Top Strategies to Purchase an Off-the-Plan Property

Securing Pre-Approval Before You Sign the Contract

Get your home loan pre-approval locked in before you sign an off-the-plan contract. Pre-approval confirms your borrowing capacity and gives you a realistic price range, but it also protects you from rate rises and policy changes between contract and settlement, which can stretch two years or more for apartment developments.

Consider a paramedic purchasing a two-bedroom unit in a Brisbane off-the-plan development. Contract price sits at $620,000 with a 10% deposit paid at exchange. Settlement is forecast for 18 months later. At the time of contract, variable rates sit around 6.2%, and the buyer's pre-approval confirms borrowing capacity of $650,000 based on salary of $95,000 plus shift allowances. By settlement, rates have climbed to 6.8%, the serviceability buffer remains at 3.0 percentage points under APRA settings, and the lender now assesses the same buyer at $610,000 borrowing capacity. The buyer faces a $10,000 shortfall and needs to find additional savings or negotiate a reduced purchase price with the developer. Pre-approval at contract stage flags the risk early, and structuring the loan with a portion fixed locks in repayment certainty.

Paramedics qualify for LMI waivers with select lenders at LVRs up to 90%, which reduces upfront costs and increases buying power. Combining a waiver with the 5% Deposit Scheme gives you access to off-the-plan purchases with minimal deposit, provided the property price sits within the $1,000,000 cap for Brisbane capital city and regional centres under the scheme's current settings.

Fixed Rates Lock In Certainty for Long Settlement Periods

A fixed rate protects you from rate movements during the extended settlement window typical of off-the-plan contracts. Most apartment developments settle 12 to 24 months after contract exchange, and some projects push beyond that. Locking in a fixed rate at the time your loan is drawn down means your repayments stay constant regardless of what happens to the cash rate during construction.

Split loan structures give you the option to fix a portion of the loan while keeping the rest on a variable rate with an offset account. A 50/50 split on a $550,000 loan means $275,000 sits at a fixed rate with known repayments, and the remaining $275,000 on variable allows you to make extra repayments and offset your everyday savings against the interest. This structure suits paramedics with irregular shift penalties and overtime payments, where income fluctuates month to month but baseline salary covers the fixed component.

Duty Concessions Apply at Contract Date Not Settlement Date

Stamp duty concessions for off-the-plan properties are determined by the contract date, not the settlement date. If you sign a contract while a concession is active, you lock in that benefit even if the concession ends before settlement. Queensland, Victoria, Western Australia, and the ACT all offer off-the-plan duty relief, and the calculation method varies by state.

In Queensland, the first home new home concession removes transfer duty entirely on new homes purchased off-the-plan for contracts signed on or after 1 May 2025, with no price cap. The concession applies to the residential land component, and at least one applicant must be an Australian citizen or permanent resident for agreements entered into on or after 1 August 2026. In the ACT, the off-the-plan unit duty exemption removes duty on unit-titled properties purchased off-the-plan from 1 July 2026 with no property value threshold, provided the buyer occupies the property as their principal place of residence for at least one year within 12 months of completion. Western Australia's off-the-plan duty concession applies until 30 June 2028 and provides a 100% concession capped at $50,000 for pre-construction contracts on dwellings valued up to $800,000, reducing proportionally above that threshold.

Buyers purchasing in Victoria under an eligible off-the-plan contract signed on or before 31 October 2026 pay duty on the land value at contract date only, which can result in significant savings where the land component is a small fraction of the total unit price. Each state has residency requirements and timeframes that must be met to retain the concession, so confirm the obligations with your conveyancer before you commit.

Valuation Shortfalls Are a Settlement Risk You Can Prepare For

Your lender will order a valuation at or shortly before settlement, and if the valuer assesses the property below the contract price, you will need to cover the difference. Valuation shortfalls occur when the market softens between contract and settlement, when comparable sales in the development come in lower than forecast, or when the valuer applies a discount for oversupply in the local apartment market.

A paramedic in Melbourne signs a contract for a one-bedroom apartment at $480,000 in an inner-suburban development with settlement scheduled 20 months later. At settlement, the valuer assesses the property at $460,000 based on recent sales of similar units in the same building that settled at lower prices. The lender will only lend against the lower valuation, which creates a $20,000 shortfall. The buyer needs to find an additional $20,000 in cash or negotiate with the developer to reduce the purchase price. Developers may agree to a price reduction if multiple buyers in the same development face the same issue, but there is no obligation to do so.

To prepare for a potential shortfall, set aside additional savings during the construction period, structure your loan to allow for a higher deposit if needed, or work with a broker who can access lenders that apply more flexible valuation policies for off-the-plan transactions. Some lenders accept a valuation based on the contract price if the development is pre-sold above a certain threshold, typically 70% to 80%, and if the buyer is purchasing as an owner-occupier rather than an investor.

Construction Delays Push Settlement and Trigger Extension Clauses

Most off-the-plan contracts include a sunset clause that allows either party to terminate if settlement does not occur by a specified date. Developers often build in extensions of 12 to 24 months beyond the estimated completion date, and if construction is delayed, you remain committed to the purchase unless the sunset date passes. During that period, your circumstances can change, including your income, employment, or borrowing capacity.

If you have pre-approval at the time you sign the contract, confirm the validity period with your lender and update your application as you approach settlement. Pre-approvals typically last three to six months, and off-the-plan settlements stretch well beyond that. Lenders will reassess your income, liabilities, and credit file at the time of formal approval, so any changes such as a new car loan, reduced shift work, or a period of unpaid leave can affect your borrowing capacity.

Paramedics moving between states or transitioning from permanent to casual employment need to update their broker early. A move from Queensland Ambulance Service to NSW Ambulance may not affect your base salary, but differences in penalty rates, overtime policies, and rostering can change how lenders assess your income. Home loans for NSW Ambulance employees and home loans for Queensland Ambulance Service employees are structured to account for shift loadings and allowances, but the calculation method varies by lender.

Deposit Structure and Payment Terms Vary by Developer

Off-the-plan contracts typically require a 10% deposit, with 5% paid at exchange and the remaining 5% paid at a progress milestone such as slab-down or frame-up. Some developers offer deposit incentives where they contribute part of the deposit or allow you to pay in installments over the construction period. These incentives reduce your upfront cash requirement but may come with a higher purchase price or restrictions on resale during the first 12 months after settlement.

Confirm whether your lender will accept the developer's deposit structure before you sign. Lenders assess your genuine savings, and if the developer is funding part of your deposit, that amount may not count toward your savings requirement. The Australian Government 5% Deposit Scheme accepts a 5% deposit from eligible first home buyers, and Housing Australia provides a guarantee to the lender, but the scheme has property price caps that vary by state and location. For Brisbane, the cap sits at $1,000,000 for capital city and regional centre purchases, and for Sydney, the cap is $1,500,000.

Deposit bonds are another option. A deposit bond is a guarantee issued by an insurer that the buyer will pay the deposit at settlement. It allows you to delay paying the cash deposit until settlement, which frees up your savings to remain in an offset account or be used for other purposes. Deposit bonds cost around 1% to 1.5% of the bond amount per year, and not all developers accept them, so confirm acceptance before you apply.

Call one of our team or book an appointment at a time that works for you. We'll confirm your borrowing capacity, structure your loan to manage valuation risk, and lock in the duty concessions you're entitled to before you sign the contract.

Frequently Asked Questions