Buying your first home is equal parts exciting and daunting. The excitement of finally owning a place to call your own is often followed by an endless sea of paperwork, lender requirements and regulations that can quickly become overwhelming. Amid all of this, it’s easy to overlook the grants and concessions available to first home buyers in Australia. From government-backed schemes that allow eligible buyers to purchase with as little as a 5% deposit to shared equity programs and stamp duty concessions, these initiatives can significantly reduce the upfront cost of buying a home.
However, eligibility requirements differ between states and territories, benefits vary between states and territories, and each program has its own application process. Understanding what’s available from the outset can help you make informed decisions, maximise the assistance you’re entitled to and take the next step towards home ownership with better clarity.
So, let’s go through all available options, one-by-one.
Australian Government 5% Deposit Scheme
Previously known as the Home Guarantee Scheme, the Australian Government 5% Deposit Scheme allows eligible first-home buyers to purchase a property with a deposit as low as 5%, without having to pay the Lender’s Mortgage Insurance (LMI).
Normally, if a buyer is borrowing more than 80% of their property’s price, they would have to pay LMI, adding thousands of dollars to the overall cost of purchasing the property. This LMI is meant to protect the lenders in case the borrower defaults and is unable to pay back the loan.
Under the scheme, the Australian Government guarantees part of the loan, allowing participating lenders to offer eligible buyers a loan of up to 95% of the property value without LMI. From 1 October 2025, income caps and waitlists were removed, although buyers must still meet the participating lender’s credit requirements and purchase within the relevant location-based property price cap.
To qualify as a first-home buyer, you generally need to:
- Be an Australian citizen or permanent resident aged 18 or over
- Have at least a 5% deposit
- Buy a property within the applicable price cap
- Purchase through a participating lender
- Live in the property as an owner-occupier
The scheme can be used for eligible new and established homes, apartments, townhouses, house-and-land packages, off-the-plan properties and vacant land purchased with a building contract.
There is also support under the scheme for eligible single parents and legal guardians, who may be able to purchase with a deposit as low as 2%.
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Help to Buy Shared Equity Scheme
Under the Help to Buy scheme, the Australian Government contributes a share of the property purchase price.
Eligible buyers may receive a government contribution of up to 40% for a new home or up to 30% for an existing property. Buyers need a deposit of at least 2%, and because the government contributes part of the purchase price, the size of the home loan and the resulting repayments may be lower.
For example, suppose you purchase an eligible established home for $600,000 and receive a 30% government contribution. The government’s share would be $180,000. After contributing your deposit, you would only need to borrow the remaining amount from a participating lender.
The contribution is not a gift. The government holds an equity share in the property and is entitled to the same percentage of the property’s value when its share is repaid. This means that if the property increases in value, the cost of buying back the government’s share may also increase.
Applicants must be Australian citizens, be at least 18, contribute a minimum 2% deposit and meet the scheme’s income and property-price requirements. Help to Buy can be used by an individual or by two joint applicants, provided both meet the eligibility criteria.
It may appeal to buyers who can manage regular mortgage repayments but would otherwise struggle to save a large deposit or borrow enough to purchase a suitable home.
First Home Super Saver Scheme
The First Home Super Saver Scheme, commonly called FHSS, allows eligible buyers to save for a deposit through voluntary contributions to superannuation. You can make eligible concessional or non-concessional contributions to your super and later apply to release those contributions, together with an amount of associated earnings, to put towards your first home.
Under the current limits, up to $15,000 of eligible voluntary contributions from any one financial year may count towards the scheme, with a total maximum of $50,000 per person. Couples buying together can each use their own eligible FHSS savings, potentially allowing them to access a combined amount of up to $100,000, plus associated earnings.
The scheme can be useful because concessional super contributions may be taxed at a lower rate than your normal income. However, contribution caps, withdrawal tax and administrative rules apply, so it is worth obtaining financial or tax advice before relying on it.
Timing also matters. You must request an FHSS determination from the Australian Taxation Office before property ownership transfers to you. Once funds are released, you must generally buy or build an eligible home within the required timeframe and genuinely intend to occupy it as your home.
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First Home Owner Grant (FHOG)
The First Home Owner Grant (FHOG) is a one-off payment offered by state and territory governments to help eligible Australians purchase or build their first home.
Unlike the federal schemes, the grant amount and eligibility criteria vary depending on where you’re buying.
Generally, the grant is available when purchasing or building:
- A newly built home
- A substantially renovated home (in some states)
- An off-the-plan property that meets eligibility requirements
Most established homes don’t qualify.
Grant amounts also differ across Australia. For example:
- Queensland: Up to $30,000 for eligible new homes.
- New South Wales: Up to $10,000 for eligible new homes.
- Victoria: A $10,000 grant is available to eligible first-home buyers purchasing or building a new home valued up to $750,000.
- South Australia: Up to $15,000 for eligible new homes.
To qualify, you’ll usually need to:
- Be purchasing your first home
- Meet Australian citizenship or residency requirements
- Live in the property as your principal place of residence
- Purchase a property below the applicable value threshold
While the grant won’t cover the full cost of buying a home, it can reduce the amount you need to save and help offset other upfront expenses.
Stamp Duty Exemptions and Concessions
Stamp duty, also known as transfer duty in some states, is often one of the largest upfront costs involved in purchasing a property. Fortunately, every Australian state and territory offers some form of concession for eligible first-home buyers.
The amount you may save depends on factors such as:
- The state or territory you’re buying in
- Whether the property is new or established
- The property’s purchase price
- Your eligibility under the relevant first-home buyer scheme
Depending on where you buy, you may receive:
- A full stamp duty exemption
- A partial concession
- Reduced transfer duty rates
Because these concessions vary between states and are updated from time to time, it’s important to confirm the latest thresholds before signing a contract. Purchasing a property that’s only slightly above the applicable value cap could mean missing out on thousands of dollars in savings.
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Can You Combine Multiple Schemes?
In many cases, yes.
Eligible first-home buyers may be able to combine several forms of government assistance, including:
- The Australian Government 5% Deposit Scheme
- The First Home Owner Grant
- Stamp duty exemptions or concessions
- Savings released through the First Home Super Saver Scheme
However, each program has its own eligibility criteria, property value caps and occupancy requirements. Qualifying for one scheme doesn’t automatically mean you’ll qualify for another.
A mortgage broker can help determine which incentives you’re eligible for and ensure your purchase is structured to maximise the assistance available.
Energy-Efficient Home Loan Benefits
If you’re considering a newly built home, its energy efficiency may also affect the home loan options available to you. Some lenders offer discounted interest rates or specialised green home loans for properties that meet certain energy-efficiency standards.
For example, some lending products provide interest-rate discounts for eligible homes with a Nationwide House Energy Rating Scheme (NatHERS) rating of 7.5 stars or higher. Eligibility requirements vary between lenders and may include conditions relating to the age of the property, its energy rating, additional sustainability features and the loan-to-value ratio.
For first-home buyers already considering a newly built property, it is therefore worth checking whether the home’s energy rating could qualify you for a more competitive lending option. A highly energy-efficient home may not only reduce ongoing energy costs but could also provide access to certain home loan benefits.
Final Thoughts
Buying your first home is a significant milestone, and while the process can seem complicated, the right government support can make it far more achievable. Whether it’s reducing the size of your deposit, avoiding Lenders Mortgage Insurance, accessing a shared equity scheme or saving thousands through grants and stamp duty concessions, these initiatives are designed to help eligible Australians take their first step onto the property ladder.
The key is understanding which schemes apply to your circumstances before you start making offers. Every program has different eligibility requirements, property value caps and application processes, so a little planning upfront can potentially save you thousands of dollars and prevent costly mistakes.
At Loanscope, we help first-home buyers navigate the home loan process with confidence. Our mortgage brokers take the time to understand your financial situation, explain the grants and concessions you may be eligible for, and compare home loan options from a wide range of lenders.
Get in touch with Loanscope today and let us help you make the most of the grants, concessions and home loan options available to first-home buyers.
