Understanding Australia's first home buyer landscape
Two levels of government work together to help you buy your first home
Federal Government
Australia-wide programs
Focus: Reducing deposit barriers, removing lender's mortgage insurance (LMI), or lowering the loan size through shared equity
How it works: The Australian Government may guarantee part of an eligible loan, or contribute equity through Help to Buy
Suitable for: People who can afford repayments but need help with the deposit hurdle or mortgage size
State Governments
State and territory specific
Focus: Direct cash grants and stamp duty or transfer duty relief
How it works: Cash payments, concessions and exemptions that vary by state, property type and contract date
Suitable for: Reducing upfront costs and the total amount you may need to borrow
Combining federal and state programs
Example: A buyer might pair the 5% Deposit Scheme with a state grant and stamp duty relief. The exact saving depends on where you buy, whether the property is new or established, and the contract date.
Key benefits of combining
- • Lower deposits: As little as 2% in some cases
- • No LMI: Avoid lender's mortgage insurance on eligible guarantee loans
- • Cash grants: Reduce borrowing or boost your deposit where eligible
- • Duty savings: Can reduce one of the biggest upfront buying costs
See what applies to you
Select your state or territory to see exactly which grants and concessions you can access
Which state or territory are you buying in?
Each state has different grant amounts and stamp duty concessions. Click your state above to see exactly what you can access and how to combine it with federal programs.
Federal programs explained (available nationwide)
These work in every state and territory. The details below reflect the current national programs as at June 2026.
Australian Government 5% Deposit Scheme
Formerly the Home Guarantee Scheme - low deposit, no LMI
How it works
The Australian Government guarantees part of an eligible loan so lenders can accept a 5% deposit for first home buyers, or 2% for single parents and legal guardians, without LMI.
Who can use it
Australian citizens or permanent residents aged 18+ who are first home buyers, or who have not owned property or land in Australia in the last 10 years. No income caps apply.
The catch
No waitlist or annual place cap, but you still need lender approval, must buy under the location price cap, and must live in the property.
Real example: On a $500k property, a 5% deposit is $25k rather than waiting until you have a 20% deposit of $100k. You still need to qualify for the loan and cover buying costs.
5% Deposit Scheme Property Price Caps (reviewed June 2026)
| State/Territory | Capital City & Regional Centres* | Other Areas |
|---|---|---|
| New South Wales | $1,500,000 | $800,000 |
| Victoria | $950,000 | $650,000 |
| Queensland | $1,000,000 | $700,000 |
| Western Australia | $850,000 | $600,000 |
| South Australia | $900,000 | $500,000 |
| Tasmania | $700,000 | $550,000 |
| Australian Capital Territory | $1,000,000 (all areas) | |
| Northern Territory | $600,000 (all areas). From 1 July 2026: Darwin $750,000, rest of NT $600,000. | |
*Regional centres are: (1) NSW - Illawarra, Newcastle and Lake Macquarie, (2) VIC - Geelong, (3) QLD - Gold Coast and Sunshine Coast. Always confirm the current cap before signing.
Family Home Guarantee
For single parents and guardians
How it works
A lower deposit pathway (2%) designed for single parents and legal guardians. No LMI if you meet the scheme and lender criteria.
Who qualifies
Single parents or legal guardians with dependants. You do not have to be a first home buyer, but you cannot have another property interest when the new home settles.
Special benefits
Lowest deposit pathway under the 5% Deposit Scheme, with the same property price caps and owner-occupier requirement.
Real example: Single mum buying $500k home needs just $10k deposit (2%) instead of $100k, saving ~$15k in LMI.
Help to Buy (Shared Equity)
Available in all states and territories
How it works
The Australian Government becomes your shared-equity partner, contributing up to 40% for a new home or 30% for an existing home.
How shared equity works
You contribute at least a 2% deposit, the government contributes its share, and you take a smaller mortgage for the remainder. Income caps and annual places apply.
When you sell
You can buy back some or all of the government share over time, refinance if eligible, or repay the share when you sell.
Example: For a $500k new home, a 2% deposit is $10k. If the government contributes 40%, the mortgage is smaller, but the government also owns that share of the property.
First Home Super Saver (FHSS)
Tax-efficient way to save for your deposit
How it works
Make extra super contributions (up to $15k/year, $50k total) then withdraw it for your deposit. Get tax benefits on contributions.
Tax benefits
Contributions taxed at 15% instead of your marginal rate. Your super fund's returns are also tax-advantaged.
Suitable for
People in higher tax brackets who are actively saving for a deposit. Can be combined with any guarantee scheme.
Tax saving example: $15k contribution saves ~$2,250 in tax if you're on 30% tax rate. Your money grows faster too.
Your step-by-step roadmap
How to navigate and apply for these programs in the right order
Know your location
Determine which state or territory programs you can access. Grant amounts, duty relief and eligibility dates vary a lot.
Check national eligibility
Check the 5% Deposit Scheme, Help to Buy and FHSS rules. Look at deposit, property price caps, residency, property type and any income caps.
Calculate state benefits
Work out your state's grant amounts and stamp duty savings. Some combinations might influence whether you buy new or existing.
Get professional help
Work with a broker who understands these programs, can check current rules, and can line up the lending and grant timing.
Important timing considerations
- • 5% Deposit Scheme: No income caps or waiting list, but lender approval and property price caps still matter
- • State programs: Some have end dates or changing terms, such as Tasmania's 30 June 2026 changes
- • Contract dates matter: Eligibility often determined when you sign, not when you settle
- • Help to Buy: Now live, but places, income caps, property caps and participating lenders still apply
Ready to create your personalised strategy?
We'll help you work out which federal and state programs may apply, what they could mean for your deposit, and what to check before you sign.
Information reviewed 24 June 2026. Grants, concessions and price caps change regularly, so confirm eligibility with the relevant government body and your lender before relying on a scheme.
Still working it out? See how the process works, step by step, or start with the First Home Buyer Guide.