Nurses entering the property market face a choice that directly affects how much cash they need at settlement and what their ongoing repayments look like.
The Australian Government 5% Deposit Scheme eliminates lenders mortgage insurance for eligible first home buyers, which alone can save between $8,000 and $35,000 depending on loan size and deposit. State-based stamp duty concessions can remove another $20,000 to $40,000 in upfront costs. Used together, these programs reduce the cash required to settle by tens of thousands of dollars. The catch is that each scheme has different property caps, eligibility rules, and participating lenders, and not all of them stack in every state.
If you are a registered nurse who meets residency and first home buyer criteria, you already qualify for most of these programs. The question is which combination delivers the lowest cost for the property type and location you are targeting.
How the 5% Deposit Scheme changes what you need at settlement
The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase with a 5% deposit while Housing Australia guarantees the gap to 20%. Lenders mortgage insurance is not charged. No income cap applies, and there is no annual limit on the number of places.
Consider a nurse purchasing an established home. Without the scheme, a 10% deposit on a property valued at the median for the area would require the deposit plus LMI of roughly $12,000 to $18,000, depending on the lender. Using the 5% Deposit Scheme, the same buyer needs half the deposit and pays no insurance. The total cash saving at settlement is the difference between the two deposits plus the avoided insurance cost.
Applications are made through one of 31 participating lenders. Not all lenders on that panel offer the same rate or loan features. Some participating lenders are also on the LMI waiver panels used by nurses, but the 5% Deposit Scheme itself does not provide additional rate discounts specific to your profession. The value of the scheme is the deposit reduction and the removal of insurance, not preferential pricing.
Property price caps vary by capital city and region. Sydney sits at $1,500,000. Melbourne is capped at $950,000. Brisbane allows $1,000,000. Regional caps also increased from October 2025. If the property exceeds the cap for your location, the scheme does not apply, and you revert to standard lending conditions.
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First home buyer stamp duty concessions by state
Stamp duty concessions are managed at state and territory level. Each jurisdiction sets its own property value thresholds and concession structures. These concessions apply separately to the 5% Deposit Scheme and can be used at the same time.
In New South Wales, full transfer duty exemption applies to properties up to $800,000, with a sliding concession between $800,000 and $1,000,000. Victoria offers full exemption up to $600,000 and a concession to $750,000 for both new and established homes. Queensland provides nil transfer duty on established homes up to $700,000, with a concession to $800,000, and full transfer duty concession on new builds with no price cap. South Australia mirrors Queensland on established homes but also removes all duty on new builds and vacant land regardless of price. Western Australia expanded concessions to $700,000 in metro and Peel regions and $750,000 in regional areas from March 2025.
In the Australian Capital Territory, all conveyance duty has been removed for eligible first home buyers from 1 July 2026, regardless of property value or household income. Tasmania ended its broad stamp duty exemption for established homes on 30 June 2026, leaving only the first home owner grant for new builds. Northern Territory provides a discount of up to $18,601 but does not offer the same broad exemptions seen in other states.
A nurse buying your first home in Victoria on a property valued at $650,000 would receive a partial concession, reducing duty by several thousand dollars. The same nurse in the ACT on a property of any value would pay no conveyance duty at all. The difference in upfront cost between jurisdictions can exceed $20,000 on identical property values.
State first home owner grants and when they apply
First home owner grants are paid only on new builds or substantially renovated homes in most states. They do not apply to established properties.
Queensland offers $15,000 for new homes valued under $750,000 for contracts signed from 1 July 2026. South Australia provides $15,000 for new homes with no property price cap. Tasmania offers $20,000 for new homes from 1 July 2026, subject to assent. New South Wales, Victoria, and Western Australia each provide $10,000, with varying price caps. Northern Territory provides $50,000 under the HomeGrown Territory Grant for contracts signed by 30 September 2027.
The Australian Capital Territory closed its first home owner grant in 2019, replacing it with the Home Buyer Concession Scheme that removes conveyance duty instead. This structure delivers higher value on more expensive properties but provides nothing on properties where duty would have been low or nil under standard rates.
A nurse purchasing a house and land package in regional Queensland would receive the $15,000 grant, full stamp duty concession, and access to the 5% Deposit Scheme if the property sits within the regional price cap. Those three benefits stack without restriction. The same nurse purchasing an established home in the same area would lose the grant but retain the duty concession and deposit scheme access.
Help to Buy and when it makes sense for nurses
Help to Buy allows the Australian Government to contribute up to 40% of the purchase price for a new home or 30% for an existing home in exchange for equivalent equity. The minimum deposit is 2%. Income limits apply: $100,000 for individuals and $160,000 for joint applicants or single parents. Property price caps vary by location.
The scheme operates in New South Wales, Victoria, Queensland, South Australia, the Australian Capital Territory, the Northern Territory, and Western Australia. Tasmania has opted out. It cannot be combined with the 5% Deposit Scheme, so buyers must choose one or the other.
A nurse earning $95,000 annually and purchasing an established home would qualify for Help to Buy if the property sits below the price cap. The government contributes 30% of the purchase price, reducing the loan size and ongoing repayments. When the property is sold or refinanced, the government receives 30% of the sale proceeds or valuation at that time. If the property increases in value, the government's share increases proportionally. If it falls, the government's share falls.
The trade-off is between lower repayments now and shared equity growth later. For a nurse planning to hold the property long term in a rising market, the 5% Deposit Scheme may deliver better wealth accumulation. For a nurse prioritising affordability and entry into the market with minimal savings, Help to Buy reduces both the deposit and the loan size, making repayments more manageable in the early years of ownership.
Combining schemes without triggering conflicts
State and territory first home owner grants and stamp duty concessions can be used alongside the 5% Deposit Scheme without restriction. Help to Buy cannot be combined with the 5% Deposit Scheme but can be used with state grants and duty concessions in most jurisdictions.
A nurse purchasing a new build in South Australia using the 5% Deposit Scheme would also receive the $15,000 first home owner grant and full stamp duty exemption. All three apply simultaneously. The same nurse choosing Help to Buy instead would still receive the grant and duty exemption but would forfeit access to the 5% Deposit Scheme and accept shared equity with the government.
Lenders assess your borrowing capacity based on your income, existing debts, and living expenses. Grants are treated as genuine savings in some cases and as non-reoccurring income in others, depending on lender policy. Stamp duty concessions do not affect borrowing capacity but reduce the cash you need at settlement, which affects whether you meet minimum savings requirements after paying deposit and costs.
Some lenders on the 5% Deposit Scheme panel also participate in LMI waiver programs for nurses. If you hold a 10% deposit or more, the LMI waiver may deliver a better interest rate than the 5% Deposit Scheme, depending on the lender. That decision hinges on whether the rate saving over the life of the loan exceeds the cost of holding the property for the additional time required to save the larger deposit.
What counts as genuine savings and how gifts are treated
Most lenders require genuine savings, defined as funds held in your name for at least three months and accumulated through regular deposits or savings behavior. Salary credited to your account, term deposits, and offset or redraw balances typically qualify. Lump sums from the sale of assets, tax refunds, or one-off payments may not.
Gifts from parents or immediate family are accepted by most lenders if accompanied by a signed statutory declaration confirming the funds are a gift, not a loan, and do not need to be repaid. Some lenders cap the percentage of the deposit that can be gifted. Others allow the entire deposit to be gifted provided you also demonstrate some savings history, even if that amount is smaller than the gift.
The First Home Super Saver Scheme allows you to make voluntary superannuation contributions and later withdraw them, plus earnings, to fund a first home deposit. Contributions are taxed at 15% on the way in, and withdrawals are taxed at your marginal rate less a 30% offset. You can withdraw a maximum of $50,000. The scheme works alongside all other first home buyer programs without restriction. Funds withdrawn under this scheme are treated as genuine savings by most lenders.
A nurse who has saved $20,000 over two years and receives a $15,000 gift from parents would meet genuine savings requirements at most lenders and could apply for the 5% Deposit Scheme or a standard low deposit loan with the gift forming part of the total deposit.
Pre-approval and timing your application
Pre-approval confirms how much you can borrow and locks in your borrowing capacity for a set period, typically three to six months. It does not lock in an interest rate. Lenders assess your income, debts, and expenses, then issue conditional approval subject to property valuation and final checks.
For nurses relying on the 5% Deposit Scheme, pre-approval through a participating lender confirms your access to the scheme before you make an offer. If you apply through a lender not on the panel, you will not qualify for the scheme even if you meet all other criteria. Switching lenders after signing a contract can trigger delays or additional costs, particularly if the contract includes a finance clause with a tight deadline.
Some lenders assess penalty rates, overtime, or shift allowances differently. A nurse working rotating shifts with regular penalty loadings may find that one lender includes 100% of that income while another includes only 80%, directly affecting borrowing capacity. Getting loan pre-approval through a broker who works with nurses ensures your income is assessed at the highest sustainable level the lender will accept, not the most conservative interpretation of payslips.
Pre-approval also identifies serviceability issues before you start looking at properties. If your borrowing capacity sits below the price range you were targeting, you can adjust your search, increase your deposit, or reduce other debts before making offers. Discovering a serviceability shortfall after signing a contract leaves you scrambling to find a lender or risking deposit forfeiture if the finance clause expires.
Call one of our team or book an appointment at a time that works for you. We work exclusively with nurses and midwives, and we know which lenders assess your income accurately, which ones participate in the schemes you need, and how to structure your application so it reflects the full value of your employment and savings position.
Frequently Asked Questions
Can nurses use the 5% Deposit Scheme and state stamp duty concessions together?
Yes. State and territory stamp duty concessions apply separately to the Australian Government 5% Deposit Scheme and can be used at the same time without restriction. The scheme reduces your deposit and removes lenders mortgage insurance, while the concession reduces or eliminates transfer duty at settlement.
Do first home owner grants apply to established homes?
No. First home owner grants are paid only on new builds or substantially renovated homes in most states. If you purchase an established property, you retain access to stamp duty concessions and the 5% Deposit Scheme but do not receive the grant.
What is the difference between the 5% Deposit Scheme and Help to Buy?
The 5% Deposit Scheme allows you to purchase with a 5% deposit and no lenders mortgage insurance. Help to Buy involves the government taking equity in exchange for contributing up to 40% of the purchase price on a new home or 30% on an existing home. You cannot combine both schemes.
Do lenders accept gifted deposits under the 5% Deposit Scheme?
Yes. Most lenders accept gifts from parents or immediate family if accompanied by a signed statutory declaration confirming the funds are a gift, not a loan. Some lenders require you to demonstrate genuine savings in addition to the gift, even if the savings amount is smaller.
How does pre-approval work for nurses applying under the 5% Deposit Scheme?
Pre-approval confirms your borrowing capacity and access to the scheme through a participating lender. It is conditional on property valuation and final checks but allows you to make offers with confidence. Pre-approval typically lasts three to six months and does not lock in an interest rate.
