First Home Buyer Schemes 2026: Grants, Guarantees & Eligibility

For many Australians taking their first step onto the property ladder, navigating the range of first home buyer schemes can be as challenging as saving for the deposit itself. With rising house prices, changing interest rates and updating government support packages, understanding which grants, guarantees and eligibility rules apply in 2026 is more important than ever.

This article demystifies the major schemes available to first home buyers in 2026: from the federal government’s 5 % Deposit Scheme (formerly the First Home Guarantee) and the First Homeowner Grant (FHOG) to key state‑based concessions and duties exemptions. It also unpacks who is eligible, what the key property and income caps are, and how to apply effectively—so first‑timers can make informed decisions and avoid costly missteps.

Page Contents

Understanding the Key Schemes for First Home Buyers

First Home Owner Grant (FHOG)

The FHOG is a one‑off grant funded at the state or territory level, aimed at helping eligible first home buyers purchase or build a new home. The scheme is administered locally under different rules in each jurisdiction.

Typical grant amounts vary: for example, in Western Australia the one‑off payment is up to $10,000.
Eligibility criteria generally include: being a first home buyer (you and partner haven’t previously owned property), full Australian citizenship or permanent residency, age at least 18 (varies by state), and the home being new or substantially renovated rather than an established property.

Important: Because the scheme is state‑based, the value of the grant, the property value caps, and the occupancy requirements differ significantly by location.

Home Guarantee Schemes / 5 % Deposit Scheme

At the federal level, under the Home Guarantee Scheme (or its evolution to the 5 % Deposit Scheme), first home buyers (and in some cases previous property owners under certain conditions) are supported by a government guarantee that allows them to buy a home with a low deposit—as little as 5% of the property value.

Key features include:

The government acts as a guarantor to the participating lender, reducing or eliminating the need for Lenders Mortgage Insurance (LMI) when the deposit is low.
Eligibility criteria include: income caps (for individuals ≤ $125,000 and joint ≤ $200,000, in earlier versions) and that applicants must be Australian citizens and first home buyers (or have not owned property for a specified period).
Property value caps apply by region/State: e.g., land + build price or purchase price must be under a threshold.
As of 1 October 2025, the scheme was expanded: places became uncapped, income caps were removed, and eligibility extended to more first home buyers.

Key takeaway: This scheme is designed to help buyers jump in earlier when a 20%+ deposit is hard to save.

State & Territory Stamp Duty Concessions and Assistance

Each state/territory also offers additional support: duty exemptions or concessions for first home buyers, especially for properties under a certain value or in regional areas. For example, the NSW First Home Buyer Assistance Scheme offers full or partial exemption on transfer duty for first home buyers with properties valued under certain caps.

When combined with grants and guarantees, these concessions can significantly reduce the upfront cost of entering the market.

Eligibility: What You Must Know in 2026

General Eligibility Criteria (Federal Scheme)

Applicants must be Australian citizens (some schemes allow permanent residents under limited conditions) and at least 18 years old.
Must be a first home buyer, or in some cases have not owned a property in Australia in the past 10 years.
The property must be an owner‑occupier home, not an investment property.
Income caps apply (in earlier versions): e.g., individual taxable income ≤ $125,000, joint ≤ $200,000, but as of recent expansion income caps may be removed depending on scheme stream.
Minimum deposit and property value caps apply: e.g., at least a 5% deposit and the property must meet regional value thresholds.

State/Territory Specific Conditions

For FHOG, each region has its own rules: e.g., in NSW the new home grant may be up to $10,000 for properties up to a contract value of $600,000 or $750,000 depending on type.
Occupancy periods: Many grants demand that the home be lived in as your principal place of residence within 12 months of settlement and for a continuous period (e.g., 12 months).
Property must be new or substantially renovated (for many grants). Established homes often excluded.

How Much Support Is Available & What Are the Caps?

Grant Amounts

FHOG amounts vary: some states up to $15,000 for new homes (e.g., NSW/QLD) depending on the contract date and property value.
Some states offer only up to $10,000 for new-build in other regions.

Deposit‑Guarantee Benefits

Under the Home Guarantee Scheme, buyers with a 5% deposit (hence 95% Loan‑to‑Value Ratio (LVR)) may avoid LMI because the government guarantee covers up to 15% of the property value.
Property value caps apply and vary by state/region. Buyers must check the postcode threshold.

Stamp Duty & Transfer Duty Concessions

For example: In NSW the First Home Buyer Assistance Scheme grants full or partial duty exemption for eligible buys up to a certain value (e.g., ≤ $1 million) under specified conditions.

Practical Checklist: Steps to Apply in 2026

Check your eligibility early – Using online tools (e.g., state revenue site, Housing Australia eligibility checker) determine whether you meet criteria. For example, applicant must be Australian citizen, minimum age, owner‑occupier intent.
Confirm property qualifies – Must meet property value caps, be owner‑occupied, be new/approved contract if building, and meet the region’s thresholds.
Save required deposit – For guarantee schemes, minimum deposit may be 5% (or even 2% for single‑parent streams). Prepare for other costs: stamp duty, legal fees, loan application fees.
Engage a participating lender – The Home Guarantee Scheme requires lenders that participate and submit the application on behalf of buyer.
Complete required applications – For FHOG: apply through state revenue office or via your lender; for federal guarantee: lender submits to Housing Australia.
Meet occupancy requirements – Move into the property within required timeframe (usually 12 months) and maintain residence for the set period.
Budget for the ongoing costs – A lower deposit means higher LVR, meaning potentially higher interest, less equity buffer and more risk of higher repayments. Industry commentary warns of risks for buyers with minimal deposits.

What’s Changing in 2026

From 1 October 2025, the federal government expanded the 5 % Deposit Scheme: income caps removed and places made uncapped—meaning more first home buyers may qualify.
Property price caps have been raised to reflect regional and capital city differences—opening up more properties to eligible buyers.
A focus on regional housing supply and home‑ownership support may mean new state‑based incentives or regional bonuses.

What to watch: Future changes to interest rates, home‑ownership assistance programs and eligibility periods—stay updated rather than assuming criteria remain constant.

Call to Action

If you’re a first home buyer in Australia, now’s the time to research the grants and guarantee schemes available in your state, use eligibility tools, talk to a participating lender and develop a deposit and home‑ownership plan. Share this article with friends or family navigating their first home purchase, subscribe for updates on scheme reforms, and comment below with your state/territory so fellow buyers can share insights too.

Conclusion

The landscape of first home buyer schemes in 2026 offers some of the most generous and flexible support in recent years. With one‑off grants like the FHOG, guarantee programmes enabling low deposits, and stamp duty concessions—all designed to ease early home‑ownership—prospective buyers have more tools than ever. Yet the support is only effective when paired with solid financial planning.

Before jumping into a purchase, first home buyers must carefully check eligibility criteria, understand the fine print (deposits, property value caps, occupancy rules) and consider whether a lower deposit will serve them well over the life of a mortgage. When used wisely, these schemes can genuinely open doors—but home ownership still requires preparedness, discipline and a realistic budget.