What are the Steps to Buy Your First Home as Army?

Saving Your Deposit and Accessing Government Schemes

Army members buying their first home can start with a deposit as low as 5% under the Australian Government 5% Deposit Scheme without paying lenders mortgage insurance. The 5% Deposit Scheme for ADF Members operates through 31 participating lenders and has no income caps or annual place limits. Single parents or legal guardians can purchase with just a 2% deposit.

Consider an Army member posted to Singleton Military Area looking to buy in the Hunter region. With the regional property price cap at $750,000, a 5% deposit would be $37,500. State stamp duty concessions in New South Wales provide a full transfer duty exemption on properties up to $800,000, which covers most regional purchases. The Queensland equivalent offers nil transfer duty up to $700,000 on established homes.

Your deposit can include genuine savings held for at least three months, proceeds from the sale of another asset, or gifted funds from immediate family. Some lenders accept the First Home Super Saver Scheme as part of your deposit. If you are purchasing in regional Queensland or South Australia, state grants of $15,000 apply to new homes, which can reduce the cash you need upfront.

Getting Pre-Approval Before You Start Looking

Pre-approval confirms how much you can borrow before you begin property inspections. Lenders assess your income, expenses, and existing debts to calculate borrowing capacity. For Army members, this includes your base salary, allowances that appear consistently on your payslips, and any additional income from a partner or rental property.

A corporal earning $80,000 annually with minimal debt and a 5% deposit could borrow between $450,000 and $500,000 depending on the lender's assessment of living expenses and serviceability buffers. Pre-approval typically lasts 90 days, though some lenders offer 120-day terms. It does not guarantee final approval, but it allows you to make offers with confidence and shortens the settlement timeline.

Apply through a broker who works with lenders familiar with Defence income structures. Some lenders apply a higher assessment rate for allowances or require longer employment history if you have recently returned from deployment. Having pre-approval in place before attending auctions or making offers removes uncertainty and speeds up the contract exchange process.

Searching for Property and Making an Offer

Once pre-approved, you can inspect properties within your budget and location preferences. Allow at least four to eight weeks for this stage depending on market conditions and how specific your requirements are. Regional markets typically offer more time to assess properties, while metropolitan areas often require faster decisions.

When you identify a suitable property, make an offer through the selling agent or at auction. If buying via private treaty, your offer should include a deposit amount, settlement period, and any conditions such as building and pest inspections or finance approval. Most contracts require a 10% deposit on exchange, though this can sometimes be negotiated to 5% if you are using a low deposit home loan.

In New South Wales and Victoria, cooling-off periods apply to private treaty sales but not to auction purchases. If you are posted interstate or deployed, arrange for someone to hold power of attorney so they can sign contracts on your behalf if needed. Your broker can coordinate with your conveyancer to ensure all contract conditions are met within the specified timeframe.

Formal Loan Application and Valuation

After contracts are exchanged, your lender will conduct a formal property valuation to confirm the purchase price reflects market value. This usually takes five to seven business days. The valuer inspects the property and compares recent sales of similar homes in the area. If the valuation comes in below the purchase price, you may need to renegotiate with the seller or increase your deposit to cover the shortfall.

Your broker submits the formal loan application with supporting documents including recent payslips, bank statements, notice of assessment, and proof of deposit funds. Lenders may request additional documentation if your income includes allowances or if you have been in your current role for less than six months. Defence members with consistent service history and stable income generally receive faster approval than applicants in other industries.

Conditional approval is typically issued within three to five business days if all documentation is in order. Final unconditional approval follows once the valuation is complete and any remaining conditions are satisfied. Settlement is then scheduled for the date specified in your contract, usually 30 to 90 days from exchange.

Settlement and Taking Ownership

Settlement is the final step where ownership transfers from the seller to you. Your conveyancer coordinates with the lender and the seller's representative to exchange funds and register the title transfer. You do not need to attend settlement in person. Your lender disburses the loan amount to the seller, and you pay the balance of your deposit plus any settlement adjustments such as council rates or water charges.

On settlement day, you receive the keys and can take possession of the property. Your lender will send a welcome pack with details of your loan account, repayment schedule, and online banking access. If you have chosen an offset account or redraw facility, confirm these are activated and linked correctly.

Army members posted away from their property location can arrange settlement through their conveyancer and broker without needing to return. If you are deployed during settlement, ensure your power of attorney is registered and your conveyancer has all necessary authority to act on your behalf. Settlement rarely experiences delays if all parties have met their obligations, but allow a buffer if you need to coordinate removalists or end a lease on a specific date.

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

Frequently Asked Questions