The Complete Australian First Home Buyers Guide 2026

Help to Buy is a federal shared equity scheme that launched in December 2025. The government contributes up to 40% of a new home's purchase price or 30% of an existing home's price, meaning you only need a 2% deposit and a smaller mortgage. Over 2,300 places were approved in the first months.

Yes, you can stack multiple schemes. For example, in Queensland you could receive the $30,000 FHOG, use Help to Buy for 40% government equity on a new home, access stamp duty concessions, and use FHSS savings for your deposit. The combination varies by state but stacking is explicitly allowed - see the state-by-state stacking table.

The FHSS lets you make voluntary super contributions of up to $15,000 per year ($50,000 lifetime cap) and withdraw them later for a home deposit. Contributions are taxed at 15% instead of your marginal rate, so you save on tax while building your deposit. Allow 20+ business days for withdrawal processing.

Since October 2025, the First Home Buyer Guarantee (FHBG) has unlimited places, removing the previous annual cap of 35,000. This means you no longer need to rush to secure a spot. The Family Home Guarantee and Regional First Home Buyer Guarantee also have expanded allocations.

The Regional FHBG allows first home buyers in regional areas to purchase with a 5% deposit and no LMI. It has the same benefits as the standard FHBG but is specifically for properties outside capital cities. Combined with lower regional property prices, this makes regional home ownership significantly more accessible.

Help to Buy has income caps of $100,000 for singles and $160,000 for couples (combined taxable income). These are assessed on your most recent Notice of Assessment from the ATO. If your income exceeds the cap, you cannot access the scheme that year but may reapply if income drops.

Help to Buy property price caps vary by location. Capital city caps range from $600,000 in Darwin to $950,000 in Sydney. Regional areas typically have lower caps, around $550,000-$700,000 depending on the state. Caps are reviewed periodically and may increase over time.

Yes, you can buy out the government's equity share at any time by paying back their percentage based on the current market value. You can also make partial buybacks in minimum 5% increments. If you sell the property, the government receives their percentage of the sale price.

Yes, you can absolutely use both. Withdraw your FHSS savings for the deposit, then use the FHBG to purchase with just 5% deposit and no LMI. For example, 3 years of $15,000 FHSS contributions could yield approximately $48,000-$50,000 after tax benefits, easily covering a 5% deposit on a $700,000 property.

The minimum deposit depends on your chosen scheme. With Help to Buy, you need just 2%. The First Home Buyer Guarantee (FHBG) requires 5% with no LMI. Without government schemes, most lenders require 5% minimum but you will pay LMI unless you have 20%. A 10% deposit is a common middle ground - see the deposit comparison table.

Buy Now Pay Later services like Afterpay appear on your credit report and lenders treat them as ongoing liabilities. Even small BNPL commitments of $500-$1,000 can reduce your borrowing capacity by $5,000-$10,000. Pay off and close all BNPL accounts at least 3 months before applying for a home loan.

Yes, HECS-HELP debt reduces your borrowing capacity because lenders factor in the compulsory repayment amount (currently 1-10% of income above the threshold). A $40,000 HELP debt on an $80,000 salary reduces borrowing capacity by approximately $30,000-$50,000 depending on the lender.

LMI is a one-off insurance premium (typically $8,000-$35,000) that protects the lender if you default. It applies when your deposit is less than 20%. You can avoid LMI by saving a 20% deposit, using the FHBG (5% deposit, no LMI), or using the Family Home Guarantee (2% deposit, no LMI for single parents).

Absolutely. Singles can access all the same schemes as couples including FHBG, Help to Buy, FHOG, and FHSS. Focus on units or townhouses in growth corridors where prices suit single incomes. With Help to Buy, a single earning $90,000 could purchase a $650,000 property with just a $13,000 deposit.

Yes, co-buying is increasingly common. You can purchase as tenants in common (unequal shares) or joint tenants (equal shares). Both parties need to qualify for the loan. Note that some government schemes like FHBG require all applicants to be first home buyers. Get independent legal advice and a co-ownership agreement.

The typical timeline is 6-12 months from initial planning to settlement. Allow 3-6 months for saving and scheme applications, 1-3 months for property searching with pre-approval, 1-2 months for the offer and contract exchange process, and 4-6 weeks for settlement after exchanging contracts.

Pre-approval is common before starting a property search. It confirms how much you can borrow, shows sellers and agents you are a serious buyer, speeds up the purchase process once you find a property, and is valid for 60-90 days. Whether it suits your circumstances is a question for our accredited broker partner, who can guide you through the pre-approval process if appropriate.

Beyond your deposit, budget for stamp duty ($0-$30,000+ depending on state and exemptions), conveyancing ($1,500-$3,000), building and pest inspection ($500-$800), loan application fees ($0-$600), mortgage registration ($150-$190), moving costs ($500-$2,000), and an emergency buffer of 3 months repayments.

Every state offers stamp duty relief for first home buyers. NSW exempts purchases up to $800,000. VIC exempts up to $600,000. QLD offers concessions up to $700,000. SA exempts up to $650,000. WA exempts up to $430,000. ACT offers full exemption up to $1M (income tested). TAS and NT also offer concessions.

Contact your lender immediately - most offer hardship provisions including repayment pauses of up to 6 months, switching to interest-only temporarily, or extending your loan term to reduce repayments. Early communication is key. Lenders are legally required to work with you under the National Credit Code.