Top Strategies to Save for Your First Home

How Much Do You Actually Need to Save?

You can purchase your first home with a 5% deposit under the Australian Government's 5% Deposit Scheme, which means no lenders mortgage insurance and immediate access to the property market without the traditional 20% deposit barrier.

Consider a cyber security engineer earning $130,000 annually who wants to purchase under the scheme. They would need a 5% deposit plus settlement costs, which typically include legal fees, building and pest inspections, and loan application fees. The deposit amount varies based on the property's price cap for the area. In NSW, the scheme applies to properties up to $1,500,000 in capital city and regional centres, while in Victoria the cap is $950,000. Queensland's cap sits at $1,000,000 for capital city and regional centres.

Settlement costs generally run between $8,000 and $15,000 depending on location and property type. A building inspection might cost $500 to $800, legal fees range from $1,500 to $3,000, and lender application fees vary by institution. Some lenders waive application fees during promotional periods, and you can often negotiate on conveyancing costs by comparing quotes from multiple solicitors.

The 5% Deposit Scheme for Tech Industry Workers removes LMI entirely when you meet the eligibility criteria, which accelerates your timeline considerably compared to saving for a full 20% deposit.

Using Your Super to Build Your Deposit

The First Home Super Saver Scheme lets you contribute up to $15,000 per financial year into your super fund, with a total withdrawal cap of $50,000 that can be released for a home deposit.

In a scenario where a cyber security engineer makes $10,000 in voluntary concessional contributions each year for four years, that $40,000 is taxed at 15% inside super rather than at their marginal rate, which could be 32.5% or higher. The tax saving alone adds up to several thousand dollars, and the funds continue to earn returns inside the super environment until you apply for release. You need to obtain a determination from the ATO before signing a purchase contract, and the released amount must be used within 12 months of the determination date.

This approach works particularly well if you're two to four years away from purchasing, as it gives the contributions time to accumulate while keeping the funds quarantined from day-to-day spending temptations. The scheme can be combined with other deposit sources such as genuine savings held in offset accounts or term deposits, and it can be used alongside both the 5% Deposit Scheme and state-based grants or concessions.

Structuring Your Income to Maximise Savings

Cyber security engineers often have flexible remuneration structures that include base salary, bonuses, and equity components such as restricted stock units.

If your employer offers salary sacrificing into super, directing pre-tax income into concessional super contributions under the FHSS Scheme delivers both a deposit boost and a tax advantage. If you receive performance bonuses or RSUs, consider quarantining those funds immediately into a dedicated savings account rather than letting them merge with your everyday transaction account. Lenders treat RSUs and bonuses as genuine savings when you can demonstrate the funds have been held for at least three months and weren't borrowed.

A fixed-term deposit account or offset account linked to a parent's loan can both work as holding structures, although the offset account offers more flexibility if your purchase timeline shifts. Avoid holding your deposit in volatile assets such as individual stocks or cryptocurrencies during the final 6 to 12 months before you plan to purchase, as lenders require stable, accessible funds at settlement and won't accept assets that could lose value between pre-approval and settlement.

New South Wales First Home Buyer Concessions

New South Wales offers full stamp duty exemption on properties valued up to $800,000, with a sliding concession available on properties between $800,001 and $1,000,000.

A cyber security engineer purchasing an established apartment in Parramatta valued at $750,000 would pay no stamp duty under the First Home Buyers Assistance Scheme, which saves approximately $28,000 compared to a non-first-home buyer purchasing the same property. The exemption applies to both new and established homes, provided you move in within 12 months of settlement and live there for at least 12 continuous months as your principal place of residence.

The $10,000 First Home Owner Grant applies only to new builds or substantially renovated homes with a purchase cap of $600,000 or a land and build cap of $750,000, so it won't apply to most established apartments or houses in Sydney or surrounding areas. If you're purchasing in a regional centre such as Newcastle or Wollongong, the combination of the stamp duty exemption and the FHOG can make a newly built home or house-and-land package more financially accessible than an equivalent established property once you factor in the upfront savings.

Queensland Concessions for New and Established Homes

Queensland provides different concessions depending on whether you're buying a new home, an established home, or vacant land.

For established homes, the first home concession deducts up to $17,350 from the calculated duty for properties valued up to $709,999, with the concession phasing out for properties valued at $800,000 or more. Duty isn't eliminated entirely, but the reduction makes a measurable difference to your upfront costs. For new homes and vacant land purchased under contracts signed from 1 May 2025, the first home concession reduces duty to nil with no price cap, which opens up a wider range of properties compared to the established home concession.

The First Home Owner Grant in Queensland is $15,000 for new homes valued under $750,000 for contracts signed from 1 July 2026. The grant was $30,000 for contracts signed between 20 November 2023 and 30 June 2026, so if you were considering a purchase during that window, the incentive was considerably higher. The grant doesn't apply to established homes.

If you're considering a newly built apartment in Brisbane or the Gold Coast, the combination of nil duty and the $15,000 grant can reduce your required cash outlay by $20,000 to $30,000 compared to purchasing without concessions, which shortens your savings timeline by 12 to 18 months depending on your savings rate.

Low Deposit Options Beyond the 5% Deposit Scheme

If you don't meet the eligibility criteria for the 5% Deposit Scheme or the scheme's property caps don't align with your target area, low deposit loans for tech industry workers are available through standard lending channels with a 10% deposit plus LMI.

LMI is a one-off premium that protects the lender if you default on the loan, and it's typically capitalised into the loan amount rather than paid upfront. The premium varies based on your deposit size and the loan amount, but some lenders offer LMI waivers or discounts for borrowers in professional occupations, which can reduce the cost by several thousand dollars. Tech industry workers, including cyber security engineers, are often eligible for these waivers depending on the lender's risk appetite and your employment stability.

Another option is a guarantor loan, where a parent or family member uses equity in their own property to guarantee part of your loan, which allows you to borrow without paying LMI and sometimes without providing any cash deposit at all. The guarantor's property is used as additional security only for the portion of the loan that exceeds 80% of your property's value, and the guarantee can usually be removed once you've paid down the loan or the property has increased in value enough to bring your loan-to-value ratio below 80%. Guarantor loans for tech industry workers are structured carefully to limit the guarantor's exposure and protect both parties.

Pre-Approval and Application Timing

Getting loan pre-approval before you start attending auctions or making offers gives you certainty about your borrowing capacity and demonstrates to vendors that you're a serious buyer.

Pre-approval typically lasts 90 days, although some lenders offer 120-day validity periods. The application process requires payslips, tax returns if you've been in your role for less than 12 months, bank statements showing your savings history, and identification documents. Lenders assess your income, existing debts, living expenses, and credit history to determine how much they'll lend and at what interest rate.

If you're planning to use the 5% Deposit Scheme, you need to apply through a participating lender, as applications can't be made directly to Housing Australia. Not all lenders participate in the scheme, and those that do may have different loan features available, so it's worth comparing home loan options across the participating panel before committing to one institution. Some participating lenders offer offset accounts and redraw facilities, while others may restrict certain features under the scheme.

Applying for pre-approval two to three months before you intend to purchase gives you time to address any issues that arise during the assessment, such as consolidating small debts, closing unused credit cards, or clarifying employment details with your lender. If you're switching jobs, notify your broker or lender immediately, as a job change during the application process can delay settlement or require reassessment of your income.

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