Before buying your first home, work out whether you may qualify for a deposit scheme, what cash you need to complete the purchase and what a lender is willing to assess. A scheme or pre-approval is not a promise that a specific property or loan will be approved.

Check federal and state rules separately

The Australian Government deposit scheme and any state or territory transfer-duty concession are different programs with separate eligibility tests. Check the current federal scheme’s applicant, deposit, property and participating-lender conditions. Then check the relevant state or territory’s duty rules for the purchase price, ownership history and intended occupancy. A buyer might satisfy one set of conditions but not the other. Verify current rules and the exact property address with official sources, a participating lender and your conveyancer before relying on a concession.

A government guarantee may help an eligible buyer purchase with a smaller deposit without the usual lender’s mortgage insurance in the circumstances covered by the scheme, but it is not a grant of the missing deposit and does not remove ordinary loan repayments. Property price limits and eligibility criteria can change; do not assume a cap from another postcode or a past application applies.

Calculate your funds to complete

List savings available now, the deposit due under the contract and the remaining contribution at settlement. Then allow for any transfer duty after applicable concessions, conveyancing, searches, building or pest inspections, lender fees, insurance, moving costs and a cash buffer. Some expenses arise before settlement. Ask for a transaction-specific estimate rather than using only a deposit percentage.

For example, two properties with the same purchase price but different locations or property types may produce different duty and inspection costs. A higher deposit may reduce the amount borrowed, but using all savings upfront may leave little buffer. Review existing debts and regular expenses as well as income when considering an affordable repayment.

Use pre-approval carefully

Pre-approval is an indicative or conditional lender assessment of your borrowing position based on information available at the time. It is not final approval or a guarantee of scheme access. Final approval may depend on a satisfactory property valuation, contract, updated income and debt documents, unchanged circumstances, lender policy and any scheme conditions. Tell the lender about changes in employment, debt or deposit before making commitments. A conveyancer should review contract terms and finance deadlines.

Prepare a useful document pack

Gather identification, recent payslips or other income evidence, bank statements showing savings and living expenses, details of credit cards and other debts, and information on any gifted funds. Self-employed applicants may need additional financial records. Requirements vary by lender and scheme. Clarify which costs must be paid before settlement and how much cash will remain afterwards.

Frequently asked questions

Does the federal deposit scheme waive stamp duty?

No. A federal guarantee and state or territory duty concessions are separate. Check both sets of current rules for your purchase.

Is pre-approval the same as final approval?

No. The lender still assesses the chosen property, valuation, documents and current circumstances before issuing a final decision.

Can I budget only for the deposit?

No. Include duty where payable, legal and inspection costs, lender charges, insurance and a buffer for moving and unexpected expenses.

Can I rely on a scheme property cap I saw online?

Confirm the current cap and property criteria for the exact address with an official source and participating lender. Rules may change.

If you already own a property and plan to buy before selling, see the bridging guide in Related articles below.

General information disclaimer: This article is general information only and does not constitute personal financial, credit, legal, tax or accounting advice. Scheme rules, lender criteria, property price caps, duty rules, fees, terms and government policies can change. Eligibility, approval and benefits are not guaranteed. Confirm current scheme information with a participating lender and obtain professional advice before making a decision.

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