Government help for first home buyers

Government assistance for first home buyers comes in three broad forms. They're run by different levels of government, have different eligibility rules, and change more often than anyone would like. What follows is the shape of it - the specifics are worth checking at the time you apply, which is something we do with you.

1. The Australian Government 5% Deposit Scheme (federal)

This is the largest of the three, and it changed substantially on 1 October 2025. It was previously called the Home Guarantee Scheme.

Under the scheme, the government guarantees part of your loan, which allows eligible first home buyers to purchase with a 5% deposit and no Lenders Mortgage Insurance. Eligible single parents and legal guardians can buy with 2%. Given LMI can run into five figures, that is a substantial saving.

What changed in October 2025:

• Income caps were removed. There is no longer an income test.
• Place limits were removed. Places are no longer capped or released in rounds.
• Property price caps were increased, and still vary by location.

Things to understand:

• It is not a grant. Nobody gives you money. The government guarantees part of the loan so the lender does not require LMI.
• You still need to qualify for the loan on income and expenses in the normal way.
• Only participating lenders offer it, which narrows your choice, so it is worth checking whether the LMI saving outweighs any rate difference.
• You generally need to live in the property rather than rent it out.

2. Stamp duty concessions (state and territory)

Stamp duty is charged by your state or territory, not the federal government, so the rules differ everywhere. Most jurisdictions offer first home buyers either an exemption below a certain purchase price or a discount on a sliding scale above it.

This is frequently the largest single saving available to a first home buyer - on a mid-priced home it can be tens of thousands of dollars. It's also the one most affected by exactly where and what you buy, since thresholds differ between states and sometimes between new builds and established homes.

Some states also offer a First Home Owner Grant, usually restricted to newly built or substantially renovated properties.

3. First Home Super Saver Scheme (federal)

This lets you make additional voluntary contributions into your superannuation, then withdraw them later - plus associated earnings - to put toward a first home deposit.

The benefit is tax. Salary-sacrificed contributions are generally taxed at 15% rather than your marginal rate, so for many people the money grows faster inside super than in a savings account. There are annual and total limits on what you can contribute and withdraw.

The catch is timing. You must apply for a determination and release before you sign a contract, and the release takes time. People discover this scheme two weeks before they buy and find they've missed it, which is a genuine shame. If you're twelve months out, this is worth looking at now.

How they stack

In many cases these can be combined: the 5% Deposit Scheme to avoid LMI, a state stamp duty exemption to reduce upfront costs, and First Home Super Saver funds as part of the deposit. The combinations depend on your state, your income and the property, and that's precisely the sort of thing worth mapping out before you start looking.

What to do about it

If you're more than six months from buying, the First Home Super Saver scheme is the one with a deadline attached, so look at that first. If you're closer than that, the priority is confirming which stamp duty concession applies to you and whether a guarantee place is available.

We'll go through all three against your actual situation, at no cost. It's fifteen minutes and it regularly finds people money they didn't know was there.