The easiest way to buy a three bedroom home

How much deposit you actually need

You can purchase a three bedroom home with a deposit as low as 5% under the Australian Government 5% Deposit Scheme. Housing Australia guarantees the difference between your deposit and 20% of the property value, which means you avoid paying LMI. Applications are made through a participating lender, not directly through Housing Australia. If you have a 10% deposit saved, you can apply outside the scheme, though LMI will generally apply unless your lender offers an LMI waiver for police officers.

Consider a buyer purchasing in New South Wales. Under the 5% Deposit Scheme, they need a 5% deposit on properties up to the regional cap. The scheme applies to new and established homes. Detectives working long investigations or rotating rosters often prefer to lock in pre-approval early so they can move quickly when the right property appears. Pre-approval under the 5% Deposit Scheme works the same way as any other loan application, you still need to show stable income and meet serviceability requirements.

What lenders assess when you apply

Lenders assess your income, existing debts, living expenses, and credit history. If you receive shift penalties, overtime, or allowances as part of your detective role, most lenders will include a portion of that income when calculating what you can borrow. You need to provide payslips, a letter from your employer confirming ongoing entitlements, and recent tax returns if you have been in the role for more than a year. Lenders typically average non-guaranteed income over three to six months.

In our experience, detectives with variable rosters often carry higher credit card limits or personal loans from earlier years. Lenders assess your capacity to service a home loan based on your current commitments, not just your salary. If you have a credit card with a $15,000 limit but rarely use it, that limit still appears as a potential liability. Paying down or closing unused accounts before you apply can increase what you are able to borrow without changing your income.

Choosing between fixed and variable rates

A fixed rate locks in your repayment amount for a set term, usually one to five years. A variable rate moves with the market and typically allows full access to an offset account and unlimited extra repayments. Many buyers split their loan, fixing part for certainty and leaving part variable for flexibility. At current variable rates, a portion of your loan sitting in variable gives you the option to make lump sum repayments from leave payouts or penalty shifts without triggering break costs.

If you fix your rate and then need to sell or refinance before the fixed term ends, break costs may apply. Those costs are calculated based on the difference between your fixed rate and the lender's current wholesale rate. A split structure reduces that risk. You can fix 50% to 70% of the loan for budget certainty and keep the rest variable with an offset account attached. Income from shift penalties or allowances can sit in the offset, reducing interest on the variable portion while keeping funds accessible.

First home buyer stamp duty relief and grants

Stamp duty concessions vary by state. In New South Wales, you pay no stamp duty on homes valued up to $800,000 and receive a sliding concession on properties between $800,001 and $1,000,000. In Victoria, you pay no stamp duty on properties valued up to $600,000, with a concession applying up to $750,000. Queensland offers full stamp duty relief on new homes with no price cap, and a partial concession on established homes for properties under $800,000. Western Australia removed the geographic distinction between Perth and regional areas from May this year, applying a single statewide duty threshold.

The First Home Owner Grant is available for new home purchases only. In New South Wales and Victoria, the grant is $10,000 for new homes under the applicable cap. In Queensland, the grant is $15,000 for new homes valued under $750,000. In the Northern Territory, the HomeGrown Territory Grant pays $50,000 for new home purchases or builds, with no price cap, for contracts signed before September next year. You can combine stamp duty concessions and the FHOG with the 5% Deposit Scheme in most states.

Using the First Home Super Saver Scheme

The FHSS Scheme lets you make voluntary contributions into your super fund and release eligible amounts toward your deposit. You can release up to $15,000 of personal contributions from any one financial year, with a total cap of $50,000. Concessional contributions are taxed at 15% rather than your marginal rate, which makes the scheme useful if you are earning penalty rates that push you into a higher tax bracket. You need to obtain a determination from the ATO before signing a contract.

As an example, a detective salary-sacrificing $10,000 a year for three years builds $30,000 in releasable super contributions. Combined with existing savings, that amount could cover a 5% deposit and settlement costs on a property at the scheme's price cap. The determination process takes one to two weeks, so factor that into your timeline if you are planning to use the FHSS Scheme alongside getting loan pre-approval.

Offset accounts and redraw facilities

An offset account is a transaction account linked to your home loan. The balance in the offset reduces the amount of interest you pay without locking the funds away. If you have a $500,000 loan and $20,000 sitting in offset, you only pay interest on $480,000. Shift penalties, overtime, and leave payouts can sit in the offset between pay cycles, reducing interest while keeping the money accessible for bills or emergencies.

A redraw facility lets you withdraw extra repayments you have made above the minimum. Redraw is not the same as an offset. Funds in redraw are considered part of the loan, and some lenders restrict access or charge fees. If you value immediate access to your savings, choose a loan with a full offset rather than relying on redraw. Detectives working long or unpredictable hours often prefer offset accounts because the funds remain separate and available at any time without needing lender approval.

Settlement costs beyond the deposit

You need to cover more than the deposit. Settlement costs include conveyancing or legal fees, building and pest inspections, loan application fees, valuation fees, and government charges. In most states, you should budget for these costs separately from your deposit. Conveyancing fees for a standard residential purchase typically sit between $1,200 and $2,500 depending on location and complexity. Building and pest inspections combined usually cost $500 to $800. Lender application and valuation fees vary but often total another $600 to $1,000.

Some lenders allow you to capitalise LMI into the loan if you are borrowing above 80% and not using the government guarantee. Capitalising LMI means you do not pay it upfront, but you do pay interest on it over the life of the loan. If you are using the 5% Deposit Scheme, LMI does not apply, which removes that cost entirely. You still need cash at settlement for the other costs. Factor those amounts into your savings target when planning your purchase.

Working with a broker who understands roster patterns

Detectives rotate between squads, work long investigations, and take leave in blocks when cases close. A broker familiar with law enforcement income structures knows which lenders assess penalty rates favourably and which require longer income histories for non-guaranteed earnings. Not all lenders treat shift allowances the same way. Some will include 100% of your averaged allowances if they have been consistent for six months. Others will only include 80%, or require 12 months of history.

If you are moving between units or taking on a higher duties role, the income change can affect your borrowing capacity. A broker can submit your application to a lender that assesses your current entitlements rather than requiring two years of identical income. That approach matters when you are ready to buy but your payslips show a recent promotion or transfer. Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions