First Home Buyer Guide Australia 2026
Everything you need to know about buying your first home in Australia — grants, stamp duty concessions, deposit requirements, and how to calculate what you can afford.
Step 1 — Work Out What You Can Afford
Before anything else, you need a realistic picture of your buying budget. This means knowing your borrowing power, how much deposit you need, and what your monthly repayments will look like.
Step 2 — Calculate Your Stamp Duty
Stamp duty is one of the biggest upfront costs when buying a home. As a first home buyer you may be eligible for a full exemption or significant concession depending on your state and purchase price.
Step 3 — Federal Government Schemes
The federal government guarantees up to 15% of your loan, meaning you only need a 5% deposit without paying Lenders Mortgage Insurance. 35,000 places available annually. Income cap: $125,000 single / $200,000 couple.
The government co-purchases up to 40% of a new home or 30% of an existing home with you, reducing your mortgage and deposit requirements significantly. Income cap: $90,000 single / $120,000 couple.
Save your home deposit inside your super fund to take advantage of the lower tax rate on concessional contributions. You can withdraw up to $50,000 ($30,000 per year) for a first home purchase.
Step 4 — Compare Home Loan Rates
Getting the right interest rate can save you tens of thousands over the life of your loan. Even a 0.5% difference on a $600,000 mortgage saves approximately $180/month — over $65,000 over 30 years.
Compare Current Home Loan Rates →Step 5 — Factor in HECS/HELP
If you have a HECS/HELP debt, lenders count your compulsory repayments as a liability when assessing your borrowing power. A $30,000 HECS debt can reduce your borrowing power by $40,000–$80,000 depending on income.
Calculate HECS Repayment Impact →First Home Buyer Grants & Schemes Available in 2026
Buy with just 5% deposit and no Lenders Mortgage Insurance (LMI). Federal government guarantees up to 15% of the loan. 35,000 places per year. Income caps apply.
A state-government cash grant for eligible first home buyers building or buying a new home. Amount varies by state — typically $10,000–$30,000. Applies to new builds only in most states.
Save for your deposit inside super and withdraw up to $50,000 for a home deposit. Contributions taxed at 15% instead of your marginal rate — great for high earners.
Most states offer stamp duty exemptions or heavy discounts for first home buyers. NSW exempts homes up to $800k. VIC offers 50% off up to $600k. Check your state’s calculator above.
The First Home Buyer Step-by-Step Checklist
Use our Borrowing Power Calculator to find out how much you can borrow based on your income and expenses. Use calculator →
Aim for 20% to avoid LMI, or as little as 5% with the First Home Guarantee. Factor in stamp duty and other costs.
A pre-approval letter gives you confidence when making offers and shows sellers you are serious.
Check which federal and state schemes you qualify for — FHOG, First Home Guarantee, FHSS, stamp duty concessions. Use calculator →
Attend inspections, get a building & pest report, review the contract of sale with a conveyancer.
Compare rates using our comparison table. A mortgage broker can access wholesale rates not available to the public. Use calculator →
Sign contracts, pay stamp duty, and take possession. Settlement typically takes 30–90 days.
Upfront Costs Every First Home Buyer Must Budget For
| Cost | Typical Amount | Notes |
|---|---|---|
| Stamp Duty | $0 – $40,000+ | Varies by state, price & buyer type |
| Lenders Mortgage Insurance | $5,000 – $35,000 | Only if deposit < 20% |
| Building & Pest Inspection | $400 – $800 | Essential before making an offer |
| Conveyancer / Solicitor | $800 – $2,500 | Reviews contract, manages settlement |
| Loan Application Fees | $0 – $600 | Many lenders waive this |
| Moving Costs | $500 – $3,000 | Often overlooked! |
Grant and scheme details are subject to change. Always check eligibility with the relevant state or federal authority before making financial decisions. Not financial advice.
Know Your Credit Score Before You Apply
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