First home buyer schemes in 2026: into a new home sooner
A 5% deposit with no lenders mortgage insurance, or a government contribution of up to 40% of the price of a new home. The federal schemes have never been broader — and they stack with state grants and stamp duty savings.
5% Deposit Scheme: buy with 5% down, no LMI
First home buyers can buy with a 5% deposit — single parents and legal guardians with 2% — without paying lenders mortgage insurance. The government guarantees the rest of the lender's usual 20%, which on a typical first home saves many thousands of dollars in LMI.
Since 1 October 2025 the scheme has no income caps and no limit on places. It covers new homes, off-the-plan purchases and land with a building contract. You need to live in the home.
| State | Price cap: capital city & regional centres | Price cap: rest of state |
|---|---|---|
| NSW | $1,500,000 | $800,000 |
| VIC | $950,000 | $650,000 |
| QLD | $1,000,000 | $700,000 |
| SA | $900,000 | $500,000 |
| TAS | $700,000 | $550,000 |
Check the exact cap for a postcode with the official tool, then apply through a participating lender.
Help to Buy: the government puts in up to 40% of a new home
Under Help to Buy, the government contributes up to 40% of the purchase price of a new home — compared with up to 30% for an existing one — in exchange for a matching share of its value. You need a 2% deposit, and your loan only has to cover the rest, with no lenders mortgage insurance.
You can buy back the government's share over time, or repay it when you sell. Eligibility in brief: Australian citizens who don't already own property, living in the home, with taxable income at or below $103,000 (individuals) or $165,000 (couples and single parents) — thresholds are indexed each year. There are 10,000 places a year, and state stamp duty savings and grants can still be claimed alongside it.
First Home Super Saver Scheme: save faster inside super
Put extra voluntary contributions into super and withdraw up to $50,000, plus associated earnings, towards your first home — saving inside super's lower tax rates rather than from after-tax pay.
Stack them with your state's savings
The federal schemes sit on top of what your state offers first home buyers of new homes — grants of $10,000 to $30,000 and, in several states, no stamp duty at all:
- Queensland — $30,000 grant and no stamp duty on a new first home, at any price.
- South Australia — $15,000 grant and no stamp duty on a new first home, at any price.
- New South Wales — $10,000 grant; no stamp duty up to $800,000.
- Victoria — $10,000 grant; no stamp duty up to $600,000.
- Tasmania — $20,000 grant for a new home.
Sources: 5% Deposit Scheme; Help to Buy; First Home Super Saver Scheme (all firsthomebuyers.gov.au).
Common questions
Can I buy an off-the-plan home with a 5% deposit?
Yes. The 5% Deposit Scheme covers new homes and off-the-plan purchases within the price cap for the location, with no lenders mortgage insurance and, since 1 October 2025, no income caps.
How much does the government contribute under Help to Buy?
Up to 40% of the purchase price of a new home, or up to 30% of an existing home, in exchange for a matching share of its value. You need a 2% deposit.
Can I use a federal scheme and my state's first home grant together?
Generally yes. The 5% Deposit Scheme and Help to Buy can be used alongside state first home owner grants and stamp duty concessions. Your lender will confirm the combination for your purchase.
General information, current at the date above. Grants, concessions and tax rules have eligibility conditions this page summarises; it isn't personal tax, legal or financial advice. Confirm your eligibility with the relevant government agency, your lender or your accountant before you rely on it.