Beginner's guide to first home buyer resources

Which federal scheme applies to your deposit and property type?

The Australian Government 5% Deposit Scheme lets eligible first home buyers purchase with a 5% deposit and no LMI, regardless of income. Housing Australia guarantees the difference between the deposit and 20% of the property value, and no annual place limits apply. Applications are made through a participating lender, not directly through Housing Australia.

Property price caps vary by state and region. In New South Wales, the cap is $1,500,000 for capital city and regional centres and $800,000 for other areas. Victoria's caps are $950,000 and $650,000 respectively. Queensland applies $1,000,000 and $700,000. Western Australia uses $850,000 and $600,000. South Australia has $900,000 and $500,000. Tasmania applies $700,000 and $550,000. The ACT cap is $1,000,000 statewide. Northern Territory caps are $750,000 for the capital and $600,000 for the rest of the Territory.

Consider a data scientist earning $140,000 with a 5% deposit saved through a combination of RSUs and salary. They want to buy an apartment in Melbourne valued at $880,000. Under the 5% Deposit Scheme, they need $44,000 as a deposit. Without the scheme, they would need a 20% deposit of $176,000 or pay LMI on a smaller deposit. The scheme removes the LMI cost and makes the purchase accessible with the lower deposit. The buyer applies through a participating lender who processes both the loan and the guarantee application.

Help to Buy is a separate scheme where the Australian Government takes an equity stake of up to 40% for new homes or 30% for established homes. A minimum 2% deposit is required, with income limits of $100,000 for individuals and $160,000 for joint applicants or single parents. It cannot be combined with the 5% Deposit Scheme. For data scientists whose income exceeds $100,000 individually, Help to Buy is not an option unless purchasing jointly with a partner whose combined income stays under $160,000.

How the First Home Super Saver Scheme reduces your upfront tax

The FHSS 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 released and a total cap of $50,000. Concessional contributions are taxed at 15% rather than at marginal income tax rates.

For a data scientist on a marginal tax rate of 37%, contributing $15,000 per year into super as a concessional contribution and later releasing it under the FHSS Scheme results in a tax saving compared to saving the same amount in an ordinary bank account. Over three years, a buyer could contribute $45,000, which is taxed at 15% on entry rather than 37%. When released, the funds are taxed at your marginal rate less a 30% offset, which usually results in little or no additional tax on withdrawal.

You need to obtain a determination from the ATO before signing a purchase contract. The determination confirms how much you are eligible to withdraw under the scheme. The process takes time, so start at least three months before you intend to make an offer. Once released, the funds are paid directly to you and can be used as part of your deposit or to cover other purchase costs.

State grants and stamp duty concessions by jurisdiction

New South Wales offers a $10,000 FHOG for new builds or substantially renovated homes with a purchase cap of $600,000 or a land and build cap of $750,000. Full transfer duty exemption applies to new and existing homes valued up to $800,000, with a sliding concession on properties between $800,001 and $1,000,000. No exemption applies above $1,000,000. Buyers must move into the home within 12 months of settlement and live there for at least 12 continuous months.

Victoria provides a $10,000 FHOG for new homes valued up to $750,000. Full stamp duty exemption applies to properties valued up to $600,000, with a sliding scale concession on properties valued from $600,001 to $750,000. The concession applies to both new and established homes where the property will be the buyer's principal place of residence.

Queensland offers a $15,000 FHOG for new homes valued under $750,000 for contracts signed from 1 July 2026. The grant was $30,000 for eligible contracts signed between 20 November 2023 and 30 June 2026. For established homes, the maximum first home concession deduction is $17,350 for properties valued up to $709,999, phasing out in $10,000 property value bands and reaching nil for properties valued at $800,000 or more. For new homes, a full transfer duty concession with no price cap applies to contracts signed on or after 1 May 2025.

South Australia provides a $15,000 FHOG for new homes with no property price cap for eligible contracts entered into on or after 6 June 2024. Stamp duty relief is available on new homes and vacant land only, with no property value cap for eligible contracts entered into on or after 6 June 2024. Stamp duty relief is not available on the purchase of an established home.

Western Australia offers a $10,000 FHOG for new homes. For eligible transactions commencing on or after 7 May 2026, the value cap is $800,000 for homes south of the 26th parallel and $1,000,000 for homes north of the 26th parallel. 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. For vacant land, no duty applies up to $450,000, with a concessional rate applying between $450,001 and $550,000.

Tasmania offers a $20,000 FHOG for new homes for eligible transactions from 1 July 2026, subject to assent. The full duty exemption that applied to first home buyers of established homes with a dutiable value of $750,000 or less for purchases settling between 18 February 2024 and 30 June 2026 has ended.

The Australian Capital Territory removed both the property value limit and income threshold for the Home Buyer Concession Scheme from 1 July 2026. Eligible buyers are fully exempt from conveyance duty regardless of the value of the property purchased and regardless of household income. The concession applies to owner-occupiers who occupy the property as their principal place of residence continuously for a minimum of one year commencing within 12 months of settlement.

Northern Territory provides a $50,000 HomeGrown Territory Grant for eligible first home buyers purchasing or building a new home, applying to contracts signed between 1 October 2024 and 30 September 2027. There is no cap on the purchase or build price.

Combining schemes without losing eligibility

State and territory grants and stamp duty concessions can generally be used alongside the Australian Government 5% Deposit Scheme. Help to Buy cannot be combined with the 5% Deposit Scheme but can in most jurisdictions be used alongside applicable state grants and duty concessions.

If you are buying a new apartment in Brisbane valued at $680,000, you can apply for the Queensland FHOG of $15,000, access the full transfer duty concession on the new home with no price cap, and use the Australian Government 5% Deposit Scheme to purchase with a $34,000 deposit and no LMI. All three benefits apply to the same transaction. The grant and duty concession are claimed through the Queensland Revenue Office, and the 5% Deposit Scheme guarantee is arranged through your lender.

If you are buying an established home in Melbourne valued at $620,000, you do not qualify for the Victorian FHOG because it applies only to new homes. You do qualify for the stamp duty concession because the property is valued between $600,001 and $750,000. You can also use the 5% Deposit Scheme to purchase with a $31,000 deposit and no LMI. The duty concession and the 5% Deposit Scheme apply together.

Structuring your deposit using genuine savings and gifted funds

Lenders require evidence that your deposit has been held in a stable form for at least three months. RSUs that have vested and been converted to cash qualify as genuine savings once they have been held in your bank account for the required period. Bonuses paid as salary also count, provided they are held for three months before application.

Gifted funds from family members are accepted by most lenders, though some require the gift to be declared and evidenced through a statutory declaration. The declaration confirms the funds are a gift, not a loan, and do not need to be repaid. Lenders vary in how much of the deposit can come from a gift. Some allow the entire deposit to be gifted, while others require a portion to come from your own savings.

For a data scientist with $30,000 in genuine savings from salary and RSUs, and a $20,000 gift from parents, a total deposit of $50,000 is available. On a property valued at $800,000, the 5% Deposit Scheme requires a $40,000 deposit. The buyer has more than enough and can allocate the remaining $10,000 to settlement costs, including legal fees, building and pest inspections, and loan establishment fees. The lender will require evidence of both the genuine savings and the gift, including bank statements and a statutory declaration for the gifted amount.

Pre-approval and loan application timing for data scientists

Pre-approval gives you a conditional commitment from a lender before you make an offer on a property. It confirms how much you can borrow based on your income, expenses, and deposit. Pre-approval is not a guarantee, but it reduces the risk of your finance falling through after you have signed a contract.

For data scientists, income assessment depends on how your employer reports your earnings. Salary is straightforward. RSUs are assessed once vested, and some lenders include unvested RSUs in their income calculation at a discounted rate. Bonuses are assessed based on a one or two year average, depending on the lender. If you have recently switched jobs, some lenders require three months of payslips at the new employer, while others accept an employment contract and a letter confirming your start date.

Pre-approval typically lasts three to six months. If you apply too early and do not find a property within that period, you will need to reapply. If you apply too late, you may miss opportunities in a competitive market. Apply once you have your deposit saved, your employment stable, and a clear idea of the property type and location you are targeting.

When to use an offset account or redraw facility

An offset account is a transaction account linked to your home loan. The balance in the offset account reduces the loan balance on which interest is calculated. If you have a $500,000 loan and $20,000 in your offset account, you pay interest on $480,000. The funds in the offset account remain accessible at any time.

A redraw facility allows you to make extra repayments on your loan and withdraw those extra repayments later if needed. Not all lenders offer redraw on all loan products. Some charge a fee for each redraw, while others allow unlimited free redraws.

For data scientists who receive irregular income through RSUs or bonuses, an offset account provides flexibility. You can deposit the lump sum into the offset account, reduce your interest cost immediately, and withdraw the funds later if needed without requesting approval from the lender. Redraw facilities are less flexible because some lenders restrict access to redraw funds or take several days to process the withdrawal.

If your lender offers a loan product with a full offset account and no monthly account-keeping fee, that structure usually provides more value than a redraw facility. If the offset account comes with a higher interest rate or a monthly fee, calculate whether the benefit of the offset outweighs the additional cost. For a $500,000 loan with $30,000 in an offset account, the annual interest saving depends on the rate. At a variable rate in the current market, the saving is usually higher than the cost of a monthly account fee.

Fixed versus variable rate decisions for first home buyers

A fixed interest rate locks in your rate for a set period, usually one to five years. A variable interest rate moves with the market and the lender's pricing decisions. Most lenders allow you to split your loan, fixing part and leaving part variable.

Fixed rates provide certainty. Your repayments do not change during the fixed period, which makes budgeting simpler. Variable rates provide flexibility. You can make extra repayments without penalty, access redraw or offset facilities, and refinance without paying break costs.

For a first home buyer using the 5% Deposit Scheme, the loan structure available depends on the participating lender. Some participating lenders offer fixed, variable, and split loan structures. Others offer variable only. Confirm the available loan features with your chosen lender before applying.

If you expect to receive large bonuses or RSU vesting events in the next few years, a variable rate or a split structure gives you the option to make extra repayments and reduce your principal faster. If you prefer certainty and your budget is tight, fixing a portion of the loan for two or three years reduces the risk of repayment increases during that period.

Call one of our team or book an appointment at a time that works for you

You can apply for home loans tailored to data scientists through Tech Home Loans. We work with lenders who understand how RSUs, bonuses, and contract-based income are assessed. Whether you are buying your first home or using a low deposit option, we can structure your application to match your income and deposit profile. Call us or book an appointment to discuss your situation.

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