Australian Government First Home Buyer Assistance
A plain English guide to the federal grants, guarantees and schemes available to first home buyers right now. State grants and stamp duty concessions are not included here.
1. Australian Government 5% Deposit Scheme
The expanded federal low-deposit scheme that replaced the older First Home Guarantee terminology.
- Minimum deposit: 5%
- The Australian Government guarantees part of the loan
- Eligible buyers can potentially borrow up to around 95% of the property value
- No Lenders Mortgage Insurance
- No income caps
- No limit on the number of places
- Available for eligible new and established homes
- Property price caps apply
- The property must generally be owner occupied
Example Property Price Caps
| Location | Maximum Property Price |
|---|---|
| NSW capital city / regional centres | $1,500,000 |
| NSW other areas | $800,000 |
| Victoria capital city / regional centre | $950,000 |
| Victoria other areas | $650,000 |
| Queensland capital city / regional centres | $1,000,000 |
| Queensland other areas | $700,000 |
| WA capital city | $850,000 |
| WA other areas | $600,000 |
| SA capital city | $900,000 |
| SA other areas | $500,000 |
| Tasmania capital city | $700,000 |
| Tasmania other areas | $550,000 |
| ACT | $1,000,000 |
2. Single Parent Stream
Eligible single parents and single legal guardians can access a lower deposit requirement under the federal scheme.
- Minimum deposit: 2%
- Government guarantee may allow borrowing of up to around 98%
- No LMI
- No income cap
- No limited allocation of places
- The applicant does not necessarily need to be a first home buyer
- The applicant must generally apply alone
- Must have at least one dependent child
- Property price caps apply
- The property must generally be owner occupied
3. Help to Buy
Help to Buy is a federal shared equity scheme. The Australian Government contributes part of the purchase price and takes an equity interest in the property.
- Minimum deposit: 2%
- Can apply to eligible new and existing homes
- The government contribution reduces the amount the client needs to borrow
- Income caps apply
- Property price caps apply
- The property must generally be owner occupied
- Finance must be obtained through a participating lender
- A financial capacity test applies
2026-27 Income Caps
| Applicant Type | Maximum Taxable Income |
|---|---|
| Single applicant | $103,000 |
| Joint applicants | $165,000 combined |
| Single parent | $165,000 |
Example Property Price Caps
| Location | Maximum Property Price |
|---|---|
| NSW capital city / regional centre | $1,300,000 |
| NSW rest of state | $800,000 |
| Queensland capital city / regional centre | $1,000,000 |
| Queensland rest of state | $700,000 |
| Victoria capital city / regional centre | $950,000 |
| Victoria rest of state | $650,000 |
4. First Home Super Saver Scheme
Helps eligible first home buyers save towards a deposit through voluntary superannuation contributions.
- It is not a government grant
- Eligible voluntary super contributions can later be released towards the purchase of a first home
- Current total eligible contribution limit is up to $50,000 per person, plus associated earnings
- Each member of an eligible couple may potentially use the scheme separately
- It can be used alongside other eligible federal and state schemes
Federal Schemes at a Glance
| Scheme | Deposit | Income Cap | Government Equity | LMI |
|---|---|---|---|---|
| 5% Deposit Scheme | 5% | None | No | No LMI |
| Single Parent Stream | 2% | None | No | No LMI |
| Help to Buy | 2% | Yes | Yes | Generally avoided through scheme structure |
| First Home Super Saver | N/A | No scheme income cap | No | N/A |
Easy Client Explanation
- Deposit assistance: The 5% Deposit Scheme allows eligible buyers to purchase with 5%, or 2% for eligible single parents, without LMI
- Borrowing assistance: Help to Buy reduces the mortgage required because the government contributes equity
- Deposit saving assistance: First Home Super Saver helps eligible buyers save through voluntary super contributions
Information current as at August 2026 and subject to change. Scheme rules, income thresholds and property price caps can change. Confirm current eligibility and limits before relying on these figures for a client application. This is general information only and does not constitute financial advice. Coastal Broking Pty Ltd.