First home buyer loans

Government Grants and Schemes for First Home Buyers

Australian governments at both federal and state levels offer substantial assistance to help first home buyers break into the property market. Understanding and combining these incentives can save you tens of thousands of dollars and dramatically reduce the deposit you need.

First Home Owner Grant (FHOG) by State

The First Home Owner Grant is a one-off payment that varies by state and territory. Each jurisdiction sets its own eligibility rules and property value caps, so the amount you receive depends on where you buy. Here is what each state offers, checked against the state revenue offices on 30 September 2026:

• New South Wales: $10,000 for new homes valued up to $600,000 (or land and building up to $750,000)
• Victoria: $10,000 for new homes valued up to $750,000, anywhere in the state
• Queensland: $30,000 for new homes valued under $750,000 (contracts from 20 November 2023)
• Western Australia: $10,000 for new homes up to $800,000 south of the 26th parallel or $1,000,000 north of it (transactions from 7 May 2026)
• South Australia: $15,000 for new homes, with no value cap since June 2024
• Tasmania: $20,000 for new homes where the transaction starts between 1 July 2026 and 30 June 2027 ($30,000 in 2025-26), with no price cap
• ACT: No grant available, but significant stamp duty concessions apply
• Northern Territory: grants for new homes; check the Territory Revenue Office for the current amounts

To be eligible for the FHOG, you generally must be an Australian citizen or permanent resident, over 18 years old, and must not have previously owned residential property in Australia. The property must be a new home or substantially renovated dwelling, and you must live in it for at least six to twelve months. The state guides go further: NSW, Victoria, Queensland, WA, SA and Tasmania.

Australian Government 5% Deposit Scheme (formerly the First Home Guarantee)

Full guides: the 5% Deposit Scheme, the single parent 2% stream, Help to Buy and the First Home Super Saver Scheme.

The Australian Government 5% Deposit Scheme (previously the Home Guarantee Scheme and First Home Guarantee) is a federal government initiative that allows eligible first home buyers to purchase a property with as little as a 5% deposit without paying Lenders Mortgage Insurance. LMI typically costs between $10,000 and $40,000, so this scheme can deliver enormous savings.

The government essentially guarantees the difference between your deposit and 20% of the property value. This means you still borrow the full amount from your lender, but you avoid the cost of LMI.

Places have been uncapped since 1 October 2025, with property price caps varying by location. For example, the cap in Sydney is $1.5 million, Melbourne $950,000, Brisbane $1 million, and other areas range from $500,000 to $800,000.

There is no income test; the previous caps of $125,000 for singles and $200,000 for couples were removed in October 2025. You must be an Australian citizen aged 18 or over, and the property must be owner-occupied.

Stamp Duty Concessions for First Home Buyers

Beyond grants, every state and territory offers stamp duty concessions that can save you a significant amount on your purchase. Stamp duty is one of the largest upfront costs when buying a home, typically ranging from $15,000 to $50,000 depending on the property price and state.

Where the concessions start and stop

In NSW, first home buyers pay zero stamp duty on properties up to $800,000 and receive a concessional rate on properties between $800,000 and $1,000,000. Victorian first home buyers pay no stamp duty on properties up to $600,000, with concessions available up to $750,000. Queensland charges no transfer duty on a new first home at any value (contracts from 1 May 2025) and none on an established first home valued at $700,000 or less, with a reducing concession to $800,000.

New and established homes

These concessions apply to both new and established homes in most states, unlike the FHOG which is typically restricted to new properties. This makes stamp duty savings particularly valuable for buyers looking at established homes in established suburbs.

How Much Deposit Do You Really Need?

The deposit required for your first home depends on the lender, the property, and whether you access government schemes. Here is a breakdown of the main options:

• 2% deposit: Some lenders offer ultra-low deposit options, typically with strict income requirements and LMI
• 5% deposit: Available through the 5% Deposit Scheme without LMI, or with LMI through most lenders
• 10% deposit: Reduces your LMI cost significantly compared to 5%
• 20% deposit: No LMI required, and you qualify for the most competitive interest rates

The costs on top of the deposit

Beyond the deposit, budget for additional costs including conveyancing fees ($1,500-$3,000), building and pest inspections ($500-$1,000), loan application fees (some lenders waive these), and moving costs. A good rule of thumb is to allow an extra $10,000-$15,000 above your deposit for these expenses. The low deposit home loans guide compares the ways to buy with less than 20%.

Step-by-Step Guide to Buying Your First Home

Purchasing your first home is a significant milestone, and having a clear plan makes the process far less stressful. Here is the typical journey from saving your deposit to settling on your new home:

1. Check your eligibility: Determine which grants and schemes you qualify for. This influences how much deposit you need and which properties are within your reach.
2. Get pre-approved: A home loan pre-approval gives you a firm budget and shows sellers you are a serious buyer. A broker compares over 50 lenders to find the best rate for your situation.
3. Start house hunting: Armed with your pre-approval, you can search with confidence knowing exactly what you can afford.
4. Make an offer: Whether at auction or through private treaty, your pre-approval means you can move quickly when you find the right property.
5. Formal approval: Once your offer is accepted, the broker submits your full application. This typically takes 3-5 business days.
6. Exchange and settlement: Your conveyancer handles the legal transfer, and settlement usually occurs 30-90 days after exchange.

Throughout this entire process, a home loan broker handles the paperwork, chases up lenders, and keeps you informed at every stage. The broker service is free for borrowers; the broker is paid by the lender when your loan settles.

First Home Super Saver Scheme

The First Home Super Saver (FHSS) scheme lets you make voluntary contributions to your super fund and later withdraw them for your first home deposit. You can contribute up to $15,000 per financial year in voluntary concessional contributions, with a total cap of $50,000.

Because concessional contributions are taxed at 15% instead of your marginal tax rate, high-income earners can save significantly more through this scheme compared to saving in a regular bank account.

To access your FHSS savings, you apply to the ATO for a determination of how much you can release. Once approved, the funds are paid to you and must be used for your first home purchase within 12 months. If your plans change, you can return the funds to your super or pay a flat tax of 20% on the withdrawal amount.