First-home buyers in 2026: deposits, grants and government support

How much deposit do you actually need?

A 20% deposit is a useful benchmark, but it is not a universal requirement. Some eligible buyers can purchase with a smaller deposit through a government scheme or lender product. The trade-off is a larger loan and less equity at the start.

On a hypothetical $600,000 purchase, these percentages look like this:

Arithmetic examples only. They exclude buying costs and any grant or shared-equity contribution. They are not loan approvals.

Budget separately for conveyancing, inspections, transfer or registration fees, insurance, moving and any stamp duty payable. Ask when each cost falls due. A grant paid at settlement may not be available for the deposit you owe when signing the contract.

A low deposit does not tell you how much you can safely borrow. Build a household budget that includes loan repayments, rates, repairs and an emergency buffer. Compare repayments at a higher rate as well as the rate offered today.

The Australian Government 5% Deposit Scheme

The expansion that began on 1 October 2025 remains relevant in 2026: eligible first-home buyers can apply with a minimum 5% deposit, without income caps or capped places, and avoid lenders mortgage insurance (LMI). Location-based property price caps still apply.

Applicants must meet scheme and participating-lender criteria. Key requirements include being an Australian citizen or permanent resident aged 18 or over, buying to live in the property, and being a first-home buyer or not having owned Australian property or land in the previous 10 years. Applications can be individual or joint with one other eligible person.

The government guarantees part of the loan to the lender; it does not give you the deposit or take over your repayments. Scheme eligibility does not guarantee finance approval. Owner-occupation obligations continue after settlement.

Eligible single parents or single legal guardians may have a separate 2% deposit pathway. Check its specific criteria rather than assuming every buyer can use 2%.

Check the current 5% scheme rules and single-parent pathway.

Help to Buy: a smaller loan, with shared equity

Help to Buy is different from a deposit guarantee. Eligible buyers contribute at least 2%, obtain a participating-lender loan and share equity with the government. The government can contribute up to 30% for an existing home or 40% for a new home, with 10,000 places a year.

As checked in October 2026, the published taxable-income limits are $103,000 for an individual and $165,000 for joint applicants or single parents. Applicants must be Australian citizens; property price caps, owner-occupation and other eligibility conditions apply.

The government's share must eventually be bought out or repaid on exit, based on the relevant property value. It shares proportionally in value changes. You cannot combine Help to Buy with another purchase guarantee or shared-equity scheme, although eligible grants and duty concessions may still be available.

For example, 2% of $600,000 is $12,000. That is a deposit calculation, not evidence that you qualify or that $12,000 covers your total upfront costs.

Read the Help to Buy eligibility and ongoing obligations.

Grants and stamp duty: check your state

State grants are separate from federal schemes. A grant is a payment; a duty concession reduces a tax; a guarantee supports a loan; shared equity changes who benefits from the property's value. These are not interchangeable.

Victoria example: the First Home Owner Grant is $10,000 for eligible buyers purchasing or building a qualifying new home worth up to $750,000. It is not a general grant for every established home. Applicants' and partners' ownership histories matter. At least one applicant generally needs to live in the home for 12 months, beginning within 12 months of settlement or completion.

Victoria separately provides a first-home buyer duty exemption up to a $600,000 dutiable value and a concession from $600,001 to $750,000, subject to eligibility. New and established homes can qualify. Dutiable value and purchase price are not always identical, particularly for eligible off-the-plan transactions.

New South Wales: the $10,000 First Home Owner (New Homes) Grant may apply to eligible new or substantially renovated homes. A qualifying home purchase must not exceed $600,000; a qualifying land-and-building package must not exceed $750,000. Ownership and occupancy conditions also apply. Check Revenue NSW’s grant rules.

Queensland: the increased $30,000 grant continues for eligible contracts from 1 July 2026. The qualifying new home, including land, must be worth less than $750,000. Established homes do not qualify for this grant. Check your contract date and eligibility with Queensland’s First Home Owner Grant.

Buying elsewhere? Confirm the amount, property type, residency conditions and contract-date rules with that state or territory's revenue office. Do not apply Victorian thresholds to a purchase in another state.

See Victorian grant rules and Victorian duty concessions.

Using the First Home Super Saver scheme

FHSS can help eligible first-home buyers save through voluntary super contributions. Up to $15,000 of eligible contributions per financial year and $50,000 overall can count towards the scheme, with associated earnings also considered. Employer compulsory contributions are not a general deposit-withdrawal facility.

The ATO determines what can be released; tax treatment and contribution caps matter. Request an FHSS determination before property ownership transfers, and check the release and purchase deadlines before signing. Eligible co-buyers can each use their own FHSS amounts. This is a savings pathway for an owner-occupied first home, not an SMSF property investment.

Start with the official FHSS overview.

Your first-home preparation checklist

• Choose a comfortable repayment limit before choosing a property price.
• Separate your deposit, buying costs and emergency savings.
• Check federal eligibility and your property's location price cap.
• Confirm state grant and duty rules with your conveyancer.
• Prepare income, savings, liabilities and living-expense evidence.
• Understand finance conditions and the contract deposit before making an offer.

Aussie Wealth Group can help you explore lending pathways and the questions to ask. Access to any scheme depends on participating-lender availability and your eligibility.