October 5, 2026
A step-by-step guide for Australian first home buyers in 2026: how much deposit you need, the 5% Deposit Scheme, Help to Buy, grants and stamp duty.
Buying your first home is exciting and a little overwhelming. There are new terms, government schemes that keep changing and a lot of money involved. This guide walks you through the process from saving to settlement, with the schemes that can help you get there sooner.
Start with two numbers: how much you can borrow and how much you have saved. Your borrowing power depends on your income, expenses and debts. Our borrowing power calculator gives you a quick estimate.
Remember the extra costs on top of the purchase price:
The traditional rule is a 20% deposit. That avoids LMI, but saving 20% of a Sydney or Melbourne home can take many years. Today there are several faster routes.
Since 1 October 2025, the Australian Government 5% Deposit Scheme (previously the First Home Guarantee) lets eligible first home buyers purchase with a 5% deposit and no LMI. Income caps were removed, there is no limit on places, and property price caps were raised. For example, the cap is $1.5 million in Sydney and major NSW regional centres, $950,000 in Melbourne and $1 million in Brisbane. Read our full guide to the 5% Deposit Scheme.
The federal Help to Buy shared equity scheme opened on 5 December 2025. The government can contribute up to 40% of the price of a new home or 30% of an existing home, and you need a deposit of at least 2%. Income caps apply ($100,000 for singles and $160,000 for couples and single parents) and only a small number of lenders offer it, so check eligibility early.
A parent or family member can use equity in their property to guarantee part of your loan. This can let you buy with little or no deposit and avoid LMI. It is a serious commitment for the guarantor, so everyone should get independent advice.
Pooling deposits and incomes with people you trust is increasingly common. It can get you into the market years sooner. Propple specialises in co-buying, including the agreements that keep everyone protected.
Each state runs its own first home buyer support. In NSW, for example, eligible first home buyers pay no transfer duty on homes up to $800,000 and a reduced rate up to $1 million, and the First Home Owner Grant of $10,000 is available for eligible new homes. Other states have different thresholds and grants. Rules change regularly, so we check the current criteria with you before you buy.
Pre-approval is a lender's conditional agreement to lend you up to a certain amount. It usually lasts three to six months and lets you make offers or bid at auction with confidence. A broker can lodge with the lender most likely to approve you, so you avoid multiple credit enquiries.
Stay inside your pre-approved budget, including costs. Get a building and pest inspection, and have a conveyancer review the contract before you sign or bid. If you are buying off the plan or building, read our guide to construction loans.
Once your offer is accepted, the lender values the property and issues formal approval. You sign the loan documents, your conveyancer prepares for settlement and on settlement day the keys are yours. Settlement is usually 30 to 90 days after exchange.
We compare more than 50 lenders, check which schemes you qualify for and explain every step in plain English. See our first home buyer loans or book a free call.
This article is general information only and does not take into account your objectives, financial situation or needs. Government schemes, tax rules and lender policies change, so check current details before acting. Propple Pty Ltd is an Australian Credit Representative (537767) of AFSL 384704.
