Understanding the basics of saving for your first home

Saving for your first home when your income includes a mix of base salary, bonuses and equity compensation requires a different approach to the standard advice.

Most lenders will let you use RSUs or cash bonuses toward your deposit if they hit your account before settlement, which means you can bring forward your purchase timeline without needing to hold those funds in a savings account for months. A cloud engineer earning a base of around $130,000 plus a $20,000 annual bonus and vested RSUs could apply for pre-approval using projected income and then time settlement to land shortly after bonus or vesting dates. The deposit shows as genuine savings the moment it clears into your account, regardless of how long it has been sitting there.

How the Australian Government 5% Deposit Scheme changes the timeline

You can purchase with a 5% deposit and no lenders mortgage insurance under the Australian Government 5% Deposit Scheme. No income caps apply, and there are no annual place limits. Applications go through a participating lender, not directly through Housing Australia.

Property price caps differ by city. In Sydney the cap sits at $1,500,000, Melbourne at $950,000, and Brisbane at $1,000,000. Regional caps are also in place and were increased from October last year. If you are looking at a property within the relevant cap for your location, you can enter the market as soon as you have saved 5% of the purchase price plus settlement costs. For someone buying in Melbourne close to the cap, that would mean having the deposit and costs ready rather than waiting to accumulate 20%.

This scheme works particularly well for cloud engineers who can accumulate a deposit quickly through bonuses or vested equity but do not want to wait years while building a larger buffer. You can read more about how the scheme applies to tech industry workers on our 5% Deposit Scheme page.

Using RSUs and bonuses as part of your deposit

Lenders treat vested RSUs and cash bonuses as genuine savings once the funds are in your account. The timing matters more than the duration.

Consider a buyer who receives $25,000 in vested RSUs in March and a $15,000 performance bonus in June. If they are targeting a September settlement, both amounts can form part of the deposit even though neither has been held in a savings account for the typical three-month period some lenders reference. The key is that the funds are unconditionally yours and accessible at settlement. Unvested RSUs cannot be included because you do not yet have access to that capital.

This structure allows you to move faster than someone relying solely on monthly savings from their base salary. If you hold equity compensation or expect a bonus within the next few months, you can start the home loan application process now and align your settlement date accordingly. More detail on how lenders assess this type of income is available on our RSUs and bonuses page.

State stamp duty concessions and grants that apply to first home buyers

Stamp duty concessions vary by state and can reduce the upfront cost of purchasing by tens of thousands of dollars. In New South Wales, you pay no transfer duty on properties up to $800,000, with a sliding concession applying up to $1,000,000. In Victoria, the exemption applies up to $600,000 and phases out at $750,000. Queensland offers nil transfer duty on established homes up to $700,000 and a concession to $800,000, while South Australia provides a full concession on established homes to $700,000 with a phase-out to $800,000.

First home owner grants apply only to new builds or substantially renovated homes in most states. New South Wales offers $10,000 for new builds capped at $600,000 or land and build at $750,000. Victoria provides $10,000 for new homes valued up to $750,000. Queensland reduced its grant to $15,000 for contracts signed from July this year, down from $30,000 previously. South Australia offers $15,000 with no price cap on eligible contracts from mid-last year.

You can combine these concessions with the Australian Government 5% Deposit Scheme in most cases, which means you can enter the market with a smaller deposit and reduced settlement costs at the same time. If you are comparing new versus established properties, the financial difference between stamp duty relief and a grant on a new build can be significant depending on where you are purchasing.

Gift deposits and family contributions

Lenders will accept a cash gift from an immediate family member as part of your deposit, provided it comes with a signed declaration that the funds are a genuine gift with no repayment expectation. The gift does not need to have been in your account for any specific period before settlement, but the lender will ask for a paper trail showing the transfer and the source.

A cloud engineer buying in Sydney with a 5% deposit might receive a $30,000 gift from a parent to cover part of the deposit and settlement costs. That gift can be transferred a week before settlement and still qualify, as long as the declaration is completed and the lender has verified the donor's identity and source of funds. The key requirement is transparency and documentation at the time of application.

Family contributions are common in higher-cost markets where even a 5% deposit represents a substantial sum. If this applies to your situation, mention it early in the loan process so your broker can manage the documentation requirements from the start.

Help to Buy as an alternative to a larger deposit

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

This scheme is available in New South Wales, Victoria, Queensland, South Australia, the Australian Capital Territory, the Northern Territory and Western Australia. Tasmania has opted out. You cannot combine Help to Buy with the Australian Government 5% Deposit Scheme, but you can use it alongside most state grants and stamp duty concessions where eligible.

If your income sits under the cap and you are comfortable with shared equity, Help to Buy reduces the cash you need upfront and removes the need for lenders mortgage insurance. The trade-off is that the government holds a proportional stake in the property and shares in any capital gain or loss when you sell or refinance. You can find more information on our Help to Buy Scheme page.

How lenders assess your borrowing capacity as a cloud engineer

Lenders calculate your borrowing capacity based on your net income after tax, existing debts, and living expenses. For cloud engineers, the inclusion of bonuses and equity depends on consistency and documentation.

If you have received a bonus in each of the past two years, most lenders will include a portion of that income in their assessment, typically averaging the amounts over the two-year period. If your RSUs vest quarterly and you can provide payslips or vesting schedules showing a reliable pattern, lenders will factor that in as well. One-off payments or irregular equity events are usually excluded unless there is evidence they will continue.

A cloud engineer with a base salary of $140,000, a two-year bonus history averaging $18,000, and quarterly RSU vesting of around $8,000 would have a serviceability assessment based on a total income closer to $170,000 than the base alone. The difference can add $100,000 or more to your borrowing capacity depending on your deposit size and other commitments. More detail on how this works is covered on our understanding your income page.

Offset accounts and loan features that suit variable income

An offset account links to your home loan and reduces the interest charged based on the balance you hold in the account. If your loan balance is $500,000 and your offset account holds $40,000, you only pay interest on $460,000.

This feature works well when your income is variable or when you receive lump sums like bonuses or vested equity. You can park those funds in the offset account and reduce your interest costs immediately without locking the money into the loan via additional repayments. If an unexpected expense arises or you want to access that capital for another purpose, the funds remain available.

Some lenders offer offset accounts on variable rate loans only, while others provide them on fixed rate loans as well. The annual fee for an offset facility typically ranges from $200 to $400, but the interest saving usually outweighs the cost if you maintain a reasonable balance. If you expect irregular income throughout the year, an offset account gives you flexibility without requiring you to redraw from the loan every time you need access to your own capital.

Call one of our team or book an appointment at a time that works for you. We will walk through your income structure, timing and deposit options, and match you with lenders and loan features that suit the way cloud engineers are actually paid.

Frequently Asked Questions