First home buyers

Most lenders accept a 5% deposit if you qualify for the First Home Guarantee (FHBG), which waives Lenders Mortgage Insurance. Without the FHBG, plan for 20% to avoid LMI, or 5-10% plus LMI of roughly 2-4% of the loan amount. You'll also need 2-5% on top for stamp duty, conveyancing and inspection costs.

The FHOG is administered by each state and territory, for new homes only. NSW: $10,000 for a new home bought for up to $600,000, or $750,000 for land and a building contract. VIC: $10,000 for a new home valued up to $750,000. QLD: $30,000 for a new home valued under $750,000. WA: $10,000 for a new home valued up to $800,000 in Perth and the south of the state, or $1,000,000 north of the 26th parallel. SA: up to $15,000 for a new home, with no value cap. TAS: $20,000 for a new home, with no value cap, for transactions from 1 July 2026 to 30 June 2027. NT: the HomeGrown Territory Grant, $50,000 for building or buying a new home, with no price cap, for contracts from 1 October 2024 to 30 September 2027. The ACT has no grant.

Often no, or much less than other buyers. On an established home, NSW charges first home buyers nothing up to $800,000, with a sliding concession below $1,000,000. VIC waives it up to $600,000, sliding to $750,000. QLD charges nothing up to $700,000, phasing out to $800,000, and nothing on a new home at any price. WA exempts up to $600,000. SA charges nothing on a new home or land to build but full duty on an established home, and the ACT nothing at any price from 1 July 2026. Tasmania's exemption ended for settlements after 30 June 2026. Always check current thresholds with the state revenue office before you make an offer.

LMI protects the lender — not you — if you default on the loan. It typically applies when your deposit is less than 20% of the purchase price. The cost ranges from roughly 1% of the loan for a 15% deposit up to 4-5% for a 5% deposit. LMI is waived under the First Home Guarantee, the Family Home Guarantee and the Regional First Home Buyer Guarantee.

The First Home Guarantee (FHBG) lets eligible first home buyers buy with a 5% deposit and no LMI. The federal government guarantees up to 15% of the loan, so the lender treats it as if you had a 20% deposit. There's been no income test and no limit on places since 1 October 2025. Property price caps vary by area (for example $1,500,000 in Greater Sydney), and you apply through a participating lender.

The FHSSS lets you make voluntary contributions to your super (up to $15,000 per year, $50,000 total) and withdraw them, plus deemed earnings, for a first home deposit. Salary sacrificed contributions are taxed at 15% in super instead of your marginal rate, which is where the saving comes from. Since 15 September 2024 you need the ATO's determination before the home becomes yours (generally settlement), and you can request the release up to 90 days after signing a contract.

Yes. Conditional approval (often called pre-approval) tells you what a lender will lend you based on your income and expenses, subject to property valuation. It's not legally binding but it shapes what you can credibly bid on and is a prerequisite for most auctions. Most pre-approvals are valid for 3-6 months.