First home buyer schemes and grants: the 5% Deposit Scheme (First Home Guarantee), FHOG and stamp duty
The Australian Government 5% Deposit Scheme (formerly the Home Guarantee Scheme, which included the First Home Guarantee and the Family Home Guarantee) lets first home buyers buy with a 5% deposit, and single parents with 2%, without paying lenders mortgage insurance. Since 1 October 2025 it has had no income caps and no limit on places, as long as the home is under the price cap for its area and the loan is with a participating lender.
Each state and territory adds its own first home owner grant or stamp duty relief, and you can combine these with either federal scheme. This page sets out every scheme, which ones you can combine, the deposit you need at each price, grants and duty relief by state, and how to apply for each.
By Better Rate Mate Editorial Team ยท Last reviewed
General information only. It doesn't take into account your objectives, financial situation or needs. Check the lender's key facts sheet, credit guide and TMD before you apply. We don't compare every lender, and we may earn a commission if you apply through our links.
How the 5% Deposit Scheme works
Housing Australia guarantees part of your loan to the lender (for first home buyers, up to 15% of the property value), which is what lets the lender waive lenders mortgage insurance on a small deposit. The guarantee protects the lender, not you. It isn't a cash payment, and you still owe the full loan.
You apply through a participating lender as part of your home loan application, never directly to Housing Australia. To keep the guarantee you must keep living in the home as an owner-occupier; if you move out or rent it out, the lender may ask you to pay LMI or other costs.
| Rule | Requirement |
|---|---|
| Deposit | At least 5% of the property value and less than 20% (single parents and legal guardians: at least 2%). If you have 20% or more saved after purchase costs, the loan isn't eligible. |
| Income cap | None since 1 October 2025 |
| Places | Unlimited since 1 October 2025 |
| Citizenship | Australian citizen or permanent resident at the home loan date (both of you, if applying jointly) |
| Age | 18 or older |
| Prior ownership | First home buyers: no interest in Australian property in the 10 years before the home loan date. Single parents needn't be first home buyers, but can't own another property once the new home settles. |
| Applicants | One person, or two (partners, friends or family). Three or more don't qualify, and single parents apply alone. |
| Living in the home | Owner-occupiers only: move in within 6 months of settlement (or of the occupancy certificate for a new build) and keep living there while the guarantee applies |
| Loan | Principal and interest, up to 30 years (plus up to 3 years to build, which can include interest-only payments) |
| Property | New or existing home, house and land package, off-the-plan, or vacant land with a building contract, at or under the price cap |
| Cost | No fee to use the scheme; you pay the usual purchase and loan costs |
5% Deposit Scheme property price caps
Both the purchase price and the lender's valuation must be at or under the cap for the location. If you are building on land bought separately, the land and build costs together must be under the cap. Housing Australia's postcode tool gives the cap for a specific suburb.
| State or territory | Capital city and regional centres | Rest of state |
|---|---|---|
| New South Wales | $1,500,000 | $800,000 |
| Victoria | $950,000 | $650,000 |
| Queensland | $1,000,000 | $700,000 |
| Western Australia | $850,000 | $600,000 |
| South Australia | $900,000 | $500,000 |
| Tasmania | $700,000 | $550,000 |
| Australian Capital Territory | $1,000,000 (all areas) | |
| Northern Territory | $750,000 (Darwin) | $600,000 |
Which lenders offer the 5% Deposit Scheme?
Housing Australia has authorised more than 30 lenders, from the major banks to mutual banks and credit unions. Among the lenders we review, all four major banks, St.George, Bank of Melbourne, BankSA and Bendigo Bank take part; most digital and non-bank lenders don't.
| Takes part | Doesn't take part |
|---|---|
| Commonwealth Bank | Bankwest, Unloan |
| Westpac, St.George (and Bank of Melbourne, BankSA) | ubank |
| ANZ | Suncorp Bank |
| NAB | ING, Macquarie |
| Bendigo Bank | BOQ, ME Bank, Athena |
Help to Buy and the First Home Super Saver Scheme
Help to Buy is a federal shared equity scheme. You need a minimum 2% deposit and a loan from a participating lender, and the government contributes up to 30% of the price of an existing home or up to 40% of a new one, in return for the same share of the home's value. You don't pay LMI. It has 10,000 places a year, every applicant must be an Australian citizen, and you must live in the home as your principal place of residence. From 1 July 2026 to 30 June 2027, taxable income on your 2025-26 notice of assessment must be at or under $103,000 for an individual, or $165,000 for joint applicants and single parents.
The First Home Super Saver Scheme, run by the ATO, lets you make voluntary super contributions of up to $15,000 a year, up to $50,000 in total, and withdraw them with associated earnings towards a first home deposit, taking advantage of super's lower tax rates. You must be 18 or older and must never have owned property in Australia.
Which schemes can you combine?
You can add state grants and stamp duty relief to either federal scheme, but you can't use the 5% Deposit Scheme and Help to Buy together.
| Combine with | 5% Deposit Scheme | Help to Buy |
|---|---|---|
| The other federal scheme | No: Housing Australia says the two can't be used together | No |
| State first home owner grant | Yes | Yes |
| State stamp duty relief | Yes | Yes |
| State shared equity schemes | Housing Australia says the guarantee doesn't stop you using other government programs; the state scheme sets its own rules | No |
| First Home Super Saver Scheme | Yes | Not covered on the Help to Buy page; ask your lender |
How much deposit do you need?
With the 5% Deposit Scheme you need 5% of the property value: $25,000 on a $500,000 home or $40,000 on an $800,000 home, as long as it is under the local price cap. Without a scheme, a 20% deposit avoids LMI. The 2% column applies only to Help to Buy and to single parents and legal guardians using the 5% Deposit Scheme.
| Property price | 2% deposit | 5% deposit | 20% deposit |
|---|---|---|---|
| $300,000 | $6,000 | $15,000 | $60,000 |
| $400,000 | $8,000 | $20,000 | $80,000 |
| $500,000 | $10,000 | $25,000 | $100,000 |
| $600,000 | $12,000 | $30,000 | $120,000 |
| $700,000 | $14,000 | $35,000 | $140,000 |
| $800,000 | $16,000 | $40,000 | $160,000 |
| $900,000 | $18,000 | $45,000 | $180,000 |
| $1,000,000 | $20,000 | $50,000 | $200,000 |
What is a 5% deposit on a $600,000 house?
$30,000. Through the 5% Deposit Scheme an eligible first home buyer can borrow the other $570,000 without lenders mortgage insurance, if the price is under the cap for the area. Stamp duty is on top, though an eligible first home buyer pays none on a $600,000 established home in NSW, Victoria, Queensland, WA and the ACT.
The table adds the deposit, first home buyer stamp duty and land titles fees on a $600,000 established home in each state. Every row links its state stamp duty calculator.
| State or territory | 5% deposit | Stamp duty (first home buyer) | Titles fees | Total | Work it out |
|---|---|---|---|---|---|
| New South Wales | $30,000 | $0 | $365 | $30,365 | NSW stamp duty calculator |
| Victoria | $30,000 | $0 | $1,638 | $31,638 | VIC stamp duty calculator |
| Queensland | $30,000 | $0 | $2,452 | $32,452 | QLD stamp duty calculator |
| Western Australia | $30,000 | $0 | $560 | $30,560 | WA stamp duty calculator |
| South Australia | $30,000 | $26,830 | $6,332 | $63,162 | SA stamp duty calculator |
| Tasmania | $30,000 | $22,498 | $424 | $52,922 | TAS stamp duty calculator |
| Australian Capital Territory | $30,000 | $0 | $680 | $30,680 | ACT stamp duty calculator |
| Northern Territory | $30,000 | $29,700 | $362 | $60,062 | NT stamp duty calculator |
First home owner grants and stamp duty relief by state
Grants are mostly for new homes; stamp duty relief usually applies to new and existing homes up to a value threshold. Every state requires you to live in the home as your principal place of residence, usually moving in within 12 months and staying for 6 or 12 continuous months, depending on the state and the benefit. Thresholds change with state budgets, so check the revenue office before you sign. To work out the duty on a particular price, use our stamp duty calculator.
| State | First home owner grant | Stamp duty relief for first home buyers |
|---|---|---|
| NSW | $10,000 for new homes: price up to $600,000, or land plus build up to $750,000 | No duty on new or existing homes up to $800,000; concession from $800,000 to under $1,000,000. Vacant land: none up to $350,000, concession to under $450,000. Work it out with our NSW stamp duty calculator. |
| VIC | $10,000 for new homes valued up to $750,000 | No duty up to $600,000; reduced duty from $600,001 to $750,000 (new or established homes, or land to build on). Work it out with our VIC stamp duty calculator. |
| QLD | $30,000 for new homes valued under $750,000 (contracts from 20 November 2023) | New homes: no transfer duty, no value cap (contracts from 1 May 2025). Established homes: no duty up to $700,000, concession to under $800,000. Work it out with our QLD stamp duty calculator. |
| WA | $10,000 for new homes; value cap $800,000 south of the 26th parallel (including Perth) or $1,000,000 north of it (transactions from 7 May 2026) | No duty on homes up to $600,000, concession up to $800,000; vacant land none up to $450,000, concession to $550,000 (transactions from 7 May 2026). Work it out with our WA stamp duty calculator. |
| SA | $15,000 for new homes, no value cap (contracts from 6 June 2024) | No duty on new homes and vacant land to build on, no value cap (contracts from 6 June 2024). Work it out with our SA stamp duty calculator. |
| TAS | $20,000 for new homes (transactions from 1 July 2026 to 30 June 2027) | The duty exemption on established homes up to $750,000 ended for transactions settling after 30 June 2026. Work it out with our TAS stamp duty calculator. |
| ACT | No grant (ceased 1 July 2019) | Home Buyer Concession Scheme: no duty from 1 July 2026, no income test and no value cap, if you haven't owned property in the last 5 years. Work it out with our ACT stamp duty calculator. |
| NT | HomeGrown Territory Grant of $50,000 for new homes (contracts or building start by 30 September 2027) | Check the Territory Revenue Office. Work it out with our NT stamp duty calculator. |
How to apply for the 5% Deposit Scheme
You apply through a participating lender, never directly to Housing Australia. The steps are:
- Check your eligibility with Housing Australia's online tool and read its Information Guide.
- Contact a participating lender. It assesses you against the scheme rules and its own lending criteria, and applies to Housing Australia to reserve a place for you, which is held for 14 days while you complete the application.
- Give the lender the documents it asks for, including proof of citizenship or permanent residency, your Medicare number and a signed Home Buyer Declaration (a Commonwealth statutory declaration).
- Once your place is pre-approved, you have 90 days to find a home and sign a contract of sale. The lender must still approve the loan itself.
- The lender manages final approval. After settlement, move in within 6 months and keep living there while the guarantee applies.
How to apply for Help to Buy
You also apply for Help to Buy through a participating lender, which submits the application to Housing Australia for you.
- Check your eligibility with the Help to Buy eligibility tool.
- Speak to a Help to Buy participating lender. It assesses your finances and submits your conditional approval application to Housing Australia.
- Once conditionally approved, you have up to 90 days to find a home and sign a contract of sale, and Housing Australia may extend this by up to another 90 days.
- Your solicitor or conveyancer handles the contract and deposit, and your lender coordinates formal approval with Housing Australia.
- Before settlement, Housing Australia's conveyancer arranges the documents you sign, including the second mortgage Housing Australia takes over the home.
How to apply for the first home owner grant and stamp duty relief
The quickest way to get a first home owner grant is usually through your lender, if it is an approved agent of the state revenue office: it lodges the application for you, and in NSW you must use it if you need the grant at settlement or for the first progress payment. Otherwise you apply to the revenue office yourself, generally within 12 months of settlement or of the home being finished.
Stamp duty relief is usually claimed through your conveyancer or solicitor when the transfer is lodged. In WA you can apply for pre-approval of the first home owner rate of duty with your grant application; if you aren't approved before settlement, you pay duty at the general rate and apply for a refund.
| State | First home owner grant | Stamp duty relief | Living in the home |
|---|---|---|---|
| NSW | Through your lender if it is an approved agent (required if you need the grant at settlement or the first progress payment), or with Revenue NSW within 12 months of settlement or completion | Lodge the application forms and proof of identity with your solicitor or conveyancer after you exchange contracts | Move in within 12 months of settlement and live there for at least 12 continuous months (contracts from 1 July 2023) |
| VIC | Through an approved agent (your lender), or online with the State Revenue Office within 12 months of settlement or completion | Your conveyancer or solicitor usually applies when completing the transfer | Live there for 12 continuous months, starting within 12 months of settlement |
| QLD | Through an approved agent (your bank or lender), which is the fastest way, or with Queensland Revenue Office, within 1 year of possession or completion | Claimed on Form D2.1 when the transfer documents are lodged for stamping | Grant: move in within 1 year and live there for 6 continuous months. Duty: move in within 1 year of settlement |
| WA | Online through the FHOG Application Portal, or through your lender if it is an approved agent, within 12 months of completion (late applications aren't accepted) | Apply for pre-approval with the grant application, or pay duty at the general rate and apply for a refund | Live there for 6 continuous months, starting within 12 months of completion |
| TAS | Through your financial institution if it is an approved agent, or with the State Revenue Office within 12 months of settlement or completion | No first home buyer exemption for transactions settling after 30 June 2026 | Live there for 6 continuous months, starting within 12 months of completion |
| ACT | No grant | Buyers assess their own eligibility and claim the Home Buyer Concession Scheme; the ACT Revenue Office checks claims afterwards | Live there for at least 1 year, starting within 1 year of settlement |
How to apply for the First Home Super Saver Scheme
The ATO runs the scheme, and you ask it to release your savings before you buy. The steps are:
- Make voluntary contributions to your super fund, before tax (salary sacrifice) or after tax, up to $15,000 a year and $50,000 in total.
- When you're ready to buy, request an FHSS determination in ATO online services through myGov (Super, then Manage, then First home saver). You must do this before the property's ownership transfers to you.
- Request the release of your FHSS amount; the ATO arranges the payment from your fund.
- Sign a contract to buy or build in the period from 90 days before your release request to 12 months after it (the ATO may extend this to 24 months). If you don't buy, recontribute the amount to super or pay FHSS tax of 20%.
- Tell the ATO within 90 days of signing the contract (for determinations made from 15 September 2024).
What will happen to the Home Guarantee Scheme in 2026?
The big change has already happened. On 1 October 2025 the Home Guarantee Scheme was rebranded as the Australian Government 5% Deposit Scheme, income caps and the limit on places were removed, price caps were raised, and the Regional First Home Buyer Guarantee closed to new applicants; regional buyers now apply as first home buyers or as single parents. When we checked on 2 October 2026, Housing Australia's site still said there are no income caps and unlimited places, and listed no further changes.
General information only. It doesn't take into account your objectives, financial situation or needs. Check the lender's key facts sheet, credit guide and TMD before you apply. We don't compare every lender, and we may earn a commission if you apply through our links.
What to watch for
- The price cap applies to the lender's valuation as well as the price. A valuation above the cap can put you outside the scheme.
- Only participating lenders can offer the 5% Deposit Scheme; many digital lenders don't.
- The guarantee depends on you living in the home: move in within 6 months of settlement and don't rent it out, or the lender may charge LMI.
- Grants and duty relief have their own residence rules and deadlines, separate from the federal schemes.
- A 5% deposit means a bigger loan and more interest. Check your repayments at a rate 3 percentage points higher.
- If you use the First Home Super Saver Scheme, request your determination before the property transfers to you.
Common questions
What loan is best for first time home buyers?
For most first home buyers with less than 20% saved, the best starting point is a loan through the 5% Deposit Scheme, because it removes lenders mortgage insurance. Compare participating lenders on comparison rate, fees and features such as offset. If you have 20% or more, you can use any lender.
Is the First Home Guarantee still available?
Yes, under a new name. The First Home Guarantee was part of Housing Australia's Home Guarantee Scheme, which became the Australian Government 5% Deposit Scheme on 1 October 2025. First home buyers still need only a 5% deposit and pay no LMI, and income caps and the limit on places have gone.
How much is a 5% deposit on $500,000?
$25,000. Through the 5% Deposit Scheme that is enough if the home is under the local price cap and you're eligible. Stamp duty and purchase costs come on top.
How much deposit do I need for a $300,000 house?
$15,000 (5%) through the 5% Deposit Scheme, $60,000 (20%) to avoid LMI without a scheme, or $6,000 (2%) through Help to Buy if you're eligible. A $300,000 home is under the 5% Deposit Scheme price cap everywhere in Australia.
What is a 5% deposit on a $600,000 house?
$30,000. Through the 5% Deposit Scheme an eligible first home buyer can borrow the other $570,000 without LMI if the price is under the cap for the area. Stamp duty is on top, though an eligible first home buyer pays none on a $600,000 established home in NSW, Victoria, Queensland, WA and the ACT.
How much would I pay per month on a $300,000 mortgage?
About $1,843 a month over 30 years at 6.23%, the RBA's August 2026 average rate for new owner-occupier variable loans (principal and interest). Use our mortgage repayment calculator for your own rate and term.
How much will I need to repay monthly on a $1,000,000 mortgage?
About $6,144 a month at 6.23% over 30 years, principal and interest. Use our mortgage repayment calculator for your own rate and term.
How much do you need to earn for a $700,000 mortgage?
It depends on your debts, living costs and the lender, because lenders test the loan at your rate plus 3 percentage points. Our borrowing power calculator has a table of the income needed for common loan sizes, single and couple.
How much deposit do I need for an $800,000 house?
$40,000 (5%) through the 5% Deposit Scheme if $800,000 is under the price cap where you're buying, or $160,000 (20%) to avoid LMI without the scheme. Stamp duty and purchase costs are extra.
Can I use the 5% Deposit Scheme and Help to Buy together?
No. Housing Australia says the two schemes can't be used together. You can combine either one with state grants and stamp duty relief.
Is there an income limit for the 5% Deposit Scheme?
Not since 1 October 2025. Income caps were removed for first home buyers, along with the limit on places. Help to Buy still has income limits.
Can I use the 5% Deposit Scheme with any bank?
No, only with a participating lender. All four major banks take part, along with dozens of other banks, mutual banks and credit unions. Bankwest, Unloan, ubank, ING, Macquarie, Suncorp Bank, BOQ, ME Bank and Athena don't.
What is the 25% first home buyer scheme in Victoria?
That usually refers to the Victorian Homebuyer Fund, a state shared equity scheme. It is now closed to new applicants. The Victorian Government says the federal Help to Buy shared equity scheme has replaced it; Help to Buy contributes up to 30% (existing homes) or 40% (new homes).
Can I get the first home owner grant on an existing home?
In most states, no: grants are for new homes. Stamp duty relief is the main help for buyers of existing homes, for example in NSW, Victoria and Queensland.
What will happen to the Home Guarantee Scheme in 2026?
It was rebranded as the Australian Government 5% Deposit Scheme on 1 October 2025, with no income caps, no limit on places and higher price caps. When we checked on 2 October 2026, Housing Australia listed no further changes.
Check before you sign
Scheme rules, price caps, grants and duty thresholds change with federal and state budgets. We checked the federal schemes and the NSW, Victorian, Queensland, WA, Tasmanian and ACT figures against the official sources on 2 October 2026, and the South Australian and Northern Territory figures on 28 September 2026. Confirm your eligibility with your lender and your state revenue office before you exchange contracts.