistently for 6+ months.

Can I apply if I’m self-employed with an ABN?

Yes. Consider a low-doc loan.

Can Centrelink be used as income?

Yes, when paired with PAYG income.

What’s the minimum income to qualify for car finance?

Most lenders prefer $30,000+ annually, but this varies.

Can I apply on a fixed-term contract?

Yes, especially if it’s government-backed.

Can I finance a used car?

Yes, most lenders allow used cars under 10 years old.

Can I get a loan for an SUV or family car?

Absolutely

Can I finance a caravan or motorbike?

Yes

Can I finance an EV or hybrid car?

Yes. You may even qualify for green car loan discounts.

Can I use my car for both work and personal use?

Yes you can.

What is a balloon payment?

It’s a lump sum due at the end of the loan term.

Can I make extra repayments?

Yes, many lenders allow this without penalty.

Can I pay off the loan early?

Yes — ask if there’s an early payout fee.

Is there a deposit required?

Not always.

What loan terms are available?

1 to 7 years is standard.

How long does approval take?

24–48 hours in most cases

Can I apply online?

Yes — most lenders and brokers accept online applications.

Is a broker better than going direct?

Often, yes. They can compare lenders for you.

Can I get pre-approved?

Yes — and it gives you better negotiating power at the dealership.

What happens after I apply?

Your documents are reviewed, and if approved, the lender issues funds to the seller.

Can I get a loan with a visa?

Yes, in some cases. see finance for visa holders here.

Do I need a driver’s licence to apply?

Yes, but learners may qualify with a co-applicant.

Can I apply with someone else?

Yes, joint applications are allowed.

Can I refinance my current car loan?

Yes — it can lower your repayments or get you a better rate.

Can I trade in my old car as a deposit?

Yes, many lenders accept trade-ins toward the deposit.

Can nurses get car finance?

Yes — see nurse-specific finance tips.

Can teachers apply while on contract?

Yes. Read how to get approved.

Do defence personnel get special car loan rates?

Yes, in some cases. Your job security is a major advantage.

Can FIFO government workers apply?

Yes — consistency in income matters more than job location.

Can I apply if I’m on maternity leave?

Yes, especially if you’re returning to work. Here’s how.

Can I use car finance to buy interstate?

Yes — just make sure the seller provides all required documents.

Can I finance a car from an auction?

Yes, but only through select lenders. Ask your broker first.

Will applying hurt my credit score?

Only if you apply to multiple lenders directly. Brokers help protect your score.

Can I get a car loan if I’ve been bankrupt before?

Yes — see bad credit car loan options.

What if I want to upgrade my car before the loan ends?

You can sell the car, pay off the loan early, or refinance.