First Home Buyer Guide Australia: Grants, Help to Buy, FHSS and Buying Costs

Buying a first home in Australia is less about one national "grant" and more about stacking the right state and Commonwealth levers with a deposit and a loan you can service. This guide stays high-level on schemes, then sends you to detailed posts and calculators for numbers that stay current.

The 30-second summary

• Know borrowing capacity before you fall in love with a listing.
• Budget deposit + stamp duty + legal + inspections + LMI (if any) - not deposit alone.
• Check state stamp duty concessions / FHOG for your state and property type (new vs established).
• Use FHSS if you can save inside super toward the deposit (FHSS guide).
• Consider Help to Buy if shared equity fits and places are open (Help to Buy guide).
• Run borrowing capacity, stamp duty and property buying cost before you offer.

1. Borrowing capacity first

Lenders assess income, living expenses (often against HEM benchmarks), existing debts (including HECS repayments) and buffers on the rate. A strong pre-approval beats guessing from online "how much can I borrow" headlines.

Run the borrowing capacity calculator. If HELP debt is in the mix, see HECS repayment explained. For the broader borrowing picture, see how much can I borrow in Australia?.

2. Deposit and LMI

Deposit	Typical effect
~5-10%	More lenders need LMI; higher ongoing cost if LMI is capitalised
20%+	Usually no LMI; better chance at sharper rates and features

Track progress with the savings goal (deposit) calculator. Pair it with purchasing power once you know deposit plus likely loan size.

3. Stamp duty and state help

Stamp duty (transfer duty) is often the largest cash cost after the deposit. Most states offer first-home exemptions or concessions inside price and eligibility caps; many also run a First Home Owner Grant aimed at new homes. Caps and amounts change - treat any table you see online as stale until you confirm with your state revenue office.

Model duty in the stamp duty calculator and the full settlement stack in the property buying cost calculator. More detail on the cost stack sits in house purchase costs.

4. Help to Buy (shared equity)

Help to Buy can reduce the loan and deposit needed by taking a government equity share in the home, subject to strict eligibility and limited places. It is not a grant you keep forever - you typically buy out the share later. Read Help to Buy scheme Australia before treating it as part of your plan.

5. First Home Super Saver Scheme (FHSS)

FHSS is a tax-effective way to build part of the deposit inside super, within contribution and release caps. It sits alongside - not instead of - a normal savings plan and lender genuine-savings rules. See First Home Super Saver Scheme explained.

6. Buying process checklist

1. Run capacity, stamp duty and buying-cost calculators.
2. Confirm state concessions / FHOG eligibility on official sites.
3. Get pre-approval.
4. Inspect thoroughly (building and pest on established homes).
5. Finalise finance, conveyancing and settlement cash early.

Common mistakes: offering without pre-approval, budgeting only the deposit, buying at the absolute ceiling of capacity, and skipping inspections.

FAQ

What support is available for first home buyers in Australia?

Common levers are state First Home Owner Grants (usually for new homes), state stamp duty concessions or exemptions, the First Home Super Saver Scheme (FHSS), and the Commonwealth Help to Buy shared-equity scheme where places are available. Eligibility, caps and amounts differ by state and change over time - confirm on official sites before budgeting.

What is Help to Buy?

Help to Buy is a shared-equity scheme where the government takes an equity stake so eligible buyers can purchase with a smaller deposit and loan. Places and criteria are limited. Read the Help to Buy scheme guide for how the equity share and buy-out work.

How does the First Home Super Saver Scheme (FHSS) help?

FHSS lets you contribute to super (within caps) and later release those contributions plus associated earnings toward a first-home deposit, with concessional tax treatment on the release. It does not replace the need for genuine savings evidence some lenders still want. See the FHSS guide for contribution and release limits.

How much deposit do I need?

Many lenders accept 5-10% with Lenders Mortgage Insurance; 20% usually avoids LMI and opens better pricing. Always add stamp duty and buying costs on top of the deposit. Use the savings goal (deposit) and property buying cost calculators together.

Should I get pre-approval before house hunting?

Yes. Pre-approval (conditional approval) clarifies borrowing capacity and makes offers more credible. Re-check capacity if rates, income or debts change before you exchange.

What calculators should first home buyers run first?

Start with borrowing capacity, then stamp duty for your state, then the full property buying cost stack. Add savings goal (deposit) while you are still accumulating cash, and loan repayment once you have a price and rate assumption.

Next step

Run borrowing capacity, stamp duty and property buying cost, then read Help to Buy and FHSS if either scheme is in play.

This article provides general information for Australia only and does not constitute personal financial or legal advice. Scheme rules and state concessions change - confirm with official Commonwealth and state sources, and with your lender or broker.