i'm Nicola, and when i first sat down to work out what buying a home would actually take, the deposit number nearly put me off the whole thing. then i started learning about the grants and schemes that exist specifically to help people like me get in sooner, a lot of it from my dad, John Kefalianos, who is a mortgage broker. a lot of first home buyers never use the ones they may be entitled to, simply because nobody explains them in plain english.
a quick, important note before we start
the rules, amounts and price caps for every scheme below change, sometimes every year, sometimes mid-year in a state budget. i've deliberately not pinned a current dollar figure to most of these, because the number you read today might be wrong by the time you act. treat everything here as a "check the current rules" starting point, and follow the government link for each scheme.
how much deposit do you actually need?
most lenders want a deposit somewhere between 5% and 20% of the property price, but the real answer depends on whether you can avoid lenders mortgage insurance and whether you qualify for a government scheme. as a rough guide, 20% is the level where most lenders stop charging lenders mortgage insurance (LMI). below that, you can usually still buy, you just either pay LMI or use a scheme that may waive it.
here's the honest version. there are really three deposit tiers for first home buyers:
a rough guide only. the size of your deposit changes your repayments, interest costs and which loans you can access.
hear it on the showhow to start saving for a deposit what is a 5% deposit and how does it work?
a 5% deposit means you contribute 5% of the property's purchase price and borrow the remaining 95% from a lender. as an example only, on a $500,000 home that's $25,000 from you and a $475,000 loan. it's one of the most common ways first home buyers get in sooner, but there's a catch most people don't know about: lenders mortgage insurance.
when you borrow more than 80% of a property's value, lenders usually require LMI, an insurance policy that protects the lender (not you) if you can't repay. the smaller your deposit, the bigger the LMI premium tends to be. this is exactly where the government schemes get interesting.
the first home guarantee (5% deposit scheme)
australian government 5% deposit scheme
federal · also called "first home guarantee"a federal scheme that may let eligible first home buyers purchase with a smaller deposit, as little as 5% in many cases, without paying lenders mortgage insurance, because the government guarantees part of the loan to the lender. it does not give you money toward the deposit, it's a guarantee to the lender, not a cash grant.
there are eligibility rules (income tests, citizenship or residency requirements, being a genuine first home buyer), property price caps that differ by state and even by city versus regional area, and historically a set number of places. i'm deliberately not quoting today's caps or place numbers here, because they're exactly the kind of figure that goes stale.
last reviewed june 2026 · eligibility, caps and conditions change
hear it on the showbreaking down the first home guarantee scheme the first home super saver scheme (fhss)
first home super saver scheme
federal · run by the ATOa federal scheme that may let eligible first home buyers save toward a deposit inside their super, then withdraw those eligible contributions (plus associated earnings) to put toward a first home, within set limits. super can be a tax-effective way to save, so for some people the money may go a little further than a regular account. whether it helps you, and by how much, depends on your income, your contributions and the current rules.
it's not "use your whole super to buy a house", it's a specific, capped scheme with rules about which contributions count, plus timing and tax handled in a specific way. because it touches both super and tax, it's an area where getting advice for your own situation really matters.
last reviewed june 2026 · caps, eligibility, timing and tax change
help to buy: the shared equity scheme
help to buy
federal · shared equitya federal shared-equity scheme that may let eligible buyers purchase with a smaller deposit and a smaller loan, because the government takes an equity share in the property to reduce what you need to borrow. it's "shared equity", not a grant, the government's share isn't a gift, it's a stake.
the trade-off is that the government owns part of the home with you, with rules about that share, including what happens to it later and the options to buy more of it back over time. there are eligibility rules and price caps that vary by area. because you don't own 100% of the home outright, it suits some people and not others.
last reviewed june 2026 · eligibility, caps and equity-share rules change
the first home owner grant by state
first home owner grant (FHOG)
state & territory · varies by locationa one-off payment that may be available to eligible first home buyers, run separately by each state and territory, which means the amount, the eligibility rules and what kind of home it applies to differ depending on where you buy. in a lot of states the grant is aimed mainly at new homes rather than established ones, but the detail varies, so this is a "check your state" item every single time.
because each state sets and funds its own grant, there isn't one national number, and a couple of states have run temporary boosts scheduled to revert. go straight to your state or territory revenue office for the current grant amount, the price cap, and whether it applies to new builds, established homes, or both.
last reviewed june 2026 · amounts, caps and new-build rules set by each state and change
hear it on the showunderstanding how home grants work what is stamp duty and the first home buyer concessions?
stamp duty (transfer duty) concessions
state & territory · varies by locationstamp duty is a state government tax you pay when you buy property, and for first home buyers it's a big deal because many states offer an exemption or concession that may reduce it or remove it entirely, depending on your state and the price you pay. after your deposit, stamp duty is often the largest single upfront cost, so a first home concession can change your total budget by a lot.
it's set by each state and territory, so the rate, the brackets, and the first home buyer relief are all different. the price caps and concession amounts get adjusted, sometimes in a state budget, so it's genuinely a "check it now" number. for where stamp duty sits among the other upfront costs, see what conveyancing and legals cost.
last reviewed june 2026 · rates, concessions and caps set by each state and change
how the schemes compare, and which apply to you
there's no single scheme that's "best", they do different jobs, and some can work together. the real question isn't "which one" but "which combination might apply to my situation". here's the plain-english summary side by side:
| scheme | what it may do | who sets it | what to check |
|---|---|---|---|
| 5% deposit scheme (first home guarantee) | buy with a smaller deposit without LMI | federal | eligibility, state price caps, places |
| first home super saver | save a deposit through super, within limits | federal (ATO) | caps, timing, tax treatment |
| help to buy | shared equity, government takes a share to lower your loan | federal | eligibility, caps, equity-share rules |
| first home owner grant | a one-off payment, often for new homes | state / territory | amount, price cap, new vs established |
| stamp duty concession | may reduce or remove stamp duty | state / territory | eligibility, price cap, your price |
the thing i wish i had known sooner
these aren't mutually exclusive. an eligible buyer might use the 5% deposit scheme and a state stamp duty concession together, or save through FHSS and then use a grant on a new build. but they can also interact, so it's worth mapping it out with someone who does it daily.
common questions about deposits, grants and schemes
how does the first home super saver scheme work?
the First Home Super Saver scheme (FHSS) may let eligible first home buyers save toward a deposit inside their super, then apply to withdraw those eligible contributions plus associated earnings to put toward a first home, within set caps. the caps and rules are set by the ATO and change, so always check the current rules at ato.gov.au and consider advice for your own situation. this is general information only.
what is the help to buy scheme?
Help to Buy is a federal shared-equity scheme that may let eligible buyers purchase with a smaller deposit and a smaller loan, because the government takes an equity share in the property to reduce what you need to borrow. it's a stake, not a grant. eligibility, price caps and program structure change, so check the current rules at firsthomebuyers.gov.au and weigh the shared-equity trade-off for your situation.
what is stamp duty and do first home buyers pay it?
stamp duty (transfer duty) is a state government tax on buying property, and it's often the largest upfront cost after your deposit. many states offer a first home buyer exemption or concession that may reduce or remove it, depending on your state and price. because it's set by each state and territory and changes, there's no single answer, confirm whether you'd pay, and any first home relief, with your state or territory revenue office before you budget.
what is the first home owner grant and who can get it?
the First Home Owner Grant (FHOG) is a one-off payment that may be available to eligible first home buyers, run separately by each state and territory. the amount, eligibility and whether it applies to new or established homes all differ by state, and in many states it's aimed mainly at new homes. always confirm the current amount, price cap and rules with your state or territory revenue office.
can i buy a first home with a 5% deposit?
it may be possible. a 5% deposit means you contribute 5% and borrow 95%, which usually means paying LMI, unless you use a scheme like the Australian Government 5% Deposit Scheme (formerly the first home guarantee), which may let eligible buyers buy with a small deposit without LMI. eligibility, price caps and places change, so check the current rules at firsthomebuyers.gov.au and your own numbers with a broker.
how much deposit do i need as a first home buyer?
it depends on the property price, the lender and whether you qualify for a scheme. a common reference point is 20%, which generally avoids LMI, but some eligible buyers may get in with as little as 5%, either by paying LMI or by using a scheme that may waive it. you also need money on top for costs like stamp duty, conveyancing and inspections. there's no single number, check your own figures with a licensed broker or lender.
what counts as genuine savings?
genuine savings generally means money you've saved yourself over time, rather than a sudden lump sum like a gift or inheritance. some lenders want to see a portion of your deposit as genuine savings, especially on a small deposit, as evidence you can manage repayments. the rules differ by lender, not every loan requires it, and gifts can often still form part of a deposit. ask a lender or broker about your own situation, as policies vary. this is general information only.
what is the first home guarantee?
the first home guarantee is a federal scheme, now officially called the Australian Government 5% Deposit Scheme, that may let eligible first home buyers purchase with a smaller deposit (as little as 5% in many cases) without paying LMI, because the government guarantees part of the loan to the lender. it's a guarantee, not a cash grant. eligibility, state-based price caps and places change, so always check the current rules at firsthomebuyers.gov.au.
general information only, not personal financial advice. Finance Lab, Credit Representative Number 425945, authorised under Australian Credit Licence Number 389328. scheme, grant and cost figures are explanatory only, change regularly, and were last reviewed june 2026. always confirm current rules with the relevant government source.