Smart ways to approach your first home purchase

You need to preserve working capital while meeting deposit and duty obligations

As a litigation lawyer, you need a deposit structure that does not drain the funds you rely on for practice outlays, tax variations or unexpected gaps between billings. The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase with a 5% deposit, with Housing Australia guaranteeing the difference between the deposit and 20% of the property value. No LMI is payable.

Consider a litigation lawyer purchasing an established apartment valued at the median in an inner-city precinct. Under the scheme, a 5% deposit preserves liquidity for ongoing case costs and allows the remaining funds to sit in an offset account from settlement. The benefit is immediate: capital stays accessible rather than being locked into a deposit you cannot draw down. Applications are made through a participating lender panel, not directly to Housing Australia. Confirm which loan features are available before committing, as not all participating lenders offer the same offset or redraw terms.

In New South Wales, a full transfer duty exemption applies on new and existing homes valued up to $800,000, with a sliding concession on properties between $800,001 and $1,000,000. In Victoria, a full exemption applies on properties valued up to $600,000, with a sliding scale concession on properties valued from $600,001 to $750,000. These concessions can be combined with the 5% Deposit Scheme, meaning you can access both reduced duty and a lower deposit threshold on the same transaction.

How to structure your deposit when variable income is the norm

Litigation work generates fee revenue in arrears, with months where income exceeds projections and months where it does not. Building a deposit from irregular cash flow requires a different approach than saving from a fixed salary. The First Home Super Saver Scheme allows first home buyers to make voluntary concessional and non-concessional contributions into their superannuation fund and apply to release eligible amounts toward a home deposit, with up to $15,000 of personal contributions from any one financial year able to be released, subject to a total cap of $50,000. Concessional contributions are taxed at 15% rather than at marginal income tax rates.

For a litigation lawyer at the marginal rate, salary sacrificing monthly contributions into super during periods of higher billings can yield more deposit capital than saving the equivalent post-tax amount in a standard account. You will need an ATO determination before you exchange contracts, so begin the release process at least three months before your intended purchase date. The scheme works well when paired with the 5% Deposit Scheme, as the combined effect is a smaller absolute deposit requirement and more efficient tax treatment on the funds you do accumulate.

Fixed rate, variable rate and offset: which structure suits your billing cycle

A fixed interest rate provides repayment certainty across a defined term. A variable interest rate allows you to make additional repayments without incurring break costs and typically supports an offset account. Participating lenders under the 5% Deposit Scheme may offer fixed rate, variable rate and split loan structures, but buyers should confirm available loan features directly with their chosen participating lender.

For litigation lawyers with uneven monthly income, an offset account linked to a variable rate loan provides the highest degree of cash flow control. Surplus funds deposited into the offset account reduce the interest charged on the loan balance without requiring those funds to be applied as a permanent repayment. If you need to draw funds out the following month for counsel fees or to cover a shortfall, the capital remains available. A redraw facility offers similar flexibility but usually involves a formal request process and may attract fees or delays depending on the lender.

A split loan structure, where part of the loan is fixed and part is variable with offset, can be appropriate when you want partial repayment certainty but also want to preserve access to capital. Check the terms of each component separately, as some lenders restrict the ability to pay down the fixed portion early or limit the offset account to the variable component only. The home loan refinancing process later in your career may involve consolidating or restructuring these components as your income stabilises.

Pre-approval timing when you are mid-trial or awaiting settlement of a fee dispute

Lenders assess serviceability based on recent payslips, tax returns and, for self-employed applicants or those with profit share arrangements, financial statements or distribution records. If you are mid-trial or awaiting payment on a large fee dispute, the timing of your home loan application matters. Apply too early and your most recent income evidence may not reflect the billings about to land. Apply too late and you risk losing a property you want to purchase.

Pre-approval is valid for a defined period, typically three to six months depending on the lender. The approval is conditional on your financial position not materially changing before settlement. If a significant fee is paid after pre-approval is issued, disclose it to your broker and lender. An increase in savings or reduction in liabilities strengthens your position and may allow you to negotiate better loan terms or access interest rate discounts at settlement.

For litigation lawyers working on contingency matters or holding work in progress that has not yet converted to invoiced fees, lenders may apply a discount factor to projected income or request additional evidence such as a letter from your firm's finance partner. Provide documentation early and allow at least four weeks for a formal assessment if your income structure is more involved than standard PAYG salary.

Stamp duty concessions in Queensland, South Australia and Western Australia

In Queensland, the first home concession on established homes provides a maximum deduction of $17,350 for properties valued up to $709,999 for contracts signed on or after 9 June 2024, with the concession phasing out in $10,000 property value bands and reaching nil for properties valued at $800,000 or more. Duty is reduced, not eliminated. For a property valued at $750,000, duty is still payable after the concession is applied, and you need to include that cost in your settlement budget.

In South Australia, stamp duty relief is available on new homes and vacant land only for eligible contracts entered into on or after 15 June 2023, with no property value cap for contracts entered into on or after 6 June 2024. Stamp duty relief is not available on the purchase of an established home. If you are purchasing an established home in South Australia, factor in full stamp duty at standard rates.

In Western Australia, for homes and land purchased from 7 May 2026, no duty is payable on homes valued up to $600,000, with a concessional rate applying on homes valued between $600,001 and $800,000 at a rate of $16.15 for every $100 or part thereof above $600,000, with the maximum dutiable value to access the concession being $800,000. This applies statewide regardless of whether the property is in Perth, Peel or regional Western Australia. The concession can be accessed even if the property value exceeds the $800,000 First Home Owner Grant cap, as the link between the two schemes was removed from 7 May 2026.

Combining the 5% Deposit Scheme with state grants and duty concessions

State and territory grants and stamp duty concessions can generally be used alongside the Australian Government 5% Deposit Scheme. In Queensland, a litigation lawyer purchasing a new home under the scheme can access both the $15,000 First Home Owner Grant and the full transfer duty concession on new homes, which reduces duty to nil with no price cap, in addition to the federal 5% deposit threshold and LMI waiver. The combined effect is a significantly reduced upfront cost.

In the Northern Territory, the HomeGrown Territory Grant provides $50,000 for eligible first home buyers purchasing or building a new home, applying to contracts signed between 1 October 2024 and 30 September 2027, with no cap on the purchase or build price. This grant can be used to fund part of the deposit or to cover other settlement costs, and it can be combined with the 5% Deposit Scheme if you meet the eligibility criteria for both. Ensure you apply for the state or territory grant through the relevant revenue office before settlement, as grants are not automatically applied.

When your borrowing capacity depends on how lenders treat profit share or contingency fees

Lenders assess litigation lawyer income in different ways. Some treat profit share distributions or contingency fee payments as bonuses and apply a discount factor or exclude them entirely from serviceability calculations. Others will include them at full value if they have been received consistently over two financial years and are supported by tax returns and distribution statements.

If a significant portion of your income comes from profit share or success fees, provide at least two years of tax returns, payment summaries and, where applicable, a letter from your firm confirming the structure and consistency of payments. Lenders that specialise in home loans for litigation lawyers or professional services income are more likely to assess this income favourably than a standard retail lender with rigid PAYG-focused criteria. Your broker should identify which lenders have the most accommodating policies before you lodge an application.

Call us or book an appointment at a time that works for you

If you are ready to purchase your first home and need a finance structure that accommodates litigation income, preserves working capital and takes full advantage of federal and state concessions, call one of our team or book an appointment at a time that works for you.

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