First Home Buyer Grants, Schemes and LMI Waivers: What Lawyers Can Do to Buy a Home

Legal incomes can vary widely between graduate roles, senior employees and partners, and some lenders offer professional waivers, so the choice of lender matters. The RBA raised the cash rate by 0.25 percentage points to 4.85% on 3 November, and the ABS reported annual inflation of 4.3% in the year to September. Grants, concessions and LMI options can reduce the cash and insurance you need upfront, and this guide covers what is available to lawyers.

Key takeaways

• The 5% Deposit Scheme has no income caps, no place limits and no LMI, so it's the first thing to check.
• State and territory grants and stamp duty concessions differ, so check the rules where you buy.
• Some lenders may waive or pay LMI for lawyers, and each lender's criteria differ, so the choice of lender matters.
• Waivers can have income tests, so check them against your salary before applying.
• Some of these can be combined, depending on the home and your situation, so check each one's conditions.

Federal help: deposit schemes and super

Three federal options can reduce what you need to save. Each has trade-offs, and rules, caps and dates change and apply on the contract date.

5% Deposit Scheme

The 5% Deposit Scheme lets you buy with a deposit as low as 5%, or 2% for single parents and legal guardians, with no LMI. The government backs part of the loan instead. It has had no income caps and no limit on places since 1 October 2025, and Treasury advised that property price caps rose at the same time.

First home buyers can use it, as can people who haven't bought in the last 10 years. Single parents and guardians with a dependent can use the 2% stream even if they have owned before.

You apply through a Participating Lender as part of a home loan application, not directly. After pre-approval you have 90 days to find a home and sign a contract. Price caps vary by location, so check the price cap tool for your target area. You must live in the home as an owner-occupier, or the lender may require LMI or other costs.

Help to Buy

Help to Buy is a shared equity scheme, where the government owns part of your home alongside you. It contributes up to 30% of an existing home's price, or up to 40% of a new home's, and you need a deposit of at least 2%. When you sell or buy out the government's share, it shares in any gain or loss in proportion to its contribution.

The income caps for 1 July 2026 to 30 June 2027 are:

• $103,000 for a single applicant
• $165,000 for single parents and joint applicants

Applicants must be Australian citizens aged 18 or over who don't own property in Australia or overseas, and must live in the home. It can't generally be combined with other government help for the purchase, such as another shared equity scheme or a state or territory loan. Stamp duty concessions and grants are still allowed.

First Home Super Saver Scheme

The First Home Super Saver Scheme (FHSS) lets you release voluntary super contributions of up to $15,000 a year, to a total of $50,000, for a first home. The ATO releases non-concessional contributions in full and concessional contributions at 85%, both with associated earnings. The assessable amount goes in your tax return with a 30% tax offset, so speak with an accountant about how it affects you.

Check the ATO's timing rules for requesting a determination and release before you sign a contract. You must move in as soon as practicable and live there for at least 6 of the first 12 months. Eligibility is individual, so each partner can use their own contributions for the same property.

The main cost is that the money leaves your super and stops growing there. For lawyers, check each lender's income test, practising certificate and accreditation requirements against your situation, as they vary.

State and territory grants and stamp duty

Every state and territory has its own rules, and grants and concessions often depend on whether the home is new. Confirm the current amounts, caps and dates with the relevant state or territory revenue office before you rely on them.

Prior ownership rules can catch buyers out. Some states exclude you if you or your partner have owned a home before, which can affect people who owned a share in a home before a separation.

Grants and concessions depend on the state where you buy, which may differ from where you practise.

Five ways to avoid or reduce LMI

Lenders' mortgage insurance (LMI) usually applies when you borrow more than 80% of a property's value, and it protects the lender, not you. The loan-to-value ratio (LVR) is your loan as a percentage of the property's value, and at 20% equity LMI generally doesn't apply.

1. Use the 5% Deposit Scheme, which removes LMI on a deposit as low as 5%, subject to price caps and a Participating Lender.
2. Qualify for a profession LMI waiver, where LMI would normally apply but isn't charged because of your job.
3. Choose lender-paid LMI, where the loan is still insured but the lender pays the premium, which is reflected in the pricing.
4. Pick a no-LMI product, which some lenders offer to any borrower, whatever their occupation.
5. Save a larger deposit.

A waiver saves the LMI cost, but risk fees, lender-paid LMI and different pricing can sometimes cost more over time than paying LMI. Each lender sets its own conditions on repayment type, loan size and income, and lender criteria change often. All lending is subject to credit approval.

Can lawyers avoid paying LMI?

Some lenders may waive LMI for lawyers, which means LMI would normally apply but isn't charged because of your job. Others may offer lender-paid LMI, where the loan is still insured but the lender pays the premium, which is reflected in the pricing. Each lender's criteria differ and change often, so a broker can confirm which lenders currently offer an option for lawyers and whether you qualify. You can read more on our LMI waivers for lawyers page.

How to compare them

• Some lenders ask for a current practising certificate or registration, and others use a degree or income test, so check each lender's conditions.
• Eligibility differs, so check each lender's income, work history, loan size, repayment type and employment conditions against your situation.
• Many waivers exclude land and construction, so check this if you plan to build or buy vacant land.
• A waiver saves the LMI cost, but compare the rate, fees and features too, and weigh it against the 5% Deposit Scheme on total cost.

Lender criteria change often, and a broker can check which options you qualify for. All lending is subject to credit approval.

How to combine the options

You can work through the options in a set order, so each step narrows the next.

1. Check federal eligibility first: the 5% Deposit Scheme and Help to Buy suit different buyers, and Help to Buy can't generally be used alongside other government help for the purchase.
2. Add your state or territory support: the grant, the stamp duty concession and whether the home needs to be new.
3. Start a super release early, and check the ATO's timing rules for requesting a determination and release.
4. Match your situation to an LMI option and compare it against the 5% Deposit Scheme on total cost, not just on LMI. Our no LMI loans for lawyers page covers the product side.
5. Check prior ownership and residency rules: these vary by program and state, so confirm them for each one you plan to use.

Price caps and income caps can decide whether you qualify, so confirm them for the exact property and your income before you sign a contract. It also helps to know your borrowing capacity before you start, and our first home buying guide covers the wider process.

Small steps taken early can give you more options later. Book an appointment at a time that suits you, and bring recent payslips, your practising certificate and your savings records.

This article is general information only and doesn't consider your personal circumstances. Grants, concessions and lender policies change, and all lending, including any LMI waiver, is subject to lender criteria and credit approval. Speak with your accountant about tax.

Frequently Asked Questions