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

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, and WA.

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 (FHBG)

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.

• Income limits: $125,000/year for singles; $200,000/year for couples (combined taxable income from the previous financial year)
• Who qualifies: Australian citizens or permanent residents aged 18+, who have not previously owned or had an interest in real property in Australia
• Property type: New and established residential properties
• Property price caps (selected, 2025/26): Vary by location, typically $800,000 to $900,000 in capital cities and $650,000 to $750,000 in regional areas. Check Housing Australia’s website for the cap in your specific location.
• Number of places per year: 35,000 places (shared with Regional First Home Buyer Guarantee)
• How to access: Apply through a participating lender. Most major banks and many credit unions participate.

2. Regional First Home Buyer Guarantee

The same structure as the FHBG but specifically for buyers purchasing in regional Australia. You must have lived in the regional area (or an adjacent area) for at least 12 months continuously prior to purchase.

• Same income limits and deposit (5%) as the FHBG
• Property price caps apply, generally the same regional caps as FHBG
• 10,000 places per year

3. Family Home Guarantee

Designed for single parents and single legal guardians with at least one dependent child. Allows purchase with just a 2% deposit without LMI.

• Income limit: $125,000/year (single parent or guardian only)
• You do not need to be a first home buyer. The scheme is also available to previous homeowners who no longer own property.
• 5,000 places per year
• Property price caps apply as for FHBG

4. Help to Buy (Shared Equity Scheme)

The Help to Buy scheme, legislated in 2024, enables eligible buyers to purchase a home with the government taking an equity co-investment of up to 40% (new homes) or 30% (existing homes). This reduces the size of the mortgage required.

• Income limits: $90,000 for singles; $120,000 for couples
• Buyers need a minimum 2% deposit and no LMI
• The government shares in capital gains proportional to its equity stake
• 10,000 places per year
• Check availability: As of 2026, the scheme’s operational status and participating states. Check housing.gov.au for current details.

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.

First home buyer stamp duty concessions

Stamp duty is one of the biggest upfront costs when buying property. Most states offer first home buyers either a full exemption or a reduced rate on stamp duty, subject to thresholds.

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:

1. Check your FHOG eligibility before making any offer. The grant is only available if you haven’t previously owned property in Australia.
2. Apply for your chosen federal scheme through a participating lender before or during your pre-approval application. It’s part of the one process.
3. Get pre-approval specifying you’re accessing the First Home Guarantee (or relevant scheme) so the lender structures it correctly.
4. Confirm stamp duty concessions with your conveyancer. Concessions are applied on settlement and reduce the amount you need to pay.
5. Apply for the FHOG through your conveyancer or directly with your state revenue office. Timing varies by state; some pay at settlement, some after.
6. 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 currently have available FHBG places (they do run out during the year)
• 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 licenced (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:

• First Home Buyer Guide, New South Wales
• First Home Buyer Guide, Victoria
• First Home Buyer Guide, Queensland
• First Home Buyer Guide, Western Australia