First Home Buyers Guide Australia 2026 — Grants, Schemes, Deposits and Suburbs
Everything Australian first home buyers need in one place — federal and state grants, stamp duty concessions, the First Home Super Saver scheme, deposit and LMI maths, suburb research, and an interactive calculator.
- Any Australian first home buyer — or anyone who hasn't owned property in the last 10 years — can now buy with a 5% deposit under the Australian Government 5% Deposit Scheme. Places are uncapped, income caps removed from 1 October 2025, and no LMI is payable.
- The Help to Buy shared equity scheme is now open — the government contributes up to 40% of a new home's purchase price, reducing your loan. Income caps apply ($100,000 individual / $160,000 joint). 10,000 places per year. Australian citizens only. Tasmania not yet participating.
- The $10,000 First Home Owner Grant applies to new builds only in most states — not existing homes.
- Stamp duty exemptions save up to ~$31K in NSW (under $800K), with similar concessions in VIC, QLD, WA and SA.
- The First Home Super Saver (FHSS) scheme lets you save up to $50,000 inside super at concessional tax rates.
- Budget for 5–7% of purchase price in total upfront costs (deposit + stamp duty + LMI + conveyancing + inspections).
By Twin · Last reviewed
This guide covers every major first home buyer program, concession and cost in Australia — from the Australian Government 5% Deposit Scheme and Help to Buy shared equity through to state First Home Owner Grants, stamp duty exemptions, the First Home Super Saver scheme, and deposit versus LMI trade-offs. Each section includes state-by-state breakdowns for NSW, VIC, QLD, WA, SA, TAS, ACT and NT, with current thresholds and eligibility rules sourced from state revenue offices and Housing Australia. Use the interactive calculator to estimate your deposit, stamp duty, LMI and monthly repayments based on your state, purchase price, and household income.
The guide is organised into clear sections: how much you actually need upfront; federal schemes (5% Deposit, Help to Buy, FHSS); state grants and stamp duty concessions; the buying process step-by-step; common first home buyer mistakes to avoid; suburb research links; and an FAQ covering the questions we see most often. Grant amounts, scheme eligibility and thresholds change frequently — confirm current figures at firsthomebuyers.gov.au, your state revenue office, and your participating lender before signing any contract.
1. How Much Do You Actually Need?
The deposit is only part of the upfront cost. For a $750,000 property, the table below shows what you actually need at each deposit level — including Lenders Mortgage Insurance (LMI), where it applies, and the rough total upfront cost once stamp duty, conveyancing and inspection fees are included.
| Deposit level | Deposit amount | LMI cost | Total upfront |
|---|---|---|---|
| 5% (with 5% Deposit Scheme) | $37,500 | $0 (government guarantee) | ~$55,000 |
| 5% (without guarantee) | $37,500 | ~$18,000 | ~$73,000 |
| 10% | $75,000 | ~$8,000 | ~$103,000 |
| 20% | $150,000 | $0 | ~$168,000 |
Indicative figures for a $750,000 property in NSW. Stamp duty assumes the standard FHB exemption applies. Your numbers will differ — use the calculator below.
Additional upfront costs to budget for:
- Stamp duty — varies by state and property price (often $0 for FHBs under thresholds)
- Conveyancing or solicitor fees — $1,500–$3,000
- Building and pest inspection — $500–$800
- Loan application and valuation fees — $0–$700 depending on lender
- Mortgage registration and transfer fees — ~$300
- Moving costs — $500–$3,000
2. Government Grants and Schemes 2026
Grant amounts and thresholds updated 3 June 2026. Always confirm current figures with your state revenue office and Services Australia before signing a contract.
Australian Government 5% Deposit Scheme
Formerly known as the Home Guarantee Scheme (HGS) and First Home Guarantee. The Commonwealth guarantees the portion of your loan above 80% LVR, letting you buy with a 5% deposit and skip LMI. From 1 October 2025: no income caps, no cap on places, no waitlists. Over 248,000 Australians helped since 2020.
- Minimum 5% deposit for first home buyers
- No income caps (removed 1 October 2025)
- No LMI payable
- Places uncapped — no waitlist
- Eligible buyers: Australian citizens or permanent residents who are first home buyers OR have not owned property in Australia in the last 10 years
- Can apply as an individual, couple, or with friends, family members, or other eligible parties — all applicants must intend to live in the property
- Property price caps apply by location — check with your participating lender
- Apply through a participating lender, not directly to Housing Australia
- Once pre-approved, 90 days to find a home and sign a contract of sale
Single Parent / Legal Guardian Stream
Minimum 2% deposit, no LMI. For single parents and single legal guardians. Same expanded eligibility — no income caps from 1 October 2025.
Australian Government Help to Buy Scheme
Open for applications from 5 December 2025. A shared equity scheme where the federal government contributes toward the purchase price of your home, reducing your loan size. You own the home outright but share the equity with the government until you buy them out or sell.
- Minimum 2% deposit
- Government contributes up to 40% for new builds, up to 30% for existing homes
- 10,000 places per year
- Income caps: $100,000 per year for individual applicants; $160,000 for joint applicants and single parents (based on previous year's ATO Notice of Assessment)
- Australian citizens only — permanent residents are not eligible
- Cannot currently own any property in Australia or overseas (exceptions for single parents in specific circumstances)
- Must live in the property as principal place of residence
- Cannot be combined with other government shared equity schemes or loan guarantees — but stamp duty concessions and grants are still allowed
- Tasmania not yet participating — all other states and territories available
- Apply through a participating lender, not directly to Housing Australia
- Once conditionally approved, 90 days to find a home and sign a contract
How Help to Buy works — example
On an $800,000 home: buyer contributes $16,000 deposit (2%), borrows $544,000 from a participating lender, and the government contributes $240,000 (30% equity stake). The buyer owns the home and repays their mortgage normally. The government's 30% equity share is repaid when the property is sold, when the buyer purchases back the government's share, or through incremental voluntary repayments. If the property grows in value, the government shares proportionally in the gain — and equally in any loss.
State First Home Owner Grants
| State | Grant | New / established | Property cap |
|---|---|---|---|
| NSW | $10,000 | New builds only | $750,000 |
| VIC | $10,000 ($20K regional) | New builds only | $750,000 |
| QLD | $15,000 – $30,000 | New builds only | $750,000 |
| WA | $10,000 | New builds only | $750,000 (S of 26°) |
| SA | $15,000 | New builds only | None |
| TAS | $30,000 | New builds only | None |
| ACT | No FHOG | Replaced by HBCS | — |
| NT | $10,000 (established) / $50,000 (new builds) | New and established | None |
QLD: $30,000 grant applies to contracts signed from 20 November 2023; $15,000 applies to earlier contracts still in progress.
NT: $50,000 HomeGrown Territory Grant applies to new builds on contracts signed 1 October 2024 – 30 September 2026. The $10,000 established home grant was originally planned to cease 30 September 2025 — confirm current availability with the Territory Revenue Office before signing.
Stamp duty concessions by state
| State | Full exemption | Concession band |
|---|---|---|
| NSW | ≤ $800,000 | $800,000 – $1,000,000 |
| VIC | ≤ $600,000 | $600,000 – $750,000 |
| QLD | ≤ $700,000 | $700,000 – $800,000 |
| WA | ≤ $600,000 (homes) / ≤ $450,000 (vacant land) | $600,000 – $800,000 (homes) / $450,000 – $550,000 (vacant land) |
| SA | New homes, off-the-plan & vacant land (no price cap) | Established homes: no FHB stamp duty relief |
| TAS | 50% concession ≤ $750,000 | Established only |
| ACT | Income-tested ≤ $1m | Home Buyer Concession Scheme |
| NT | Territory Home Owner Discount | Up to ~$50,000 stamp duty saving |
WA thresholds apply to owner-occupier purchases. Vacant land has separate thresholds: full exemption ≤ $450,000, concession to $550,000.
Stamp duty exemptions are the single largest dollar saving available to most first home buyers — often $20,000–$31,000 in NSW, $15,000–$24,000 in VIC.
3. First Home Super Saver Scheme (FHSS)
The First Home Super Saver Scheme lets you make voluntary contributions into your super fund and later withdraw them — plus deemed earnings — for a first home deposit. You can contribute up to $15,000 per financial year and withdraw a maximum of $50,000 in voluntary contributions across all years (couples can each access $50,000, for a combined $100,000).
The tax advantage: contributions are taxed at 15% inside super, rather than your marginal rate. For someone on the 32.5% marginal rate, that's a 17.5 percentage point discount on every dollar saved into super. On $50,000 of contributions, that's roughly $8,750 of tax saved compared to saving the same amount outside super.
The catch: you must apply to the ATO for an FHSS determination before signing a contract of sale. If you sign first, you lose access. The withdrawal itself takes 15–25 business days, which means timing the FHSS request alongside your pre-approval and offer is critical.
Couples, friends or siblings can each access their own FHSS savings to purchase the same property — each person's $50,000 maximum applies separately.
Stricter eligibility than the 5% Deposit Scheme: FHSS requires that you have never owned property in Australia — including investment property, vacant land, or commercial property. This is stricter than the 5% Deposit Scheme's 10-year lookback rule.
FHSS + the 5% Deposit Scheme combined is the most powerful combination available to Australian first home buyers — tax-advantaged deposit savings stacked with a 5% deposit, no-LMI guaranteed loan.
For broader super strategy, see WealthWatchPro's retirement planning guide.
4. Borrowing Capacity and Mortgage Basics
Lenders assess borrowing capacity using your income, existing debts, household composition, and an expense benchmark called HEM (Household Expenditure Measure). Buy Now Pay Later balances, credit card limits (not balances — limits), and HECS-HELP all reduce capacity.
Use the APF mortgage calculators to estimate your borrowing power, monthly repayments, and stamp duty before speaking to a lender.
The serviceability buffer: APRA requires banks to assess your loan at the actual interest rate plus 3 percentage points. At a 6.00% headline rate, that means servicing is tested at 9.00%. A loan that is comfortable today must still be repayable if rates rise.
Pre-approval, conditional and formal approval: pre-approval is a lender's indicative agreement to lend up to a stated amount, valid for 60–90 days. Conditional approval applies once you have a property — subject to valuation. Formal (unconditional) approval is the final green light required before you can exchange contracts unconditionally.
Fixed vs variable for first home buyers: variable gives you flexibility to make extra repayments and access an offset account — usually the better default for FHBs in 2026's rate environment. Fixing 1–3 years suits buyers who specifically need certainty for budgeting.
Offset vs redraw: an offset account is a transaction account linked to your loan that reduces interest dollar-for-dollar against your balance. Redraw is access to extra repayments you've already made. For FHBs building an emergency fund, the offset account matters more.
LMI explained: Lenders Mortgage Insurance protects the lender if you default on a loan above 80% LVR. It typically costs $8,000–$25,000 and can be capitalised onto the loan or paid upfront. The First Home Guarantee waives LMI entirely — see LVR and LMI explained.
Broker vs bank: a broker compares 30+ lenders and is paid by the lender, not by you. For first home buyers navigating 5% Deposit Scheme participating lenders, lender-specific FHB policies, and post-grant conditions, a good broker pays for itself in time saved alone.
5. Finding the Right Suburb
The suburb you buy in matters more than the property itself — over a 10-year hold, suburb-level capital growth typically dwarfs differences between individual homes. First home buyers should prioritise four things: medium-term price growth indicators, transport connectivity, school catchments (even if you don't have kids — they drive resale demand), and the infrastructure pipeline.
The infrastructure premium is real and measurable: announced metro extensions, hospital builds and motorway upgrades typically add 8–15% to suburb medians within a 1km radius over the 3–5 years following the announcement.
For agent performance and clearance data when choosing a buyer's agent or selling agent, see REAStats.
Affordability by state — entry points under $600K
- NSW under $600K: Western Sydney (Blacktown, Penrith, Liverpool), the Hunter (Maitland, Cessnock), Central Coast (Wyong corridor).
- VIC under $600K: Northern growth corridor (Craigieburn, Epping, Mickleham), Geelong outer suburbs, Ballarat, Bendigo.
- QLD under $600K: Logan, Ipswich, Moreton Bay growth corridor, Toowoomba — though much of South East Queensland is approaching the threshold.
- WA under $600K: Most of greater Perth still has entry-level options, particularly the southern and northern outer corridors.
- SA under $600K: Most of Adelaide remains accessible despite recent growth; northern suburbs offer the strongest entry points.
6. The Buying Process — Step by Step
- 1
Check eligibility for grants and schemes
Confirm you meet the federal and state criteria — Australian citizen or permanent resident, first home buyer (or no Australian property ownership in the last 10 years for the 5% Deposit Scheme), and any income caps for Help to Buy. Eligibility for the 5% Deposit Scheme, Help to Buy, FHOG, and FHSS is checked separately and the rules differ.
- 2
Build your deposit and FHSS savings
Aim for at least 5% genuine savings. Open a high-interest savings account and consider salary-sacrificing into super under FHSS to lower the tax on your deposit savings. Apply to the ATO for a determination before signing any contract.
- 3
Get your finances in order
Pay down credit cards, close unused store cards, and avoid Buy Now Pay Later balances in the three months before you apply. Lenders look at your last three months of statements line by line — Uber Eats and weekend spending matter.
- 4
Get pre-approval
Pre-approval gives you a borrowing ceiling and credibility with agents. A broker can compare 30+ lenders against your situation, including 5% Deposit Scheme participating lenders. Pre-approval is typically valid for 90 days.
- 5
Engage a conveyancer or solicitor early
Don't wait until you've signed a contract. A conveyancer engaged early reviews contracts before you sign, checks for easements and zoning issues, and handles the legal side of settlement.
- 6
Research suburbs using APF suburb data
Use APF's suburb data to compare median prices, clearance rates, and growth indicators across 329 suburbs. Filter by state to find entry-level markets that match your budget.
- 7
Inspect properties and conduct due diligence
Always order a building and pest inspection on freehold properties — typically $500–$800. Read strata reports for apartments, including the sinking fund balance and any special levies. Check council records for unapproved works.
- 8
Make an offer or bid at auction
Private treaty offers usually have a cooling-off period. Auctions do not — once the hammer falls you are unconditionally bound. Review our auction guide before bidding for the first time.
Read our auction buying guide → - 9
Exchange contracts — cooling off period
Cooling-off periods vary by state and territory. Once the period expires — or if you waive it — you are bound to complete. See the table below for state-by-state periods and penalties.
State / Territory Period Penalty if withdrawn NSW 5 business days (10 for off-the-plan) 0.25% of purchase price VIC 3 clear business days 0.2% or $100, whichever is greater QLD 5 business days 0.25% of purchase price SA 2 business days (from receipt of Form 1) Varies ACT 5 business days 0.25% of purchase price NT 4 business days (if unrepresented); none if represented by a professional — WA No statutory cooling-off period — TAS No statutory cooling-off period — Auctions: No cooling-off period applies to auction purchases in any state. Once the hammer falls you are unconditionally bound.
In NSW, buyers can waive the cooling-off period by providing a 66W certificate signed by their solicitor or conveyancer.
- 10
Settlement — final checks, key handover
Settlement typically occurs 30–90 days after exchange. Conduct a final inspection 24–48 hours before settlement to confirm the property is in the agreed condition. Funds transfer, title transfers, and keys are handed over on settlement day.
7. Common First Home Buyer Mistakes
1. Not getting pre-approval before inspecting
Falling in love with a home before knowing your borrowing capacity is the most common — and most painful — first home buyer mistake. Get pre-approval first, then inspect within your range.
2. Forgetting stamp duty in the budget
Even with first home buyer concessions, stamp duty can add $20,000–$40,000 to the upfront cost outside the exemption thresholds. Factor it in before you set your maximum bid.
3. Borrowing the maximum the bank offers
Banks lend against serviceability buffers — not your lifestyle. Maximum borrowing capacity often translates to repayments that consume 40%+ of take-home pay. Borrow what's comfortable, not what's possible.
4. Skipping the building and pest inspection
A $600 inspection routinely uncovers $30,000+ of structural, termite, or moisture issues. On any freehold property older than 10 years, an inspection is non-negotiable.
5. Not understanding the cooling off period
Cooling-off periods don't apply at auction. Many first home buyers learn this the hard way after bidding above their pre-approval limit at a competitive Saturday auction.
6. Letting FOMO drive the timeline
Buying in the wrong suburb under media pressure or auction-day adrenaline locks you into a 30-year decision. The market will produce another property next month — and the month after.
7. Ignoring strata levies and sinking funds on apartments
Quarterly strata levies of $1,500–$3,000 are common in Sydney and Melbourne apartments. Special levies for facade or fire-safety upgrades can run into tens of thousands. Read the strata report before bidding.
8. First Home Buyer Calculator
Estimate your eligible grants, stamp duty, minimum deposit, LMI, total upfront funds required and indicative monthly repayment. Indicative only — figures are based on simplified state thresholds and an indicative 6.00% 30-year owner-occupier rate.
This calculator is indicative only and uses simplified state thresholds and a single interest rate assumption. Confirm grant eligibility and exact stamp duty with your state revenue office and your lender or broker before relying on these figures.