First home buyer schemes in 2026: 5% deposit guarantee, grants and super savings
How the expanded Home Guarantee Scheme, state first home owner grants and the First Home Super Saver Scheme work in 2026, with a worked 5% deposit example and eligibility checks.
In 2026 the main help for Australian first home buyers comes from three places. The federal Home Guarantee Scheme, run by Housing Australia and now promoted as the Australian Government 5% Deposit Scheme, lets eligible buyers borrow with a 5% deposit without paying lenders mortgage insurance; since 1 October 2025 it has had no income caps, no limit on places and higher property price caps. State and territory governments offer first home owner grants (mostly for new homes) and stamp duty concessions. And the ATO's First Home Super Saver Scheme lets you save part of a deposit inside super. None of these lowers your interest rate directly, but each changes how big a deposit you need and how soon you can buy.
This guide is part of home loan rates and repayments in Australia. Eligibility rules and caps change; confirm everything with the official source before you sign.
Home Guarantee Scheme
The Australian Government guarantees part of your loan to a participating lender, so the lender does not need LMI even though your deposit is below 20%.
| Stream | Minimum deposit | Who it is for |
|---|---|---|
| First Home Guarantee | 5% | First home buyers, or people who have not owned property in Australia in the past ten years (check the current definition) |
| Family Home Guarantee | 2% | Single parents and single legal guardians of at least one dependent child, who need not be first home buyers |
Points to confirm with Housing Australia and a participating lender:
- Property price cap for your state and area. Caps differ between capital cities, large regional centres and the rest of each state, and were raised when the scheme expanded in October 2025.
- Citizenship or residency: Australian citizens and permanent residents can generally apply.
- Owner-occupier requirement: you must live in the property, and move in within the required time.
- Participating lenders: only lenders on Housing Australia's panel can offer the guarantee.
- Regional stream: check whether a separate regional guarantee still applies to you after the 2025 changes.
Worked example: 5% deposit versus waiting for 20%
An illustrative $700,000 home, loan at 6.00% over 30 years:
| Path | Deposit | Loan | LMI | Monthly repayment |
|---|---|---|---|---|
| Guarantee, buy now | $35,000 | $665,000 | None | $3,986.97 |
| Save to 20% | $140,000 | $560,000 | None | $3,357.48 |
The guarantee path has a higher repayment, about $629 a month more, and more interest over the loan. But saving the extra $105,000 at $2,000 a month takes about 52 months, more than four years, during which you keep paying rent and the price of the home may change. Neither path is automatically cheaper; the guarantee mainly buys time.
Without the guarantee, the same 5% deposit loan would normally carry LMI, often a large one-off premium at 95% LVR. That is the saving the scheme delivers. See deposit, LVR and LMI for how LMI works.
First home owner grants and duty concessions
Each state and territory runs its own first home owner grant (FHOG). Most grants now apply only to newly built homes or homes bought off the plan, with a price or value cap. Amounts and caps differ widely and are changed in state budgets, so check your state revenue office:
- NSW: Revenue NSW
- Victoria: State Revenue Office Victoria
- Queensland: Queensland Revenue Office
- South Australia: RevenueSA
- Western Australia, Tasmania, the ACT and the Northern Territory: their revenue or finance departments
Stamp duty (transfer duty) concessions for first home buyers also vary by state and can be worth more than the grant. Duty is a purchase cost, not a loan cost, so it usually comes out of your savings.
First Home Super Saver Scheme
The FHSS scheme lets you make voluntary contributions to super and later withdraw them, with associated earnings, to buy your first home.
- You can have up to $15,000 of voluntary contributions per financial year counted, and up to $50,000 in total.
- Concessional (before-tax) contributions are taxed at 15% going in; released amounts are taxed at your marginal rate with a 30% offset.
- You must request an FHSS determination from the ATO and follow its order of steps. Signing a contract before you have requested a determination can limit your options, so read the ATO guidance before you sign.
- Contributions still count towards the normal contribution caps.
Help to Buy shared equity
The federal Help to Buy shared equity scheme, administered by Housing Australia, has the government take an equity share (up to 30% of an existing home or 40% of a new one) in an eligible buyer's home so they need a smaller loan and as little as a 2% deposit. Applications opened on 5 December 2025. Income and price caps apply and states must sign up. Check Housing Australia for whether it is open in your state and its current conditions.
Eligibility checklist
- Never owned property in Australia, or meet the scheme's alternative test
- Australian citizen or permanent resident, aged 18 or over
- Will live in the home as your main residence
- Property price under the cap for its location
- Using a participating lender for the guarantee
- Deposit savings plus enough for stamp duty, conveyancing and inspections
- Grant application timing understood (some are paid at settlement, some at completion of building)
Frequently asked questions
Do I still pay a higher rate with a 5% deposit?
Some lenders price guarantee loans in their standard rate tiers; others may charge more at high LVRs. Compare rates from several participating lenders.
Can I use the guarantee for an investment property?
No. The scheme is for owner-occupiers. If you later move out, check the conditions with your lender.
Can couples apply together?
Yes, couples can apply jointly for the First Home Guarantee if both meet the eligibility rules. Check Housing Australia for the current definitions.
Can I combine the guarantee with a state grant?
Generally yes, if you meet each scheme's rules. They are run by different governments with separate applications.
Sources
- Housing Australia — Home Guarantee Scheme and Help to Buy
- First Home Buyers (Australian Government) — 5% Deposit Scheme and Help to Buy applications
- Australian Taxation Office — First Home Super Saver Scheme
- Revenue NSW — NSW first home buyer grants and duty
- State Revenue Office Victoria — Victorian grants and duty
- Queensland Revenue Office — Queensland grants and duty
