Buying your first home involves more than just finding the right property and getting a loan approved. The support schemes available to first home buyers can reduce what you need upfront by tens of thousands of dollars, but only if you know which ones apply to your situation and how to access them.
Most first home buyers qualify for at least two forms of support, whether through reduced stamp duty, a government grant, or help with the deposit. The challenge is knowing which schemes stack together and which ones lock you out of others.
The Australian Government 5% Deposit Scheme
You can buy with a 5% deposit without paying lenders mortgage insurance. Housing Australia guarantees the gap between your deposit and the full 20% that lenders usually require. No income caps apply, no annual limits on places exist, and the scheme covers both new and established homes.
Property price caps vary by location. In New South Wales, the cap is $1,500,000 in Sydney and regional centres like Newcastle and Wollongong, and $800,000 in other areas. In Victoria, it drops to $950,000 for Melbourne and regional centres, and $650,000 elsewhere. Queensland sits at $1,000,000 for Brisbane and major regional centres, $700,000 for the rest of the state.
You apply through a participating lender, not directly to Housing Australia. The lender assesses your application under their usual credit criteria and submits the guarantee request on your behalf. Both the purchase price and the bank's valuation must fall within the cap for your area.
Consider a buyer purchasing in outer Melbourne at $900,000 with a 5% deposit of $45,000. Without the scheme, they would need to either provide a 20% deposit of $180,000 or pay lenders mortgage insurance, which at that price point could run anywhere from $15,000 to $25,000 depending on the lender. Under the scheme, the LMI is waived entirely, and the buyer proceeds with just the $45,000 deposit plus settlement costs.
The scheme works with most state and territory first home buyer grants and stamp duty concessions. It cannot be combined with Help to Buy.
Help to Buy: Shared Equity with the Government
Help to Buy allows the Australian Government to contribute up to 40% of the purchase price for a new home, or up to 30% for an existing home, in exchange for the same share of equity. You need at least a 2% deposit.
Income limits apply: $103,000 for individuals, $165,000 for couples or single parents. Property price caps vary by postcode and are lower than the 5% Deposit Scheme caps in most areas. The scheme operates in New South Wales, Victoria, Queensland, South Australia, Western Australia, the Australian Capital Territory and the Northern Territory. Tasmania has opted out.
Ready to get started?
Book a chat with a Finance & Mortgage Broker at Diamond Lending Solutions today.
You cannot use Help to Buy and the 5% Deposit Scheme together. You need to choose one or the other based on your deposit size, income, and whether you prefer lower upfront borrowing or full ownership from the start.
State Grants and Stamp Duty Breaks
New South Wales offers a $10,000 grant for new homes under $600,000, or land and build packages under $750,000. Stamp duty is fully exempt on properties up to $800,000 and partially reduced on properties between $800,001 and $1,000,000. The exemption applies to both new and established homes, as long as you move in within 12 months and live there for at least 12 continuous months.
Victoria provides a $10,000 grant for new homes valued up to $750,000. Stamp duty is fully exempt on properties up to $600,000, with a sliding concession up to $750,000. The exemption covers new and established homes where you intend to live.
Queensland pays $30,000 for new homes under $750,000. For established homes, stamp duty is fully exempt on properties up to $700,00, with a sliding concession up to $800,000. For new homes and vacant land purchased from 1 May 2025, stamp duty is reduced to nil with no price cap, as long as all applicants are an Australian citizen, permanent resident or specified foreign retiree for contracts from 1 August 2026.
South Australia offers $15,000 for new homes with no price cap for contracts from 6 June 2024. Stamp duty relief applies to new homes and vacant land only, with no cap on value for eligible contracts from that date. Buyers must live in the property as their principal residence for at least 6 continuous months within 12 months of settlement.
Western Australia provides a $10,000 grant for new homes valued up to $800,000 south of the 26th parallel, which includes Perth, and $1,000,000 north of that line. From 7 May 2026, a single statewide stamp duty threshold applies: no duty on homes up to $600,000, and a concessional rate on homes between $600,001 and $800,000. For vacant land, no duty applies up to $450,000, with a concession up to $550,000. The previous distinction between Perth, Peel and regional areas no longer applies to transactions from that date.
Tasmania reduced its grant to $20,000 for new homes from 1 July 2026. The full stamp duty exemption that applied to established homes up to $750,000 for purchases settling by 30 June 2026 has ended.
The Australian Capital Territory removed its property value limit and income threshold from 1 July 2026. Eligible first home buyers are now fully exempt from stamp duty regardless of the property's value or their household income, as long as they occupy the home as their principal residence for at least one year starting within 12 months of settlement.
The Northern Territory offers $50,000 for new homes with no price cap, available for contracts signed between 1 October 2024 and 30 September 2027. The Territory Home Owner Discount reduces transfer duty by up to $18,601 for eligible buyers who have not owned a home in the NT for at least 24 months.
Using Your Super for a Deposit
The First Home Super Saver Scheme lets you make voluntary contributions into your super fund and withdraw up to $50,000 to use as a deposit. You can release up to $15,000 of contributions from any one financial year. Concessional contributions are taxed at 15% instead of your marginal tax rate, which can result in meaningful tax savings if you are earning above the tax-free threshold.
You need to obtain a determination from the ATO before signing a contract. The scheme does not provide a deposit by itself, but it can help you build one faster if you plan ahead and have the income to make additional super contributions over several years.
How These Schemes Stack Together
You can generally combine state grants and stamp duty concessions with the Australian Government 5% Deposit Scheme. In a scenario where a buyer in Brisbane purchases a new townhouse at $650,000 with a 5% deposit of $32,500, they could access the Queensland $30,000 grant, pay no stamp duty under the state's new home concession, and avoid lenders mortgage insurance under the federal scheme. The total saving compared to buying the same property without support could exceed $40,000 once LMI, duty, and the grant are factored in.
Help to Buy cannot be used with the 5% Deposit Scheme, but it can work alongside most state grants and duty concessions depending on the jurisdiction. If your income sits within the Help to Buy limits and the property price falls under both caps, shared equity might reduce your borrowing more than avoiding LMI would.
What You Need to Qualify
Every first home buyer scheme defines eligibility slightly differently, but common requirements include being an Australian citizen or permanent resident, not having owned property before, and intending to live in the home as your principal residence. Some schemes specify how long you must occupy the property, typically between 6 and 12 months continuously, starting within 12 months of settlement.
Income limits apply to Help to Buy and some state shared equity programs, but not to the 5% Deposit Scheme or most grants and stamp duty concessions. Where an income test does apply, it is assessed at the time of application and usually includes all sources of taxable income for all applicants.
Property price caps exist across all programs. The cap that applies depends on the specific scheme, the state or territory, and sometimes the postcode of the property. Both the contract price and the lender's valuation need to fall within the applicable cap.
Applying for Support Alongside Your Home Loan
You do not apply for the 5% Deposit Scheme separately. Your broker or lender manages the guarantee application as part of your home loan application. You provide the same documents you would for any loan: proof of income, savings history, identification, and details of the property you are buying.
State grants and stamp duty concessions are usually claimed at settlement through your conveyancer or solicitor. Some grants require a separate application to the state revenue office before or shortly after settlement. Your conveyancer will confirm the process and deadlines for your state.
If you are using Help to Buy, the lender submits your application to Housing Australia during the loan approval process. The equity contribution is calculated and documented before settlement, and the government's share is registered on the title.
Call one of our team or book an appointment at a time that works for you. We will walk through which schemes apply to your situation, how much support you can access, and how to structure your application to make the most of what is available.
