First Home Buyer Guide Tasmania (TAS) 2026 - Grants, Schemes & Loans

In Tasmania, the First Home Owner Grant (FHOG) is $20,000 for eligible first home buyers purchasing or building a new home, for transactions from 1 July 2026. The previous $30,000 grant still applies where construction started by 30 June 2026. The grant is administered by the State Revenue Office of Tasmania and is typically applied at settlement through your lender. You must be an Australian citizen or permanent resident, at least 18 years old, and not have previously owned property in Australia.

First home buyer duty relief in Tasmania has ended. The duty exemption for first home buyers of established homes closed to transactions after 30 June 2026, so standard duty rates now apply unless a new concession is announced. Check the State Revenue Office of Tasmania for current concessions before you budget for duty.

The property price cap for the Tasmanian First Home Owner Grant is $750,000 for new homes. This is one of the more generous caps in Australia and covers the vast majority of new builds across Tasmania, including most new homes in Greater Hobart. The grant applies to newly built houses, off-the-plan apartments, substantially renovated properties, and owner-builder constructions. If the property value exceeds $750,000, you receive no grant - there is no sliding scale. The grant is $20,000 from 1 July 2026 ($30,000 where construction started by 30 June 2026).

No, the Tasmanian First Home Owner Grant is not available for existing (established) homes. The $20,000 grant applies only to new homes including newly constructed properties, off-the-plan apartments, substantially renovated homes, and owner-builder new constructions valued at up to $750,000. However, if you are buying an existing home in Tasmania, you can still access the First Home Buyer Guarantee (5% deposit, no LMI), Help to Buy (30% government equity for existing homes), the MyHome shared equity scheme, and the First Home Super Saver Scheme.

The minimum deposit to buy a first home in Hobart depends on which scheme you use. With the First Home Buyer Guarantee (FHBG), you need 5% deposit - $21,250 on a $425,000 property - with no Lenders Mortgage Insurance. With Help to Buy, you need just 2% deposit. With MyHome shared equity, you may need as little as 2% deposit. Without any scheme, most lenders require at least 5% but you will pay LMI of approximately $6,000-$12,000 unless you have 20% ($85,000 on a $425,000 property). Tasmania's lower entry prices compared to mainland capitals make homeownership achievable with modest savings.

MyHome is Tasmania's state government shared equity scheme that helps eligible buyers purchase a home with a smaller deposit and lower loan amount. Under MyHome, the Tasmanian government contributes up to 30% of the purchase price as a shared equity stake, meaning you only need to borrow 70% (or less) of the property value. Income caps and property price limits apply. When you eventually sell or refinance, you repay the government's equity share at current market value. MyHome can be combined with the FHOG for new homes. It is similar to WA's SharedStart and the federal Help to Buy scheme, giving Tasmanian buyers an additional pathway to homeownership with minimal savings.

Income caps for first home buyer schemes in Tasmania vary by program. The 5% Deposit Scheme (formerly the First Home Buyer Guarantee) has had no income cap since 1 October 2025. Help to Buy income caps are $103,000 for a single applicant and $165,000 for joint applicants or a single parent for 2026-27 (taxable income). The MyHome shared equity scheme has its own income thresholds set by the Tasmanian government. The First Home Owner Grant (FHOG) in Tasmania has no income test - eligibility is based on property value and type only. The First Home Super Saver Scheme (FHSS) also has no income cap. Most first home buyers in Tasmania will qualify for at least one scheme.

On an $85,000 salary with no other debts, most lenders will approve a first home loan of approximately $450,000-$530,000. Lenders apply APRA's 3% serviceability buffer, testing affordability at around 9.5%. A $30,000 HECS-HELP debt reduces borrowing capacity by approximately $25,000-$40,000. In Hobart, borrowing capacity of $450,000-$530,000 covers a wide range of suburbs - while Hobart prices have risen significantly, outer suburbs and northern corridor areas remain accessible. Launceston and the north-west coast offer even more affordable options within this borrowing range.

The most affordable suburbs for first home buyers in greater Hobart in 2026 include areas in the northern corridor such as Bridgewater ($340,000 median unit), Gagebrook ($320,000), and Chigwell ($350,000). Brighton offers new estates with units from $340,000. On the eastern shore, Midway Point has units from $370,000. Southern suburbs like Kingston Beach have higher prices but Blackmans Bay offers units from $420,000. Outside Hobart, Launceston offers units from $290,000 and the north-west coast (Devonport, Burnie) from $240,000 - these also qualify for the Regional First Home Buyer Guarantee.

Regional Tasmania offers excellent value for first home buyers. Launceston - Tasmania's second city - has a median unit price of approximately $290,000, well within all scheme caps, and qualifies for the 5% Deposit Scheme (which replaced the Regional First Home Buyer Guarantee in October 2025) with 5% deposit and no LMI. The north-west coast (Devonport, Burnie) offers the lowest entry points in Tasmania from $240,000. Regional buyers receive the same $20,000 FHOG for new builds. Strong rental yields in regional Tasmania (often 5-6%) mean buying can be significantly cheaper than renting. The main trade-off is fewer employment options, though remote work has expanded opportunities.

Tasmania's property market offers significantly lower entry prices than mainland capitals. Hobart's median house price is approximately $650,000 - roughly 50% of Sydney's median and 20% below Melbourne's. However, Hobart experienced rapid price growth from 2017 to 2022, making it less affordable relative to local incomes than it once was. Tasmania's key advantages for first home buyers include a $20,000 FHOG for new homes (from 1 July 2026), the MyHome shared equity scheme, and regional areas with very low entry points. The main challenges are a smaller lending market (fewer local broker options) and limited new housing supply.

The choice between Hobart and regional Tasmania depends on employment, lifestyle, and budget. Hobart offers better employment diversity, services, and historically stronger capital growth, but higher prices mean a greater deposit and loan. Regional Tasmania - particularly Launceston - offers entry points $150,000-$200,000 below Hobart with 5% Deposit Scheme eligibility. Consider outer Hobart growth areas like Brighton and Sorell which combine lower prices with improving Hobart connectivity. If you work remotely, regional Tasmania offers exceptional value. As Tasmania's smallest state lending market, working with a mortgage broker is especially valuable to access a wider range of lender options.