The Easiest Way to Get Into the Property Market

What You Need to Know Before You Apply

You need a deposit, proof of income, and a clean credit file. Carpenters working for themselves or as contractors will also need to show at least 12 months of trading history, though some lenders accept less if your income is consistent. The deposit can be as low as 5% if you use the Australian Government 5% Deposit Scheme, but you'll still need genuine savings or a family gift to cover that amount plus your settlement costs.

Most carpenters assume they need 20% saved before they can even think about buying. That's not the case. Low deposit options exist, and several government schemes are designed specifically to help first home buyers get in sooner. The challenge is knowing which combination of schemes and loan structures actually works for your situation, not just what's advertised.

How the 5% Deposit Scheme Works for Tradies

The Australian Government 5% Deposit Scheme lets you buy with a 5% deposit and no lenders mortgage insurance. Housing Australia guarantees the gap between your deposit and 20% of the property value, so the lender treats it as though you put down 20%. There's no income cap, which means you can earn whatever you earn and still qualify. There's also no annual limit on the number of places available anymore, so you're not racing against other buyers to get a spot.

Property price caps vary by location. In New South Wales, you can buy up to $1,500,000 in Sydney and other regional centres, or up to $800,000 in other areas. In Victoria, the caps are $950,000 for Melbourne and regional centres, and $650,000 elsewhere. Queensland allows $1,000,000 in Brisbane and regional centres, and $700,000 in other areas. Western Australia caps it at $850,000 in Perth and $600,000 outside Perth. South Australia is $900,000 in Adelaide and regional centres, $500,000 elsewhere. Tasmania allows $700,000 in Hobart and regional centres, and $550,000 in other areas. The ACT is capped at $1,000,000 across the board. The Northern Territory allows $750,000 in Darwin and $600,000 elsewhere.

You apply through a participating lender, not directly through Housing Australia. The lender assesses your application the same way they would any other home loan, so your income, expenses, and credit history all matter. If you're self-employed, you'll need tax returns and business financials. If you're on wages, payslips and a letter from your employer will do. The scheme itself doesn't change the lender's serviceability assessment, it just removes the LMI cost and lowers the deposit barrier.

State Grants and Stamp Duty Concessions You Can Stack

Most states offer a first home owner grant for new builds, and some also offer stamp duty relief on both new and established homes. In New South Wales, you can claim a $10,000 grant on new builds under $600,000 or land and build packages under $750,000. Stamp duty is fully waived on homes up to $800,000 and partially waived up to $1,000,000, and that applies to both new and established properties. Victoria offers a $10,000 grant on new homes under $750,000, and stamp duty is fully waived up to $600,000 with a concession up to $750,000.

Queensland has the most generous grant at $30,000 for new homes under $750,000, and that's been extended for another four years. Stamp duty on new homes is fully waived with no price cap, and on established homes there's a concession that reduces duty by up to $17,350 for properties under $710,000. South Australia offers $15,000 for new builds with no price cap and full stamp duty relief on new homes and vacant land, but no concession on established properties. Western Australia gives $10,000 for new builds south of the 26th parallel under $800,000, or under $1,000,000 north of that line, with no duty on homes up to $600,000 and a concession up to $800,000.

Tasmania offers $20,000 for new builds, though the stamp duty exemption that applied to established homes ended on 30 June 2026. The ACT removed its grant years ago but now offers full stamp duty exemption for first home buyers regardless of property value or income from 1 July 2026. The Northern Territory has the largest grant at $50,000 for new builds with no price cap, available until September 2027.

You can generally combine state grants and stamp duty concessions with the 5% Deposit Scheme. You can't combine the 5% Deposit Scheme with Help to Buy, but you can use state concessions alongside Help to Buy in most cases. Check with your lender or broker which combinations apply to your situation.

What Lenders Want to See from Carpenters

Lenders assess carpenters differently depending on whether you're employed or self-employed. If you're on wages, they'll want recent payslips, a letter from your employer, and proof that your income is ongoing. If you're a contractor or running your own carpentry business, they'll want at least 12 months of tax returns and business financials, though some lenders will accept less if your income is strong and consistent. A few lenders will work with six months of financials if you can show a clear earnings pattern.

Your credit file needs to be clean. Late payments, defaults, or unpaid debts will either reduce your borrowing capacity or knock you out of contention altogether. Most lenders will overlook a single missed payment if it was more than 12 months ago and you've been clean since, but multiple late payments or anything recent will cause problems. If you've got any outstanding debts, pay them down or clear them before you apply. Personal loans, car loans, credit cards, and buy-now-pay-later accounts all reduce how much you can borrow, so the less you owe, the better your position.

Genuine savings matter, but not as much as they used to. Under the 5% Deposit Scheme, you only need to show you've saved the deposit amount, and some lenders will accept a gift from family as part of that. If you're using a gift, most lenders will want a signed declaration from the person giving it to confirm it's not a loan and doesn't need to be repaid. If you've been saving through the First Home Super Saver Scheme, you can release up to $50,000 from your super to put toward your deposit, and that counts as genuine savings.

Consider a carpenter working as a contractor who's been operating for 18 months with an average annual income around $95,000. They've saved $40,000, which gives them a 5% deposit on a property at the suburb's current median, plus enough to cover settlement costs. They apply through the 5% Deposit Scheme with a lender that accepts 12 months of financials. The lender confirms their income, checks their credit file, and approves the loan. The carpenter uses the New South Wales stamp duty concession to avoid transfer duty entirely, and settles without needing to delay the purchase to save a 20% deposit. That's how the system is supposed to work when you've got your documentation sorted and you're applying through the right lender.

For more on finance for tradies, including low doc options and lenders that understand contractor income, have a look at the dedicated page.

Fixed, Variable, or Split Loan Structures

You can choose a fixed rate, a variable rate, or a split loan where part of the balance is fixed and part is variable. Fixed rates lock in your repayment amount for a set period, usually one to five years. Variable rates move up or down with the market, which means your repayments can change. A split loan gives you some certainty on part of the balance and flexibility on the rest.

Fixed rates make budgeting straightforward because you know exactly what you'll pay each month. The downside is you're locked in, and if rates drop, you won't benefit unless you pay break costs to exit early. Variable rates give you flexibility to make extra repayments without penalty, and most variable loans come with features like an offset account or redraw facility. An offset account is a transaction account linked to your loan where the balance reduces the interest you're charged. A redraw facility lets you access extra repayments you've made, though some lenders charge fees or restrict how often you can redraw.

A split loan is a common choice for carpenters who want some stability but don't want to lock in the entire balance. You might fix 60% of the loan and leave 40% variable, or split it 50-50. The variable portion gives you access to features like offset and redraw, and the fixed portion protects you if rates climb. You can adjust the split when the fixed term expires.

Most lenders under the 5% Deposit Scheme offer all three structures, but not all lenders offer the same features on fixed loans. Some will let you make extra repayments up to a certain limit without penalty, others won't. Check what's available with your lender before you lock anything in.

Pre-Approval and Why It Matters

Pre-approval tells you how much you can borrow before you start looking at properties. It's not a guarantee, but it gives you a clear budget and shows agents and sellers you're serious. Most lenders will hold your pre-approval for three to six months, which gives you time to find a property without rushing.

You'll need to provide the same documents you'd submit for a full application: proof of income, identification, recent bank statements, and details of any debts or liabilities. The lender assesses your capacity to service the loan and checks your credit file. If you're approved, they'll issue a letter stating how much you can borrow. That amount is conditional on the property being acceptable security and on your circumstances not changing before settlement.

Pre-approval is especially useful if you're buying at auction, because you won't have a cooling-off period and you'll need to move quickly once the hammer falls. It also helps if you're buying in a competitive area where properties sell within days of listing. Sellers are more likely to take your offer seriously if they know you're already approved, and you won't waste time looking at properties you can't afford.

For more on getting loan pre-approval, including how long it takes and what to expect from the process, the guide covers it in detail.

What Settlement Costs Actually Look Like

Settlement costs include conveyancing, building and pest inspections, loan application fees, and sometimes a valuation fee. Conveyancing usually runs between $1,200 and $2,500 depending on the complexity of the transaction and where you're buying. Building and pest inspections cost around $400 to $800 combined. Some lenders charge an application fee, others don't. Valuation fees are often added to the loan balance rather than paid upfront, though some lenders waive them altogether.

If you're buying in a strata scheme, you'll also need to pay for a strata report, which costs around $200 to $400. If you're buying vacant land or a house and land package, you might need to pay for soil tests or other site assessments. These costs add up quickly, so budget an extra $5,000 to $10,000 on top of your deposit to cover everything.

Some costs can be negotiated. Conveyancers and solicitors charge different rates, so get quotes from at least two before you commit. Building and pest inspectors also vary in price and quality, so ask for recommendations from other tradies or your broker rather than just picking the cheapest option. A bad inspection can cost you a lot more than the fee if it misses something serious.

What to Do Next

Get your documents together first. If you're self-employed, that means tax returns, business financials, and bank statements. If you're on wages, it's payslips, a letter from your employer, and bank statements. Check your credit file through a free service like Equifax or Illion, and fix anything that's wrong before you apply. Pay down or clear any outstanding debts, and avoid taking on new credit in the months leading up to your application.

Talk to a broker who works with tradies and understands how lenders assess contractor income. A good broker will tell you which lenders are likely to approve your application, which schemes you can combine, and whether you need to adjust anything before you apply. They'll also handle the paperwork and negotiate with the lender on your behalf, which saves you time and usually gets you access to better rates than you'd find going direct.

For home loans for carpenters, including lenders that accept less than 12 months of financials and those that offer offset accounts on low deposit loans, the dedicated page walks through the options.

Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions