First Home Buyer's Guide Australia 2026: Grants, Schemes, and What to Do First

Buying your first home is one of the biggest financial decisions you will ever make, and it is also one of the most confusing. There are grants you might not know about, concessions that could save you tens of thousands of dollars, and a process that feels like it was designed to be intimidating.

It does not have to be. This guide breaks down everything a first home buyer in Australia needs to know in 2026 — the money, the process, the schemes, and the mistakes to avoid.

What Is the First Thing a First Home Buyer Should Do?

I know this is counterintuitive, but the best thing you can do before scrolling through listings or attending open homes is to find out exactly how much you can borrow.

Getting an assessment from a mortgage broker will tell you your borrowing power, your estimated repayments, and the total budget you have to work with — including deposit, stamp duty, and other costs. It does not impact your credit score, and it does not cost you anything.

Why does this matter so much for first home buyers specifically? Because without a number, you are guessing. You might spend months looking at properties $100,000 above or below what you can actually afford. The assessment turns "I think I might be able to buy something" into "I can buy a property up to this price, and here is what my repayments will look like."

That clarity changes everything.

How Much Deposit Do You Actually Need?

The standard advice is 20% of the property value, and that is still the threshold where you avoid paying Lenders Mortgage Insurance (LMI). But very few first home buyers have 20% saved, and the system accounts for that.

Most lenders will accept a deposit as low as 5% of the property value, provided the funds are classified as genuine savings — meaning they have been in your account for at least three months, or they come from a demonstrated savings pattern. Some lenders are more flexible on what counts as genuine savings than others.

If your deposit is between 5% and 20%, you will likely need to pay LMI. This is a one-off premium that can range from a few thousand dollars on a smaller loan to $30,000 or more on a larger one. It is usually added to the loan balance, so you do not pay it out of pocket, but you do pay interest on it over the life of the loan.

There are also government schemes that can help you avoid LMI entirely — more on those below.

What Government Schemes and Grants Are Available for First Home Buyers?

There are several programs designed to help first home buyers. They change from time to time and vary by state, so always confirm the current details with your broker. Here is an overview of the major ones as of 2026.

First Home Guarantee (formerly First Home Loan Deposit Scheme)

This is one of the most impactful schemes available. Under the First Home Guarantee, eligible first home buyers can purchase with as little as a 5% deposit without paying LMI. The government essentially acts as guarantor for the portion of the loan between your deposit and the 20% threshold.

There are income caps and property price caps that vary by location, and places are limited each financial year. Not all lenders participate, so your broker needs to check your eligibility and match you with a participating lender.

First Home Owner Grant (FHOG)

The FHOG is a one-off payment from state and territory governments. The amount and eligibility criteria differ by state. In most states, it applies only to new builds or substantially renovated properties — not established homes. The grant is typically $10,000 to $30,000 depending on the jurisdiction.

It is worth noting that some states have phased out or significantly restricted the FHOG for established properties. Your broker or conveyancer can confirm what applies in your state.

Stamp Duty Concessions and Exemptions

Every state and territory offers some form of stamp duty relief for first home buyers, but the rules are wildly different.

Some states offer a full exemption below a certain property price and a sliding scale concession above that. Others offer a flat discount. Some apply only to new builds, others to all properties. The thresholds change regularly.

Stamp duty on a $700,000 property can be anywhere from zero to over $25,000 depending on your state and whether you qualify for concessions. This is not a rounding error — it is a material part of your total purchase cost, and it is one of the first things your broker should calculate for you.

First Home Super Saver Scheme (FHSSS)

The FHSSS lets you make voluntary contributions to your super fund and then withdraw them (plus deemed earnings) to put toward your first home deposit. Because super contributions are taxed at 15% rather than your marginal rate, this effectively lets you save for a deposit more tax-efficiently.

You can contribute up to $15,000 per financial year and withdraw up to $50,000 in total. The process involves applying to the ATO, and there are specific rules about the timing and types of contributions that count.

This scheme is genuinely useful but underutilised. If you are a year or two away from buying, it is worth investigating.

Help to Buy (Shared Equity Scheme)

The federal government's Help to Buy scheme allows eligible buyers to purchase a home with a smaller deposit by having the government take an equity share in the property — up to 40% for new builds and 30% for existing homes. This reduces the size of your loan and your repayments.

You can buy back the government's share over time or when you sell. Income caps and property price caps apply. This scheme is designed specifically for lower-income buyers who might otherwise be locked out of the market.

Regional First Home Buyer Guarantee

Similar to the First Home Guarantee but specifically for buyers purchasing in regional areas. The deposit requirement and LMI waiver work the same way, with different property price caps that reflect regional markets.

Family Home Guarantee

This one is designed for single parents (or single legal guardians) buying a home. It allows purchases with as little as a 2% deposit without LMI. You do not need to be a first home buyer to qualify.

What Costs Should First Home Buyers Budget For?

Beyond the deposit, here is what you need to budget for as a first home buyer:

Stamp duty (or transfer duty). As above, this varies enormously by state. Factor it in early — it is often the single largest cost outside the deposit.

Conveyancing or solicitor fees. You need a legal professional to handle the contract, title transfer, and settlement. Expect $1,500 to $3,000.

Building and pest inspections. Essential for any established property. Budget $500 to $800. Do not skip this — the cost of an inspection is trivial compared to the cost of discovering structural issues after settlement.

Strata report (if buying an apartment or townhouse). This gives you a snapshot of the building's financial health, upcoming levies, and any disputes or works planned. Usually around $300 to $400.

Loan application fees. Some lenders charge these, some do not. Your broker will factor this into the comparison.

LMI (if applicable). See above.

Moving costs, utility connections, and immediate expenses. The small stuff adds up. Budget a few thousand dollars as a buffer.

A good broker will give you a total funds position — the full picture of what you need, not just the deposit — so you can plan properly.

What Is the Biggest Mistake First Home Buyers Make?

It is not buying at the wrong time, or choosing the wrong suburb, or picking the wrong loan. Those things matter, but they are all fixable.

The biggest mistake is not getting an assessment early enough.

People spend months, sometimes years, in a state of uncertainty. They scroll through listings and wonder if they could afford it. They see prices move and feel like the window is closing. They talk to friends who bought a property and feel behind.

All of that goes away the moment you have a real number. An assessment from a broker tells you what you can borrow, what it will cost, and what your options are. It takes the guesswork out of the biggest financial decision of your life. And it does not cost anything or affect your credit score.

If you are even slightly serious about buying, that is your first step.

Should a First Home Buyer Choose Fixed or Variable?

There is no one-size-fits-all answer, but here is a simple framework.

If certainty on repayments matters more to you than flexibility — say you are stretching your budget and need to know exactly what you owe each month — a fixed rate gives you that stability for a set period.

If you want the ability to make extra repayments, use an offset account, or access a redraw facility, a variable rate gives you more room to move. Most variable loans come with features that fixed loans do not.

A split loan — part fixed, part variable — is a popular choice for first home buyers who want a bit of both.

Your broker can model these scenarios with your actual numbers so you can see the real dollar difference, not just the theory. For a complete overview of the home loan process, including how to compare loan types using the comparison rate, see our full guide.

How Long Does the Whole Process Take?

From your first broker conversation to getting the keys, a typical timeline looks something like this:

• Assessment and pre-approval: 1 to 2 weeks
• Property search: This is entirely up to you. Could be a week, could be six months.
• From signed contract to settlement: 4 to 6 weeks (sometimes longer for off-the-plan purchases)

The parts you can control are the preparation. Having your documents organised, understanding your budget before you start looking, and responding quickly to requests from your broker and solicitor will keep the process moving.

What to Do Next

If you are a first home buyer thinking about getting into the market, the single most valuable thing you can do right now is get a free assessment from Mage. We will tell you what you can borrow, what grants and concessions you might be eligible for, and what budget you are working with — all without impacting your credit score.

No pressure, no obligation. Just a clear picture of where you stand.

Get your free assessment →

Frequently Asked Questions

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

Most lenders accept a deposit as low as 5% of the property value, provided the funds are genuine savings. With less than 20%, you will usually pay Lenders Mortgage Insurance (LMI), unless you qualify for a government scheme like the First Home Guarantee which waives LMI with a 5% deposit.

What is the First Home Guarantee scheme?

The First Home Guarantee allows eligible first home buyers to purchase with as little as a 5% deposit without paying LMI. The government acts as guarantor for the gap between your deposit and 20%. Income caps, property price caps, and limited places apply each financial year.

Can I buy a house with no deposit in Australia?

Buying with no deposit is extremely difficult. Most lenders require at least 5% as genuine savings. However, some buyers use a family guarantee, where a parent uses their property equity as additional security, to effectively buy without a personal deposit. The Family Home Guarantee also allows single parents to purchase with as little as 2%.

What is the First Home Super Saver Scheme (FHSSS)?

The FHSSS lets you make voluntary contributions to your super fund and withdraw them (plus deemed earnings) for your first home deposit. Contributions are taxed at 15% instead of your marginal rate, making it a tax-efficient way to save. You can withdraw up to $50,000 in total.

How long does it take to buy your first home in Australia?

From your first broker conversation to getting the keys, the typical timeline is 8 to 14 weeks, plus however long your property search takes. The assessment and pre-approval stage takes 1 to 2 weeks, and settlement usually occurs 4 to 6 weeks after exchanging contracts.