The Easiest Way to Save for Your First Home

How Much You Actually Need to Save

You can enter the market with a 5% deposit under the Australian Government 5% Deposit Scheme, which means no Lenders Mortgage Insurance and no annual place limits. The scheme is open to all first home buyers with no income cap, and you can apply through participating lenders.

Consider a constable buying in a Queensland regional centre. The property price cap under the 5% Deposit Scheme is $1,000,000, which covers most of the market in areas like Townsville or Cairns. A 5% deposit on a property at the regional median leaves you needing the deposit itself plus settlement costs like conveyancing, building and pest inspections, and council adjustments. Settlement costs generally sit between $3,000 and $6,000 depending on the property and where you buy. If you are accessing the $30,000 Queensland first home buyer grant for a new home, that grant can be applied toward the purchase price and reduce the cash you need upfront. The grant has been extended for four years from 1 July 2026 and remains at $30,000 for new homes under $750,000.

The 5% Deposit Scheme for Police Officers page covers eligibility and lender options in detail, but the takeaway is you are not locked into saving 20% before you can move. A 10% deposit opens up more lender options and may give you access to features like offset accounts or higher loan-to-value ratios with certain lenders, but it is not a requirement to get started.

Genuine Savings and What Counts as a Deposit

Most lenders require at least 5% of your deposit to come from genuine savings, which means funds you have held in your own name for at least three months. Pay goes in, bills go out, and what is left over counts. Lenders want to see a pattern of regular saving or consistent account behaviour, not a sudden lump sum that appeared last week.

Gifts from immediate family can make up part or all of the remaining deposit depending on the lender. If your parents are contributing $20,000 and you have saved $15,000 over the last year, that structure works. The gift needs a signed declaration confirming it is not a loan and does not need to be repaid. Some lenders will accept a larger portion as a gift if your savings history is solid and your income is stable.

The First Home Super Saver Scheme lets you pull up to $50,000 from voluntary super contributions to use toward a deposit. You can release up to $15,000 from any one financial year. Concessional contributions are taxed at 15% instead of your marginal rate, which makes it a useful option if you are on a higher tax bracket and can afford to lock funds away for a period. You will need an ATO determination before you sign a contract, so start that process early. The scheme works well alongside other deposit sources, but it is not a replacement for demonstrating genuine savings. Speak to your accountant or financial adviser before committing.

How Shift Work Affects Your Loan Application

Shift penalties, overtime, and allowances are all treated differently depending on the lender. Some lenders will accept 100% of your base plus confirmed allowances. Others will average your overtime over the last 12 or 24 months and include a percentage of that figure in your assessed income. If you have been in the job for two years and your payslips show consistent overtime and shift loadings, most lenders will factor that in.

A detective sergeant applying for pre-approval with 18 months of payslips showing regular weekend and night shift penalties had those loadings included at 80% of the average by the participating lender. That lifted borrowing capacity enough to meet the price cap in a Victoria regional area under the 5% Deposit Scheme, where the cap is $950,000. The application was submitted between rostered days off, and the pre-approval was issued within 48 hours. Lenders who work with shift workers regularly understand how your income is structured and will not penalise you for it.

If you have recently moved from probationary constable to confirmed constable, or from general duties to a specialist role, let your broker know. A pay rise or classification change in the last few months can be factored in if you provide the new employment contract or letter of confirmation. Lenders want current information, and your income today is more relevant than what you were earning 12 months ago.

State Grants and Duty Concessions You Can Stack

New South Wales offers a full stamp duty exemption on homes up to $800,000 and a sliding concession up to $1,000,000. The $10,000 First Home Owner Grant applies only to new homes under $600,000, or land and build packages under $750,000. If you are buying an established home in Western Sydney at $750,000, you will pay no stamp duty but will not receive the grant. If you are buying a house and land package in a growth corridor at $680,000, you get both the duty exemption and the $10,000 grant.

In Queensland, the $30,000 grant applies to new homes under $750,000 and can be combined with the full transfer duty concession on new homes, which has no price cap. A constable buying a new build in Ipswich at $650,000 pays no stamp duty and receives $30,000 toward the purchase, which can go straight into reducing the amount you need to borrow. For established homes, a separate first home concession reduces duty by up to $17,350 on properties up to $709,999, but that concession does not eliminate duty entirely.

Victoria gives you a full stamp duty exemption on properties up to $600,000 and a concession up to $750,000, with a $10,000 grant for new homes under the same cap. The temporary off-the-plan concession for apartments and townhouses has been extended to 20 April 2027, and during that period duty is calculated on land value only, not the finished property value. That concession is not limited to first home buyers, but if you are buying off-the-plan as a first home buyer, you can stack the off-the-plan concession with the standard duty exemption where applicable.

You can use state and territory grants and duty concessions alongside the Australian Government 5% Deposit Scheme. You cannot combine the 5% Deposit Scheme with Help to Buy, but Help to Buy can be used with most state grants and concessions depending on your state. Check the specific rules for your state before you assume everything stacks.

Fixed or Variable Rate and Why It Matters Now

A fixed rate locks your repayments for a set period, usually between one and five years. You know exactly what you are paying, and if rates go up during the fixed term, you are protected. If rates drop, you are stuck until the fixed period ends unless you are prepared to pay break costs, which can run into thousands of dollars depending on how much rates have moved.

A variable rate moves with the market. If the Reserve Bank cuts rates or your lender reduces their variable rate, your repayments drop. If rates rise, your repayments go up. Variable loans generally come with offset accounts and redraw facilities, which let you park spare cash against the loan and reduce the interest you pay without locking the funds away. That flexibility suits shift workers who might have irregular income or want the option to access funds if something comes up.

Splitting your loan between fixed and variable gives you some certainty and some flexibility. You might fix 60% of the loan for three years and leave 40% variable with an offset. That way you have stable repayments on the majority of the loan, and you can make extra repayments or redraw from the variable portion without penalty. Some lenders allow splits under the 5% Deposit Scheme, but you need to confirm that with the participating lender before you apply.

Do not fix a rate just because it looks lower today. Break costs on a fixed loan can wipe out any benefit if you need to refinance or sell before the fixed term ends. If you are not certain you will stay in the property for the full fixed period, a variable loan or a split structure is worth considering.

When to Apply and What Pre-Approval Actually Covers

Pre-approval gives you a conditional commitment from a lender based on your income, expenses, deposit, and credit history. It is not a guarantee, and it does not lock in a property, but it tells you what you can borrow and shows sellers you are in a position to move quickly. Pre-approval is usually valid for three to six months depending on the lender.

Apply for pre-approval once you have at least three months of genuine savings in your account, your payslips are up to date, and you know roughly where and what you want to buy. You do not need to have found a property yet, but you do need to have a realistic price range in mind so the lender can assess your borrowing capacity against the right price cap and deposit level.

If you are working rotating shifts or about to take leave, time your application so you are available to respond to any requests for additional documents. Lenders will usually ask for payslips, bank statements, ID, and a statement of your current liabilities. If you have a car loan, credit card, or personal loan, include those details upfront. Lenders will see them anyway when they run your credit check, and being transparent speeds things up.

Once you have pre-approval, you can start looking at properties within your range. When you find something and make an offer, the lender will do a full valuation and credit assessment before issuing formal approval. Pre-approval covers your financial position, not the property itself, so there is still a step to go once you are under contract.

What Happens After You Find a Property

You make an offer, it gets accepted, and you sign a contract of sale. The contract will have a finance clause, usually 14 or 21 days, which gives you time to get formal loan approval and walk away if the lender will not fund the purchase. Do not waive the finance clause unless you are absolutely certain your loan will be approved and you have spoken to your broker or lender in the last 48 hours.

The lender orders a valuation. If the property values at or above the purchase price, the loan moves forward. If it values below the purchase price, you will either need to renegotiate with the seller, increase your deposit to cover the gap, or pull out under the finance clause. Valuations are done by independent valuers, and they do not always match what buyers are prepared to pay, especially in competitive markets or for properties that need work.

Once the valuation is done and formal approval is issued, your broker or lender will send the loan documents for signing. You will also need to arrange building and pest inspections, organise conveyancing, and confirm your settlement date with the seller's solicitor. Settlement usually happens four to eight weeks after the contract is signed, depending on what was negotiated.

On settlement day, the lender releases the funds to your solicitor, who transfers them to the seller. You get the keys, and the property is yours. The first repayment is usually due about a month after settlement, and from that point your loan is live. If you have an offset account, start using it straight away. Every dollar in offset reduces the interest you pay without affecting your access to the cash.

Call one of our team or book an appointment at a time that works for you. We work around your roster, and we will talk you through your options without the jargon.

Frequently Asked Questions