First Home Buyer Grants, Schemes and LMI Waivers: What Dentists Can Do to Buy a Home

Dental income can vary a lot by role, and lender choice matters because many offer professional waivers. 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 dentists can check.

Key takeaways

• The 5% Deposit Scheme has no income caps, no place limits and no LMI, so it's the first thing to check.
• State and territory help differs, so check the grant and stamp duty rules where you plan to buy.
• Many lenders waive or pay LMI for dentists, so compare the options available to you.
• Eligibility for waivers can differ by profession and employment type, so check each against your situation.
• Some schemes can be used together depending on each one's conditions, so check eligibility for each.

Federal help: deposit schemes and super

Three federal options can lower the deposit or the upfront costs of your first home. Each has trade-offs, and none suits everyone. Each lender also sets its own AHPRA registration, income and employment type requirements, so check them against your situation.

5% Deposit Scheme

The 5% Deposit Scheme lets you buy with a deposit as low as 5% 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 confirms that property price caps rose at the same time.

You apply through a Participating Lender as part of a home loan application, not directly. Price caps vary by location, so check the price cap tool before you shop.

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 shared equity: the government owns a share 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.

The income caps from 1 July 2026 to 30 June 2027 are:

• $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. It 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 of up to $15,000 a year, to a total of $50,000, for a first home. The ATO releases non-concessional contributions in full and concessional contributions at 85%, both with associated earnings. The assessable amount goes in your tax return with a 30% tax offset, so speak with your accountant about the tax effect.

The ATO says you must request a determination before ownership transfers, which is generally before settlement. You must move in as soon as practicable and live there for at least 6 of the first 12 months. Eligibility is individual, so each partner can use their own contributions for the same property.

State and territory grants and stamp duty

Every state and territory has its own rules, so confirm the current grant and stamp duty details with the relevant revenue office before you rely on them. Grants and concessions depend on the state where you buy, which may differ from where you practise. Keep these cautions in mind:

Prior ownership rules can matter more than most buyers expect, including where you or your partner owned a share in a home before a separation, so check them early.

Five ways to avoid or reduce LMI

You can avoid or reduce LMI by using a government scheme, a profession waiver, lender-paid LMI, a no-LMI product or a larger deposit. LVR is the loan-to-value ratio, which is your loan as a percentage of the property's value. LMI, or lenders mortgage insurance, usually applies when you borrow more than 80% of a property's value, and it protects the lender, not you. At 20% equity it generally doesn't apply.

1. Use the 5% Deposit Scheme, which removes LMI on a deposit as low as 5%, subject to price caps and a Participating Lender.
2. Qualify for a profession waiver, where LMI would normally apply but isn't charged because of your job.
3. Choose lender-paid LMI, where the loan is still insured but the lender pays the premium, which is reflected in the pricing.
4. Pick a no-LMI product, which some lenders offer to any borrower up to a set LVR.
5. Save a larger deposit.

A waiver saves the LMI cost, but compare the rate, fees and features too. Risk fees, lender-paid LMI and different pricing can sometimes cost more over time than paying LMI, and each lender sets its own conditions on repayment type, loan size and income. Lender criteria change often, and all lending is subject to credit approval.

Can dentists avoid paying LMI?

Some lenders waive LMI for dentists, which means LMI would normally apply but isn't charged because of your job. Others offer lender-paid LMI, where the loan is still insured but the lender pays the premium, which is reflected in the pricing. Limits, loan caps and conditions differ between lenders and change often, so confirm the current details with each lender or a broker.

How to compare them

• Eligibility differs, so check each lender's income, registration, work history and employment conditions against your situation.
• Some waivers may not extend to dental therapists, oral health therapists or hygienists, or to land and construction or self-employed borrowers, so check this if it applies to you or you plan to build or own a practice.
• 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.

How to combine the options

Some schemes can be used together depending on each one's conditions, so check eligibility for each and the order you apply. Work through these steps:

1. 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.
2. Add your state or territory support: the grant, the stamp duty concession and whether the home needs to be new.
3. Start a super release early: contributions are made in advance, and an ATO determination is needed before settlement.
4. Match your situation to an LMI option and compare it against the 5% Deposit Scheme on total cost, not just on LMI.
5. Check prior ownership and residency rules: each scheme has its own, for example the First Home Super Saver Scheme requires you to live in the home for at least 6 of the first 12 months, so check the conditions of each.

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. Rules, caps and dates change and apply on the contract date.

Small steps taken early can give you more options later. [Book an appointment] at a time that suits you, and bring recent payslips, your AHPRA registration 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.

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