First Home Buyer Guide 2026: Grants, Guarantees & Smart Strategies

Buying your first home in Australia has never been easy, but 2026 brings expanded government support that’s opening doors for more first-time buyers than ever before. From the enlarged First Home Guarantee scheme to the new Help to Buy program, there are more pathways into the property market.

This comprehensive guide covers everything you need to know about grants, guarantees, and strategies to get your foot on the property ladder.

---

First Home Buyer Schemes at a Glance

Here’s a quick overview of the major federal schemes available in 2026:

---

First Home Guarantee (Expanded in 2026)

The First Home Guarantee is the flagship scheme helping Australians buy with just a 5% deposit while avoiding Lenders Mortgage Insurance (LMI).

What’s New in 2026

The scheme has been significantly expanded:

• 35,000 places per year (up from 10,000 originally)
• Non-first home buyers now eligible if they haven’t owned property in 10 years
• Friends and siblings can now apply together, not just couples
• Permanent residents now eligible (previously citizens only)

Eligibility Requirements

Property Price Caps by Location

How Much Does It Save You?

LMI can cost thousands. Here’s what you’d save with the First Home Guarantee:

How to Apply

1. Check your eligibility on the Housing Australia website
2. Find a participating lender (27 lenders currently participate)
3. Apply for pre-approval with your chosen lender
4. The lender will reserve a place for you
5. Complete your purchase within 90 days

---

Help to Buy Scheme (New in 2026)

The Help to Buy shared equity scheme launched in 2025-26 allows the government to contribute up to 40% of a new home’s purchase price (30% for existing homes).

How It Works

• Government contributes equity (you don’t pay rent on their share)
• You need just 2% deposit
• You can buy out the government’s share over time
• When you sell, the government receives their percentage

Eligibility

Example: How Help to Buy Works

Buying a $500,000 home:

You only pay interest on $290,000, not the full purchase price. This significantly reduces your repayments.

Buying Out the Government

You can purchase the government’s share:

• Minimum buyback: 5% at a time
• No requirement to ever buy back
• Price based on current market value when you buy back

---

First Home Owner Grant (FHOG)

The First Home Owner Grant is a one-off payment to help first home buyers. The amount varies significantly by state and whether you’re buying new or established property.

FHOG by State (2026)

Eligibility Criteria

• Must be an Australian citizen or permanent resident
• Must be 18 years or older
• You (or your partner) must not have previously owned property in Australia
• Must live in the property for at least 6-12 months (varies by state)
• Property must meet state-specific requirements

---

Stamp Duty Concessions

Stamp duty is often the biggest upfront cost after your deposit. Most states offer significant concessions for first home buyers.

State-by-State Stamp Duty Concessions

New South Wales

• Full exemption: Properties up to $800,000
• Partial concession: $800,001 - $1,000,000
• First Home Buyer Choice: Pay annual property tax instead of stamp duty

Victoria

• Full exemption: Properties up to $600,000
• Partial concession: $600,001 - $750,000
• Applies to both new and established homes

Queensland

• Full exemption: Homes up to $700,000
• Partial concession: $700,001 - $800,000
• 50% concession up to $550,000 for established homes

Western Australia

• Full exemption: Homes up to $430,000
• Partial concession: $430,001 - $530,000

South Australia

• Full exemption: Properties up to $650,000 (new homes only)
• No concession for established homes

Tasmania

• 50% discount: Properties up to $750,000

Stamp Duty Savings Example (NSW)

---

First Home Super Saver Scheme (FHSSS)

The FHSSS allows you to save for your first home inside super, with tax benefits.

How It Works

1. Make voluntary contributions to your super (up to $15,000/year)
2. These contributions are taxed at 15% instead of your marginal rate
3. Apply to withdraw up to $50,000 for your deposit
4. Earnings are calculated at a deemed rate (currently ~4.6%)

Tax Savings Example

Over 3 years at the 37% tax bracket, you could save nearly $10,000 in tax.

How to Withdraw

1. Apply to the ATO for a FHSS determination
2. Receive confirmation of releasable amount
3. Apply for release (within 14 days of signing contract)
4. Funds paid to you within 10-15 business days

---

Building Your Deposit: Smart Strategies

The 20% Deposit Myth

You don’t need 20% to buy. Here’s what you actually need:

With the First Home Guarantee, 5% is genuinely achievable without LMI.

Deposit Boosting Strategies

1. Use the FHSSS Save up to $50,000 with tax advantages.

2. Rent Cheaper Moving to a cheaper rental for 1-2 years can accelerate savings significantly.

3. Cut Big Expenses

• Reduce car costs (cheaper car, fewer cars)
• Pause subscriptions
• Limit dining out and entertainment

4. Boost Income

• Ask for a raise
• Take on a side hustle
• Sell items you don’t need

5. Family Guarantee Parents can use their property as security, allowing you to borrow more without LMI.

Realistic Savings Timeline

Saving a $50,000 deposit:

---

First Home Buyer Mistakes to Avoid

1. Not Getting Pre-Approval First

Pre-approval tells you exactly what you can borrow before you start looking. Without it, you risk:

• Falling in love with properties you can’t afford
• Losing out to buyers who are pre-approved
• Wasting time at open homes

2. Forgetting Hidden Costs

Budget for these additional costs:

3. Stretching Too Far

Just because you can borrow $700,000 doesn’t mean you should. Consider:

• What if interest rates rise?
• What if one income is reduced?
• Can you still live comfortably?

Rule of thumb: Keep repayments under 30% of your take-home pay.

4. Skipping Building Inspections

A $500 inspection can save you $50,000+ in hidden defects. Never skip it.

5. Not Comparing Lenders

Different lenders offer:

• Different interest rates (can vary by 0.5%+)
• Different fees
• Different features (offset, redraw, extra repayments)

Always compare at least 3-5 lenders.

---

Step-by-Step: Your First Home Buying Journey

Phase 1: Preparation (3-12 months before)

• Check eligibility for government schemes
• Start using FHSSS if eligible
• Build your deposit
• Check and improve your credit score
• Reduce debts (especially credit cards and AfterPay)

Phase 2: Getting Ready (1-3 months before)

• Get pre-approval from a lender
• Research suburbs and property types
• Attend open homes to learn the market
• Engage a conveyancer/solicitor
• Organise building and pest inspectors

Phase 3: House Hunting

• Search within your pre-approved budget
• Attend open homes systematically
• Research comparable sales
• Order building and pest inspections on serious prospects
• Make informed offers

Phase 4: Purchase

• Negotiate and sign contract
• Pay deposit (usually 0.25% initially, then 5-10% at exchange)
• Finalise your loan
• Conduct final inspection
• Settle and collect your keys!

---

Key Takeaways

1. You don’t need 20% - With the First Home Guarantee, 5% is enough and you avoid LMI

2. Stack the schemes - You can often combine multiple benefits (e.g., FHOG + stamp duty exemption + First Home Guarantee + FHSSS)

3. Queensland and Tasmania offer the most generous FHOG ($30,000)

4. Income caps matter - Check you’re under the thresholds for the schemes you want

5. Start with FHSSS early - The tax savings compound over time

6. Get pre-approval first - Know your budget before you fall in love with a property

7. Budget for hidden costs - Stamp duty, conveyancing, inspections, and moving all add up

8. Don’t overstretch - Leave room in your budget for rate rises and life changes

The 2026 first home buyer landscape is the most supportive it’s been in years. With careful planning and smart use of available schemes, your dream of home ownership is more achievable than ever.