First Home Buyer Australia 2026: Grants, Stamp Duty Concessions and Loan Eligibility
Purchasing your first home in Australia involves navigating a mix of federal government schemes, state-based concessions, and lender requirements that vary depending on property price, state, and buyer eligibility. This guide consolidates the 2026 landscape across all major programs.
The information in this article is general in nature and does not constitute financial or legal advice. Eligibility requirements change; verify current rules with the relevant government agency and consult a licensed mortgage broker or financial adviser before making decisions. Arrivau Pty Ltd holds Australian Credit Licence Representative CRN 530978 and NSW Real Estate Licence 20253209.
Federal Schemes: The Two Main Programs
First Home Guarantee (FHBG) — Formerly FHLDS
The First Home Guarantee allows eligible first home buyers to purchase a property with a 5% deposit without paying Lenders Mortgage Insurance (LMI). The federal government guarantees up to 15% of the property value, bridging the gap to the 20% threshold that lenders require before waiving LMI.
2025/26 scheme details (updated by the National Housing Finance and Investment Corporation, NHFIC):
- Annual places: 35,000 guarantees per financial year
- Property price caps (see table below)
- Applicant income caps: $125,000 (individual); $200,000 (joint)
- Genuine first home buyer requirement (no previous ownership interest in Australian property)
- Must intend to occupy as principal place of residence
2026 Property Price Caps (FHBG):
| State/Territory | Capital city & regional centres | Other |
|---|---|---|
| NSW | $900,000 | $750,000 |
| VIC | $800,000 | $650,000 |
| QLD | $700,000 | $550,000 |
| WA | $600,000 | $450,000 |
| SA | $600,000 | $450,000 |
| TAS | $600,000 | $450,000 |
| ACT | $750,000 | N/A |
| NT | $600,000 | $600,000 |
LMI saving: At a purchase price of $750,000 with 5% deposit ($37,500), LMI would otherwise cost approximately $18,000–$28,000 (depending on the lender). The FHBG eliminates this cost.
Help to Buy (Shared Equity Scheme)
The Help to Buy scheme, which began rolling out in 2025/26, allows eligible buyers to purchase a home with as little as a 2% deposit, with the federal government contributing up to 40% of the purchase price for new homes (30% for existing homes) as a shared equity arrangement.
Key features:
- Government takes proportionate equity stake — when the property is sold, the government receives back the same proportion of the proceeds
- Buyers can progressively “buy out” the government’s share over time
- Income cap: $90,000 (single); $120,000 (couple)
- Property price caps align approximately with FHBG
This scheme suits buyers with stable income but limited deposit savings, and particularly those in lower-to-middle income brackets.
State and Territory: Stamp Duty and First Home Owner Grant
Stamp Duty Concessions by State
Stamp duty (now called “transfer duty” in most states) is among the largest upfront costs in a property transaction. Most states offer first home buyer concessions.
New South Wales:
- First home buyer stamp duty exemption: Properties up to $800,000 (owner-occupied)
- Concession (partial): $800,001–$1,000,000
- Saving at $750,000: Approximately $28,900
Victoria:
- Stamp duty waiver: Properties up to $600,000 (principal place of residence, first home buyer)
- Concessional rate: $600,001–$750,000
- Saving at $550,000: Approximately $22,000
Queensland:
- First Home Buyer: Up to $700,000 concession (for owner-occupied, first home)
- Full exemption where property ≤ $500,000; concessional up to $550,000
- Saving at $500,000: Approximately $15,925
Western Australia:
- No stamp duty on properties up to $450,000 for first home buyers
- Concessional rate to $600,000
- Saving at $450,000: Approximately $14,850
South Australia:
- No first-home-buyer specific stamp duty concession (repealed in 2018)
- However, stamp duty on off-the-plan new homes has separate concessions
First Home Owner Grant (FHOG)
The FHOG is a cash grant funded by states and territories:
| State | Grant Amount | Condition |
|---|---|---|
| NSW | $10,000 | New homes ≤ $600,000 (land + build ≤ $750,000) |
| VIC | $10,000 | New builds in regional VIC; $10,000 metropolitan |
| QLD | $30,000 | New homes only |
| WA | $10,000 | New or substantially renovated homes |
| SA | $15,000 | New homes only |
| TAS | $20,000 | New builds ≤ $750,000 |
| NT | $10,000 | New builds |
| ACT | No FHOG (replaced by stamp duty concessions) | — |
Lender Eligibility: The Practical Requirements
Government scheme eligibility is one filter; lender credit assessment is another. Most lenders apply:
Serviceability: Under APRA’s 2024 guidance, lenders assess borrower capacity to service the loan at the actual rate plus a 3% buffer. At current variable rates (approximately 6.0–6.7% depending on the lender as of April 2026), the test rate is approximately 9.0–9.7%.
Genuine savings: Most lenders require that the 5% deposit consists of “genuine savings” — funds accumulated over at least three months in a savings account (gifts and family loans do not typically qualify unless held for 3+ months).
Credit history: Any defaults or missed payments in the last 5 years will affect eligibility with mainstream lenders; specialist lenders may accommodate with higher rates.
Debt-to-income: Many lenders cap total debt at 6x gross income; some have moved to 7x for high-income borrowers.
Practical Scenario: Buying in Brisbane, $650,000
- Purchase price: $650,000
- FHBG participation: 5% deposit = $32,500; government guarantees 15% ($97,500)
- Loan amount: $617,500 (95% LVR, no LMI via FHBG)
- QLD stamp duty: Concessional (first home buyer, new home), approximately $12,600–$15,000
- QLD FHOG: $30,000 (new home)
- Net cash required: $32,500 (deposit) + $15,000 (stamp duty) − $30,000 (FHOG) = approx. $17,500 upfront
- Monthly repayments at 6.3% variable, 30-year term: approx. $3,830
Summary
The combination of FHBG (5% deposit, no LMI), state FHOG grants, and stamp duty concessions can meaningfully reduce the barrier to first home ownership in 2026. The most favourable combination currently exists in Queensland (strong FHOG, reasonable price caps) and Tasmania (higher FHOG). NSW and VIC have higher price caps but also higher median property prices that can make scheme eligibility more competitive.
#FirstHomeBuyer #Australia #FHBG #StampDuty #PropertyAustralia2026 #FirstHomeOwnerGrant