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Since 1 October 2025, first home buyers can buy with a 5% deposit and no lenders mortgage insurance through the Australian Government 5% Deposit Scheme (formerly the Home Guarantee Scheme), with no income caps and no waitlist, as long as the home is under the price cap for its area and the loan is with a participating lender. Single parents and legal guardians can use it with a 2% deposit.
On top of that, every state and territory offers its own mix of first home owner grants and stamp duty relief. This page sets out the federal schemes, the price caps, which lenders take part, and a state-by-state table of grants and duty concessions, all checked against the official sources on 28 September 2026.
By Better Rate Mate Editorial Team · Last reviewed
The Australian Government, through Housing Australia, guarantees part of your loan to the lender: up to 15% of the property value for first home buyers. That guarantee is what lets the lender waive lenders mortgage insurance on a 5% deposit. It 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, not to Housing Australia. Once pre-approved you have 90 days to find a home and sign a contract. To keep the guarantee you must keep living in the home; if you move out, the lender may ask you to pay LMI or other costs.
| Rule | Requirement |
|---|---|
| Minimum deposit | 5% of the property value (2% for single parents and legal guardians) |
| Income cap | None since 1 October 2025 |
| Places | No waitlist since 1 October 2025 |
| Citizenship | Australian citizens or permanent residents (both, if applying jointly) |
| Age | 18 or older |
| Prior ownership | No interest in Australian property in the 10 years before the loan |
| Applicants | One person or two (partners, friends or family); three or more don't qualify |
| Use | Owner-occupier only, not investment |
| Loan | Principal and interest, up to 30 years (plus up to 3 years to build, which can be interest-only) |
| Property | New or existing home, off-the-plan, house and land, or land with a building contract, at or under the price cap |
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 |
Housing Australia authorises more than 30 lenders, from the major banks to mutual banks and credit unions. Among the lenders we review, the scheme is available through all four major banks and some of their brands, but not through most digital and non-bank lenders.
| 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 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 property's value. You don't pay LMI. It has 10,000 places a year, all applicants must be Australian citizens, and taxable income must be at or under $103,000 for an individual or $165,000 for joint applicants and single parents (indexed each year). You can't combine it with a state shared equity scheme, but you can still use state grants and duty concessions.
The First Home Super Saver Scheme lets you make voluntary super contributions of up to $15,000 a year, up to $50,000 in total, and withdraw them (plus associated earnings) towards a first home deposit, taking advantage of super's lower tax rates.
Grants are mostly for new homes; stamp duty relief usually applies to new and existing homes up to a value threshold. Thresholds are set by each state and change often, so check the revenue office before you sign.
| 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 |
| 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) |
| 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 |
| WA | $10,000 for new homes; cap $800,000 south of the 26th parallel | 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) |
| 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) |
| 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 settlements after 30 June 2026 |
| 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 |
| NT | HomeGrown Territory Grant of $50,000 for new homes (contracts or building start by 30 September 2027) | Check the Territory Revenue Office |
With the 5% Deposit Scheme, the minimum is 5% of the price: $40,000 on an $800,000 home, $35,000 on $700,000 or $25,000 on $500,000, as long as the home is under the local price cap. Without the scheme you generally need 20% to avoid LMI ($160,000 on an $800,000 home), or you can borrow more with LMI added to the loan.
Budget for more than the deposit. Stamp duty (if you aren't exempt), conveyancing, building and pest inspections and moving costs all come on top, and lenders want to see that you can cover them.
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.
$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.
That usually refers to the Victorian Homebuyer Fund, a state shared equity scheme. It is now closed to new applicants. The Victorian Government says Victorians can use the federal Help to Buy shared equity scheme instead, which contributes up to 30% (existing homes) or 40% (new homes).
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.
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.
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.
Scheme rules, price caps, grants and duty thresholds change with federal and state budgets. We checked every figure on this page against the official source on 28 September 2026. Confirm your eligibility with your lender and your state revenue office before you exchange contracts.
