Public service jobs are often secure, but pay structures, levels and employment types vary, so how a lender views your role matters. The RBA raised the cash rate by 0.25 percentage points to 4.85% on 3 November, and the ABS reported annual inflation of 4.3% in the year to September. Grants, concessions and LMI options can reduce the cash and insurance you need upfront, and this guide covers what is available to public servants looking at home loans for public servants.
Key takeaways
- The 5% Deposit Scheme has no income caps, no place limits and no LMI, so it's the first thing to check.
- Every state and territory has a grant, a stamp duty concession or both, and most favour new homes.
- Only a small number of lenders waive LMI for public servants, and the conditions are narrow.
- Your classification level and employer decide whether a public service waiver applies.
- You can often combine a grant, a concession and a super release, so check each one's conditions.
Federal help: deposit schemes and super
Three federal options can lower the deposit or boost your savings, and each suits different buyers. Rules, caps and dates change and apply on the contract date, so confirm them before you sign.
5% Deposit Scheme
The 5% Deposit Scheme lets you buy with a deposit as low as 5%, or 2% for single parents and legal guardians, with no LMI. The government backs part of the loan instead. It has had no income caps and no limit on places since 1 October 2025, and Treasury notes that property price caps rose at the same time.
It is open to first home buyers and to people who haven't bought in the last 10 years. Single parents and guardians with a dependent can use the 2% stream even if they have owned before.
You apply through a Participating Lender as part of a home loan application, not directly. After pre-approval you have 90 days to find a home and sign a contract. Price caps vary by location, so check the price cap tool for the area you are considering. You must live in the home as an owner-occupier, or the lender may require LMI or other costs.
Help to Buy
Help to Buy is a shared equity scheme, which means the government owns part of your home alongside you. It contributes up to 30% of an existing home's price, or up to 40% of a new home's, and you need a deposit of at least 2%. When you sell or buy out the government's share, it shares in any gain or loss in proportion to its contribution.
Income caps apply from 1 July 2026 to 30 June 2027:
- $103,000 for a single applicant
- $165,000 for single parents and joint applicants
Applicants must be Australian citizens aged 18 or over who don't own property in Australia or overseas, and must live in the home. Help to Buy can't generally be combined with other government help for the purchase, such as another shared equity scheme or a state or territory loan. Stamp duty concessions and grants are still allowed.
First Home Super Saver Scheme
The First Home Super Saver Scheme lets you release voluntary super contributions for a first home. The ATO says you can release up to $15,000 a year, to a total of $50,000. Non-concessional contributions release in full and concessional contributions release at 85%, both with associated earnings.
The assessable amount goes in your tax return with a 30% tax offset, so speak with an accountant about the tax effect for you. The trade-off is that the money is locked in super until you release it, and it is not available for other uses.
Eligibility is individual, so each partner can use their own contributions for the same property.
As a public servant, ask your lender how higher duties, allowances and contract or agency income are assessed, as lenders vary.
State and territory grants and stamp duty
Every state and territory offers something, the rules differ, and most grants are for new homes only. The figures below are as at 8 November 2026 and should be confirmed before you rely on them.
| State | First home owner grant | Stamp duty support | Watch for |
|---|---|---|---|
| NSW | $10,000 for new homes up to $600,000, or $750,000 for house and land | No duty on homes up to $800,000 and reduced duty to $1m; for land, no duty up to $350,000 and reduced duty to $450,000 | Duty rates apply 1 July 2026 to 30 June 2027 |
| VIC | $10,000 for new homes valued at $750,000 or less | No duty up to $600,000, tapering to $750,000 | Victorian-enrolled ADF members are exempt from the residency rules, but reservists aren't |
| QLD | $30,000 for new homes under $750,000 | Full concession on new homes and residential land with no price cap; for established homes, a $17,350 deduction under $710,000, falling to nil at $800,000 | From 1 August 2026, buyers generally need to be citizens or permanent residents |
| WA | Available for eligible new homes. Confirm the amount and caps with the WA Department of Treasury and Finance | Homes to $800,000: no duty up to $600,000, then $16.15 per $100 to $800,000; land to $550,000: no duty up to $450,000 | Applies to agreements from 7 May 2026 |
| SA | $15,000 for new homes, off-the-plan, substantially renovated or building contracts, with no value cap | Full relief on new homes, off-the-plan apartments and vacant land with no value cap; established homes aren't covered | You and your partner can't have owned residential property before |
| TAS | $30,000 for newly built homes, after legislation passed in December 2025 | No duty on established homes up to $750,000 | The duty page lists settlements to 30 June 2026, so confirm whether it was extended, and confirm the grant start date |
| ACT | None covered here | No income threshold or price limit from 1 July 2026, with $0 duty for eligible buyers | No buyer or domestic partner can have owned property in the previous 5 years |
| NT | $50,000 HomeGrown Territory Grant for new homes with no price cap, or the $30,000 FreshStart New Home Grant, but not both | Not covered here, so check the NT Treasury | HomeGrown contracts must be signed between 1 October 2024 and 30 September 2027 |
Prior ownership rules matter more than most buyers expect. Several states exclude you if you or your partner have owned a home before, which can catch people who owned a share in a home before a separation.
Grants and concessions depend on the state where you buy, which may differ from where you work.
Five ways to avoid or reduce LMI
There are five main ways to avoid or reduce lenders mortgage insurance (LMI). LMI usually applies when you borrow more than 80% of a property's value, known as the loan to value ratio (LVR), and it protects the lender, not you. At 20% equity it generally doesn't apply.
- Use the 5% Deposit Scheme, which removes LMI on a deposit as low as 5%, subject to price caps and a Participating Lender.
- Qualify for a profession LMI waiver, where LMI would normally apply but isn't charged because of your job.
- Choose lender-paid LMI, where the loan is still insured but the lender pays the premium, which is reflected in the pricing.
- Pick a no-LMI product, which some lenders offer to any borrower at up to 85% or 90% LVR (see our page on no LMI loans for public servants).
- Save a larger deposit.
Most waivers go up to 90% LVR. A waiver saves the LMI cost, but compare the rate, fees and features too, because risk fees, lender-paid LMI and different pricing can sometimes cost more over time than paying LMI. Lender criteria change often and all lending is subject to credit approval.
Can public servants avoid paying LMI?
Some lenders waive LMI for some public servants, which means LMI would normally apply but isn't charged because of your job. Here is an example available at the time of writing, and a lender missing from this list may still have an option, as not every lender has been reviewed. Our page on LMI waivers for public servants has more detail.
Lenders that waive LMI for public servants
- Bankwest: waives LMI for PAYG employees at APS6, EL1, EL2 or SES level employed directly by a listed federal department, such as Defence, Treasury and Veterans' Affairs. The limit is about 89.99% LVR.
Who isn't covered
- Bankwest's waiver doesn't automatically cover state government departments and separate agencies. Outside these options, we haven't found a lender that waives LMI for public service employment alone.
How to compare them
- Eligibility differs, so check each lender's income, registration, work history and employment conditions against your situation.
- A waiver saves the LMI cost, but compare the rate, fees and features too, and weigh it against the 5% Deposit Scheme on total cost.
Lender criteria change often, and a broker can check which options you qualify for. All lending is subject to credit approval.
Find out which grants, concessions and LMI options you qualify for in one conversation.
Call one of our team or book a time that works for you.
How to combine the options
You can often layer several options, but the order you check them in matters. These five steps keep the process organised.
- Check federal eligibility first. The 5% Deposit Scheme and Help to Buy suit different buyers, and Help to Buy can't generally be used alongside other government help for the purchase.
- Add your state or territory support. Look at the grant, the stamp duty concession and whether the home needs to be new.
- Start a super release early. Check the ATO's current timing rules before you sign a contract.
- Match your situation to an LMI option. Compare it against the 5% Deposit Scheme on total cost, not just on LMI.
- Check prior ownership and residency rules. Most programs require you to live in the home, often for 6 to 12 months, and several exclude people who have owned before.
Price caps and income caps decide more outcomes than the headline amounts, so confirm them for the exact property and your income before you sign a contract.
Small steps taken early can give you more options later. Book an appointment at a time that suits you, and bring recent payslips, your classification details and your savings records.
This article is general information only and doesn't consider your personal circumstances. Grants, concessions and lender policies change, and all lending, including any LMI waiver, is subject to lender criteria and credit approval. Speak with your accountant about tax.
Frequently Asked Questions
Do all public servants qualify for LMI waivers?
No. Only some classification levels at listed departments qualify, and we haven't found a lender that waives LMI for public service employment alone. See the section on whether public servants can avoid paying LMI.
Are higher duties and allowances counted?
Lenders vary in how they assess higher duties and allowances, so ask each one how they treat them.
Are grants available for established homes?
Mostly no, as most first home owner grants are for new homes. Stamp duty support does cover established homes in some states, so check the state table.
