First Home Buyer Guide Australia 2026 — Grants, Schemes and Tips
Quick Answer: First home buyers in Australia in 2026 can access the Home Guarantee Scheme (5% deposit, no LMI), First Home Owner Grants (up to $30,000 in QLD), stamp duty concessions in most states, and the First Home Super Saver Scheme (up to $50,000 from super). Property prices remain high — preparation is everything.
Buying your first home in Australia is one of the most significant financial decisions you will ever make. With property prices at record highs in most capitals and mortgage rates elevated after the RBA’s February 2026 hike, the path to ownership requires more planning than ever. The good news: the federal and state governments offer more assistance to first home buyers than at any point in recent history. This guide covers every grant, scheme, and strategy available to you in 2026.
Why This Matters for Australians in 2026
Australia’s property market remains one of the world’s most expensive relative to incomes. Sydney and Melbourne median house prices are well above $1 million. Yet in regional areas and other capital cities, first home buyers can still find properties within reach — particularly with government support schemes that reduce the deposit required from 20% to just 5%. Understanding what you are entitled to before you start searching could save you $30,000 or more.
State-by-State First Home Owner Grant (FHOG) 2026
| State/Territory | FHOG Amount | Property Type | Cap |
|---|---|---|---|
| NSW | $10,000 | New homes only | $600,000 |
| VIC | $10,000 | New homes in regional areas | $750,000 |
| QLD | $30,000 | New builds | $750,000 |
| WA | $10,000 | New homes | $750,000 |
| SA | $15,000 | New builds | $575,000 |
| TAS | $10,000 | New or substantially renovated | $750,000 |
| NT | $10,000 | New homes | No cap |
| ACT | Replaced by stamp duty concessions | — | — |
Important: The FHOG is generally only available for new builds — not established homes. It is paid by the state government, not the federal government, and conditions vary. Always verify the current rules with your state revenue office before applying.
Home Guarantee Scheme (HGS) — 5% Deposit, No LMI
The federal government’s Home Guarantee Scheme allows eligible first home buyers to purchase with as little as a 5% deposit, with the government guaranteeing the remaining 15% of the loan. This means:
- No Lenders Mortgage Insurance (LMI) — saving $10,000–$30,000
- Only 5% deposit required instead of 20%
- Available for both new and established homes (depending on stream)
| Scheme | Who It’s For | Property Type | Places (2025–26) |
|---|---|---|---|
| First Home Guarantee | Singles (<$125k income) and couples (<$200k) | New and established | 35,000 |
| Regional First Home Buyer Guarantee | Buyers in regional areas | New and established | 10,000 |
| Family Home Guarantee | Single parents with a dependent | New and established | 5,000 |
Places are limited each financial year and allocated on a first-come basis. Apply through a participating lender — not directly through the government.
FHLDS vs saving a full 20% deposit:
| 5% Deposit (HGS) | 20% Deposit (No LMI) | |
|---|---|---|
| Deposit needed ($700k property) | $35,000 | $140,000 |
| LMI cost | $0 (government guarantee) | $0 |
| Loan amount | $665,000 | $560,000 |
| Monthly repayment (~5.50%) | ~$4,008 | ~$3,374 |
| Extra monthly cost | $634 | — |
| Years to save (adding to extra repayments) | Immediately available | 4–7 years |
The trade-off is higher monthly repayments and a larger loan — but for many buyers, getting into the market sooner outweighs the extra cost, particularly in rising markets.
First Home Super Saver Scheme (FHSS)
The FHSS allows first home buyers to save money inside their superannuation fund and withdraw it (with tax advantages) for a home deposit.
- Contribute up to $15,000/year of voluntary contributions
- Maximum withdrawal: $50,000 (from 2024–25 onwards)
- Taxed at 15% going in (vs up to 47% marginal rate)
- Withdrawn at your marginal rate less 30% offset — very tax effective
- Must apply to the ATO for a FHSS determination before signing a contract
Example: A buyer on $80,000 salary makes $15,000/year in salary sacrifice for 3+ years. They save approximately $4,500 in tax per year vs contributing from post-tax income. Their $50,000 withdrawal comes out with a substantial tax saving over standard savings.
The FHSS does not work for everyone — if you need your deposit urgently, the 12+ months required to accumulate meaningful savings inside super is a drawback. Plan ahead.
Stamp Duty Concessions for First Home Buyers
Stamp duty (land transfer duty) is one of the largest upfront costs in buying property. Most states offer concessions or exemptions for first home buyers:
| State | Concession Type | Threshold |
|---|---|---|
| NSW | Full exemption (new homes) up to $800,000; concession to $1,000,000 | New homes |
| VIC | Full exemption up to $600,000; concession to $750,000 | New and established |
| QLD | Full exemption up to $700,000; concession to $800,000 | New and established |
| WA | Full exemption up to $430,000; concession to $530,000 | New and established |
| SA | No stamp duty for first home buyers on new builds | New builds |
| ACT | No stamp duty for eligible buyers (income-tested) | All properties |
Thresholds change — always verify with your state revenue office.
Step-by-Step First Home Buying Process
- Assess your finances: Calculate your deposit, income, and expenses. Use a mortgage calculator.
- Check your eligibility: FHOG, HGS, stamp duty concessions — confirm what applies to you.
- Get pre-approval: A conditional approval from a lender confirms your borrowing capacity. Valid for 90 days typically.
- Find a property: Use Domain, realestate.com.au. Attend open houses.
- Arrange building and pest inspection: Essential for established homes. Cost: $400–$600. Can reveal issues worth thousands.
- Make an offer or bid at auction: Private treaty (offer) or auction — know the process in your state.
- Sign the contract: Review carefully. Engage a conveyancer or solicitor.
- Cooling-off period: NSW 5 days, VIC 3 days, QLD 5 days. ACT and TAS vary. No cooling-off at auction.
- Unconditional exchange: Your deposit (usually 10%) is paid.
- Settlement: Typically 30–90 days. Keys are handed over.
Costs Beyond the Deposit — Checklist
Many first home buyers underestimate upfront costs beyond the deposit:
| Cost | Approximate Amount |
|---|---|
| Stamp duty (if applicable) | $0–$30,000+ (varies by state/property) |
| Conveyancer/solicitor | $1,500–$3,000 |
| Building and pest inspection | $400–$600 |
| Loan application fee | $0–$600 |
| Lender’s Mortgage Insurance (if LVR > 80%) | $0–$30,000 |
| Moving costs | $500–$3,000 |
| Council rates (adjustment at settlement) | $500–$1,500 |
| Home and contents insurance | $1,000–$2,500/year |
| Total non-deposit costs | $4,000–$40,000+ |
Budget for at least $5,000–$10,000 in transaction costs even if stamp duty is waived.
10 Frequently Asked Questions
1. What is the First Home Owner Grant in my state? It varies: QLD offers $30,000 for new builds, SA offers $15,000, and NSW/VIC/WA offer $10,000. All are for new homes only. Check your state revenue office for current eligibility and property value caps.
2. Can I use my super as a home deposit? Only through the First Home Super Saver Scheme (FHSS), which allows voluntary contributions (up to $50,000) to be withdrawn. You cannot withdraw your compulsory employer super contributions for a home deposit.
3. What income do I need to earn to get the Home Guarantee Scheme? Singles must earn under $125,000/year and couples under $200,000/year (combined). These are the 2025–26 thresholds — verify at housingaustralia.gov.au.
4. Is it better to buy new or established? New homes often qualify for more grants and concessions, and have lower maintenance in early years. Established homes are in more established suburbs, often with better access to infrastructure. The right answer depends on your location preferences and budget.
5. Do I need a conveyancer or a solicitor? Both can handle property transactions. Conveyancers specialise in property transfers and are generally cheaper ($1,500–$2,000). Solicitors can handle more complex legal matters and are often preferred for higher-value or complex transactions.
6. What is the cooling-off period? A period after signing a contract during which you can withdraw for a small penalty (usually 0.25% of the purchase price). It does not apply if you bought at auction or waived it. Check your state’s rules.
7. Can I buy with a partner who has owned property before? If your partner has previously owned residential property in Australia, they are generally not eligible for first home buyer schemes — and their prior ownership may affect your eligibility too, depending on the scheme. Check each scheme’s rules carefully.
8. How long does settlement typically take? Most settlements complete in 30–90 days after exchange. The standard varies by state and is negotiable between buyer and seller. Your conveyancer manages this process.
9. What is Lenders Mortgage Insurance and who does it protect? LMI protects the lender — not you — if you default on your loan. You pay the premium (typically added to your loan). It is required when your LVR is above 80%, unless you use the Home Guarantee Scheme.
10. Should I buy in the city or a regional area? Regional areas generally offer lower purchase prices, and the Regional First Home Buyer Guarantee offers extra support. However, consider employment opportunities, lifestyle, and long-term resale value. Remote work has made regional buying more viable for many Australians.
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This article is for informational purposes only and does not constitute financial advice. Always consult a licensed financial adviser or tax agent for advice specific to your situation.
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