Smart Ways to Approach an Off-the-Plan First Home

Buying off the plan as a first home buyer comes down to timing. You sign the contract long before you get the keys, and the schemes you can use depend on that gap.

For police officers, shift work and possible transfers add another layer. You want a plan that holds up if your roster changes or the build runs late. This guide covers the schemes that suit off-the-plan buyers, the ones that usually don't, and the order to line things up.

Which First Home Buyer Schemes Suit an Off-the-Plan Purchase?

The Australian Government 5% Deposit Scheme can be used for off-the-plan purchases. It lets eligible first home buyers buy with a 5% deposit, and Housing Australia backs the lender for the part of the loan between your deposit and 20% of the property value, so no Lenders Mortgage Insurance (LMI) is payable.

There are no income caps and no place limits. You apply through a participating lender, not directly with Housing Australia. The property must be at or below the price cap for its location. As examples, the caps for capital city and regional centres are $1,500,000 in New South Wales and $950,000 in Victoria. The exact cap depends on the suburb and postcode in Housing Australia's postcode search tool.

The trade-off is that the backing protects the lender, not you. You still pay all loan costs and repayments, plus stamp duty and legal fees. You must also move in within six months of settlement and keep living there while the backing is active. If you don't, the lender may require you to pay LMI. Our 5% Deposit Scheme for police officers page covers how this works for your situation.

The deposit is a percentage of the value your lender assesses, and that can differ from the contract price. Ask your broker how your lender will handle that on an off-the-plan purchase.

Why Help to Buy Rarely Fits Off-the-Plan Purchases

Help to Buy can be used on an off-the-plan home only where construction has already started and settlement is expected within 90 days. Many off-the-plan contracts are signed before construction starts, so the timing often won't work.

Under the scheme, the Australian Government contributes between 5% and 40% of the price of a newly built home in exchange for an equity share. You need at least a 2% deposit from savings. Settlement must happen within 90 days of final approval. Housing Australia states that off-the-plan purchases and unregistered land not expected to settle within about three to six months generally don't meet the settlement timeframe. You can read more on our Help to Buy scheme page.

Housing Australia also says not to put a deposit down on a property, or bid at auction, without conditional approval from a participating lender and Housing Australia. If a building is already well under construction, ask about it. If you're signing early, plan around the 5% Deposit Scheme or a standard low deposit loan.

Off-the-Plan Stamp Duty Concessions Depend on Your State

Off-the-plan stamp duty relief varies a lot between states, so check the rules where you plan to buy. Police officers are employed by their state or territory force, so your state's rules usually matter most.

Examples of off-the-plan concessions by state:

• New South Wales: buyers who will live in the home can defer transfer duty for up to 12 months. Duty is then due at the earliest of 15 months after signing, settlement, or assigning part of the contract. The First Home Owner Grant (FHOG) is $10,000 on new homes priced at $600,000 or less.
• Victoria: a temporary off-the-plan duty concession applies to apartments and townhouses in strata subdivisions, for contracts signed from 21 October 2024 to 20 April 2027. From 21 April 2027 the standard concession applies, and it is only available to buyers who qualify for the first home buyer duty exemption or concession, or the principal place of residence concession.
• Western Australia: an off-the-plan duty concession applies from 12 March 2026 to 30 June 2028, and it now includes survey-strata schemes such as duplexes.
• Australian Capital Territory: from 1 July 2026, no conveyance duty applies to off-the-plan unit purchases by owner-occupiers, with no price cap. The buyer must be an individual and live there for at least one year.

These measures have conditions, such as moving in within a set time. Confirm the details with your state revenue office before you sign. Your Home Loan application can then be structured around the costs you will actually face.

Using the First Home Super Saver Scheme for an Off-the-Plan Deposit

The First Home Super Saver scheme lets you release voluntary super contributions toward a first home deposit, and it works with off-the-plan contracts. The timing rules are strict, so sequence matters. Only contributions you have already made count towards a determination and release.

Consider a constable who plans ahead of signing an off-the-plan contract. They salary sacrifice $15,000 in a single financial year, which is the annual limit for contributions that count. Salary sacrifice amounts are voluntary concessional contributions. The maximum release is 85% of those contributions plus associated earnings, so $12,750 plus earnings, before tax is withheld.

Having made those contributions, the constable requests a determination from the ATO before ownership of the property transfers, then requests release. In most cases the money arrives within 15 to 20 business days. For an off-the-plan contract, the ATO example shows the buyer requesting the determination, requesting release and notifying the ATO within 90 days after the contract date. The ATO withholds tax on the released amount, so the cash in hand is lower than $12,750 plus earnings. The constable puts the released money toward the deposit and settlement costs.

If you sign a contract first and then salary sacrifice over a long wait, the timing may not fit the window, so check it with the ATO or an accountant before you contribute. The trade-offs are that the money is locked in super until released, tax is withheld, and the assessable part is included in your tax return. If you don't sign a contract or recontribute within the time limits and notify the ATO, additional FHSS tax of 20% applies on the assessable amount.

Getting Pre-Approval When Settlement Is a Long Way Off

Pre-approval shows what you can borrow before you sign, but it won't cover the whole wait between contract and settlement. Your circumstances can change in that time, and lenders reassess before settlement.

That matters if you're expecting a posting, a promotion or a change in overtime. Our pre-approval guide explains how it works, and the borrowing capacity page shows what lenders look at. Keep your savings steady and avoid new debt, such as a car loan, until settlement.

Before you sign, ask your broker what happens if the build runs late, if the valuation comes in low, or if the lender's rules change. Call one of our team or book an appointment at a time that works around your roster, and we'll map out the schemes, the state concessions and the timing before you commit to a contract.

Frequently Asked Questions