First Home Buyer Grants and Government Support: What's Available in 2026?
Key Takeaways
Five main supports exist in 2026: the 5% Deposit Scheme, Help to Buy shared equity, the First Home Owner Grant, stamp duty concessions, and the First Home Super Saver scheme, each doing a different job.
The 5% scheme removes LMI, but you still borrow around 95%, while Help to Buy shrinks your loan in exchange for the government sharing your future capital growth.
Schemes doing different jobs can often be stacked; ones doing the same job, like the 5% scheme and Help to Buy, generally cannot.
Eligibility for a grant is not loan approval; serviceability, genuine savings and price caps still decide what you can actually buy.
Saving a deposit has been the hardest part of buying a first home for years, so the government support available in 2026 genuinely matters. With the federal deposit scheme expanded in late 2025 and a low-deposit pathway now open to far more buyers, the upfront hurdle is lower than it has been in a long time. At the same time, lenders still test every application against a serviceability buffer of 3 percentage points, so the amount you can borrow is assessed well above the rate you actually pay. Cheaper entry and a tougher borrowing test now sit side by side.
That combination is exactly why it pays to understand the schemes properly rather than just knowing they exist. The real question is not only "what am I eligible for?" but "which pathway actually gets me into a home I can comfortably afford?" This guide walks through the main grants and schemes available in 2026, how they interact with your deposit, your loan and your repayments, and where eligibility for a grant still does not guarantee a loan. Because these settings change and vary by state, treat the figures here as a starting point and confirm the current rules before you budget around them.
The main schemes at a glance
There are several forms of support, and they do different jobs. Some reduce your deposit, some cut your upfront costs, and one helps you save faster. Knowing which lever each one pulls is the first step to choosing well.
The Australian Government 5% Deposit Scheme lets eligible buyers purchase with a 5% deposit and avoid Lenders Mortgage Insurance (LMI).
Help to Buy is a shared equity scheme where the government takes part-ownership in exchange for a smaller loan.
The First Home Owner Grant (FHOG) is a state-based cash grant, usually for new or newly built homes.
Stamp duty exemptions and concessions reduce or remove the transfer duty on eligible purchases.
The First Home Super Saver (FHSS) scheme helps you save a deposit inside superannuation with some tax benefits.
Most buyers end up using a combination, and the best mix depends on your deposit, your income, and the type and price of the home you want.
The Australian Government 5% Deposit Scheme
This is the scheme that opens the door for most first-home buyers. Under it, you buy with a 5% deposit and the government guarantees the gap up to 20%, which means you avoid LMI even though your deposit is small. It is worth being clear on what that does and does not do for you.
From 1 October 2025, the scheme was expanded in a few important ways: income caps were removed, the limit on the number of places was abolished, and property price caps were increased. The single-parent Family Home Guarantee and the regional pathway were folded into the same scheme, with eligible single parents and guardians able to enter with as little as 2%. Price caps still apply and vary by location, so the specific limit for your area is worth checking.
The key thing to understand is that the guarantee removes LMI; it does not shrink your loan. With a 5% deposit, you are still borrowing about 95% of the price, so your repayments are based on that larger loan. The scheme helps you get in sooner and saves you the LMI cost, but it does not make the loan itself smaller, which is why serviceability still matters just as much.
The Help to Buy shared equity scheme
Help to Buy works very differently, and it suits a narrower group of buyers. Rather than guaranteeing your deposit, the government takes an ownership share in the property, which lowers the amount you need to borrow. That can make a purchase possible on a smaller income, but it comes with a long-term trade-off worth thinking through carefully.
Under the scheme, the government can contribute up to 40% of the price for a new home or up to 30% for an existing one, and you may be able to start with a deposit as low as 2%. To see how the numbers work, picture an $850,000 new build: a 2% deposit of $17,000, a government contribution of $340,000, and a home loan of around $493,000. Your loan and repayments are much smaller as a result.
The catch is that the government shares in the property's future value, including capital growth. When you sell, or when you buy back the government's share, you repay its portion based on the value at that time, not what it put in. Help to Buy also has income caps, applies through participating lenders, and carries buyback and resale conditions, so it is a scheme to enter with clear advice and a clear view of the long-term cost, not just the lower repayment today.
The First Home Owner Grant
The First Home Owner Grant is a one-off cash grant from your state or territory, and it is generally aimed at new homes rather than established ones. The amount and the rules differ depending on where you buy, so it is best to confirm locally.
In New South Wales, for example, eligible buyers of a new or newly built home can receive a grant of $10,000, subject to property value limits. Victoria runs its own First Home Owner Grant with its own thresholds and conditions. Because Albury sits in New South Wales and Wodonga sits just across the border in Victoria, a buyer weighing up both sides of the river can face quite different grant and duty outcomes for a similar home, which is a genuine consideration in this part of the country. The grant usually applies to new builds, so if you are buying an established home, it may not be available to you at all.
Stamp duty exemptions and concessions
Stamp duty, also called transfer duty, is one of the highest upfront costs of buying, so a concession here can be worth more than a cash grant. Support is state-based and tied to the property price, with full exemptions up to one threshold and reduced rates up to a higher one.
In New South Wales, eligible first home buyers can receive a full transfer duty exemption on a new or existing home up to $800,000, and a concessional rate on homes priced over $800,000 and under $1 million. For vacant land, an exemption applies up to $350,000 and a concession under $450,000. There are conditions attached, including that you generally must be at least 18, at least one buyer must be an Australian citizen or permanent resident, and you and your partner must not have previously owned residential property in Australia. There is also a residence requirement: you typically need to move in within 12 months of settlement and live there for at least 12 continuous months. Victoria has its own first-home buyer duty concessions with different thresholds, so a cross-border buyer should compare both.
The First Home Super Saver scheme
The First Home Super Saver scheme is the odd one out, because it helps you build a deposit rather than reduce the purchase cost. It lets you make voluntary contributions into your superannuation and later withdraw them, along with associated earnings, to put toward a first home.
The appeal is tax efficiency: voluntary contributions are generally taxed at a lower rate than your normal income, so for some savers the deposit grows a little faster inside super than it would in a regular account. There are limits on how much you can contribute and withdraw under the scheme, and the rules are set federally, so the current caps are worth confirming before you rely on it. It works best as a longer-term savings strategy planned, rather than something you turn to at the last minute.
Can you combine first home buyer schemes?
This is where real value is often found, because several of these supports can work together. The general principle is that schemes doing different jobs can usually be stacked, while schemes doing the same job typically cannot.
In practice, that tends to look like this:
A stamp duty exemption can often be combined with the 5% Deposit Scheme, since one cuts your upfront duty, and the other handles your deposit and LMI.
The First Home Owner Grant can sometimes sit alongside a stamp duty concession and a low-deposit pathway on an eligible new build.
The First Home Super Saver scheme can be used to build the deposit you then bring to another scheme.
Help to Buy and the 5% Deposit Scheme generally do not combine, because both are structured around how you fund the gap to a standard loan, so you usually choose one or the other.
Stacking can change your numbers significantly, but the combinations allowed depend on current rules and the property you choose, so it is worth confirming what genuinely applies to your situation rather than assuming everything can be layered together.
Why a grant is not the same as a loan approval
If you are eligible for a grant or deposit scheme but unsure whether a lender will approve the loan, it can help to speak with a mortgage broker in Albury & Wodonga before you make an offer. They can help you compare scheme options, understand your true borrowing capacity and check which lenders may suit your deposit, income and property plans.
This is the part that catches many first-home buyers by surprise. Qualifying for a scheme tells you the government will support your purchase; it does not tell you a lender will approve your loan. The two assessments are separate, and the lender's is often the tougher one.
Grants cut upfront costs, not loan size
Most schemes reduce what you need upfront, whether that is your deposit, your duty, or your LMI. What they generally do not do is increase how much a lender will let you borrow. The 5% Deposit Scheme is the clearest example: it removes LMI, but you are still borrowing around 95% of the price, and your repayments reflect that full loan. A grant can get you to the starting line, but your borrowing capacity still decides how big a home you can finance.
Serviceability still decides what you can borrow
Lenders assess whether you can afford the loan through a serviceability test, and the Australian Prudential Regulation Authority (APRA) requires them to add a buffer of 3 percentage points on top of your actual rate. So a loan at 6% is tested at around 9%. They also shade variable income, often counting overtime, bonuses or commission at around 80%, and they factor in your living costs and debts, including any study loan repayments. A high debt-to-income (DTI) position can also limit larger loans. You can be perfectly eligible for a scheme and still fall short on serviceability, which is why getting your borrowing capacity assessed early matters.
Genuine savings and cash to complete
Even with a low-deposit scheme, lenders often want to see genuine savings, meaning money you have built up and held over time, frequently around 5% of the price saved for at least three months. A grant or a sudden gift may not satisfy this on its own. You also need to cover your cash to complete, which is everything beyond the deposit: any duty still payable, legal and conveyancing fees, inspections, and lender fees. Mapping this out early prevents an unwelcome shortfall close to settlement.
Real borrower scenarios
The same schemes play out differently depending on who is buying and what they are buying. These short examples show how the pieces fit together in practice.
A single buyer with a 5% deposit uses the deposit scheme to avoid LMI and buys an established home, getting in a couple of years earlier than a 20% target would have allowed, while accepting a larger loan and repayments.
A couple buying a new build combines a stamp duty exemption, the First Home Owner Grant, and a low-deposit pathway, which together cut their upfront costs sharply on an eligible property under the price cap.
A single parent enters with a 2% deposit through the family pathway, folded into the deposit scheme, getting into a home that a larger deposit requirement would have kept out of reach.
A buyer on a modest income considers Help to Buy for the smaller loan, then weighs that against giving the government a share of future capital growth before deciding it is not worth the long-term cost for them.
A cross-border buyer compares an Albury purchase in New South Wales against a Wodonga purchase in Victoria, finding the duty and grant outcomes differ enough to influence which side of the river they buy on.
Common mistakes to avoid
Most costly mistakes with grants come from assuming rather than checking. They are easy to avoid once you know where people tend to slip up.
Assuming you are eligible without confirming the residency, ownership history and property type rules.
Signing a contract before you have genuine loan approval, not just scheme eligibility.
Treating a grant as part of your deposit when lenders may not count it toward genuine savings.
Overlooking property price caps, which can rule out a home that otherwise seems to qualify.
Not checking whether your chosen lender participates in the scheme, since not all do.
Forgetting the residence requirement and risking a clawback by moving out too soon.
A little verification up front protects you from discovering a problem at the worst possible moment, after you have committed.
How a mortgage broker helps you compare your options
The value of advice here is not just knowing the schemes; it is matching them to your situation and your loan. The schemes are only useful if they line up with a loan you can actually get and comfortably afford, and that is where the two assessments meet.
A broker can work out your realistic borrowing capacity across different lenders, identify which schemes you genuinely qualify for, and show how each pathway changes your deposit, your repayments, and your upfront costs. They can also flag which lenders participate in a given scheme, help you hold a genuine pre-approval, and guide the timing so each piece of support is applied correctly, whether that is through the lender, the state revenue office, or at settlement. The goal is a clear, honest picture of which pathway suits you, rather than reaching for the first scheme you hear about.
Frequently Asked Questions (FAQs)
What first home buyer grants are available in 2026?
The main forms of support are the Australian Government 5% Deposit Scheme, the Help to Buy shared equity scheme, the state-based First Home Owner Grant, stamp duty exemptions and concessions, and the First Home Super Saver scheme. They do different jobs, from reducing your deposit to cutting upfront duty or helping you save faster. Because rules and amounts vary by state and can change, it is worth confirming the current settings for where you plan to buy.
What is the Australian Government 5% Deposit Scheme, and is it the same as Help to Buy?
They are different. The 5% Deposit Scheme lets you buy with a 5% deposit while the government guarantees the gap to 20%, so you avoid LMI, but you still borrow around 95% of the price. Help to Buy is a shared equity scheme where the government takes an ownership share to reduce your loan, in exchange for a portion of the property's future value. One keeps you as the full owner with a larger loan; the other gives you a smaller loan but a co-owner.
Do government grants count as part of my deposit, and do I still need genuine savings?
A grant can help with your overall funds, but lenders often still want to see genuine savings, meaning money you have accumulated and held over time, typically around 5% of the price over at least three months. A grant or a sudden gift may not satisfy the genuine savings test on its own. It is best to keep saving steadily even if you expect grant support, so your application is as strong as possible.
Does a grant improve my borrowing capacity?
Generally no. Grants and schemes mostly reduce your upfront costs or your deposit gap; they do not increase how much a lender will let you borrow. Your borrowing capacity is decided by your income, expenses, debts and the serviceability buffer, so you can be eligible for a scheme and still be limited by what a lender will approve. This is why it helps to understand both your eligibility and your true borrowing power early.
Can investors use first home buyer grants?
These schemes are designed for owner-occupiers buying their first home, not for investors, and they usually carry a residence requirement. You generally need to move into the property within a set period and live there for a minimum continuous period. If you move out too soon or never move in, you may have to repay the benefit, so the support is tied to genuinely living in the home.
What property price caps apply?
Most schemes have property price caps that vary by location, and they tend to be higher in capital cities than in regional areas. The caps can also differ between the deposit schemes, Help to Buy, and state duty concessions. Because a home just over the cap can lose eligibility entirely, it is important to confirm the specific limit for your area and scheme before you make an offer.
Should I apply through a bank or use a broker?
You can do either, but a broker can compare how different lenders assess you and which ones participate in the scheme you want to use. Since lenders treat income, debts, and low deposits differently, and not every lender offers every scheme, that comparison can be the difference between an approval and a knock-back. The most useful time to get advice is early, before you set a budget or start inspecting.
The Bottom Line
There is more genuine support for first home buyers in 2026 than there has been for some time, and for many people, it brings a purchase forward by years. The key is to see each scheme for what it does: the 5% Deposit Scheme and Help to Buy lower the deposit hurdle in different ways, the First Home Owner Grant and stamp duty concessions cut your upfront costs, and the First Home Super Saver scheme helps you save faster. None of them, on their own, changes how much a lender will approve.
So the smart approach is to line up your eligibility and your borrowing capacity together, confirm the current rules for where you plan to buy, and choose the pathway that fits both your deposit and a loan you can comfortably afford. Get that right, and government support becomes a real head start rather than a source of confusion. And if you are buying around Albury-Wodonga and want help comparing the schemes and the lenders side by side, Loan Street is always happy to walk through it with you.