Understanding the basics of saving for your first home

How much do you actually need to save?

Your deposit requirement depends on which scheme you use and how you structure the loan. Under the Australian Government 5% Deposit Scheme, eligible first home buyers can purchase with a 5% deposit without paying Lenders Mortgage Insurance. A periodontal registrar purchasing under the scheme would need 5% of the property price plus settlement costs, which typically include legal fees, building and pest inspections, and loan establishment fees.

Consider a periodontist buying in Brisbane's inner suburbs. At current market values in areas like Woolloongabba or New Farm, a 5% deposit plus settlement costs would form the starting point. Alternatively, saving a 10% deposit opens access to lender-specific programs that may offer rate discounts or offset account features not available through the government scheme. The choice between 5% and 10% isn't just about speed - it's about which loan structure gives you more flexibility once you're in the property.

Some lenders offer LMI waivers for dentists on deposits as low as 10%, which can make a material difference to upfront costs without relying on a government guarantee. LMI on a loan above 80% loan-to-value ratio can add several thousand dollars to your borrowing costs. Removing that impost means more of your savings stay available for furniture, equipment, or simply as a buffer in the early months of ownership.

Can you use family support as part of your deposit?

Yes, and it's common among dental professionals still in training or in their first specialist roles. Most lenders accept genuine savings, funds gifted by immediate family, or equity from a parent's property used as security under a guarantor structure. The key distinction is between a cash gift, which becomes part of your deposit once it clears into your account, and a family guarantee, where a parent offers their property as additional security so you can borrow more than 80% of the purchase price without paying LMI.

In our experience, periodontists who have completed their specialist training but are still building savings often combine three or four months of genuine savings with a parental gift to reach 10%. Lenders classify genuine savings as funds held in your account for at least three months, which demonstrates a pattern of accumulating and retaining money rather than receiving it immediately before settlement. If your parents transfer $30,000 and you've saved $20,000 over six months, you have $50,000 in total deposit - but only $20,000 counts as genuine savings. That can affect which loan products you can access, particularly if a lender requires a certain percentage of the deposit to be from genuine savings.

What schemes apply in your state?

First home buyer concessions vary significantly depending on where you're buying. In New South Wales, you can access a full stamp duty exemption on properties valued up to $800,000 and a sliding concession up to $1,000,000. Queensland removed stamp duty entirely on new homes for first home buyers from May 2025, with no price cap, and offers a $15,000 grant on new builds under $750,000. Victoria provides a full duty exemption up to $600,000 and a concession to $750,000, plus a $10,000 grant on new homes within that cap.

A periodontist buying in Melbourne's inner north - say, Brunswick or Coburg - would benefit from Victoria's duty exemption if the property is valued under $600,000, though most established properties in those areas now sit above that threshold. The concession between $600,001 and $750,000 still reduces duty by several thousand dollars. In Brisbane, the removal of stamp duty on new homes makes purchasing a new apartment in Fortitude Valley or South Brisbane considerably more accessible than buying an equivalent established unit, where duty still applies but is reduced by the first home concession.

State schemes can be combined with the federal 5% Deposit Scheme, so a periodontist in Sydney could use both the stamp duty exemption and the reduced deposit requirement on the same purchase. The 5% Deposit Scheme operates separately from state grants and doesn't limit your access to local concessions. Checking your eligibility for both layers of support should happen early, ideally before you begin inspecting properties, so you understand your true purchasing power.

Should you save in super or a savings account?

The First Home Super Saver Scheme allows you to make voluntary contributions into your super fund and later withdraw up to $50,000 toward a home deposit. Concessional contributions are taxed at 15% rather than your marginal rate, which for a periodontist on a higher income bracket creates a meaningful tax saving. You can contribute up to $15,000 per financial year and withdraw the total amount plus deemed earnings when you're ready to buy.

The trade-off is access. Once the money is in super, you need to apply to the ATO for a determination before you can release it, and the process typically takes several weeks. If you're six months away from purchasing, salary sacrificing into super and building the FHSS balance makes sense. If you're actively inspecting properties and may need to act within a fortnight, the scheme introduces timing risk. We regularly see periodontists use a split approach: build a portion of the deposit through FHSS while keeping three to six months of living expenses plus settlement costs in an offset or high-interest savings account. That combination captures the tax advantage without leaving you unable to move quickly when the right property appears.

Another consideration is whether your employment contract allows salary sacrificing. Most public hospital roles and larger private specialist practices have payroll systems set up for concessional super contributions. Solo practitioners or periodontists working across multiple private rooms may need to coordinate with an accountant to ensure contributions are structured correctly and reported properly to the ATO.

How does your employment structure affect borrowing?

Periodontists often move between training roles, public hospital positions, and private practice over a short period. Lenders assess income stability differently depending on whether you're a salaried employee, a contractor, or operating through a service entity. A periodontal registrar in a salaried hospital role will generally find the home loan application more direct, because base salary is straightforward to document with payslips and an employment contract.

A periodontist splitting time between a public hospital and private consulting rooms may have income from PAYG employment plus ABN invoicing. Some lenders will assess both income streams once you've been operating in that structure for three months. Others require 12 months of ABN income history or two years of tax returns. Knowing which lenders accept shorter trading history for dental specialists, and which products those lenders offer, often determines whether you can purchase now or need to wait another six to nine months.

If you've recently transitioned to private practice and structured your work through a company or trust, the income assessment becomes more complex. Lenders may use your most recent tax return, or they may apply a different method if your current income has increased materially since that return was lodged. Working with a broker who understands specialist dental income structures means you're applying to lenders who will recognise the earning pattern rather than declining the application because the structure doesn't fit a standard employment template.

When should you get pre-approval?

Pre-approval gives you a conditional loan offer before you've chosen a property. It confirms how much you can borrow, locks in some of the loan terms, and allows you to make an offer with confidence that finance will be available. For periodontists, pre-approval is particularly useful if your income structure is non-standard or if you're combining multiple deposit sources, because it resolves any documentation questions before you're under contract.

Most pre-approvals are valid for three to six months depending on the lender. If you're not ready to purchase within that window, applying too early means the approval expires and you need to reapply. If you wait until after you've signed a contract, you risk discovering that your borrowing capacity is lower than expected or that additional documents are required, which can push settlement past the agreed date.

The right timing is typically when you've saved at least 80% of your target deposit, you know which suburbs or property types you're considering, and you're confident you'll begin inspecting properties within the next two months. At that point, getting loan pre-approval gives you a clear budget and removes uncertainty from the purchase process. If the pre-approval identifies any gaps in your documentation or savings history, you still have time to address them before making an offer.

Do offset accounts and redraw matter at this stage?

An offset account is a transaction account linked to your home loan. The balance in the offset reduces the interest charged on the loan without affecting your ability to access the funds. Redraw allows you to withdraw any extra repayments you've made above the minimum. Both features reduce the total interest you pay over the life of the loan, but they work differently in practice.

For a periodontist who may move between employment structures or take periods of reduced income during further study, an offset account provides more certainty. Funds in the offset are your money, held in a separate account. Lenders can't restrict access or vary the terms under which you withdraw. Redraw, by contrast, is a facility attached to the loan. If the lender changes its redraw policy or if your loan falls into a specific category, access can be restricted.

Some low deposit options don't include an offset account because they're structured as basic variable loans with a reduced feature set. If having an offset is a priority - for example, because you're planning to keep a buffer of six months' expenses accessible at all times - you may need to choose a different loan product or save a slightly larger deposit to access the full feature set. Weighing these details before applying, rather than discovering them at settlement, avoids frustration and ensures the loan suits how you'll actually manage your finances once you've purchased.

Call one of our team or book an appointment at a time that works for you. We'll review your current savings position, map out which schemes apply to your situation, and structure the loan to match how your career and income are likely to develop over the next few years.

Frequently Asked Questions