First Home Buyer Guide Australia 2026: Grants, Schemes and Steps to Ownership

Buying your first home in Australia in 2026 is more achievable than it looks from the outside — but only if you understand and use the range of government grants, schemes, and concessions available. The Commonwealth and state governments collectively offer tens of thousands of dollars in support to first home buyers, from deposit guarantees that let you buy with just 5% down, to cash grants of up to $30,000, to superannuation schemes that let you save for a deposit at a lower tax rate.

This first home buyer guide for Australia 2026 walks through every major scheme, explains what you are eligible for, and maps out the step-by-step timeline from your first savings deposit to collecting the keys at settlement.

The Home Guarantee Scheme: Buy With a 5% Deposit and No LMI

The Home Guarantee Scheme, run by Housing Australia on behalf of the Commonwealth Government, is the single most impactful support program for first home buyers in 2026. It allows eligible buyers to purchase a property with a deposit as low as 5% without paying Lenders Mortgage Insurance (LMI), because the government guarantees up to 15% of the property value to the lender.

The scheme has three streams:

First Home Guarantee: 35,000 places per financial year (shared across all three streams). For first home buyers who are Australian citizens or permanent residents. Singles must have taxable income of $125,000 or less in the previous financial year; couples must have combined income of $200,000 or less. Property price caps apply and vary by state and region.

Regional First Home Buyer Guarantee: A dedicated subset of places for properties in regional areas. The same income caps and citizenship requirements apply, but the property must be in a designated regional location.

Family Home Guarantee: For single parents with at least one dependant child. The income cap and deposit requirements are the same, but this stream has its own allocation of places and recognises that single-parent households face unique barriers to home ownership.

2026–27 property price caps (a selection):

• NSW: Sydney and major regional centres — $900,000. Rest of NSW — $750,000.
• VIC: Melbourne and Geelong — $800,000. Rest of VIC — $650,000.
• QLD: Brisbane, Gold Coast, Sunshine Coast — $700,000. Rest of QLD — $550,000.
• WA: Perth — $600,000. Rest of WA — $450,000.
• SA: Adelaide — $600,000. Rest of SA — $450,000.

The price caps mean the scheme is designed for entry-level and median properties, not premium homes. Within these caps, however, the scheme eliminates LMI — saving borrowers $10,000–$30,000 depending on the property value and loan size.

Places in the scheme are allocated through participating lenders (most major banks and many non-bank lenders). You do not apply directly to Housing Australia; you apply through your lender or mortgage broker, who reserves a place on your behalf.

First Home Owner Grant (FHOG): State-by-State Cash Grants

The First Home Owner Grant is a cash payment from your state or territory government, payable when you buy or build your first home. The amount, eligibility criteria, and property type restrictions vary by state. Here are the grants as of the 2026–27 financial year:

New South Wales: $10,000 for new homes valued up to $750,000, or for land and building (combined value up to $750,000). No grant for established homes.

Victoria: $10,000 for new homes valued up to $750,000 in metro Melbourne and up to $750,000 in regional Victoria. No grant for established homes.

Queensland: $15,000 for new homes (house, unit, or townhouse) valued up to $750,000. The QLD FHOG is more generous than the southern states at $15,000. No grant for established homes.

Western Australia: $10,000 for new homes valued up to $750,000 (south of the 26th parallel, which includes Perth and the South West). Properties north of the 26th parallel may qualify for higher amounts under the regional variant of the scheme. No grant for established homes.

South Australia: $15,000 for new homes valued up to $650,000. No grant for established homes.

Tasmania: $30,000 for new and established homes. Tasmania’s FHOG is the most generous in the country and is not limited to new builds — established homes also qualify. The grant has been extended multiple times and is expected to continue into 2026–27, though always confirm the current status with the State Revenue Office of Tasmania.

ACT: The ACT does not have a traditional FHOG; instead, it offers stamp duty concessions and the Home Buyer Concession Scheme, which effectively replaces the grant for first home buyers.

Northern Territory: $10,000 for new homes, with additional incentives for regional and remote area purchases.

FHOGs are generally paid at settlement (or at the first progress payment for construction loans) and can be used toward your deposit or other upfront costs.

First Home Super Saver Scheme (FHSSS): Save Through Super

The FHSSS lets first home buyers save for a deposit inside their superannuation fund, benefiting from the lower tax rate on super contributions. As of 2026, you can withdraw up to $50,000 of voluntary contributions per person (plus deemed earnings), and couples can combine releases for up to $100,000.

The mechanics: you make voluntary super contributions via salary sacrifice or by claiming a tax deduction on personal contributions. You then apply to the ATO for a FHSSS determination, which confirms your eligible amount. The ATO issues a release authority to your super fund, and the funds are paid to you. You must sign a contract to buy or build a home within 12 months of receiving the FHSSS amount (with a possible 12-month extension).

The tax savings are meaningful. Voluntary contributions are taxed at 15% inside super (or 30% for very high earners above the Division 293 threshold of $250,000). When released, the contribution component receives a 30% tax offset, and the deemed earnings component is taxed at your marginal rate minus the 30% offset. For someone in the 32.5% marginal bracket (income $45,000–$135,000 in 2026–27), the effective tax saving is roughly 17.5% of the amount contributed — and you have the added bonus that salary-sacrificed super contributions reduce your taxable income, potentially lowering your Medicare levy surcharge and other income-tested benefits.

The FHSSS limit of $15,000 per year in contributions that count toward the scheme means accumulating the full $50,000 takes a minimum of 4 years (contributing $15,000 in year 1, $15,000 in year 2, $15,000 in year 3, and $5,000 in year 4). Starting early is essential.

Stamp Duty Concessions: State-by-State

Stamp duty is the largest upfront cost for many first home buyers, frequently exceeding $20,000 on median-priced properties. Most states offer concessions or exemptions for first home buyers, though the thresholds and amounts vary significantly.

NSW: Full exemption on properties up to $800,000. Concessional rate on properties between $800,000 and $1,000,000. Above $1,000,000, full stamp duty applies. First home buyers purchasing above $1,000,000 receive no stamp duty relief in NSW — which locks out many Sydney house buyers from any concession.

Victoria: Full exemption on properties up to $600,000. Concessional rate on properties between $600,000 and $750,000. Above $750,000, full stamp duty applies. VIC also offers an off-the-plan concession on new apartments that can significantly reduce the dutiable value.

Queensland: Eligible first home buyers pay no duty on homes valued at $700,000 or less. The additional first-home concession then phases out in bands below $800,000; the ordinary home concession may still apply above $800,000. Contract date and occupancy requirements matter.

Western Australia: For eligible transactions entered into from 7 May 2026, WA’s housing package provides no duty on new or established homes up to $600,000 and a concessional rate from $600,001 to $800,000. RevenueWA has been implementing the legislation and system changes, so confirm the live assessment or reassessment position for your contract date.

South Australia: SA has limited stamp duty concessions for first home buyers and primarily offers the First Home Owner Grant instead. Some off-the-plan apartment concessions apply.

Tasmania: First home buyers of established homes valued up to $600,000 receive a 50% stamp duty concession. The generous $30,000 FHOG often compensates for the lack of a full stamp duty exemption.

For a state-by-state comparison of stamp duty costs, see our stamp duty comparison guide and use our stamp duty calculator to estimate your exact cost.

Step-by-Step Timeline: From Saving to Settlement

Here is the end-to-end process for a first home buyer in 2026, with approximate timeframes:

Phase 1: Save your deposit (12–36 months before purchase)

• Open a dedicated high-interest savings account and set up automatic transfers.
• If using the FHSSS, start salary-sacrificing into super as early as possible — you can contribute up to $15,000 per year that counts toward the $50,000 FHSSS cap.
• Research suburbs and property types within your budget. Attend open inspections to calibrate your expectations.
• Track property prices in your target area so you understand the market before making offers.

Phase 2: Get pre-approval (2–4 months before purchase)

• Speak to a mortgage broker or directly to lenders. A broker can access multiple lenders and help you find the best rate and the highest borrowing power for your circumstances.
• Prepare your documents: last 2 years of tax returns and ATO notices of assessment, last 3 months of payslips, last 3 months of bank statements for all accounts (transaction, savings, credit cards), photo ID, and details of any existing debts.
• Apply for pre-approval, which confirms the lender is willing to lend you up to a certain amount, subject to a satisfactory property valuation and final checks. Pre-approval typically lasts 60–90 days.
• At this stage, research your eligibility for the Home Guarantee Scheme and ask your broker to reserve a place if you qualify.

Phase 3: Find the property (1–3 months)

• With a pre-approval in hand and a clear budget (including stamp duty and other upfront costs calculated), search seriously.
• Engage a solicitor or conveyancer to review contracts.
• Make an offer or bid at auction. If buying at auction, do not bid beyond your pre-approval limit — auction purchases are unconditional and you cannot withdraw if you later find you cannot fund the purchase.
• Once your offer is accepted, sign the contract and pay the deposit (typically 0.25% on exchange, with the balance payable at settlement; the real estate agent holds this in a trust account).

Phase 4: Finalise the loan and prepare for settlement (4–8 weeks from signing)

• Your lender orders a formal valuation of the property.
• Submit any additional documents the lender requests.
• Your conveyancer conducts searches and checks (title search, council certificates, strata report if applicable).
• Arrange building and pest inspections immediately after your offer is accepted. If major defects are found, you may be able to negotiate a price reduction, ask for repairs, or withdraw from the contract (if the contract includes a satisfactory building inspection clause — do not sign a contract without this clause unless buying at auction, where it is not available).
• Your lender issues formal (unconditional) approval, and loan documents are sent to you for signing.
• Arrange home and contents insurance from the date of settlement (or earlier if the contract requires it).
• Perform a pre-settlement inspection (usually the day before or morning of settlement) to confirm the property is in the condition you agreed to buy it in.

Phase 5: Settlement day

• Your lender transfers the loan funds to your conveyancer’s trust account.
• Your conveyancer attends settlement (usually electronically, via PEXA — Property Exchange Australia) with the vendor’s conveyancer.
• The balance of the purchase price is paid, the title is transferred, and the keys are released to you.
• Stamp duty is paid at or before settlement.
• You own your first home.

Tips for Maximising Your First Home Buyer Benefits

• Stack the schemes. The FHSSS, Home Guarantee Scheme, state FHOG, and stamp duty concessions are generally compatible — you can use all of them on the same purchase if you meet the criteria for each. A couple in Brisbane earning $160,000 combined could use $50,000 from FHSSS (two individual releases) plus the Home Guarantee Scheme (5% deposit, no LMI) plus the $15,000 QLD FHOG plus a partial stamp duty concession. Total benefit: tens of thousands of dollars in reduced upfront costs.
• Check price caps carefully. The Home Guarantee Scheme price cap and your state’s stamp duty concession threshold may not be the same. A property at $650,000 might qualify for the scheme but be above the stamp duty concession threshold — meaning you still pay full stamp duty. Calculate both costs before making an offer.
• Start the FHSSS early. The $15,000 per year contribution cap means the full $50,000 takes at least 4 years to accumulate.
• Use a broker who knows first home buyer schemes. Not all lenders participate in the Home Guarantee Scheme, and not all brokers are familiar with the FHSSS process. Find a broker who specialises in first home buyers.
• Understand your borrowing power first. Before falling in love with a property, know how much you can borrow. Use our borrowing power calculator to estimate your maximum loan based on your income, expenses, and deposit.

For a deeper look at how your deposit size affects your buying power and LMI costs, read our deposit guide. For the lowdown on LMI and how to avoid it, see our LMI explained guide.

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Use the Borrowing Power calculator to see your maximum purchase price and understand what you need to save. Visit /calculators/borrowing-power/ to get your personalised estimate.

Disclaimer

Disclaimer: This article provides general estimates only and does not constitute financial, tax, or legal advice. Rates, thresholds, and rules change. Always refer to the ATO, your state revenue office, or a licensed professional for your specific circumstances. Last updated: July 2026.