First Home Buyer Guide: Everything You Need to Know

Buying your first home in Australia is exciting and overwhelming in equal measure. Between grants, stamp duty exemptions, the Home Guarantee Scheme, and the sheer number of costs involved, it's hard to know where to start. This guide covers everything.

First Home Owner Grant (FHOG) by State

The FHOG is a cash grant for eligible first home buyers purchasing or building a new home. It generally does not apply to established (existing) properties. Here's what each state offers:

NSW: $10,000 for new homes up to $600,000
VIC: $10,000 for new homes up to $750,000
QLD: $30,000 for new homes up to $750,000 (extended to June 2026)
WA: $10,000 for new homes up to $750,000
SA: $15,000 for new homes up to $650,000
TAS: $30,000 for new homes up to $600,000
NT: $10,000 FHOG + up to $50,000 HomeGrown grant for new builds
ACT: No FHOG — replaced with stamp duty exemption scheme

Queensland and Tasmania are the most generous at $30,000 each. The NT's combined grants can reach $60,000 for new builds.

Stamp Duty Exemptions for First Home Buyers

Separate from the grant, most states offer stamp duty concessions. These apply to both new and established homes (in most states). NSW provides full exemption up to $800,000. VIC up to $600,000. QLD has no price cap on new homes. TAS offers full exemption up to $750,000 with no sliding scale.

These concessions can save you $20,000–$40,000. On a $700,000 property in NSW, a first home buyer pays zero stamp duty, while a regular buyer pays approximately $26,000.

The Home Guarantee Scheme

The federal government's Home Guarantee Scheme allows eligible first home buyers to purchase with as little as 5% deposit (2% for single parents) without paying Lenders Mortgage Insurance (LMI). From October 2025, the scheme was expanded with unlimited places and no income caps. This removes one of the biggest barriers to entry — LMI on a $600,000 property with a 5% deposit would typically cost $15,000–$20,000.

How Much Deposit Do You Need?

5% deposit (under Home Guarantee Scheme): $30,000 on a $600,000 home. No LMI.
10% deposit: $60,000. Reduced LMI applies.
20% deposit: $120,000. No LMI required — the traditional benchmark.

Most first home buyers in 2025 are purchasing with 5-10% deposits, particularly under the Guarantee Scheme.

Total Upfront Costs (Beyond the Deposit)

Your deposit is just part of it. Budget for: stamp duty ($0 if exempt, otherwise $15,000–$40,000), conveyancing/legal fees ($1,500–$3,000), building and pest inspection ($400–$800), LMI (if applicable, $0–$20,000+), loan application fee ($0–$600), and moving costs ($500–$3,000). As a rule of thumb, budget 3-5% of the property value on top of your deposit for these costs.

Also use our Stamp Duty Calculator for exact state-by-state figures, the Borrowing Power Calculator to see how much you can borrow, and the Mortgage Repayment Calculator to estimate your monthly costs.