If you're buying your first home in Australia, you've probably heard about the 5% deposit scheme, first home buyer grants, stamp duty exemptions and government help with your deposit.
It sounds promising. But when you start looking into it, things get confusing. One scheme helps you buy with a smaller deposit. Another gives you money towards a new home. Another reduces the tax you pay when buying. And one involves the government taking a share in your property.
So which schemes are actually available, and which ones could help you?
The answer depends on where you're buying, whether the property is new or established, your income, your deposit and whether you've owned property before.
Government assistance can help with the deposit, purchase costs or the size of your mortgage. But it does not automatically mean a bank will approve your home loan.
What First Home Buyer Schemes Are Available in Australia?
There are several programs worth knowing about. Some are offered by the Australian Government. Others are managed by individual states and territories.
They generally fall into four categories.
Low Deposit Schemes
Help eligible buyers purchase with a smaller deposit and potentially avoid lenders mortgage insurance.
Cash Grants
Provide money to eligible buyers, commonly when purchasing or building a new home.
Stamp Duty Relief
Reduce or remove some of the transfer duty you would otherwise pay when purchasing property.
Shared Equity
Allow an eligible buyer to purchase with a government contribution towards the property, in exchange for a share of its value.
There is also the First Home Super Saver Scheme, which can help eligible buyers save for a deposit through voluntary superannuation contributions.
You don't necessarily have to choose just one form of assistance. Some programs can be combined, provided you satisfy each scheme's rules.
First Home Buyer Schemes Compared
| Scheme | What It Does | Important Detail |
|---|---|---|
| Australian Government 5% Deposit Scheme | Supports eligible purchases with a deposit from 5%, or 2% for eligible single parents and guardians, without LMI. | It is a guarantee, not a cash payment towards your home. |
| Help to Buy | Government contributes up to 30% for an existing home or 40% for a new home. | The government holds a shared equity interest that must be dealt with later. |
| First Home Super Saver | Allows eligible voluntary super contributions and associated earnings to be released towards a first home. | Contribution limits, tax rules and release procedures apply. |
| First Home Owner Grant | A cash grant for eligible buyers, generally purchasing or building a new home. | Amount and eligibility vary by state or territory. |
| Stamp Duty Concessions | Reduce or remove transfer duty on eligible purchases. | Property value thresholds and residency conditions vary. |
1. Australian Government 5% Deposit Scheme
This is one of the most useful programs for buyers who have a reasonable income but are finding it difficult to save a 20% deposit.
The Australian Government 5% Deposit Scheme, previously known as the Home Guarantee Scheme, expanded on 1 October 2025.
Eligible first home buyers can purchase with a deposit as low as 5%. Eligible single parents and legal guardians with dependants may qualify with as little as 2%.
The scheme allows eligible borrowers to avoid lenders mortgage insurance, commonly called LMI, when using a participating lender.
What changed in October 2025?
- Income caps were removed.
- The limit on the number of scheme places was removed.
- Property price caps were increased.
- The former Regional First Home Buyer Guarantee closed to new applications, with regional buyers able to use the expanded scheme where eligible.
This means a higher income does not, by itself, disqualify an eligible buyer from the 5% Deposit Scheme. However, applicants must still satisfy the scheme rules and the lender's borrowing assessment.
How does the 5% Deposit Scheme work?
Example: Buying an $800,000 Home
A 5% deposit on an $800,000 property is $40,000. The remaining $760,000 would generally need to be financed through a home loan, assuming the lender's valuation matches the purchase price.
Under an eligible scheme loan, the government guarantee helps the participating lender provide the loan without charging LMI.
You still owe the lender the amount borrowed, plus interest and applicable fees. The government does not contribute the other 15% of the deposit as a cash gift.
Example excludes transfer duty, legal fees, adjustments and other purchase costs.
Who can qualify?
Eligibility includes citizenship or permanent residency requirements, minimum deposit rules, owner occupation, previous property ownership conditions and property price caps.
Under the first home buyer stream, eligible applicants generally must be first home buyers or not have owned property in Australia during the preceding 10 years.
Different eligibility provisions apply to the single parent and legal guardian stream.
What are the property price caps?
The caps depend on where the property is located. For example, under the expanded 5% Deposit Scheme, the cap is $1.5 million in eligible NSW capital city and designated regional centre areas, compared with $800,000 in other NSW areas.
Both the purchase price and lender-assessed property value must satisfy the relevant cap. Check the postcode before committing to a purchase.
Check the Australian Government 5% Deposit Scheme
Avoiding LMI does not make a large mortgage affordable. A smaller deposit means borrowing more, which can increase repayments and total interest over the life of the loan.
2. Help to Buy: The Government Shared Equity Scheme
Help to Buy is different from the 5% Deposit Scheme. Instead of guaranteeing part of your mortgage, the Australian Government contributes towards the purchase price of an eligible home.
Eligible buyers may be able to purchase with a deposit as low as 2%, with the government contributing up to 30% for an existing home or 40% for a newly built home.
There are 10,000 places available each year, subject to scheme conditions.
What does shared equity mean?
It means the government has a financial interest in the property.
You live in the home, but when the government's share is repaid, the amount is generally linked to the property's value at that time, rather than simply the original dollar contribution.
Example: Help to Buy on an $800,000 Existing Home
Imagine an eligible buyer purchases an existing home for $800,000.
- Buyer deposit at 2%: $16,000.
- Government contribution at 30%: $240,000.
- Remaining bank finance: $544,000.
The buyer starts with a smaller bank loan than they would have needed without shared equity.
However, the government retains a 30% equity interest, subject to the scheme terms. If the property later rises in value, buying out that share can cost more than the original $240,000 contribution.
Illustrative example only. Actual contributions, loan amounts, valuations and eligibility are subject to scheme and lender requirements.
Help to Buy income limits for 2026–27
The published income limits for applications during the 2026–27 financial year are:
- Single applicant: $103,000 taxable income.
- Joint applicants: $165,000 combined taxable income.
- Single parents and eligible single legal guardians: $165,000 taxable income.
These limits are based on the relevant ATO Notice of Assessment and are subject to annual indexation.
Help to Buy also has property price caps, citizenship requirements and ongoing owner occupation obligations.
Is Help to Buy better than the 5% Deposit Scheme?
Not necessarily.
Help to Buy may reduce the mortgage you need, but you give the government a share in the property's value.
The 5% Deposit Scheme does not involve government equity ownership, but you generally borrow a larger amount.
Comparing these two options means looking beyond the deposit. You need to consider mortgage repayments, future property growth, refinancing flexibility and how the government's share may eventually be repaid.
Read the official Help to Buy eligibility rules and check the Help to Buy property price caps .
3. First Home Super Saver Scheme
The First Home Super Saver Scheme, or FHSS, is designed to help eligible buyers save for their first home through voluntary contributions to superannuation.
It is not a government cash grant. You are using your own eligible contributions, together with associated deemed earnings.
Under the scheme, up to $15,000 of eligible voluntary contributions from a financial year can count towards the scheme, with a total eligible contribution limit of $50,000.
The amount available for release depends on the type of contributions, applicable tax treatment and the ATO's determination.
Who might benefit?
Someone who is still saving for a deposit and has time before purchasing may find the scheme useful.
For example, a teacher who regularly salary sacrifices into super may be able to use eligible contributions towards a future first home.
But the scheme has important timing rules. You should understand the determination and release process before signing a property contract.
Visit the ATO for First Home Super Saver rules .
4. First Home Owner Grants: Who Actually Gets the Money?
This is where many first home buyers become confused.
The First Home Owner Grant is generally a state or territory payment for eligible people buying or building a new home.
It is not automatically available just because you have never owned property.
In many jurisdictions, buying an established home will not qualify for the grant, even if it is your first home.
Example: NSW First Home Owner Grant
NSW offers a $10,000 First Home Owner (New Homes) Grant for eligible purchases.
For a newly built home, the purchase price generally must not exceed $600,000. For eligible vacant land and building contracts, the combined value generally must not exceed $750,000.
The grant is not available for an ordinary established home.
NSW First Home Owner Grant eligibility .
For a more detailed explanation, see our First Home Owner Grant guide .
5. Stamp Duty Exemptions and Concessions
Stamp duty, also called transfer duty in some states, is one of the biggest upfront costs when buying property.
Depending on where you buy, eligible first home buyers may receive a full exemption or a reduced rate.
Unlike many first home owner grants, some stamp duty concessions also apply to established properties.
NSW example
Under the NSW First Home Buyers Assistance Scheme, eligible buyers purchasing a new or established home valued up to $800,000 may receive a full transfer duty exemption.
Homes valued above $800,000 and below $1 million may qualify for a concessional rate.
For eligible vacant land, different thresholds apply.
Check NSW First Home Buyers Assistance Scheme .
You may be eligible for stamp duty relief when buying an established property without being eligible for a First Home Owner Grant. They are separate programs with different rules.
First Home Buyer Grants and Concessions by State
The following is a practical starting point. It is not a substitute for checking the relevant state or territory revenue authority. Contract dates, property values and residency requirements can change eligibility.
New South Wales
Eligible buyers may receive a $10,000 grant for qualifying new homes. Transfer duty exemptions or concessions may also apply under the First Home Buyers Assistance Scheme.
Victoria
Eligible first home buyers may receive a $10,000 grant when buying or building a qualifying new home valued up to $750,000.
First home buyer transfer duty exemptions apply to eligible properties valued up to $600,000, with concessions for values above $600,000 and up to $750,000.
Queensland
Queensland offers a First Home Owner Grant of up to $30,000 for qualifying new home purchases or builds. The increased grant continues for eligible contracts from 1 July 2026.
The new home and land value must be below $750,000. Separate transfer duty concessions may also apply, including concessions for eligible first home buyers purchasing established homes.
Queensland Government homebuyer assistance
Western Australia
Eligible first home buyers may qualify for a grant of up to $10,000 when buying or building a new home.
Western Australia also offers first home owner transfer duty relief. For eligible contracts from 7 May 2026, the duty exemption threshold for qualifying homes is $600,000, with concessional treatment up to $800,000.
The state introduced changes to its housing taxation settings in 2026, so checking the relevant contract date is particularly important.
RevenueWA housing taxation changes
South Australia
South Australia provides first home buyer assistance for eligible new homes and builds, including grant and stamp duty relief arrangements.
The available benefit depends on the transaction and the applicable eligibility rules.
Tasmania
Tasmania offers a First Home Owner Grant for eligible new homes. For qualifying transactions commencing from 1 July 2026 to 30 June 2027, the published grant amount is $20,000.
Tasmania also has separate property transfer duty assistance provisions.
Australian Capital Territory
The ACT offers home buyer concession arrangements that can reduce conveyance duty for eligible purchasers.
Eligibility and concession amounts depend on the applicable ACT rules, including household circumstances and the property transaction.
Northern Territory
The Northern Territory offers homebuyer assistance programs that may include grants for eligible purchases and construction.
The programs, amounts and eligibility conditions depend on the current government settings and contract dates.
Northern Territory Government property information
Can You Combine First Home Buyer Schemes?
Sometimes, yes.
This is one of the most useful things to check before buying a property.
For example, an eligible first home buyer in NSW might be able to use the Australian Government 5% Deposit Scheme and receive a state transfer duty exemption on the same purchase.
Depending on the property and eligibility, a First Home Owner Grant may also be available.
The First Home Super Saver Scheme can also be used alongside certain other assistance programs.
But not every combination is permitted.
In particular, Help to Buy cannot be combined with certain other government home purchase guarantees, loans or shared equity assistance. State grants and stamp duty relief may still be available where eligible.
| Combination | General Position |
|---|---|
| 5% Deposit Scheme + state stamp duty relief | May be possible if eligible for both. |
| 5% Deposit Scheme + First Home Owner Grant | May be possible for a qualifying new home. |
| First Home Super Saver + other eligible assistance | Generally possible, subject to each scheme's rules. |
| Help to Buy + 5% Deposit Scheme | Not available together. |
| Help to Buy + eligible state grant or stamp duty relief | May be possible, subject to eligibility. |
Which Scheme Might Help You? Three Buyer Examples
Example 1: A Nurse Buying Her First Home in NSW
A nurse has saved $45,000 and wants to buy an established property for $750,000.
A 5% deposit is $37,500. If she meets the 5% Deposit Scheme requirements and qualifies for the necessary home loan, she may be able to purchase without paying LMI.
Because the property is below the NSW transfer duty exemption threshold, she may also qualify for stamp duty relief.
She would not ordinarily receive the NSW First Home Owner Grant because she is buying an established property.
Her remaining savings would still need to cover other purchase costs, so the overall cash position must be checked carefully.
Example 2: A Couple Building Their First Home
A couple is considering purchasing land and building a new home.
They may be eligible for a First Home Owner Grant and state transfer duty assistance.
Depending on their location, total land and construction costs and lender policy, the 5% Deposit Scheme may also be worth considering.
Construction lending introduces additional considerations, including progress payments, valuation, cost variations and the timing of the grant.
Read our guide to construction loans and progress payments .
Example 3: A Buyer Who Needs a Smaller Mortgage
A single buyer has a modest deposit and earns within the Help to Buy income limit.
Their income may not support the mortgage required under a conventional purchase.
Help to Buy could reduce the amount they need to borrow because the government contributes a share of the purchase price.
But they would need to understand the future cost of repaying the government's equity interest, along with ongoing scheme obligations.
Six Mistakes First Home Buyers Should Avoid
- 1. Assuming every first home buyer gets a cash grant. Many grants apply only to new homes and have strict price and eligibility conditions.
- 2. Confusing a government guarantee with a government deposit. The 5% Deposit Scheme does not provide you with an extra 15% cash deposit.
- 3. Ignoring stamp duty and purchase costs. A 5% deposit does not mean 5% is all the cash you will need.
- 4. Assuming scheme eligibility means loan approval. The lender still assesses your income, liabilities, credit history and repayment capacity.
- 5. Signing a contract before checking the property cap. An otherwise suitable home may fall outside the scheme's price or valuation limits.
- 6. Choosing the scheme before comparing the long-term cost. Lower upfront costs do not always mean a better financial outcome over time.
If you're getting ready to purchase, our guide to conditional and unconditional home loan approval explains why finance approval and property contracts need to be considered together.
What Should You Check Before Applying?
Before choosing a property or submitting a loan application, work through the following.
- Confirm whether you meet the relevant first home buyer and citizenship requirements.
- Check the government scheme price cap for the actual suburb or postcode.
- Find out whether your intended property is classified as new or established.
- Calculate your available deposit after allowing for stamp duty and other costs.
- Check your borrowing capacity with lenders participating in the relevant scheme.
- Compare available grants, concessions and schemes before deciding which option suits your purchase.
- Confirm the application process and required documents before exchanging contracts.
You may also find our First Home Buyer information hub useful when planning your purchase.
Official Government Resources for First Home Buyers
Because schemes change, it is worth checking the original government information before relying on eligibility figures or applying.
- Australian Government First Home Buyers for the 5% Deposit Scheme, Help to Buy and FHSS information.
- Help to Buy for shared equity eligibility and program conditions.
- Australian Taxation Office for First Home Super Saver rules.
- Revenue NSW for first home buyer transfer duty relief.
- Queensland Government for first home buyer assistance.
- State Revenue Office Victoria for grants and duty concessions.
- ASIC Moneysmart for independent information about buying a home and managing mortgage costs.
How Triple O Finance Helps First Home Buyers
Government schemes can make buying your first home easier, but choosing the right one is only part of the process.
You also need a lender that will assess your income appropriately, accept your deposit arrangements and support the scheme you want to use.
At Triple O Finance, we help first home buyers understand their options before applying.
That includes reviewing your deposit, borrowing capacity, available grants, property price limits and the relevant lender policies.
We also work with professionals whose income includes overtime, shift penalties or allowances, including police officers, nurses, doctors, firefighters and other emergency services workers.
The aim is simple. We want you to understand what is available, what you may qualify for and what buying the property could actually cost.
Buying Your First Home?
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Written by Nishant Ramavat
Founder, Director & Senior Finance Specialist
Triple O Finance
Nishant is a former NSW Police Officer and the Founder of Triple O Finance. He holds a Master's degree in Financial Planning and helps Australian borrowers, particularly emergency services professionals and first home buyers, understand lender policies and make informed borrowing decisions.
