First Home Buyer Grants & the 5% Deposit Scheme Explained

Buying your first home in Australia is more achievable than most people realise — if you know which government schemes and grants you qualify for. In 2026, there are multiple programs designed to get first home buyers into the market sooner, with less deposit and lower upfront costs.

The First Home Guarantee (5% Deposit, No LMI)

The First Home Guarantee is the flagship scheme for eligible first home buyers. It allows you to purchase a property with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI) — which can save you $15,000 to $30,000 in upfront costs.

The federal government guarantees the remaining 15% of the loan to the lender, meaning you can borrow 95% of the property value without the bank treating it as a high-risk loan. Places are limited each financial year, so early applications are critical.

Eligibility requirements (2026):

• Australian citizen or permanent resident
• First home buyer (never previously owned in Australia)
• Individual income under $125,000 or couple income under $200,000
• Property must be owner-occupied and within price caps (varies by state)

First Home Owner Grant (FHOG)

The FHOG is a one-off cash grant paid directly to eligible first home buyers at settlement. The amount varies by state:

• NSW: $10,000 for new builds valued up to $600,000 (land + build up to $750,000)
• QLD: $30,000 for new builds (increased in 2023 and still current in 2026)
• VIC, WA, SA: $10,000 for new builds in metropolitan areas

Note: the FHOG applies to new builds only. If you're buying an established property, you won't receive this grant — but you may still qualify for the First Home Guarantee and stamp duty concessions.

Stamp Duty Exemptions and Concessions

Stamp duty (also called transfer duty) is one of the biggest upfront costs in a property purchase. For first home buyers, most states offer full exemptions or significant concessions:

• NSW: Full exemption for new builds under $800,000; concessions up to $1M
• QLD: Full exemption for homes under $500,000; concessions up to $550,000
• VIC: 50% concession for homes under $600,000

On a $650,000 property in NSW, the stamp duty saving alone can be over $24,000 — a significant reduction in your total upfront costs.

First Home Super Saver Scheme (FHSS)

The FHSS allows first home buyers to save for a deposit inside their superannuation fund at a lower tax rate. You can contribute up to $15,000 per year (and $50,000 total per person) in voluntary concessional contributions, then withdraw these funds for your deposit.

Because super contributions are taxed at 15% rather than your marginal tax rate, this can be a tax-efficient way to save — particularly for individuals on higher incomes.

How to Combine Multiple Schemes

The real power comes from stacking schemes together. An eligible first home buyer purchasing a new build in QLD could receive:

• $30,000 FHOG cash grant
• No stamp duty (on properties under $500K)
• No LMI via the First Home Guarantee
• FHSS savings withdrawn from super

Combined, these benefits can reduce the effective upfront cost of buying a home by $50,000 to $80,000 — bringing the path to ownership much closer than most first home buyers realise.

What iInvest Property Does for First Home Buyers

Our team helps first home buyers identify every grant and scheme they qualify for, connect with the right mortgage broker for pre-approval, and find and negotiate the best property for their situation. We've helped hundreds of first home buyers use these programs effectively — book a free call to find out what you qualify for.