Australian first home buyers in 2026 have more government help than in decades. The main options are the 5% Deposit Scheme (which lets you buy with a 5% deposit and no lenders mortgage insurance), the First Home Super Saver scheme (using extra super for your deposit), and state grants and stamp duty concessions. Many of these can be combined. Here is a plain-English rundown to help you see what applies to you.
The 5% Deposit Scheme (First Home Guarantee)
This federal scheme, officially the Australian Government 5% Deposit Scheme (formerly the First Home Guarantee), lets eligible first home buyers purchase with just a 5% deposit, with the government guaranteeing part of the loan so you avoid lenders mortgage insurance (which can otherwise cost many thousands). From 1 October 2025 it was expanded significantly, income caps were removed, the annual limit on places was scrapped, and property price caps were raised. Price caps still apply by location, and you apply through a participating lender or broker, not the government directly.
First Home Super Saver and other help
A few other schemes are worth knowing, and several can be stacked:
- First Home Super Saver. You can make extra voluntary super contributions and later withdraw them (up to $50,000 per person, plus earnings) for a deposit, taxed concessionally. You must apply to the ATO for a determination before signing a contract.
- First Home Owner Grant. A state-based grant, usually for new or substantially renovated homes, with amounts and rules varying by state.
- Stamp duty concessions. Most states offer first home buyers a stamp duty exemption or discount below certain price caps, which can save tens of thousands.
How much can you borrow?
Your borrowing power depends on your income, expenses, existing debts and the lender’s buffered interest rate (lenders check you could still repay if rates rose). Even with a 5% deposit scheme, you still need to show you can service the larger loan, and budget for costs beyond the deposit like conveyancing and, where it applies, stamp duty. This is where a licensed mortgage broker helps, by matching you to the right lender and scheme and getting your pre-approval sorted.
How MS Financial Services can help
Our licensed Lending & Finance team can check which schemes you qualify for, work out your borrowing capacity, and arrange your loan and pre-approval. To get started, get in touch.
Frequently Asked Questions
Can I buy a home with a 5% deposit?
Yes. The federal 5% Deposit Scheme (formerly the First Home Guarantee) lets eligible first home buyers purchase with a 5% deposit and no lenders mortgage insurance, subject to location-based price caps.
Are there income limits on the First Home Guarantee?
No. Income caps were removed from 1 October 2025, along with the limit on places, so the scheme is open to all eligible first home buyers within the price caps.
How much can I take from super for a deposit?
Under the First Home Super Saver scheme, up to $50,000 per person of eligible voluntary contributions (plus earnings). You must apply to the ATO for a determination before signing a contract.
Can I combine first home buyer schemes?
Often yes. The 5% Deposit Scheme, First Home Super Saver, state grants and stamp duty concessions can generally be used together, though some shared-equity schemes are separate.
How much can I borrow as a first home buyer?
It depends on your income, expenses, debts and the lender’s buffered rate. Even with a small deposit, you must show you can service the loan. A broker can work out your capacity.