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For most Australians, buying a home is a moment when years of saving and planning finally come together.
At IMB Bank, we understand that navigating the housing market can seem daunting, especially for the first time. However, our hope is that it doesn’t have to be. As a first home buyer, you have a lot of options designed to make the buying process easier. From cash grants to stamp duty exemptions and deposit guarantees, these initiatives could save you tens of thousands of dollars.
To help first home buyers navigate this complex landscape, we’ve put together this FAQ-style guide to help you understand your options. Let’s start with the most common question:
How much deposit do I need for a first home?
Let’s look at this answer first without government help, and then with government help, so that you can see your options as a first home buyer.
Most lenders ideally want to see a 20 per cent deposit of the purchase price. For example, if the purchase price of a home is $700,000, the 20% deposit is $140,000 upfront, not including additional fees and duties.
For home purchases with a deposit of less than 20%, without government assistance, buyers are required to pay Lenders Mortgage Insurance (LMI). LMI is a one-off premium charged by lenders when the deposit is below 20% of the purchase price. It is designed to protect the lender and mitigate risk should a borrower default. The cost is based on the size of your deposit and the amount you borrow, and it can amount to several thousands of dollars.
With the government’s guarantee schemes, the deposit hurdle becomes much smaller. Buyers could purchase with as little as a 5% deposit, which would be $35,000 on that same property. For eligible single parents, the minimum deposit drops to just 2%, which is only $14,000 – read on to find out how.
The bottom line? Instead of saving for years to build a larger deposit, these programs can help eligible buyers enter the market much sooner.
What schemes are available for first home buyers in 2025?
In 2026, first home buyers have three main types of support available:
- Grants
- Deposit guarantees
- Stamp duty concessions
There are national and state schemes, each with their own type of support structure.
National: The Australian Government 5% Deposit Scheme
Housing Australia has the Australian Government 5% Deposit Scheme, helping make it easier than ever for Australians to achieve home ownership. Under the Scheme, there are unlimited places available, and support for both first home buyers and single parents or legal guardians.
Eligible first home buyers could purchase a property with as little as a 5% deposit, while single parents and legal guardians could enter the market with a 2% deposit, all backed by a Government guarantee so that buyers will not have to pay LMI.
The Scheme has no income caps, and allows buyers to choose from a wide range of property types up to the new property price caps set for each location.
State: First Home Owner Grants and Stamp Duty Relief
Some Australian states and territories offer the First Home Owner Grant (FHOG) which is a popular choice for many first home buyers. This grant provides a lump-sum payment to eligible applicants to help them with the purchase of their first home.
In addition, states may offer stamp duty exemptions or discounts, making it easier for first home buyers to enter the property market and reduce upfront costs.
What is the First Home Owner Grant?
The First Home Owner Grant is a one-time payment available to eligible first-time buyers in Australia who purchase or build a new home.
Eligibility criteria varies by state, but common requirements include:
- You must be at least 18 years old
- Neither you or your partner have previously owned property in Australia
- At least one applicant must be a permanent resident or Australian citizen
- The home must be a new property (not an established one)
- You’ll need to live in the home as your principal place for 12 months minimum after the construction or purchase of your home.
The amount you receive under the First Home Owner Grant (FHOG) depends on where you’re buying. Here’s a quick breakdown of the current grant amounts by state and territory:
- New South Wales (NSW): $10,000 for new homes valued up to $750,000
- Victoria (VIC): $10,000 in metro areas, or $20,000 for new builds in regional VIC
- Queensland (QLD): $30,000 for eligible new homes
- South Australia (SA): $15,000 for new homes
- Tasmania (TAS): $30,000 for new builds
- Western Australia (WA): $10,000 for new builds
- Northern Territory (NT): $10,000 for new builds
- Australian Capital Territory (ACT): No cash grant, but significant stamp duty concessions.
These grants can be applied directly to your deposit or to cover other upfront costs, and they could make a noticeable difference to how quickly first home buyers can move forward. If you’re unsure whether you qualify, have a chat with our team at IMB about your eligibility as part of your home loan application.
How much can stamp duty exemptions save first home buyers?
Stamp duty is a commonly underestimated cost when buying a home. It’s essentially a state tax on property purchases, and it can add tens of thousands to the upfront bill. Fortunately, every state and territory offers concessions or exemptions for first home buyers. These vary state by state.
- In NSW, full stamp duty exemption is offered for new and existing homes up to $800,000
- In VIC, full stamp duty exemption is offered for homes up to $600,000
- QLD offers full stamp duty exemption for newly built homes and vacant land
- SA offers full stamp duty exemption for newly built homes and vacant land
- TAS offers full stamp duty exemption on established homes up to $750,000 (valid until 30 June 2026)
- In WA, full stamp duty exemption is offered for homes up to $500,000
- NT stopped their concession program in 2021
- ACT offers full stamp duty exemption for homes up to $1.02 million (provided you meet the scheme's income and ownership criteria).
These savings could be just as valuable as a grant, and when combined with other schemes, they could make the path to ownership much more manageable.
Can I combine multiple schemes?
You could, and this is where first home buyers potentially could unlock the most value. Let’s break this down using NSW as an example.
If you are a first home buyer in Newcastle purchasing a new build for $700,000, you could be eligible for the $10,000 First Home Owner Grant from the NSW Government.
Meanwhile, with the Australian Government 5% Deposit Scheme, you would only need a 5% deposit, being $35,000 instead of $140,000. Plus, the Scheme would help you avoid paying around $25,000 in LMI.
Add NSW stamp duty concessions, which could save you over $17,000, and the difference is significant.
In total, you could secure the property with a deposit of $35,000 and avoid extra costs like LMI and stamp duty, saving approximately $42,000.
The result? Getting into your own home much sooner and with far less upfront cost.
What mistakes could first home buyers avoid?
A common mistake is assuming you won’t qualify for a grant or guarantee, when in fact you could. It’s important to have a conversation with a lender to check out all of your options ahead of time.
It’s also important not to forget about the other costs of buying, such as building inspections, conveyancing, and moving expenses. Budgeting for these upfront costs means fewer surprises later.
Finally, not getting finance pre-approval before house-hunting could leave you disappointed if your dream home turns out to be out of reach.
At IMB, we’re committed to helping first home buyers take their first steps toward home ownership. A great place to start is by using our Borrowing Power Calculator to see how much you could afford or by speaking to one of our lenders.
How do I apply for these schemes?
For state-based grants and stamp duty concessions, applications are usually made through your state or territory revenue office. In most cases, your lender could help you lodge these forms as part of your home loan application.
For federal schemes like the 5% Deposit Scheme, you’ll need to apply through a participating lender, such as IMB Bank.
Our goal is to make the process simple. We’ll check your eligibility, prepare the paperwork, and explain the benefits you could qualify for.
Where could I start as a first home buyer in 2026?
The best place to begin is by working out how much you could realistically afford to borrow and repay. Online calculators, like our Borrowing Power Calculator, can help, but speaking with a lender will give you a clearer picture.
From there, check which schemes or grants you might be eligible for, and consider applying for pre‑approval so you know exactly what you can afford before you start house hunting.
Our team is here to guide you through every step of your first home buying journey. Speak to one of our friendly experts today and start the process with confidence.
