What is First Home Buyer Support?
First home buyer support refers to a range of government initiatives designed to help Australians purchase their first property. This can include cash grants, stamp duty exemptions or concessions, government-backed loan guarantees, and shared equity schemes. The primary goal is to reduce financial barriers and make home ownership more accessible for first-time buyers.
Federal Government Support for First Home Buyers
The Australian federal government offers the following schemes to assist eligible first home buyers:
- First Home Guarantee (FHBG): Allows buyers to purchase a home with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI), as the government guarantees a portion of the loan.
- Regional First Home Buyer Guarantee: Functions similarly to the FHBG but focused on supporting buyers in regional areas.
- Help to Buy Scheme: A shared equity program where the government provides up to a 40% equity contribution for new homes (or up to 30% for existing homes), allowing buyers to enter the market with a deposit as low as 2%. The scheme is income-tested and has property price caps.
- First Home Super Saver Scheme: Allows buyers to save for a deposit within their superannuation, benefiting from concessional tax rates.
What Concessions are available by State?
Each state and territory offers it’s own grants and concessions for eligible home buyers, which is summarised below.
| State/Territory |
First Home Owner Grant (FHOG) |
Stamp Duty Concessions/Exemptions |
| NSW |
$10,000 for new homes up to $600,000, or builds up to $750, 000 |
Full exemption for homes up to $800,000; concessions on a sliding scale for homes $600, 001-$750,000 |
| Victoria |
$10,000 for new homes up to $750,000 |
Full exemption for homes up to $600,000; concessions on sliding scale for homes $600,001-$750,000 |
| Queensland |
$30,000 for new homes up to $750,000 |
Full exemption for homes up to $500,000; concessions for homes $500,001-$550,000 |
| South Australia |
$15,000 for new homes up to $650,000 |
Full exemption for new homes and vacant land up to $650,000; partial relief up to $700,000 |
| Western Australia |
$10,000 for new homes up to $750,000 (metro) $1m (regional) |
Full exemption for homes up to $500,000 (metro & regional); concessions up to $700,000 (metro), $750,000 (regional) |
| Tasmania |
$30,000 for new homes (no cap) |
Full exemption for established homes up to $750,000 (18 Feb 2024-30 June 2026) |
| Northern Territory |
$10,000 for new homes (no cap) |
Up to $18,601 off for homes up to $650,000 |
| ACT |
No FHOG |
No stamp duty exemption; Home Buyer Concession Scheme offers up to $34,270 concession (income and property tested) |
Example of First Home Buyer Savings
Scenario: Buying a $750,000 First Home in Tasmania
A young couple with $100,000 in joint savings for their deposit is purchasing their first house for $750k in Tasmania.
Without the Stamp Duty Exemption
- Purchase price: $750,000
- Deposit available: $100,000
- Stamp duty payable: $28,935
- Amount left for deposit after stamp duty: $100,000 - $28,935 = $71,065
- Loan amount required: $750,000 - $71,065 = $678,935
- Deposit as % of purchase price: 9.5%
With the Stamp Duty Exemption
- Purchase price: $750,000
- Deposit available: $100,000
- Stamp duty payable: $0
- Total upfront required: $100,000 (all goes to deposit)
- Loan amount required: $750,000 - $100,000 = $650,000
- Deposit as % of purchase price: 13.3%
This scenario has been simplified as it does not take into account other costs associated with the purchase which can be up to $5k depending on circumstances.
Savings difference over 30-year Loan Term
| Scenario |
Deposit |
Stamp Duty Paid |
Loan Amount |
Total Interest |
Savings |
| No exemption |
$71,065 |
$28,935 |
$678,935 |
$789,147 |
- |
| With exemption |
$100,000 |
$650,000 |
$650,000 |
$756,051 |
$33,096 |
Key Insights
- Upfront savings: The exemption allows first home buyers to use their full savings as a deposit, reducing your loan amount by nearly $29,000.
- Lifetime savings: You save over $33,000 in interest over the life of the loan, in addition to the upfront stamp duty saving.
- Borrowing position: A larger deposit means a smaller loan, lower repayments, and potentially lower Lenders Mortgage Insurance (LMI) costs.
Why You Should Speak with a Broker Before Buying Your First Home
Engaging a mortgage broker early in your home-buying journey can make a significant difference. Brokers have expert knowledge of the lending market and government incentives, helping you navigate the often complex process with confidence. Here’s why consulting a broker before purchasing your first home is so valuable:
- Maximise Access to Grants and Concessions: Brokers stay updated on the latest federal and state schemes, ensuring buyers don’t miss out on financial assistance.
- Tailored Loan Options: Brokers compare multiple loans across multiple lenders to find one that best suits your financial situation, often securing better rates and terms than what you might find alone.
- Simplified Application Process – Brokers guide buyers through paperwork, eligibility requirements, and lender conditions, making the process less stressful and more efficient.
- Budgeting and Financial Advice – Brokers help first home buyers understand all upfront costs beyond the deposit, such as stamp duty, fees, insurance, and repayments.
- Negotiation Power – Some experienced brokers negotiate better deals or waive certain lender fees, helping first home buyers save money.
By speaking with a broker before you start house hunting or applying for finance, buyers gain valuable knowledge and support, making home ownership more achievable and affordable.