Proven tips to enter the property market as a first home buyer

Your salary structure, income documentation, and ability to map complex processes give you specific advantages when entering the property market.

Most IT Project Managers we speak to want to understand exactly how government schemes combine, what their deposit options look like, and how lenders assess variable income before they commit to a search. The process works more efficiently when you treat it like a project with clear milestones rather than a linear checklist.

How the Australian Government 5% Deposit Scheme changed from October 2025

The Australian Government 5% Deposit Scheme removed income caps and annual place limits from 1 October 2025. You can now purchase with a 5% deposit without lenders mortgage insurance, regardless of your income level, provided you meet the first home buyer eligibility requirements and the property falls within the relevant price cap.

Applications are made through a participating panel of 31 lenders comprising three major banks and 28 non-major lenders. You cannot apply directly to Housing Australia. Price caps vary by location: Sydney $1,500,000, Melbourne $950,000, Brisbane $1,000,000, with regional caps also increased from the same date. The scheme guarantees the difference between your deposit and 20% of the property value, which removes the need for lenders mortgage insurance but does not reduce your loan size or repayment obligation.

Consider a buyer purchasing in Melbourne at $900,000 with a 5% deposit of $45,000. The loan amount is $855,000. Housing Australia guarantees $135,000, which is the gap between the 5% deposit and the 20% threshold. Without the scheme, this buyer would need either a 20% deposit of $180,000 or a 10% deposit of $90,000 plus lenders mortgage insurance, which at that price point could exceed $25,000. The scheme removes that cost entirely and accelerates the purchase timeline for buyers who have sufficient serviceability but limited deposit savings.

Combining federal schemes with state and territory concessions

You can use the Australian Government 5% Deposit Scheme alongside most state and territory stamp duty concessions and grants. Help to Buy cannot be combined with the 5% Deposit Scheme but may be used with state concessions depending on jurisdiction.

In Victoria, a first home buyer purchasing an established property at $650,000 qualifies for a stamp duty concession under the sliding scale that applies between $600,001 and $750,000. If they use the 5% Deposit Scheme, they pay $32,500 as a deposit and receive the duty concession without needing lenders mortgage insurance. The concession saves approximately $15,000 compared to standard transfer duty rates. The buyer does not receive the First Home Owner Grant because that applies only to new builds valued up to $750,000, but the combined saving from the duty concession and avoided lenders mortgage insurance is significant.

In Queensland, the First Home Owner Grant dropped from $30,000 to $15,000 for contracts signed from 1 July 2026. The grant applies only to new homes valued under $750,000. Stamp duty concessions differ between new and established properties. On new builds, full transfer duty concession applies with no price cap from 1 May 2025. On established homes, nil transfer duty applies up to $700,000 with a concession phase-out at $800,000. A buyer purchasing a new build at $720,000 would receive the $15,000 grant, full stamp duty exemption, and could use the 5% Deposit Scheme to purchase with $36,000 upfront, avoiding lenders mortgage insurance entirely.

How lenders assess IT Project Manager income for serviceability

Lenders treat your base salary as stable income and assess bonuses or equity-based payments separately. Most lenders will include 80% to 100% of your short-term incentive or annual bonus if it has been received consistently for two years and is confirmed in your employment contract.

Restricted stock units, performance bonuses, and sign-on payments are assessed on a case-by-case basis. Some lenders will include vested RSUs at 80% of the two-year average, while others exclude them entirely if they are considered discretionary. Your payslips, employment contract, and most recent tax return form the basis of the assessment. If your income structure includes a significant variable component, working with a broker who understands how lenders assess income for tech industry workers ensures you apply with lenders who will recognise the full scope of your earnings.

Consider a buyer with a base salary of $140,000, an annual bonus of $20,000, and vested RSUs worth $15,000 per year. One lender may assess total income at $140,000 plus 100% of the bonus plus 80% of the RSUs, giving a serviceability income of $172,000. Another lender may assess only base plus 80% of bonus, giving $156,000. That $16,000 difference translates to roughly $80,000 in additional borrowing capacity depending on other commitments. Applying with the right lender from the outset avoids a second application and saves weeks in the approval process.

Deposit options beyond the 5% threshold

If you do not qualify for the 5% Deposit Scheme or prefer not to use a government-backed product, low deposit options remain available through conventional lenders at 10% or 15% deposit levels with lenders mortgage insurance.

At a 10% deposit, lenders mortgage insurance premiums are lower than at 5%, and the range of available lenders expands. Some lenders offer reduced or waived lenders mortgage insurance for certain professions, though IT Project Managers do not typically qualify for the same waivers available to medical or legal professionals. Comparing the cost of lenders mortgage insurance against the time required to save an additional 5% or 10% deposit involves calculating both the premium and the opportunity cost of delayed entry into the market.

Gifted deposits are accepted by most lenders provided they come from an immediate family member and are accompanied by a signed statutory declaration confirming the funds are a genuine gift with no repayment obligation. The gift can form part of your 5% or 10% deposit but does not replace the requirement for genuine savings in most cases. Lenders typically require at least 5% of the purchase price to be held in your own account for a minimum of three months unless the deposit is entirely gifted or you are using the First Home Super Saver Scheme.

Using pre-approval to structure your search efficiently

Pre-approval confirms your borrowing capacity and deposit position before you begin attending inspections. Most lenders issue conditional approval valid for 90 days, though some extend to 120 days depending on the product.

Pre-approval does not lock in an interest rate but does confirm that the lender has assessed your income, liabilities, and deposit source and is prepared to lend up to a specified amount subject to satisfactory property valuation and final conditions. This allows you to make an offer with confidence and shortens the settlement timeline once a contract is signed.

In a scenario where two buyers compete for the same property, the buyer with pre-approval in place can often negotiate a shorter settlement period or conditional finance clause, which makes their offer more attractive to the vendor. The buyer without pre-approval faces an additional two to three weeks for initial assessment, during which the vendor may accept a competing offer or withdraw from negotiations.

When Help to Buy makes sense and when it does not

Help to Buy allows the Australian Government to contribute up to 40% of the purchase price for a new home or up to 30% for an existing home in exchange for an equivalent equity stake. You must contribute a minimum 2% deposit. Income limits apply: $100,000 for individuals, $160,000 for joint applicants or single parents. Property price caps vary by location.

The scheme is available in New South Wales, Victoria, Queensland, South Australia, the Australian Capital Territory, the Northern Territory, and from early 2026 in Western Australia. Tasmania has opted out. You cannot combine Help to Buy with the 5% Deposit Scheme, so the choice depends on your income level, deposit size, and long-term plans for the property.

If your income exceeds the threshold, Help to Buy is not an option. If your income sits within the cap but you have saved a 5% deposit and prefer full ownership from the outset, the 5% Deposit Scheme offers more control. Help to Buy reduces your immediate loan size and repayments but requires you to share capital growth with the government and involves additional complexity when you sell or refinance. The government's equity share must be repurchased at market value, which means if the property increases in value, the cost to buy back that share increases proportionally.

What first home buyer eligibility actually requires

First home buyer eligibility for federal and state schemes requires that you have not previously owned property in Australia. This includes investment properties, inherited properties, or properties owned jointly with another person. If you owned property overseas, eligibility depends on the specific scheme and jurisdiction.

You must intend to occupy the property as your principal place of residence for a minimum period, typically 12 months, commencing within 12 months of settlement. You must be an Australian citizen or permanent resident. Age requirements apply in some jurisdictions but not federally.

If you are purchasing with a partner, both buyers must meet the eligibility criteria for government schemes. If one buyer has previously owned property, neither buyer qualifies for first home buyer concessions or grants, though they may still be eligible for other home loan options depending on their circumstances.

Planning your deposit and settlement costs together

Your upfront cost includes the deposit, stamp duty if applicable, conveyancing or legal fees, building and pest inspections, loan application fees, and prepaid costs such as council rates and strata levies. Settlement costs typically add $5,000 to $10,000 depending on property location and complexity.

If you are purchasing with a 5% deposit under the federal scheme and qualify for full stamp duty exemption in your state, your upfront cash requirement is lower than if you were purchasing at 10% deposit with partial duty liability. Running the numbers for your specific scenario ensures you are not caught short at settlement. Most buyers focus entirely on deposit size and overlook settlement costs, which can delay the transaction or require last-minute family assistance.

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