Why Tradies Should Check Grants, Schemes and LMI Options

Tradies often build or buy new, and how your income is shown and whether the home is new both matter. The RBA raised the cash rate by 0.25 percentage points to 4.85% on 3 November, its fifth rise this year and the highest level since late 2008, and the ABS reported annual inflation of 4.3% in the year to September. Grants, concessions and lenders mortgage insurance options can reduce the cash and insurance you need upfront, and this guide covers what is available to tradies.

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.
• There's no LMI waiver specifically for tradies, but some lenders offer no-LMI products, so check their conditions.
• New homes and house-and-land packages attract the biggest grants in most states, which can suit tradies who build.
• 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 your deposit or boost your savings: the 5% Deposit Scheme, Help to Buy and the First Home Super Saver Scheme. They work differently, and each has conditions you need to meet.

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 confirmed that property price caps rose at the same time.

It's 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. There's no occupation test, so it's open to tradies in any trade.

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 use the price cap tool to check the home you want. 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, which means the government owns part of the 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 run 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 to buy your first home. You can contribute up to $15,000 a year, to a total of $50,000. The ATO says non-concessional contributions release in full and concessional contributions release at 85%, both with associated earnings.

The ATO also says the assessable amount goes in your tax return with a 30% tax offset. Speak with an accountant about how this affects you, because the result depends on your income and how you contribute.

The ATO requires you to 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.

If you're self-employed or a contractor, ask your lender what it needs to see before you apply, as requirements vary. Our self-employed loans for tradies page covers how this works.

State and territory grants and stamp duty

Every state and territory offers something, the rules differ, and most grants are for new homes only. Grant amounts, thresholds and dates change, so confirm every figure with your state or territory revenue office before relying on it.

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.

Because most grants are for new homes, a new build or house and land package may qualify when an established home wouldn't.

Ways to avoid or reduce LMI

You can avoid or reduce LMI by using the 5% Deposit Scheme, qualifying for a profession waiver, choosing lender-paid LMI, picking a no-LMI product or saving a larger deposit. Lenders mortgage insurance (LMI) usually applies when you borrow more than 80% of a property's value, and it protects the lender, not you. The loan-to-value ratio (LVR) is your loan as a percentage of the property's value, and at 20% equity LMI 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 LMI 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, whatever their occupation.
5. Save a larger deposit.

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. Each lender sets its own conditions on repayment type, loan size and income.

Can tradies avoid paying LMI?

There's no LMI waiver specifically for tradies among the lender policies reviewed. Some lenders offer no-LMI products that are open to any occupation. Others offer lender-paid LMI, where the loan is still insured but the lender pays the premium, which is reflected in the pricing. Lender policies change often, so check each lender's current LVR limits, loan caps and conditions before you apply. Our pages on no LMI loans and LMI waivers for tradies go into more detail.

How to compare them

• Eligibility differs, so check each lender's income, registration, work history and employment conditions against your situation.
• If you're self-employed or a contractor, check what each lender needs to see before you apply.
• 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

You can often stack a federal scheme, a state grant or concession, a super release and an LMI option, but the order you check them in matters. 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: 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 can rule you out, 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. Our finance for tradies and home loans for tradies pages show how we work with trade incomes.

Small steps taken early can give you more options later. Book an appointment at a time that suits you, and bring your recent financial records, tax returns or payslips 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