Everything You Need to Know About First Home Buyer Support

The First Home Guarantee expanded from 1 October 2025 with no income caps and no place limits, which means aged care nurses can now purchase with a 5% deposit without paying Lenders Mortgage Insurance regardless of salary level.

This change matters because aged care nursing salaries vary widely depending on your facility, shift loadings, and whether you work in residential or community settings. Previous income caps excluded many nurses who earned modestly above the threshold but still struggled to save a 20% deposit while managing HECS debt and the cost of living. The expanded scheme removes that barrier entirely.

How the First Home Guarantee Works for Aged Care Nurses

The federal government guarantees up to 15% of your property's value, allowing you to borrow with a 5% deposit while the lender treats the loan as though you have 20% equity.

Consider an aged care nurse purchasing an established unit close to their facility. With a 5% deposit, they avoid both the time required to save an additional 15% and the Lenders Mortgage Insurance premium that would otherwise add thousands to their upfront costs. The scheme applies to properties valued up to $800,000 in regional centres and $950,000 in major cities, covering most markets where aged care nurses typically buy.

You will still need genuine savings for your deposit plus settlement costs including conveyancing, building and pest inspections, and any strata reports. Some lenders will accept gifted deposits from immediate family members, but the majority of your deposit should come from verified savings or the First Home Super Saver Scheme.

Stacking State Grants With Federal Support

Most states offer grants or stamp duty concessions that apply alongside the First Home Guarantee, and understanding which combinations work in your state reduces your entry cost significantly.

In New South Wales, eligible first home buyers pay no stamp duty on properties under $800,000 and can access a $10,000 grant for new homes up to $600,000 or house and land packages up to $750,000. Victoria offers a $10,000 grant for new builds under $750,000 and no stamp duty up to $600,000, tapering to $750,000. Queensland's $30,000 grant for new homes under $750,000 runs until 30 June 2026, and it is worth confirming whether this has been extended if you are reading this after that date.

The Northern Territory offers the largest grant in Australia at $50,000 for new builds with no property price cap, plus a $10,000 grant for established homes. South Australia abolished stamp duty entirely on new homes for first home buyers from June 2024 onwards, regardless of value.

For aged care nurses working in Tasmania, stamp duty is waived on established homes up to $750,000 until 30 June 2026, which is particularly relevant given many aged care facilities operate in regional areas where median prices sit comfortably within that threshold. Western Australia increased its grant threshold to $800,000 and removed stamp duty on pre-construction purchases up to that amount.

Using Superannuation to Build Your Deposit Faster

The First Home Super Saver Scheme allows you to contribute up to $15,000 per financial year into superannuation specifically for a first home deposit, taxed at 15% instead of your marginal rate, and withdraw up to $50,000 total when you are ready to purchase.

For an aged care nurse in the second or third tax bracket, salary sacrificing into the FHSS can build your deposit faster than a standard savings account. You will need to apply to the ATO to release the funds, and the withdrawn amount is added to your taxable income in the year you withdraw it, though it is taxed at a concessional rate. The scheme works well if you have at least 12 months before purchasing, as contributions must remain in superannuation for a minimum period before withdrawal.

This approach pairs effectively with the 5% deposit scheme, particularly if you have been salary sacrificing for several years and can fund your deposit without touching other savings reserved for settlement costs.

What Lenders Look for in a First Home Loan Application

Lenders assess your application based on income stability, existing debts, and your ability to service the loan at a higher interest rate than the one you will actually pay.

Aged care nurses in permanent roles with consistent shift loadings generally meet serviceability requirements without difficulty. If you work agency or casual shifts, lenders will typically average your income over the past 12 to 24 months and may apply a discount to penalty rates or overtime. Some lenders are more flexible with casual healthcare income than others, particularly if you have worked at the same facility for an extended period.

HECS debt affects your borrowing capacity because lenders treat the repayment threshold as an ongoing liability. If you are close to a borrowing limit, paying down part of your HECS balance before applying can increase the amount a lender will approve. Existing car loans, credit card limits, and buy now pay later accounts all reduce your capacity as well, even if the balances are paid in full each month. Closing unused credit facilities before submitting your home loan application often improves your position.

Choosing Between Fixed and Variable Rates as a First Home Buyer

Your first home loan will likely offer a choice between fixing your interest rate for a set period, staying on a variable rate, or splitting the loan across both.

A fixed rate locks in your repayment amount for one to five years, which helps with budgeting if your income varies due to shift work or if you want certainty during the first years of ownership. Variable rates fluctuate with market conditions, but they typically come with offset accounts and unrestricted extra repayments, both of which reduce the total interest paid over time.

An offset account linked to your variable loan reduces the interest charged based on the balance sitting in the account. If you maintain savings for upcoming expenses such as vehicle registration, annual insurance, or planned leave, parking that money in an offset reduces your loan interest daily without locking the funds away. Redraw facilities allow you to access extra repayments you have made, though some lenders impose conditions or fees on withdrawals.

Many aged care nurses split their loan, fixing a portion for stability while keeping the remainder variable with an offset. Your choice depends on whether you prioritise payment certainty or flexibility, and getting loan pre-approval with different rate structures lets you compare the real cost before committing.

Why Industry-Specific Support Matters for Healthcare Workers

Some lenders offer Lenders Mortgage Insurance waivers or discounted interest rates to healthcare professionals including aged care nurses, which can reduce both upfront and ongoing costs.

LMI waivers for nurses allow you to borrow with a deposit as low as 10% without paying the insurance premium that would typically apply to loans above 80% of the property's value. This differs from the First Home Guarantee, which covers purchases at 5% deposits but is subject to annual allocation limits. An LMI waiver through an industry-specific program is not capped by government quotas and applies regardless of whether you are a first home buyer.

Interest rate discounts for healthcare workers are typically modest, around 0.10% to 0.30%, but they compound over the life of the loan. Combined with an offset account, the saving can be significant over a 25 or 30 year period. Not all lenders publicise these arrangements, and eligibility depends on your specific nursing registration and employment type.

Preparing Your Application Before You Start Looking at Properties

Submitting a full application before attending auctions or making offers gives you certainty about your budget and strengthens your position when negotiating.

Pre-approval confirms the amount a lender will provide based on your current financial position, usually valid for three to six months. It requires the same documentation as a full approval, including payslips, tax returns if you have secondary income, bank statements, and proof of your deposit source. Conditional approval is a stronger form of pre-approval where the lender has assessed your finances in detail and will proceed to formal approval once you nominate a property.

In competitive markets, sellers and agents take pre-approved buyers more seriously because there is less risk the sale will fall through due to finance. For aged care nurses juggling shift work, having your documentation organised and your borrowing capacity confirmed before you start searching saves time and reduces the chance of missing out on a property while waiting for approval.

If you are buying in a regional area where aged care facilities are often located, understanding how lenders assess property values in smaller markets is also important. Some lenders apply stricter serviceability rules or require larger deposits for towns with populations below a certain threshold, while others assess regional property no differently than metropolitan.

Knowing What Happens After You Make an Offer

Once your offer is accepted or you win at auction, your lender will arrange a formal valuation and you will move from pre-approval to unconditional approval.

The valuation ensures the property is worth what you are paying, and occasionally the bank's valuation comes in lower than the purchase price. If that happens, you will need to cover the difference with a larger deposit or renegotiate the price with the seller. Building and pest inspections are typically completed during any cooling-off period if you are buying by private treaty, and the results may affect your decision to proceed or provide grounds to renegotiate.

Settlement usually occurs four to six weeks after contracts are exchanged, during which time your conveyancer handles the legal transfer and your lender prepares the mortgage documents. You will need to arrange home and contents insurance before settlement, and your lender will require proof of insurance as a condition of releasing the funds.

For aged care nurses working rotating shifts, keeping your conveyancer and broker informed of your availability to sign documents or attend settlement avoids delays. Most of the process can be handled remotely, but some lenders and states still require wet signatures on certain documents.

Buying your first property involves more coordination than most other financial decisions you will make, but the outcome is a tangible asset that builds equity with every repayment. The combination of expanded federal support, state-based concessions, and healthcare-specific lending benefits means aged care nurses are well positioned to enter the market with less capital than previous generations required. Call one of our team or book an appointment at a time that works for you.

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