Everything You Need to Know: First Home Buyer Checklist

What You Need Before Starting Your Home Loan Application

Your deposit source, genuine savings history, and identification documents form the foundation of your application. Lenders assess these before moving to income verification or credit checks.

Consider a solicitor two years into practice who has accumulated $45,000 in a linked savings account. That amount, combined with payslips showing consistent contributions over six months, satisfies most lenders' genuine savings requirements for a 10% deposit loan. The same solicitor receiving a $25,000 gift from parents would need a signed statutory declaration from the donor confirming the funds are not repayable, plus bank statements showing the transfer. Gift deposits are accepted by most lenders when accompanied by proper documentation, but the donor's statement must be clear about repayment terms.

You will need certified copies of your driver's licence or passport, proof of current residential address such as a recent utility bill, and at least three months of bank statements covering all accounts that receive income or hold savings. If you have recently changed employers, bring your employment contract or letter of offer in addition to payslips. Lenders typically require two recent payslips, but some request up to three months depending on your employment structure.

Fixed or Variable Rate: How the Decision Affects Your Loan Structure

A fixed interest rate locks your repayment amount for a set period, typically one to five years. A variable interest rate moves with the lender's standard rate changes and usually provides access to an offset account and unrestricted extra repayments.

In our experience, lawyers early in their career often prefer variable rates or split loan structures that combine both. A variable rate loan allows you to deposit your salary into an offset account, reducing the interest charged on your loan balance without restricting access to those funds. A fixed rate removes repayment uncertainty but generally limits extra repayments to a set annual amount, often $10,000 to $30,000 depending on the lender, and does not allow offset accounts during the fixed period.

A split structure allocates a portion of your loan to a fixed rate and the remainder to a variable rate. This approach provides partial repayment certainty while retaining access to offset and redraw features on the variable portion. If you expect income growth or irregular bonuses, keeping at least part of your loan variable allows you to make additional repayments without incurring break costs.

How the Australian Government 5% Deposit Scheme Works for Lawyers

The Australian Government 5% Deposit Scheme allows you to purchase with a 5% deposit without paying LMI. Housing Australia guarantees the difference between your deposit and 20% of the property value. No income cap applies, and no annual limit on the number of places exists under the scheme as it operates from 1 October 2025.

Applications are made through a participating lender, not directly through Housing Australia. Both the purchase price and the lender's valuation must fall at or below the applicable price cap for your location. Lawyers purchasing in Sydney or Melbourne face a cap of $1,500,000 for capital city and regional centre properties. In Brisbane, the cap is $1,000,000. The scheme can be used alongside most state and territory stamp duty concessions and grants.

You can structure your loan as variable, fixed, or split depending on the participating lender's product range. Confirm available loan features with your lender before submitting your application, as not all lenders offer identical terms under the scheme. Lawyers who qualify for an LMI waiver through their profession-specific lending policy may find that option more flexible than the government scheme, particularly if they want to borrow above the scheme's price caps.

First Home Buyer Stamp Duty Concessions: What Applies in Your State

Each state and territory operates its own stamp duty concession or exemption. The thresholds, eligibility rules, and residency requirements differ significantly.

In New South Wales, you pay no transfer duty on homes valued up to $800,000, with a sliding concession available between $800,001 and $1,000,000. This applies to both new and established properties. You must move in within 12 months of settlement and live there for at least 12 continuous months. In Victoria, the full exemption applies to properties up to $600,000, with a concession available up to $750,000. Queensland offers full transfer duty concessions with no price cap on new homes, but established homes receive only a partial reduction capped by property value bands.

If you are purchasing in South Australia, stamp duty relief applies to new homes and vacant land only, with no relief available on established properties. Western Australia now applies a single statewide threshold with no duty payable on homes valued up to $600,000 and a concessional rate on homes between $600,001 and $800,000. The previous geographic distinction between Perth and regional areas was removed in May this year.

You should confirm your eligibility and the current thresholds with your conveyancer or solicitor before exchanging contracts. Missing a residency requirement or exceeding a value threshold by a small margin can result in full duty being payable. For lawyers planning to purchase their first home, understanding these concessions early allows you to structure your budget accurately.

Genuine Savings and Non-Genuine Savings: What Lenders Distinguish

Genuine savings are funds you have accumulated over time in your own name and held in a verifiable account for at least three months. Non-genuine savings include windfalls, gifts, tax refunds, or proceeds from asset sales.

Lenders typically require at least 5% of the property value to come from genuine savings when you are borrowing more than 90% of the property value. If your deposit is entirely from a parental gift or a recent inheritance, some lenders will decline the application or require a larger deposit. Others will accept a non-genuine deposit if you can demonstrate consistent savings behaviour over the preceding months, even if that amount is smaller than the gift.

A barrister who has saved $30,000 over 18 months and receives a $40,000 gift will generally satisfy genuine savings requirements. A graduate lawyer who receives $70,000 from family and has no prior savings history may face additional scrutiny or be required to wait three months after depositing the gift before applying. Each lender applies different policies, and lawyers with irregular income streams or recent career changes should confirm their lender's treatment of gift deposits before proceeding.

How Pre-Approval Affects Your Purchase Timeline

Pre-approval confirms the amount a lender is willing to lend you based on your current financial position. It does not guarantee final approval, but it provides certainty when making an offer and shortens the time between contract exchange and formal approval.

Most pre-approvals remain valid for three to six months depending on the lender. During that period, you can make offers without needing to resubmit income documentation or wait for credit checks. Once you have a signed contract, you return to the lender with the contract of sale, building and pest reports if applicable, and the lender orders a valuation. Final approval is typically issued within a few days if your financial circumstances have not changed and the property value aligns with the purchase price.

If you are purchasing at auction, pre-approval is not optional. You must be able to proceed immediately if your bid is accepted. For private treaty purchases, pre-approval allows you to negotiate shorter finance clauses, which can make your offer more attractive to vendors in markets where multiple offers are common.

What Happens If You Change Jobs Between Pre-Approval and Settlement

Changing employers after receiving pre-approval but before settlement can affect your loan. Lenders reassess your employment status as part of their final checks, and a change from permanent to contract employment, or a move to a new firm, may require additional documentation or delay settlement.

If you move to another law firm in a comparable or senior role on a permanent contract, most lenders will proceed without issue once you provide your new employment contract and confirmation of your start date. If you move from employment to self-employed practice or accept a role with a probationary period, the lender may require you to wait until probation ends or provide additional evidence of income stability.

Notify your broker or lender immediately if your employment circumstances change. Failing to disclose a job change before settlement can result in the lender withdrawing the loan offer, leaving you in breach of your purchase contract. Lawyers moving between firms or transitioning to the Bar should time these changes carefully relative to their settlement date, or seek confirmation from their lender that the change will not affect their approval.

Using the First Home Super Saver Scheme to Build Your Deposit

The FHSS Scheme allows you to make voluntary contributions into your superannuation fund and later release those contributions, along with associated earnings, to use toward your home deposit. Concessional contributions are taxed at 15% rather than your marginal tax rate, which can provide a tax advantage if you are in a higher income bracket.

You can release up to $15,000 from any single financial year, with a total cap of $50,000 across all years. If you have been making additional concessional contributions over several years, you may already have a releasable amount available. You apply to the ATO for a determination, which confirms the amount you are eligible to release. Most buyers obtain this determination before signing a purchase contract to confirm the funds will be available in time for settlement.

The scheme works alongside other deposit sources. You can combine released amounts with genuine savings, gift deposits, and government schemes such as the 5% Deposit Scheme. Lawyers who salary sacrifice into superannuation as part of their remuneration package may find they have already accumulated a releasable amount without specifically intending to use the FHSS Scheme.

What Documentation You Need for a Low Deposit Home Loan Application

A low deposit loan application, typically at 90% or 95% loan-to-value ratio, requires more detailed documentation than a standard 80% loan. Lenders assess your savings history, income stability, and existing liabilities more closely when you are borrowing above 80%.

You will need at least three months of transaction statements for every account in your name, including savings accounts, transaction accounts, and offset accounts. If you hold a credit card, the lender will require a statement showing your current balance and credit limit even if the card has a nil balance. Any outstanding personal loans, car loans, or HELP debt must be disclosed, and lenders will include minimum repayments or notional repayments in their serviceability assessment.

If your deposit includes a gift, provide a signed letter from the donor on their letterhead or a statutory declaration confirming the amount, the relationship between you, and that the funds are not repayable. Bank statements from the donor showing the withdrawal and your own statements showing the deposit are also required. For low deposit loans, lenders may also request an explanation of any large or irregular transactions in your account over the preceding three months, so be prepared to provide context for any one-off deposits or transfers.

How LMI Waivers for Lawyers Change Your Borrowing Options

Some lenders offer LMI waivers to legal professionals, allowing you to borrow up to 90% of the property value without paying LMI. These policies are not universal, and eligibility depends on your role, years of practice, and the lender's current appetite for professional lending.

A lawyer borrowing $720,000 to purchase an $800,000 property would ordinarily pay LMI on a 90% loan. With an LMI waiver, that cost is removed, saving several thousand dollars at settlement. The waiver does not change the interest rate or loan structure, but it does improve your upfront cash position and may allow you to retain more of your savings for furniture, moving costs, or an offset account buffer after settlement.

Not all lenders extend LMI waivers to lawyers in every jurisdiction or practice area. Some restrict the waiver to lawyers with at least two years of post-admission experience or to those employed by firms rather than sole practitioners. If you qualify, the waiver can be used independently or in combination with other features such as offset accounts, split rate structures, or interest-only repayment periods. Confirm your eligibility before assuming the waiver will apply to your loan.

Call one of our team or book an appointment at a time that works for you to confirm which lenders currently offer LMI waivers for your circumstances and how that compares to using the 5% Deposit Scheme or other low deposit options.

Frequently Asked Questions