Buying your first home in Australia in 2026 involves navigating deposits, government schemes, stamp duty, lenders and legal processes all at once. This guide covers everything you need to know in one place.
How Much Deposit Do You Need?
Minimum (with LMI)
5%
No LMI threshold
20%
FHB Guarantee
5%
no LMI
Government Schemes Available to First Home Buyers — 2026
| Scheme | Benefit | Eligibility |
|---|---|---|
| First Home Guarantee (federal) | Buy with 5% — no LMI | Income ≤$125k single, ≤$200k couples. 50,000 places/yr |
| First Home Super Saver (federal) | Save up to $50k in super | Must release within 12mo of application, first-time buyer |
| QLD First Home Owner Grant | $30,000 cash | New homes under $750k in QLD |
| Stamp duty concessions | Zero or reduced duty | Varies by state — up to $700k (QLD/VIC), $1M (ACT) |
Step-by-Step First Home Buying Process
- Check your borrowing power — use a borrowing power calculator to understand your realistic budget
- Save your deposit — aim for 20% or use the First Home Guarantee for 5% with no LMI
- Get pre-approval — pre-approval from a lender (or via broker) gives you confidence to bid at auction
- Check stamp duty obligations — use our stamp duty calculator for your state
- Find a property — inspect thoroughly, order building and pest reports
- Make an offer or bid at auction — private sale allows conditions (finance, building); auction is unconditional
- Exchange contracts and pay deposit — 10% typically due at exchange
- Settlement (4–8 weeks) — bank settles and you get keys
Does HECS/HELP Debt Affect Your Borrowing Power?
Yes — lenders treat your HECS repayment as a committed expense that reduces your disposable income. A $50,000 HECS debt at $70,000 income requires a ~$3,900/yr repayment. This typically reduces borrowing power by $40,000–$60,000. Paying down HECS before applying can increase your borrowing capacity.
Calculate Your Borrowing Power
See how much you can borrow based on your income and expenses.
Disclaimer: General information only. Not financial advice. Always consult a licensed professional before making financial decisions.