Do you know what belongs on a first home buyer checklist?

The deposit decision you need to make first

Your deposit size determines which lenders will consider your application and whether you pay lenders mortgage insurance. NDIA employees can access the Australian Government 5% Deposit Scheme through 31 participating lenders, which means you can purchase with a 5% deposit without paying LMI. Some lenders also offer LMI waivers to public servants at higher deposit levels, which can open up different product features or pricing.

If you are purchasing with a partner and your combined income sits under $160,000, the Help to Buy scheme allows the government to contribute up to 30% of the purchase price for an existing home or 40% for a new home in exchange for an equity stake. That option requires a minimum 2% deposit but cannot be used alongside the 5% Deposit Scheme. The choice depends on whether you would rather avoid sharing equity or reduce your upfront cash requirement further.

Proof of savings and how gift deposits fit

Lenders want to see genuine savings held in your name for at least three months. That typically means a transaction account or term deposit that shows regular contributions over time, not a lump sum that appeared last week. The amount you need depends on your deposit size and the lender's policy, but expect them to look for at least half your deposit to come from genuine savings if you are borrowing above 90% of the property value.

A gift from a parent or sibling can make up part of your deposit, but lenders will ask for a signed declaration confirming the money does not need to be repaid. Some lenders will accept a gift for the entire deposit, while others cap it at a percentage. If you are relying on a gift, confirm the lender's policy before you make an offer on a property.

The income documents an NDIA employee needs to provide

Your most recent payslip and a letter of employment are usually sufficient if you have been with the NDIA for more than six months. Lenders may also ask for your last two years of tax returns and notices of assessment if you have other income sources or if your employment history includes gaps. Public service employment is viewed favourably by most lenders, which means your application will generally move through assessment without the additional scrutiny that applies to casual or contract roles.

If you have recently moved from another agency or started with the NDIA within the past six months, some lenders will still approve your application based on a probation letter and your prior employment history. Others may wait until probation ends. Knowing which lenders accept shorter tenure helps avoid wasted time if you are applying early in your role.

First home buyer concessions and how they stack with federal schemes

State and territory grants and stamp duty concessions can generally be used alongside the Australian Government 5% Deposit Scheme. If you are purchasing in Canberra, eligible buyers are fully exempt from conveyance duty from 1 July 2026 regardless of property value or household income. That removes one of the larger upfront costs and makes the deposit and settlement fees your main cash requirement.

In New South Wales, a full transfer duty exemption applies to properties up to $800,000, with a sliding concession on properties between $800,000 and $1,000,000. Queensland offers nil transfer duty up to $700,000 on established homes, with a concession applying up to $800,000. These concessions do not require additional applications beyond confirming your eligibility when settlement occurs, but your conveyancer will need to lodge the correct forms.

Fixed or variable rate and why the structure matters now

A fixed rate locks in your repayments for a set period, usually between one and five years. That certainty makes budgeting easier in your first year of ownership, but you lose access to an offset account with most fixed products, and breaking the loan early can trigger significant costs. A variable rate gives you full access to offset accounts and redraw facilities, and you can make extra repayments or refinance without penalty.

Splitting your loan between fixed and variable is also an option. Consider a buyer who fixes 60% of a $500,000 loan for three years and keeps 40% variable. The fixed portion protects most of the repayment from rate rises, while the variable portion allows them to park savings in an offset account and reduce interest on that portion. That structure works well if you expect to receive a tax refund, performance bonus, or other lump sums during the fixed period.

Pre-approval and why timing matters for NDIA buyers

Pre-approval confirms how much you can borrow and signals to vendors that your finance is likely to settle. Most pre-approvals last 90 days, and some lenders will extend that period if rates or your circumstances have not changed. Applying for loan pre-approval before you start attending inspections means you can move quickly when you find a property you want to make an offer on.

If you are buying your first home in a suburb where stock turns over quickly, having pre-approval in place can mean the difference between securing a property and losing it to another buyer who is ready to exchange contracts immediately. Lenders process pre-approval applications faster when your income documentation is straightforward, which is usually the case for NDIA employees with stable ongoing roles.

What settlement costs look like beyond the deposit

Your conveyancer or solicitor will typically charge between $1,500 and $3,000 depending on the complexity of the transaction and whether the property is in a strata scheme. Building and pest inspections cost another $500 to $800 combined. If you are purchasing in a state where stamp duty applies and you do not qualify for a full concession, that amount can run into the tens of thousands depending on the purchase price.

Lender fees vary, but expect to pay for a valuation, which usually sits between $200 and $400. Some lenders waive application fees for public servants, while others charge up to $600. Mortgage registration and title transfer fees are set by the state or territory and are usually under $500 combined. Budgeting for these costs early means you are not scrambling to find additional funds in the final weeks before settlement.

When to call a broker who understands public service lending

You need advice tailored to your circumstances, not a generic online checklist. Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions