First home buyer support in Australia is a patchwork of federal and state programs that interact in ways most buyers do not fully understand until they are mid-purchase. The headline grants and schemes are real money — but each has eligibility conditions, property price caps, and trade-offs that are worth understanding before you rely on them in your budget.
Key schemes
The four programs worth knowing
A state-administered cash grant for first home buyers purchasing a new or substantially renovated property. Amounts vary by state: A$10,000 in NSW, VIC, QLD; up to A$30,000 in some regional areas and NT. Not available on established homes in most states. Check your state revenue office for current amounts and caps.
Federal government scheme allowing eligible first home buyers to purchase with a 5% deposit without paying Lenders Mortgage Insurance (LMI). The government guarantees up to 15% of the loan. 35,000 places per year — limited and competitive. Property price caps apply by location.
Allows voluntary super contributions (up to A$15,000/year, A$50,000 total) to be withdrawn for a first home deposit. The contribution receives concessional tax treatment (15% tax rate vs marginal rate), and withdrawals are taxed at marginal rate minus 30% offset. Effective for those in higher tax brackets saving over 2+ years.
All states offer stamp duty exemptions or concessions for first home buyers, typically on properties below a threshold (e.g., full exemption under A$650,000 in NSW, under A$600,000 in VIC). On a A$600,000 property, stamp duty in NSW without concession is around A$22,000 — the concession is material.
Deposit reality
How much do you actually need?
| Deposit size | LVR | LMI required? | Practical notes |
|---|---|---|---|
| 5% (with First Home Guarantee) | 95% | No — government guarantee | Limited scheme places; property price caps; thin equity buffer |
| 5–10% (without scheme) | 90–95% | Yes — typically A$15,000–A$30,000+ | LMI adds significant upfront cost or capitalised to loan |
| 10–20% | 80–90% | Yes — reduces as LVR falls | LMI still applies; interest rate may be higher than 80% LVR products |
| 20%+ | Below 80% | No | Best rates, no LMI, full lender competition available |
LMI
What Lenders Mortgage Insurance actually is — and who it protects
Lenders Mortgage Insurance is a one-off premium paid by the borrower to protect the bank if the borrower defaults and the property sale does not cover the outstanding loan. It provides no benefit to you. On a A$700,000 property with a 10% deposit, LMI can add A$15,000–A$20,000 to your costs — either upfront or capitalised into your loan. Saving a larger deposit to avoid LMI is often worth the extra time.
Regional vs city
Where you buy changes the entire calculation
Property price caps on federal and state schemes are set by location. The First Home Guarantee cap in Sydney is higher than in regional NSW, but so are actual property prices — meaning the scheme helps more in regional areas where prices are genuinely within cap limits. In major capital cities, the practical value of the 5% deposit scheme is limited by the price at which properties are available.
A separate federal scheme — the Regional First Home Buyer Guarantee — provides 10,000 additional places specifically for buyers in regional areas. If you are flexible about location, this expands access to low-deposit purchasing with the government guarantee in markets where scheme property price caps are more achievable.
What support are you actually eligible for — and how much deposit do you need?
Your eligibility for each scheme depends on income, location, and property type. Ask Franky to work through what applies to your situation.
Ask Franky about this →