First Home Buyer FAQ Australia

The FHOG is a one-off grant paid by state and territory governments to eligible first home buyers purchasing or building a new home. Grant amounts vary by state: $10,000 in NSW, Victoria, Western Australia and Tasmania; $15,000 in South Australia; $30,000 in Queensland; and $50,000 in the Northern Territory. The ACT does not offer the FHOG but provides a Home Buyer Concession Scheme instead. The grant generally applies only to new homes or substantially renovated properties, not established homes, and property value caps differ by jurisdiction.

The First Home Guarantee, administered by Housing Australia, allows eligible first home buyers to purchase with a deposit as low as 5% without paying lenders mortgage insurance. The federal government guarantees up to 15% of the loan to the lender, filling the gap between your deposit and the standard 20% threshold. This is a guarantee to the lender, not a cash grant, and you remain fully responsible for the loan and all repayments. From October 2025, annual place limits were removed and property price caps were raised significantly. You must apply through a participating lender or broker, not directly through Housing Australia.

Help to Buy is a federal shared equity scheme where the Australian Government contributes up to 40% of the purchase price for a new home or 30% for an existing home. Eligible buyers need a minimum deposit of just 2%. The government holds an equity share in the property, which you can buy back over time through voluntary repayments or repay when you sell. Income limits apply: $100,000 for individuals and $160,000 for joint applicants. The scheme launched in December 2025 and is limited to 10,000 places per year across four annual allocations. Applications must be made through a participating lender.

The FHSSS allows first home buyers to make voluntary contributions to their super fund, then withdraw those contributions plus deemed earnings to use as a home deposit. You can contribute up to $15,000 per financial year, with a lifetime maximum of $50,000 in eligible contributions. A couple can each access their own maximum, giving a combined total of up to $100,000 in contributions. The tax benefit comes from concessional contributions being taxed at 15% inside super rather than at your marginal tax rate. The scheme is administered by the ATO, and you must apply for a determination before property ownership transfers to you.

Yes, in most cases the federal and state schemes can be stacked. For example, you may be able to use the First Home Guarantee (to avoid LMI), the FHOG (if buying a new home), stamp duty concessions (in your state) and the FHSSS (for your deposit savings) on the same purchase. When stacked effectively, total savings can reach $30,000 to $50,000 or more depending on the state and property type. Eligibility for each scheme is assessed separately, and income or property value caps may limit which combinations are available for your purchase.

You cannot apply directly to Housing Australia for the First Home Guarantee or Help to Buy. Applications must be made through a participating lender or mortgage broker. The FHOG is typically lodged through your lender at the time of your home loan application, though some states allow direct applications through the state revenue office. The FHSSS is managed through the ATO, and your super fund processes the release once the ATO approves it. A broker familiar with all available schemes can help identify which programs you qualify for and coordinate the applications alongside your loan.

Beyond the deposit, first home buyers should budget for stamp duty (where no exemption applies), conveyancing or legal fees ($1,500 to $3,000), building and pest inspections ($400 to $800), loan application or package fees ($0 to $600), LMI if applicable and moving costs. Total upfront costs excluding the deposit and stamp duty typically range from $3,000 to $7,000. Some of these costs can be reduced or eliminated using government concessions and scheme benefits. ASIC's MoneySmart home buying guide provides a detailed cost checklist for first home buyers.

Every state and territory offers some form of stamp duty relief for first home buyers, though thresholds and amounts vary significantly. NSW provides a full exemption on properties up to $800,000 and a concession on properties between $800,000 and $1,000,000. Victoria offers a full exemption on homes up to $600,000 and a concession up to $750,000. Queensland charges no transfer duty on homes up to $700,000 for first home buyers. Western Australia, South Australia, Tasmania, the NT and the ACT each set their own thresholds and concession structures. Check your state revenue office for current thresholds, as they are updated periodically.

Genuine savings refers to funds you have accumulated yourself over time, typically held in your account for at least three months. Lenders ask for genuine savings evidence because it demonstrates your ability to manage money and meet regular loan repayments. Not all lenders require genuine savings if you are using a government scheme or a family guarantee. Gifts from family may or may not be accepted as part of your deposit depending on the lender's policy, and some lenders require at least a portion of the deposit to be genuine savings regardless of the source of the remainder.

Yes, parents can assist in several ways. A parental guarantee (sometimes called a family guarantee) allows parents to offer their property as additional security, which can help you avoid LMI without a 20% deposit. Parents can also provide a cash gift toward the deposit, though some lenders require a portion to be genuine savings. Gifted deposits typically need a signed statutory declaration confirming the funds are non-repayable and that the parents have no interest in the property. Using a family guarantee does not prevent you from accessing first home buyer grants or concessions in most cases.

Borrowing capacity depends on your income, existing debts, living expenses, credit history and the lender's serviceability assessment. Most lenders apply a buffer rate of around 3% above the loan rate when assessing your ability to repay. As a rough guide, a single borrower earning $90,000 per year with minimal debts may be able to borrow approximately $500,000 to $600,000, but this varies widely by lender and individual circumstances. Using a government scheme does not increase how much you can borrow; it reduces the deposit you need to contribute upfront.

Standard documents include government-issued ID (passport or driver licence), the most recent two payslips or income evidence, three months of bank statements showing your savings history, evidence of any debts or liabilities and a signed contract of sale if you have found a property. Self-employed applicants typically need two years of personal and business tax returns and notices of assessment. If using the FHSSS, you also need your ATO determination letter confirming the maximum release amount.

The First Home Owner Grant applies only to new homes or substantially renovated properties in every state. Established properties do not qualify for the FHOG. However, stamp duty concessions for first home buyers apply to both new and existing homes in most states. The First Home Guarantee and Help to Buy schemes also cover established properties. If you are buying an established home, the main financial support available is typically stamp duty relief and the deposit-related schemes rather than a cash grant.

Yes, your credit score is one factor lenders assess alongside income, savings, debts and employment stability. A clean credit history with no missed payments or defaults strengthens your application. Minor blemishes such as a late phone bill payment may not prevent approval but can affect the rate offered or the lenders willing to assess the file. Multiple credit enquiries in a short period can reduce your score, so avoid applying to several lenders at once. Check your credit report for free before applying to identify and resolve any issues early.

Yes, self-employed buyers can purchase a first home, but income verification is more involved than for PAYG employees. Most lenders require two years of personal and business tax returns and notices of assessment. Some lenders average income across the two years rather than using the most recent figure alone. Low doc loan options exist for self-employed borrowers who cannot supply full financials, though rates and LVR limits are typically more conservative. Government schemes such as the First Home Guarantee are available to self-employed buyers provided they meet the standard eligibility criteria.

After formal approval, your lender issues loan documents for you to sign and return. Settlement is then arranged between the lender, your solicitor or conveyancer and the vendor's legal representative. Settlement typically takes 30 to 90 days from exchange of contracts depending on the terms agreed. At settlement, the lender transfers the funds, the property title is registered in your name and you receive the keys. If you are using the FHOG, the grant is usually paid at or shortly after settlement through the lender or directly from the state revenue office.