Graduate Nurse Guide: How to Prepare for Your First Home Purchase

Starting your nursing career is a major milestone. Moving from study into full-time work usually brings more stability and a clearer financial path. Still, many graduate nurses feel unsure about how lenders will view early career income, shift penalties, rosters and HECS-HELP debt when buying their first home.

The process can feel complex when your hours vary or you have only recently started your graduate year. The good news is that many of these challenges can be managed with early planning. Lenders in Australia have established ways of assessing healthcare income, and we help explain how these policies may apply to you.

This step-by-step guide explains how the process works, what lenders commonly assess and how you can set yourself up well for your first home purchase as a nurse.

Step 1 — Understand Your Nursing Income Structure

Before you start planning a home purchase, it helps to understand how your income is viewed by lenders. Nursing income can look complex on paper, especially early in your career, because it often includes varied elements like base salary, overtime, penalty rates and allowances.

How lenders view your base salary as a graduate nurse

Most lenders begin with your base PAYG income. Your contracted hours and base hourly rate form the foundation of your borrowing assessment. For graduate nurses, this typically means your employment contract and your most recent payslips will play an important role.

Some lenders may accept applications from nurses who are still on probation, provided the role is ongoing and supported by a clear contract. Other lenders prefer that probation be completed first. This varies by institution, and it is one of the key areas where a broker can guide you.

Over time, penalties and shift loadings

Many graduate nurses rely on overtime, night shifts, weekend loadings or public holiday penalties to boost their income. Some lenders may include these additional payments, while others might rely on your base rate only.

A few important points:

• Some lenders may consider overtime and penalty rates when there is consistent evidence over a period such as three to six months.
• Other lenders may require a longer history or may exclude higher-than-average overtime to ensure your borrowing position remains sustainable.
• If your payslips show regular penalties from rotating shifts, that may help demonstrate consistency.

Because these rules vary, comparing lender policies is important before you apply.

Probation and hospital rotations

Graduate nurses often rotate through departments or locations during their first year. Some lenders may accept this provided your employment remains continuous and you can demonstrate an ongoing contract. If rotations mean your hours change, lenders usually rely on actual payslip history rather than long-term assumptions.

Understanding how your income is interpreted early in the process gives you a clearer idea of what borrowing capacity might look like later.

Step 2 — Review Your Current Financial Position

Once you understand how your income works, the next step is reviewing your financial position. Lenders assess your entire financial picture, not just your income.

How HECS-HELP is usually treated

Most lenders treat your HECS-HELP debt as an ongoing liability. They factor in your compulsory repayment amount based on your income, which can reduce your borrowing capacity.

However, some lenders may exclude HECS-HELP debts in certain assessments. This is not universal, and it depends on the lender’s policy and the complexity of your application.

If your HECS-HELP balance feels like a barrier, it may help to compare different lender approaches rather than assuming the outcome in advance.

Your other liabilities and how they can affect your application

Credit cards, personal loans, car loans and buy now pay later accounts can all influence borrowing power. Even if your credit card is unused, lenders usually assess the limit, not the balance.

If you reduce or close unnecessary facilities early, you may improve your borrowing position over time. Just remember that changing facilities during pre-approval or before settlement can affect your application, so timing matters.

The importance of a consistent savings pattern

A predictable savings pattern often matters more than the total amount you save. Some lenders still look for “genuine savings” when deposits are contributed by you over time. Others may accept non-genuine savings depending on the overall strength of your application.

Creating a separate account for savings can help keep the pattern clear. It also demonstrates to lenders that you manage your money in a way that supports long-term repayment habits.

Setting a cash buffer for roster changes

Graduate nurses commonly move through different pay cycles, shifts, and leave periods. It can help to maintain a small buffer so you stay comfortable even when your hours change. A buffer also shows financial stability if the lender reviews your account statements before formal approval.

Step 3 — Estimate Your Borrowing Power as a Graduate Nurse

Once you understand your financial position, you can start estimating how much you may be able to borrow. This is where results often differ between lenders, as each one applies its own rules and servicing calculations.

How borrowing power is calculated

Lenders look at your income, expenses, existing debts, household size, servicing buffers, interest rate assumptions and the size of your deposit. Even though the inputs are similar, the way each lender assesses them can vary. Broker calculators usually use a lender’s own model, which often gives a more accurate estimate than a general online tool.

Why online calculators may show a lower (or different) result

Online calculators use simple assumptions and cannot factor in shift penalties, overtime, nursing allowances or lender-specific debt treatment. They also do not apply each bank’s servicing buffers. This is why the results can differ from what a lender may consider during a full assessment. We usually compare several models so you can see the realistic range.

How we interpret your income for each lender

When we assess borrowing capacity, we review your payslips, contract, rosters and income history to understand how each lender might treat your earnings. Consistent overtime may be partly included, while fluctuating penalties may be assessed differently depending on the lender. If you are early in your graduate year, we also check probation and contract rules before recommending a pathway.

This clarity helps you set a realistic budget and move forward with confidence.

Step 4 — Plan Your Deposit Strategy

Your deposit is one of the most important parts of your preparation. Knowing how much you need early helps you structure your savings plan and understand your options.

How much deposit you may need

Deposits vary depending on the property, your savings history and lender requirements. Most first-home buyers save between 5% and 20%, although this varies widely.

If your deposit is below 20%, Lenders Mortgage Insurance (LMI) may apply. Some lenders also have different LVR thresholds for applicants on probation or whose income includes higher variable components.

How LMI works and when it might apply

LMI protects the lender rather than the borrower, but it can help you buy a home with a smaller deposit. The cost depends on the loan amount, LVR and lender. Some lenders allow capitalisation of LMI into the loan amount, while others may limit this depending on the circumstances.

Some lenders may offer LMI waivers for nurses or essential service workers. This depends on:

• Lender-specific criteria
• Your role
• Location of property
• LVR limits
• The broker’s access to those products

These waivers are not universal and can change without notice, so checking the latest policy is important.

Government schemes that might support your deposit

Several federal and state programs may reduce upfront costs. These include:

• The First Home Guarantee
• State-based stamp duty concessions
• The First Home Owner Grant for eligible new builds

Schemes can have price caps, income caps, property type restrictions and documentation requirements. Eligibility can change, so it helps to confirm these details early through official sources such as Housing Australia, state revenue offices and firsthomebuyers.gov.au.

Step 5 — Organise Your Documentation Early

Having your documents ready can make pre-approval smoother and help avoid delays. Lenders usually begin by reviewing your employment information to confirm stability and income. For graduate nurses, this may include your employment contract, recent payslips and, if requested, an HR letter. If penalty rates or allowances form part of your income, you may also need to provide evidence of these. If you have moved between wards, hospitals or rotations, offering simple clarification around continuity can help the lender assess your role more accurately.

Lenders will also review your financial documentation, which usually includes:

• recent bank statements for all active accounts
• evidence of savings
• identification documents
• credit card, loan or other liability statements
• tax returns, if requested (not always required for PAYG nurses)

Keeping these documents organised and complete from the start can reduce back-and-forth requests and help the assessment process move more efficiently.

Step 6 — Compare Loan Options with Nursing Work Patterns in Mind

Once your financial position and deposit strategy are clear, you can start comparing loan types and features. Choosing the right structure can make day-to-day budgeting easier, especially when your income varies across different shifts.

Variable, fixed and split loans for graduate nurses

Each loan type has pros and cons depending on your circumstances and how stable your income feels during your graduate year.

• Variable loans may offer more flexibility, including access to offset accounts.
• Fixed loans provide repayment certainty for a set term.
• Split loans combine both and may suit borrowers who want predictability and some flexibility.

A mortgage broker for nurses can explain how these structures might align with your career stage, shift patterns and cash flow needs.

Loan features that may support cash flow stability

Many nurses prefer features that help manage income changes across different shifts or rotations. These include:

• offset accounts
• redraw facilities
• flexible repayment options
• the ability to make extra repayments

These features vary by lender, and some basic loans may not include all of them. Knowing what is available helps you choose a structure that supports your financial comfort over time.

Step 7 — Get Pre-Approval Before Starting Your Property Search

Pre-approval helps you understand your realistic price range and gives you more confidence when inspecting properties or making offers. It also helps you focus on homes that genuinely align with a lender’s assessment rather than relying on assumptions or online calculators.

What pre-approval actually means

Pre-approval is a conditional assessment of your borrowing capacity based on the information you have provided. It is not an unconditional approval and does not guarantee a loan. At this stage, lenders usually confirm:

• your income
• your everyday expenses
• your existing liabilities
• your deposit
• basic credit criteria

Most pre-approvals last between 60 and 90 days and can be refreshed if your circumstances remain stable.

What can change between pre-approval and settlement

Before granting unconditional approval, lenders reassess your application with updated information. They check your latest payslips, recent spending, any new debts or credit activity, the continuity of your employment and the property valuation. These reviews confirm that you still meet their criteria, so keeping your finances steady during this time is important.

Step 8 — Begin Your Property Search with Aligned Expectations

With pre-approval in place, you can refine your search criteria and focus on homes that genuinely fit your borrowing capacity. This helps you avoid properties outside your range and makes the search more efficient.

Matching your budget with realistic property options

Property prices vary across Australia, and many nurses prefer locations close to hospitals or healthcare precincts. When comparing areas, consider whether you are looking at regional or metropolitan locations, the transport access available for shift work, the distance to your workplace and the upkeep required for different property types. Each of these factors can influence your long-term affordability and day-to-day convenience.

Understanding ongoing ownership costs

Your mortgage is only one part of the total cost of owning a home. Ongoing costs include council rates, insurance, utilities, strata fees for units or townhouses and general maintenance. These smaller but regular expenses should be included in your long-term budget so you can stay comfortable financially as your career progresses.

Step 9 — Finalise Your Loan and Prepare for Settlement

Once you have found a property and your offer is accepted, the final stage of the process begins. Your lender reassesses your application using updated documents and arranges a valuation to confirm that the property aligns with the contract. If everything meets their criteria, they will issue unconditional approval.

Settlement then follows. This stage involves reviewing and signing loan contracts, arranging insurance and working with your conveyancer or solicitor to complete the legal requirements. We coordinate lender timelines and communicate with the relevant parties to help the process move smoothly toward settlement.

Taking Your First Steps Toward Home Ownership as a Graduate Nurse

Preparing for your first home can feel overwhelming when you are still settling into your graduate year, but a clear structure makes the process far more manageable. Understanding how lenders assess nursing income, knowing what to prepare and planning for sustainable repayments can help you move forward with confidence.

If you’re exploring your first-home options and want clarity around borrowing capacity, deposit pathways or lender policies, we can help. As a mortgage broker for nurses, Swish Mortgages explains how different lenders assess healthcare income, compares available policies and guides you through each step at a pace that suits your workload.

Your first home is a significant milestone, and the right preparation can make all the difference. If you’d like to see what options may be available for your situation, our brokers can help you compare policies and guide you through the next steps.