The easiest way to plan your first home purchase

Getting your finances sorted before you start looking at properties means you know what you can afford and avoid wasting time on homes outside your budget.

Healthcare professionals often have steady income and clear career progression, but that doesn't always translate to knowing how much you can borrow or which loan features actually matter. Pre-purchase planning means working out your deposit position, understanding what lenders will offer based on your income type, and choosing loan features that suit how you'll use the property. The outcome is a clear budget and a loan structure that fits your circumstances, not just what a comparison site suggests.

How much can you actually borrow on a healthcare income?

Your borrowing capacity depends on your income type, existing commitments, and how lenders assess your role. A registered nurse on a permanent hospital contract will be assessed differently to a locum GP with ABN income, even if the annual earnings are similar. Lenders apply different buffers and treatment to base salary, overtime, allowances, and self-employed income.

Consider a physiotherapist earning a base salary of $85,000 plus regular weekend and after-hours penalties totalling $18,000 annually. Most lenders will include that penalty income if it's consistent over three to six months and shown on payslips. That additional income can lift borrowing capacity by $90,000 to $100,000 depending on other commitments. The difference between being assessed on base salary alone versus total income often determines whether you can afford a two-bedroom unit or a three-bedroom house in the same suburb. If you're unsure how your income will be treated, a borrowing capacity assessment breaks it down before you apply.

Sorting out your deposit and where it comes from

You need at least 5% of the purchase price as genuine savings, though 10% or more opens up better loan options and potentially lower rates. Genuine savings means funds held in your account for at least three months. Money from a tax return, work bonus, or sale of assets can also count, but needs to be declared and evidenced.

A gift from parents or family is acceptable, but lenders require a signed declaration confirming it's a genuine gift with no repayment expectation. If you've been salary sacrificing into super under the First Home Super Saver Scheme, you can withdraw up to $50,000 of contributions plus earnings to use as a deposit. The withdrawal takes around 25 business days once your contract of sale is signed, so timing matters. If your deposit is under 20% of the property value, you'll pay Lenders Mortgage Insurance unless you're eligible for a government guarantee scheme.

First home buyer grants and stamp duty concessions you might qualify for

Queensland offers a first home owner grant of $30,000 for new homes or substantially renovated properties where the total value is under $750,000. The property must be your principal place of residence for at least 12 consecutive months. If you're buying an established home, you won't receive the grant, but you may still be eligible for stamp duty concessions if the property value is under $500,000. Between $500,000 and $550,000, a concessional rate applies.

The First Home Guarantee allows eligible first home buyers to purchase with a 5% deposit without paying Lenders Mortgage Insurance. The government guarantees up to 15% of the property value, which removes the need for LMI. There are annual caps on the number of places available, and the scheme applies to both new and established homes under certain price thresholds. Eligibility includes income caps and property price caps that vary by location. If you're looking at regional Queensland, the Regional First Home Buyer Guarantee has separate criteria and may offer additional flexibility. These schemes change periodically, so check current eligibility when you're ready to apply.

Choosing between fixed and variable rates when you've never had a loan before

A variable interest rate moves with the market, which means your repayments can go up or down. An offset account usually comes with a variable loan, and this can reduce the interest you pay if you keep savings in the offset. A fixed interest rate locks in your repayment amount for a set period, typically one to five years, which makes budgeting more predictable but removes access to an offset and can limit extra repayments.

Many first home buyers split their loan, fixing a portion for stability and leaving the rest variable for flexibility. In a scenario where you fix 60% of a $500,000 loan and leave 40% variable with an offset, you get stable repayments on the majority while still benefiting from any surplus funds sitting in the offset against the variable portion. The split ratio depends on how much income certainty you have and whether you expect lump sums like bonuses or locum income that you'd want to park in an offset. As a healthcare professional, if your income includes shift penalties or overtime that fluctuates, keeping a variable portion with an offset gives you somewhere to hold that extra cash and reduce interest without locking it away.

What pre-approval actually gives you and how long it lasts

Pre-approval is a conditional agreement from a lender that they'll lend you a specific amount based on the information you've provided. It's not a guarantee, but it shows sellers and agents you're ready to proceed. Pre-approval typically lasts three to six months depending on the lender, and you'll need to provide full documentation including payslips, tax returns if applicable, bank statements, and identification.

Once you find a property, you'll submit the contract of sale and the lender will conduct a valuation. If the valuation comes in under the purchase price, the lender may not approve the full amount, which means you'd need a bigger deposit or the seller would need to reduce the price. Pre-approval doesn't lock in an interest rate unless you specifically request a rate lock, and those usually last 90 days. The benefit of getting pre-approval before you attend auctions or make offers is that you know your limit and you're not rushing to submit an application after you've committed to a contract.

Loan features that suit healthcare professionals buying their first home

An offset account linked to a variable home loan means any balance in that account reduces the interest charged on your loan. If you have a $400,000 loan and $20,000 sitting in the offset, you're only charged interest on $380,000. This suits healthcare workers who might receive irregular income from locum shifts, overtime, or annual leave payouts and want flexibility without making permanent extra repayments.

Redraw allows you to access extra repayments you've made on your loan, but it's not as instant as an offset and some lenders charge fees or have minimum redraw amounts. If you're planning to keep your first home as an investment later, an offset is usually the better choice because it doesn't affect deductibility of interest in the same way a redraw can. Portability is another feature worth considering if you think you might sell and buy again within a few years, as it allows you to transfer the loan to a new property without reapplying or paying discharge fees.

Getting your application documents ready before you find a property

Having your documents organised means your application can be submitted within a day or two of finding a property, not a week or more. Lenders require recent payslips covering at least 30 days, notice of assessment from the ATO if you've been in your role less than two years or have other income sources, and three months of bank statements for all accounts including savings, transaction accounts, and any credit cards.

If you've changed jobs in the past 12 months, you'll need a letter from your employer confirming your role is ongoing and details of your probation period if applicable. Healthcare professionals moving from graduate programs into permanent roles, or from public hospital employment to private practice, should confirm employment status in writing before applying. If you have HECS or HELP debt, it doesn't prevent you from borrowing but it does reduce your borrowing capacity because lenders factor in the repayment as part of your commitments. Gathering these documents early and keeping them updated means you're not scrambling when you need to move quickly on a property.

Call one of our team or book an appointment at a time that works for you to go through your deposit position, borrowing capacity, and loan structure before you start your property search.

Frequently Asked Questions