First home buyer schemes in 2026: the 5% deposit guarantee, grants and stamp duty
If you looked at first home buyer support a couple of years ago and gave up, it is worth another look. A major expansion that took effect on 1 October 2025 has made the headline scheme dramatically more accessible in 2026. Here is what is actually on the table.
1. The First Home Guarantee (the 5% deposit scheme)
This is the big one. The First Home Guarantee lets eligible first home buyers purchase with as little as a 5% deposit, with the federal government guaranteeing up to 15% of the loan to the lender. The practical upshot: you avoid Lenders Mortgage Insurance entirely, which can save you many thousands of dollars.
What changed in late 2025:
- Income caps removed. The old limits ($125,000 for singles, $200,000 for couples) are gone.
- Unlimited places. The previous cap of 35,000 spots a year was abolished, so every eligible buyer can access it.
- Higher property price caps. The limits were lifted substantially.
| Location | 2026 property price cap |
|---|---|
| Sydney & NSW regional centres | $1,500,000 |
| Brisbane, Gold Coast, Sunshine Coast | $1,000,000 |
| Melbourne & Geelong | $950,000 |
| Perth | $850,000 |
| Darwin (from 1 July 2026) | $750,000 |
Adelaide, Hobart and Canberra have their own capital-city tiers, and regional areas have lower caps based on the postcode. Always confirm the current cap for your exact location with Housing Australia or your broker.
To be eligible you generally need to be an Australian citizen or permanent resident aged 18 or over, be a genuine first home buyer, and intend to live in the property. Couples must be married or in a de facto relationship to apply jointly.
2. The Family Home Guarantee
Designed for single parents and single legal guardians with at least one dependent child, this scheme allows a purchase with as little as a 2% deposit and no LMI, with the government guaranteeing up to 18% of the property value. It is not limited to first home buyers in the same way, which can help people re-entering the market.
3. State stamp duty concessions and grants
Stamp duty (transfer duty) is one of the largest upfront costs of buying, and most states offer first home buyers a full or partial exemption up to certain price thresholds. The thresholds and rules differ in every state and territory, so check your own state revenue office. Reducing or removing stamp duty directly lowers the cash you need at settlement.
Some states also still offer a First Home Owner Grant, usually targeted at newly built or off-the-plan homes. Again, the amount and eligibility vary by state.
How the schemes stack together
These supports are not mutually exclusive. A common combination for an eligible buyer is: use the First Home Guarantee to buy with a 5% deposit and skip LMI, claim a stamp duty concession to cut the upfront cash needed, and (if buying new) check whether a First Home Owner Grant applies. Stacked together, the difference to your timeline and budget can be significant.
A word of caution
Buying with a small deposit means borrowing more, so your repayments and total interest will be higher than with a large deposit. The schemes help you get in the door, but you still need to comfortably service the loan, lenders will assess you at your rate plus a 3% buffer. Make sure the repayments fit your budget, not just today, but if rates move.
The bottom line
First home buyer support in 2026 is the most generous it has been in years, especially the expanded First Home Guarantee. The rules are detailed and change regularly, so confirm your eligibility and the current caps before you start, ideally with a broker who works with these schemes every week.