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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. As of 2025, here is what each state offers:

• 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 up to $750,000 in metro Melbourne, or up to $750,000 in regional areas
• Queensland: $30,000 for new homes valued up to $750,000 — the most generous grant in Australia
• Western Australia: $10,000 for new homes up to $750,000 (south of the 26th parallel) or $750,000 (north)
• South Australia: $15,000 for new homes valued up to $650,000
• Tasmania: $30,000 for new homes (no price cap)
• ACT: No grant available, but significant stamp duty concessions apply
• Northern Territory: $10,000 for new homes (no price cap) with an additional $2,000 renovation grant

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.

First Home Guarantee Scheme

The First Home Guarantee (previously called the First Home Loan Deposit Scheme) 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. There are 35,000 places available each financial year, with property price caps varying by location. For example, the cap in Sydney is $900,000, Melbourne $800,000, Brisbane $700,000, and regional areas range from $500,000 to $600,000.

To qualify, you must earn up to $125,000 per year as a single applicant or $200,000 combined for couples. 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.

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 offers a full exemption on homes up to $500,000 and concessions up to $550,000.

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 First Home Guarantee 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

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.

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 pre-approval gives you a firm budget and shows sellers you are a serious buyer. We compare 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, we submit 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, your dedicated home loan specialist at Your Finance Guide handles the paperwork, chases up lenders, and keeps you informed at every stage. Our service is completely free to you — we are 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.