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 and removing lender's mortgage insurance (LMI)
How it works: Government guarantees part of your loan so you can buy with 2-5% deposit instead of 20%
Best for: People who can afford repayments but struggle to save large deposits
State Governments
State and territory specific
Focus: Direct cash grants and stamp duty relief
How it works: Cash payments (up to $50k in NT) and exemptions from stamp duty taxes
Best for: Reducing upfront costs and the total amount you need to borrow
The magic happens when you combine both
Example combo power: Use a federal guarantee for 5% deposit + state grant for $30k cash + stamp duty exemption saving $25k = Enter the market with $55k less upfront cost!
Key benefits of combining
- • Lower deposits: As little as 2% in some cases
- • No LMI: Save thousands in insurance premiums
- • Cash grants: Reduce borrowing or boost your deposit
- • Stamp duty savings: Often $20-50k+ depending on location
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 - here's how each one actually works
Home Guarantee Scheme (HGS)
The main federal program - most popular option
How it works
Government guarantees part of your loan so lenders accept 5% deposit instead of 20%. You avoid paying LMI (lender's mortgage insurance).
Who can use it
Australian citizens who haven't owned property in the last 10 years. Income caps apply (varies by location).
The catch
Limited places available each year. Must apply through participating lenders. Property price caps vary by location.
Real example: Instead of saving $100k deposit, you only need $25k (5%) on a $500k property and save ~$15k in LMI.
Regional First Home Buyer Guarantee
Same as HGS but for regional areas
How it works
Identical to regular HGS but specifically for regional areas. Often has more available places than metro HGS.
Regional areas include
Most areas outside major capital cities. All of Tasmania, NT, and many coastal/rural towns qualify.
Why choose regional
Better availability, often lower property prices, lifestyle benefits. Great for remote workers.
Family Home Guarantee
For single parents and guardians
How it works
Even lower deposit requirement (2%) designed for single parents. No LMI and more flexible than other guarantees.
Who qualifies
Single parents or guardians with dependents. Not restricted to first home buyers - can be used by previous owners.
Special benefits
Lowest deposit requirement of all federal programs. Recognises single parents need extra support.
Real example: Single mum buying $500k home needs just $10k deposit (2%) instead of $100k, saving ~$15k in LMI.
Help to Buy (Shared Equity)
Major new program launching 2025
Revolutionary approach
Government becomes your "co-investor" - they contribute up to 40% of purchase price, reducing your loan size and repayments.
How shared equity works
You contribute 2%+ deposit, government contributes their share, you get a smaller mortgage for the remainder.
When you sell
Government gets their share back (plus their portion of any price growth). You keep your share of equity gains.
Game changer potential: $500k home might need just $10k from you + government contributes $200k = $290k mortgage instead of $475k. Dramatically lower repayments!
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.
Best 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/territory programs you can access. Some federal programs have different criteria for regional vs metro areas.
Check federal eligibility
Verify income limits, property price caps, and residency requirements for Home Guarantee Scheme or other federal programs.
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 to coordinate applications and maximise your benefits.
Important timing considerations
- • Federal guarantees: Limited places available each financial year - apply early
- • State programs: Some have end dates or changing terms (like QLD's time-limited $30k boost)
- • Contract dates matter: Eligibility often determined when you sign, not when you settle
- • Help to Buy launches 2025: Could change the landscape significantly
Ready to create your personalised strategy?
We'll help you navigate federal and state programs, calculate your benefits, and coordinate all applications for maximum impact.