First home buyer assistance in 2026
Depending on your circumstances, you may be able to use one or more of these schemes and concessions:
Government schemes and assistance that could help you buy your first home sooner
You could buy your first home sooner
Saving a 20% deposit can take years.
Under the Australian Government 5% Deposit Scheme, eligible first home buyers can purchase a home with a deposit from 5% without paying Lenders Mortgage Insurance (LMI).
The Government provides a guarantee to the participating lender for part of the loan, helping eligible buyers enter the market sooner.
Eligibility rules, property price limits and participating lenders apply.
What is the Australian Government 5% Deposit Scheme?
The Australian Government 5% Deposit Scheme helps eligible home buyers purchase a home with a smaller deposit.
Eligible first home buyers can purchase with a deposit from 5%, while the Government provides a guarantee to the participating lender for part of the loan.
This can allow eligible buyers to avoid paying Lenders Mortgage Insurance and purchase sooner than if they had to save a full 20% deposit.
The property must meet the applicable price cap and the loan must be through a participating lender.
Who is eligible?
- Australian citizens or permanent residents aged 18 or over
- First home buyers, or people who have not owned property or land in Australia in the last 10 years
- Buyers with at least a 5% deposit
- Buyers purchasing a home in Australia within the applicable property price cap
- Buyers who will live in the property as their home, not use it as an investment
- Applicants using an eligible owner-occupier loan from a participating lender
- You can apply on your own or jointly with one other person, such as a partner, family member or friend
There are no income caps under the current scheme.
Your participating lender will also need to confirm that you meet its normal lending and credit requirements.
What can you buy?
The Australian Government 5% Deposit Scheme can be used to buy a range of residential properties, including:
- An existing house, townhouse, apartment or unit
- A newly built home
- A house and land package
- An off-the-plan property
- Vacant land where you also have an eligible building contract to build your home
The property must be in Australia and both the purchase price and property value must be within the applicable price cap for the location.
You must also intend to live in the property as your home. It is not designed for purchasing an investment property.
How much deposit do you need?
First home buyers need a minimum deposit of 5% of the property value.
You are still responsible for the usual purchase costs, such as stamp duty where applicable, legal or conveyancing fees, inspections and other upfront costs.
The Government guarantee helps eligible buyers avoid Lenders Mortgage Insurance, but it does not contribute money towards your deposit or repayments.
There are no income caps and no waiting list for eligible first home buyers.
Property price caps
For NSW, the current caps under the scheme are:
- $1.5 million for Sydney and specified NSW regional centres
- $800,000 for other NSW areas
Both the purchase price and the lender-assessed property value must be at or below the applicable cap. For vacant land with a separate building contract, the combined land and build cost must also stay within the cap.
The applicable cap depends on the property’s suburb and postcode, so it should always be confirmed before making an offer.
How do you apply?
- Check your eligibility
Make sure you meet the Scheme requirements and have the required deposit. - Speak with a participating lender or mortgage broker
Your application must go through a participating lender. They will assess both your Scheme eligibility and normal home loan requirements. - Get pre-approved and find your home
Once approved, you generally have 90 days to find a suitable property and sign a contract. - Complete your purchase
Your lender will manage the final Scheme approval and home loan process through to settlement.
Other assistance for first home buyers
NSW First Home Buyers Assistance Scheme
Eligible first home buyers in NSW may be able to receive an exemption or concession on transfer duty when buying their first home.
- New or existing homes up to $800,000: no transfer duty
- Homes over $800,000 and under $1 million: concessional transfer duty
- Vacant land up to $350,000: no transfer duty
- Vacant land over $350,000 and under $450,000: concessional transfer duty
Eligibility conditions apply, including first-home ownership rules, residency requirements and living in the property as your home.
NSW First Home Owner Grant
Eligible first home buyers may receive a $10,000 First Home Owner Grant when buying or building a new home in NSW.
The grant is available for:
- A newly built house, townhouse, apartment or unit
- A new home purchased off the plan
- A substantially renovated home that meets the eligibility rules
- Building a new home on vacant land
The grant is not available for an established home.
Current price limits are:
- Up to $600,000 for the purchase of a new or substantially renovated home
- Up to $750,000 for the combined value of land and the building contract when building a new home
Eligibility conditions apply, including first-home ownership rules and living in the property as your home.
First Home Super Saver Scheme.
The First Home Super Saver Scheme allows eligible first home buyers to use voluntary super contributions to help save for a deposit.
You can count up to $15,000 of eligible voluntary contributions from any one financial year, up to a maximum of $50,000 across all years.
Eligible contributions can include:
- Salary sacrifice contributions
- Personal contributions for which you claim a tax deduction
- Personal after-tax voluntary contributions
When you are ready to buy, you can apply to release eligible contributions plus associated earnings from your super fund. Generally, 100% of eligible after-tax contributions and 85% of eligible concessional contributions can be included in the releasable amount.
You must request a First Home Super Saver determination before ownership of the property transfers to you.
Australian Government Help to Buy Scheme
Help to Buy is a shared equity scheme that can help eligible buyers purchase a home with a smaller deposit and a smaller home loan.
Under the scheme:
- You need a minimum 2% deposit
- The Australian Government can contribute up to 30% of the purchase price for an existing home
- The Government can contribute up to 40% for a newly built home
- You obtain the remaining finance through a participating lender
- You own and live in the home, while the Government retains a financial interest based on its contribution
For the 2026-27 financial year, the taxable income limits are:
- $103,000 for a single applicant
- $165,000 for a single parent
- $165,000 combined for joint applicants
For NSW, the current property price caps are:
- $1.3 million in Sydney and specified regional centres
- $800,000 in other NSW areas
Important: Help to Buy is an alternative to the 5% Deposit Scheme. You cannot use both schemes for the same purchase. Help to Buy can still be used alongside eligible stamp duty concessions, grants and exemptions.
Want to know if you qualify?
Book an Appointment
Talk to First Class Loans and we can check your eligibility, compare participating lenders and help you through the application process.