First home buyer help in Australia: the 5% Deposit Scheme, Help to Buy and state concessions

If you're buying your first home, two federal schemes and your state's stamp duty rules can make a big difference to how much you need upfront. Here's how they work as at October 2026.

The 5% Deposit Scheme

• Eligible first home buyers can buy with a 5% deposit without paying lenders mortgage insurance. The government guarantees the gap to 20%.
• Single parents and legal guardians may be eligible with a 2% deposit.
• Since 1 October 2025 there are no income caps and no limit on places.
• Property price caps apply and vary by location. For example, $1.5 million in Sydney and NSW regional centres, $950,000 in Melbourne and $1 million in Brisbane.

Help to Buy (shared equity)

• The government can contribute up to 40% of the price of a new home, or 30% of an existing home, in exchange for a matching share of the property.
• You need a minimum 2% deposit and a smaller loan, which lowers your repayments.
• Income caps apply: $100,000 for singles and $160,000 for couples and single parents. Places are limited.
• You can buy back the government's share over time, and you'll repay it when you sell.

Stamp duty and grants depend on your state

Each state and territory sets its own stamp duty concessions and first home owner grants, and they change often. As one example, in NSW first home buyers pay no transfer duty on homes up to $800,000, with a reduced rate up to $1 million, and a $10,000 grant is available for eligible new homes. Check your own state's revenue office before you budget.

Before you start looking

• Work out your borrowing power, remembering lenders add a 3% buffer to the rate.
• Check the price cap for your area under the scheme you want to use.
• Budget for stamp duty (if any), legal or conveyancing fees, and inspections.
• Get pre-approval before bidding at auction.