First Home Buyer Guide Australia: Grants, Schemes & Steps (2026)

Key takeaways

Combining a federal scheme like the First Home Guarantee with a state First Home Owner Grant and stamp duty concessions can save eligible buyers $30,000 to $60,000+.
The First Home Guarantee, now called the 5% Deposit Scheme, lets eligible buyers purchase with a 5% deposit and no Lenders Mortgage Insurance. Since 1 October 2025 there's no income test and no limit on places.
The Family Home Guarantee allows single parents to buy with a 2% deposit, no LMI, and is available even if you have previously owned a home.
First home owner grants apply to new homes and vary widely by state, from no grant in the ACT to $30,000 in Queensland and $50,000 under the NT's HomeGrown Territory Grant.
Most states give first home buyers a full or partial stamp duty exemption, but the rules differ: SA and Queensland charge nothing on a new home at any price, Tasmania's exemption ended on 30 June 2026, and the NT has none.
Always verify current eligibility, price caps and grant amounts with the relevant government agency before relying on this information.

In this guide9 sections

Grants and schemes can cut what a first home costs to get into, but they don’t set the price you pay. Plan well under the cap to leave room to negotiate; missing one property is rarely as bad as buying the wrong one.

A note on accuracy

Grant amounts, income limits, and property price caps change regularly. Always verify current eligibility with the relevant government agency or a licensed professional before relying on this information.

Becoming a first home buyer in Australia

Buying your first home in Australia has never been more government-assisted. Federal schemes, state grants, and stamp duty concessions together can save eligible buyers tens of thousands of dollars. The challenge is that the schemes are complex, have different eligibility rules, and often interact with each other in ways that need careful planning.

The good news: if you’re eligible, combining a federal scheme like the First Home Guarantee with a state First Home Owner Grant and stamp duty concessions can mean buying your first home with as little as 5% deposit, no Lenders Mortgage Insurance, a cash grant, and reduced or zero stamp duty.

This guide covers the national picture. For state-specific detail, see our guides for NSW, VIC, QLD, WA, SA, TAS, NT, and ACT.

$30k–$60k+

What an eligible first home buyer can save by stacking the federal scheme, state grant and stamp duty concession on a typical capital-city purchase.

Estimate, varies by state and price

Federal government schemes

The Australian Government runs several schemes administered through Housing Australia (formerly NHFIC). These schemes allow eligible buyers to purchase with a smaller deposit without paying Lenders Mortgage Insurance (LMI). The government guarantees the gap.

1. First Home Guarantee (the 5% Deposit Scheme)

The most widely used scheme. It allows eligible first home buyers to purchase a property with as little as a 5% deposit without paying LMI. On 1 October 2025 it was expanded and renamed the Australian Government 5% Deposit Scheme.

Income limits: None since 1 October 2025
Who qualifies: Australian citizens or permanent residents aged 18+ who haven’t owned property in Australia (including a lease of land or company title) in the last 10 years. Apply alone or with one other person.
Property type: New and established homes, off-the-plan, house and land packages, and vacant land with a building contract, to live in
Number of places: Unlimited, with no waiting list
How to access: Apply through a participating lender or a broker.
Property price caps: By state and area, below.

State or territory	Capital city and regional centres	Rest of the state
New South Wales	$1,500,000 (Greater Sydney)	$800,000
Victoria	$950,000 (Greater Melbourne)	$650,000
Queensland	$1,000,000 (Greater Brisbane)	$700,000
Western Australia	$850,000 (Greater Perth)	$600,000
South Australia	$900,000 (Greater Adelaide)	$500,000
Tasmania	$700,000 (Greater Hobart)	$550,000
Australian Capital Territory	$1,000,000 across the territory
Northern Territory	$750,000 (Greater Darwin)	$600,000
Jervis Bay Territory and Norfolk Island	$550,000
Christmas Island and Cocos (Keeling) Islands	$400,000

Regional centres that take the capital-city cap: New South Wales: Central Coast, Coffs Harbour–Grafton, Illawarra, Mid North Coast, Newcastle and Lake Macquarie, Richmond–Tweed. Victoria: Geelong. Queensland: Gold Coast, Sunshine Coast. Both the purchase price and the lender’s valuation must be at or under the cap. Darwin’s cap rose from $600,000 on 1 July 2026; the other caps have applied since 1 October 2025. Source: Housing Australia and the Investment Mandate Direction, s29F, checked 7 October 2026. Check an exact address with Housing Australia’s postcode tool.

On 1 October 2026, Housing Australia data cited by the federal government showed 102,594 first home buyers had used the expanded scheme in its first year, with more than 280,000 supported since 2022. See our 5% Deposit Scheme guide for eligibility, price caps and how to apply.

2. 100,000 Homes for First Home Buyers

The Commonwealth is also partnering with states and territories to reserve up to 100,000 new homes for first home buyers. Deals announced to date include South Australia (nearly 6,877 reserved homes within about 17,000 new dwellings), the ACT (more than 1,700 reserved within about 4,900 homes) and Tasmania (up to 2,101 reserved within about 4,000 homes), with first completions expected from 2027–28. This is supply-side support and sits alongside deposit schemes rather than replacing them.

3. Regional First Home Buyer Guarantee

Closed. No new regional guarantees have been issued since 1 October 2025. Buyers in regional areas now use the 5% Deposit Scheme above, at the price cap for their area, with no residency test.

4. Family Home Guarantee

Designed for single parents and single legal guardians with at least one dependent child, and now marketed as the 5% Deposit Scheme for single parents. Allows purchase with just a 2% deposit without LMI.

Income limit: None since 1 October 2025
You do not need to be a first home buyer. If you own a home, it must be sold within 4 weeks of settling the new one.
Unlimited places; you apply on your own, with no joint applications
The same property price caps as first home buyers

5. Help to Buy (Shared Equity Scheme)

Help to Buy (shared equity): the government contributes up to 40% of a new home or 30% of an existing one, with a 2% minimum deposit and no LMI. For 2026–27 the income limits are $103,000 (single) and $165,000 (joint or single parent). It can’t be combined with the 5% Deposit Scheme. See Help to Buy guide.

The government shares in any rise or fall in the home’s value in proportion to its share, and you can buy it back over time.

6. First Home Super Saver scheme (FHSS)

First Home Super Saver scheme (FHSS): save part of your deposit in super with voluntary contributions, up to $15,000 a year and $50,000 in total per person, then withdraw 85% of before-tax contributions and all after-tax ones, plus deemed earnings (7.51% a year for October–December 2026). Salary sacrifice is taxed at 15% going in, and the release at your marginal rate less a 30% offset. There’s no price cap, and it combines with the other schemes. See the FHSS guide or run your numbers in the FHSS calculator.

First Home Owner Grant by state

The First Home Owner Grant (FHOG) is a one-off cash grant available in most states and territories. It generally only applies to new homes (newly built, substantially renovated, or off-the-plan), not established properties.

State or territory	Grant	What it covers
NSW	$10,000	$10,000 for a new home bought for up to $600,000, or $750,000 for land and a building contract
VIC	$10,000	$10,000 for a new home valued up to $750,000
QLD	$30,000	$30,000 for a new home valued under $750,000
WA	$10,000	$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	Up to $15,000 for a new home, with no value cap
TAS	$20,000	$20,000 for a new home, with no value cap, for transactions from 1 July 2026 to 30 June 2027
ACT	No grant	No first home owner grant; it ceased on 1 July 2019, and the Home Buyer Concession Scheme removes the duty instead
NT	$50,000	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

Grants for a new home, checked against each revenue office on 14 October 2026.

Always verify before relying on these figures

Grant amounts, price caps, and eligibility criteria change. Check the relevant state revenue office for the current rules before proceeding.

First home buyer stamp duty concessions

Stamp duty is one of the biggest upfront costs when buying property. Most states give first home buyers a full exemption or a reduced rate, subject to thresholds, and in several the rule depends on whether the home is new and on the date you sign. The calculator below applies the current rule for an established home; the full calculator also takes the contract date and the kind of property.

Quick estimate

Stamp duty calculator

State

Purchase price

I’m a first home buyer (apply concessions)

Estimated stamp duty

$25,687

3.67% effective rate on $700,000

This is a simplified estimate using current state brackets. For an exact figure factoring in foreign-buyer surcharges, off-the-plan concessions, or pensioner rebates, use the full calculator

State or territory	Established home	New home	Vacant land to build
NSW	No duty up to $800,000, reduced duty below $1,000,000	No duty up to $800,000, reduced duty below $1,000,000	No duty up to $350,000, reduced duty below $450,000
VIC	No duty up to $600,000, reduced duty to $750,000	No duty up to $600,000, reduced duty to $750,000	No duty up to $600,000, reduced duty to $750,000
QLD	No duty up to $700,000, reduced duty below $800,000	No duty, with no price cap	No duty on residential vacant land to build a first home, with no value cap
WA	No duty up to $600,000, then $16.15 per $100 above that, to $800,000	No duty up to $600,000, then $16.15 per $100 above that, to $800,000	No duty up to $450,000, then $20.14 per $100 above that, to $550,000
SA	No first home duty relief on an established home	No duty, with no price cap	No duty, with no price cap
TAS	No first home duty relief for a transfer settling after 30 June 2026	No first home duty relief on a new home; the First Home Owner Grant applies instead	No first home duty relief on vacant land
ACT	No duty at any price, with no income test, if you haven't held an interest in any property in the last five years	No duty at any price, with no income test, if you haven't held an interest in any property in the last five years	No duty at any price, with no income test, if you haven't held an interest in any property in the last five years
NT	No first home buyer duty concession; the help comes as the HomeGrown Territory Grant	No first home buyer duty concession; the help comes as the HomeGrown Territory Grant	No first home buyer duty concession; the help comes as the HomeGrown Territory Grant

For a contract signed now (in Tasmania, a settlement now). Checked against each revenue office on 14 October 2026.

Step-by-step buying process for first home buyers

See our Complete Buying Guide for detailed coverage of each step. For first home buyers specifically, the key additional steps are:

Check your FHOG eligibility before making any offer. The grant is only available if you haven’t previously owned property in Australia.
Apply for your chosen federal scheme through a participating lender before or during your pre-approval application. It’s part of the one process.
Get pre-approval specifying you’re accessing the First Home Guarantee (or relevant scheme) so the lender structures it correctly.
Confirm stamp duty concessions with your conveyancer. Concessions are applied on settlement and reduce the amount you need to pay.
Apply for the FHOG through your conveyancer or directly with your state revenue office. Timing varies by state; some pay at settlement, some after.
Complete the standard buying process: offer, exchange, inspections, conveyancing, settlement.

Common mistakes first home buyers make

Exceeding the price cap for the FHOG or scheme: Even $1 over the cap disqualifies you from the entire grant. Stay under.
Not checking FHOG eligibility before buying an established property: In most states, the FHOG only applies to new builds. Buying an established home means no grant.
Underestimating total upfront costs: First home buyers often budget only for the deposit and forget stamp duty (even if discounted), legal fees, and inspections. Budget 3 to 5% on top of the purchase price for costs.
Letting pre-approval lapse: Pre-approvals typically last 90 days. If you’re not ready to buy in that window, renew before it expires.
Buying in a hurry due to FOMO: The property market has cycles. Missing one property is rarely as catastrophic as buying the wrong one.
Not getting a building inspection: On a new property, you may have builder warranty cover, but a defect inspection before settlement is still prudent. On an established property, it’s essential.
Not comparing lenders: The home loan you get approved for on your first attempt may not be the best rate available to you. A mortgage broker can compare dozens of lenders in one application process.

Using a broker with the First Home Guarantee

You don’t have to use a mortgage broker to access the First Home Guarantee. You can go direct to a participating lender. However, a good broker can:

Compare rates and features across all participating lenders simultaneously
Know which lenders take part in the 5% Deposit Scheme and how each treats it
Help structure your application to maximise your approval chances
Handle the FHBG paperwork as part of your loan application at no extra cost to you

Broker remuneration is paid by the lender, not you. Ensure your broker is licensed (check ASIC’s register) and ask them to explain how they are compensated to understand any potential bias.

State-specific first home buyer guides

For state-specific detail on grants, concessions, and the buying process:

Next step

Make a first home plan

Your next three steps for your state, with the grant, stamp duty and federal scheme checks in order, and a checklist before you start looking.

Make a first home plan Stamp duty calculator Borrowing power calculator

Common questions

Can I use the First Home Guarantee and the First Home Owner Grant at the same time?

Yes, in most cases. The First Home Guarantee is a federal scheme that lets you buy with a 5% deposit and no LMI; the First Home Owner Grant is a state cash grant. They have different eligibility rules, but if you qualify for both, they stack. The catch is that the FHOG generally only applies to new homes, while the FHBG can be used for both new and established properties.

What is the income limit for the First Home Guarantee?

There isn't one. The income test was removed on 1 October 2025, when the scheme was expanded and renamed the Australian Government 5% Deposit Scheme. The Family Home Guarantee for single parents and legal guardians has no income test either. What still applies is the property price cap for the area you buy in.

Do I need to be a first home buyer to use the Family Home Guarantee?

No. The Family Home Guarantee is open to single parents and single legal guardians with at least one dependent child, even if you have previously owned property. If you own a home now, you can still use it as long as you sell that home within 4 weeks of settling the new one.

How much deposit do I need to buy a first home in Australia?

Without a government scheme, lenders typically want 20% to avoid LMI. With the First Home Guarantee you can buy with 5%. With the Family Home Guarantee a 2% deposit is enough. Even with the schemes, you also need to budget for stamp duty (where it applies), conveyancing, building inspections, and lender fees, typically 3% to 5% of purchase price on top.

Do I have to use a mortgage broker to access the First Home Guarantee?

No. You can apply directly with any participating lender. A broker can compare rates across lenders, know which ones offer the 5% Deposit Scheme, and handle the FHBG paperwork as part of your loan application at no cost to you. Brokers are paid by the lender, not by you.

What happens if my purchase price exceeds the price cap by a small amount?

For the 5% Deposit Scheme and the grants with a value cap, a dollar over rules you out entirely. Stamp duty relief usually tapers above the exemption threshold instead, but above the top of the band it's gone too. Plan well under the cap to leave room for negotiation.

Can I buy an established home as my first home and still get a grant?

You can use the First Home Guarantee on an established home. But the First Home Owner Grant applies only to new builds, off-the-plan, or substantially renovated homes. If you buy an established home, expect the FHBG and, in most states, stamp duty relief, but no grant. SA, Tasmania and the NT give no first home duty relief on an established home.