First Home Buyer Guide Australia (2026)

The First Home Owner Grant (FHOG) is a national scheme administered individually by each state and territory. Grant amounts and eligibility rules vary significantly, so it is important to check the rules for your specific state.

As of 2026, the typical FHOG amounts are:

- **New South Wales**: $10,000 for new homes valued up to $600,000 (or land and building contracts up to $750,000). The grant applies only to new builds, not established homes. - **Victoria**: $10,000 for new homes in metropolitan Melbourne valued up to $750,000, and $10,000 for new homes in regional Victoria valued up to $750,000. Regional buyers may also qualify for additional state incentives. - **Queensland**: $30,000 for new homes valued up to $750,000. Queensland offers one of the most generous FHOG amounts in the country. - **Western Australia**: $10,000 for new homes valued up to $750,000 statewide. - **South Australia**: $15,000 for new homes valued up to $650,000. - **Tasmania**: $30,000 for new homes (no price cap applies at the time of writing, though this is subject to change). - **ACT**: The ACT replaced its FHOG with the Home Buyer Concession Scheme, which provides full stamp duty concessions for eligible buyers purchasing properties up to a certain income threshold. - **Northern Territory**: $10,000 for new homes with no property value cap, plus an additional $2,000 if buying in a regional area.

To be eligible, you must be an Australian citizen or permanent resident, at least 18 years old, and must not have previously owned property in Australia. You generally must move into the property within 12 months and live there for a continuous period of at least 6 to 12 months (varies by state). Applications are typically lodged through your bank or lender at settlement, or directly with your state revenue office.

Stamp duty (called transfer duty in some states) is one of the largest upfront costs when purchasing property. Most states offer concessions or exemptions specifically for first home buyers.

**New South Wales**: Full exemption on properties up to $800,000 and a concessional rate on properties between $800,000 and $1,000,000. First Home Buyer Choice scheme previously allowed opting for annual property tax instead of stamp duty, but this was wound back — check the current status with Revenue NSW.

**Victoria**: Full stamp duty exemption for properties valued up to $600,000 and a concession for properties between $600,000 and $750,000. Victoria also offers an off-the-plan stamp duty concession that applies to both first home buyers and investors.

**Queensland**: No stamp duty on homes up to $700,000 for first home buyers, with concessions up to $800,000. Transfer duty rates in Queensland are generally lower than NSW and Victoria.

**Western Australia**: Full exemption for properties up to $430,000 and concessions up to $530,000 for established homes. Higher thresholds apply for vacant land.

**South Australia**: No specific first home buyer stamp duty exemption, but the FHOG is comparatively higher to compensate.

**Tasmania**: A 50% stamp duty discount for first home buyers on established homes up to $600,000.

These thresholds change periodically. Always verify the current thresholds with your state's revenue office before making purchasing decisions.

Most lenders require a minimum deposit of 5% to 20% of the purchase price. A 20% deposit avoids Lenders Mortgage Insurance (LMI), which can add $10,000 to $40,000+ to your costs depending on the property price and loan amount.

The **First Home Super Saver Scheme (FHSSS)** allows you to make voluntary contributions to your superannuation fund and withdraw them (plus deemed earnings) for a home deposit. You can withdraw up to $50,000 in total contributions. Because super contributions are taxed at 15% rather than your marginal tax rate, this effectively gives you a tax benefit on your savings. To use the FHSSS, you must apply to the ATO for a determination of the maximum releasable amount, then request the release before signing a contract.

The **Home Guarantee Scheme** (administered by Housing Australia, formerly NHFIC) allows eligible buyers to purchase with as little as 5% deposit without paying LMI. The government guarantees up to 15% of the property value. There are several streams: the First Home Guarantee, Regional First Home Buyer Guarantee, and Family Home Guarantee (for single parents). Income caps apply — currently $125,000 for individuals and $200,000 for couples. Property price caps vary by location.

Other strategies for building your deposit include setting up a dedicated high-interest savings account, reducing discretionary spending for 12-24 months, and considering whether family assistance (gift or loan) is available. Keep records of genuine savings — lenders generally want to see 3-6 months of consistent saving history.

The Loan-to-Value Ratio (LVR) is the amount you borrow expressed as a percentage of the property's value. If you buy a $600,000 property with a $120,000 deposit, your LVR is 80%. Most lenders charge LMI when the LVR exceeds 80%.

LMI protects the lender (not you) against default risk. It is a one-off premium, typically capitalised into the loan. The cost increases steeply as LVR increases:

- 85% LVR: roughly 1-2% of the loan amount - 90% LVR: roughly 2-3% of the loan amount - 95% LVR: roughly 3-5% of the loan amount

On a $570,000 loan (95% LVR on a $600,000 property), LMI could be $15,000-$28,000. Some lenders offer LMI waivers for certain professionals (doctors, lawyers, accountants) at higher LVRs.

While avoiding LMI by saving 20% is ideal, it is not always practical in high-price markets. Waiting years to save an additional 5-10% could mean paying more for the property if prices rise. Run the numbers both ways before deciding.

For first home buyers, the choice between a house and a unit involves trade-offs in price, location, ongoing costs, and capital growth potential.

**Houses** generally deliver stronger capital growth because the land component appreciates over time. You have full control over the property with no body corporate fees. However, houses are more expensive, especially within 15-20 km of CBDs, and you are responsible for all maintenance. Land sizes have been shrinking — a typical new house block in outer suburbs is now 300-450 sqm compared to 600-800 sqm a generation ago.

**Units (apartments and townhouses)** offer a lower entry price, often in better locations closer to amenities and public transport. Townhouses with some land component can offer reasonable growth. However, apartments in high-supply areas (particularly off-the-plan in CBD high-rises) have historically shown weaker capital growth. Body corporate levies add $2,000-$8,000+ per year to your holding costs. Before buying any unit, obtain and review the strata report carefully.

As a general rule, units work well if you prioritise lifestyle and location within a tight budget, while houses work well if you are focused on long-term capital growth and are willing to compromise on location.

Properties in Australia are sold either at auction or by private treaty (private sale). The method varies by region — auctions dominate in Sydney and Melbourne, while private treaty is more common in Brisbane, Perth, and regional areas.

**Auction**: You bid publicly against other buyers. If the hammer falls in your favour, the contract is immediately binding with no cooling-off period in most states. You typically need to pay a 10% deposit on the day. Pre-approval and a building inspection must be done before auction day.

**Private treaty**: You submit an offer (usually in writing) and negotiate with the vendor through their agent. Contracts include a cooling-off period (typically 5 business days in most states), during which you can withdraw — though you may forfeit 0.25% of the purchase price. This gives you time to finalise finance, do inspections, and obtain legal advice.

For first home buyers, private treaty is often less stressful because you have the cooling-off safety net. If buying at auction, set your absolute maximum price before bidding begins and do not exceed it.

*Disclaimer: This guide provides general information only and is not financial, legal, or tax advice. Consult qualified professionals before making property purchase decisions.*