First Home Guarantee in Australia (2026)
About this article
Sourced from Commonwealth Acts of Parliament, federal regulations, and official government guidance. State-level information reflects each state's own Acts and court decisions. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
Compare by state
Statute citations are verified per state. Select a state to jump to its full section below.
| Primary statute | |
|---|---|
| New South Wales | Duties Act 1997 (NSW) |
| Queensland | First Home Owner Grant Act 2000 (Qld) |
| South Australia | First Home Owner Grant Act 2000 (SA) |
| Tasmania | First Home Owner Grant Act 2000 (Tas) |
| Victoria | First Home Owner Grant Act 2000 (Vic) |
| Western Australia | First Home Owner Grant Act 2000 (WA) |
What is this right?
The First Home Guarantee — formerly the First Home Loan Deposit Scheme — lets eligible first-home buyers in with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). The Commonwealth, through Housing Australia, guarantees up to 15% of the property value back to the lender — which is what makes the LMI waiver work commercially.
From 1 October 2025 the scheme was significantly expanded: the income caps were abolished (the old $125,000 single / $200,000 couple limits no longer apply), the cap on the number of places was removed (places are now effectively unlimited), and the property price caps were lifted. You still need to be an Australian citizen or permanent resident aged 18+ who has not owned property in Australia in the last 10 years, and you must intend to live in the home.
The current capital-city price caps are $1.5 million (Sydney/NSW), $950,000 (Melbourne/VIC), $1 million (Brisbane/QLD), $900,000 (Adelaide/SA), and $850,000 (Perth/WA), with lower caps for regional areas and the other states/territories. You apply through a participating lender, never directly through the government.
When does it apply?
- You are buying your first home and have not owned property in Australia in the last 10 years.
- No income test — income caps were removed on 1 October 2025.
- You have saved at least a 5% deposit (but less than 20%).
- The property is below the price cap for your city or region.
- You intend to be an owner-occupier — investment properties are not eligible.
What to Do If You Are Declined for the Australian First Home Guarantee
- Check your eligibility on the Housing Australia website before house-hunting.
- Apply through a participating lender — the list is on the Housing Australia website and includes major banks and smaller lenders.
- Confirm the price cap for the area where you want to buy; caps differ between capital cities and regional areas.
- You no longer need to rush for a place — since 1 October 2025 the number of guarantees is unlimited, so there is no annual queue to beat.
- Combine with state first-home-buyer grants if applicable — the federal guarantee does not prevent you from claiming state incentives.
What should you NOT do?
- Don't apply directly to the government — the scheme only works through participating lenders.
- Don't assume the guarantee is a cash grant — the government does not give you money; it guarantees part of your loan to the lender.
- Don't buy an investment property under the scheme — you must live in the home. If you move out within the guarantee period you may need to refinance.
- Don't assume you earn too much — the income caps that used to exclude higher earners were abolished on 1 October 2025.
About Housing Rights in Australia
Tenancy rules sit with your state — Victoria's RTA, NSW's RTA, Queensland's RTRA — each with its own tribunal. Federally, Commonwealth Rent Assistance tops up income support for low-income renters, and the First Home Guarantee lets eligible buyers in with a 5% deposit and no LMI. Discrimination in housing is banned by the Racial Discrimination Act 1975, Sex Discrimination Act 1984, and Disability Discrimination Act 1992. If your mortgage is unmanageable, the National Consumer Credit Protection Act 2009 gives you hardship-variation rights.
Worked Examples
ScenarioYou're a single first home buyer with a taxable income of $110,000 and a 5% deposit saved.
OutcomeYou're within the $125,000 single income limit, have the minimum 5% deposit, and (since 1 October 2025) there's no places cap. If you meet the citizenship/residency, owner-occupier and property-price-cap requirements, you should be able to apply through a participating lender — and avoid paying Lenders Mortgage Insurance.
Verified against housingaustralia.gov.au: unlimited places from 1 Oct 2025; $125,000 / $200,000 income caps; 5% minimum deposit. Property-price caps vary by location. Educational information, not legal or financial advice.
Common Questions
How much deposit do I need?
As little as 5% under the First Home Guarantee, or 2% if you qualify under the Family Home Guarantee for single parents or legal guardians. In both cases, the Australian Government guarantees the rest of the deposit so you don't have to pay Lenders Mortgage Insurance, which can save tens of thousands of dollars.
Who's eligible?
Australian citizens or permanent residents, aged 18 or older, who are first home buyers (or haven't owned property in Australia for at least 10 years), buying as owner-occupiers, with taxable income at or below $125,000 single or $200,000 joint, and within the property-price cap for the location.
Are there limits on how many people can apply?
Not since 1 October 2025. The First Home Guarantee was previously capped at a set number of places per financial year — that cap was removed, so every eligible first home buyer can apply. Stamp-duty concessions and First Home Owner Grants are separate and run by each state.
What about Lenders Mortgage Insurance?
Lenders Mortgage Insurance (LMI) is normally charged when buying with less than 20% deposit, and can add tens of thousands to the cost. Under the First Home Guarantee, the Government guarantees the gap so LMI isn't charged — that's the scheme's main financial benefit on top of getting into the market sooner.
What is the first home guarantee right in Australia?
The First Home Guarantee — formerly the First Home Loan Deposit Scheme — lets eligible first-home buyers in with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). The Commonwealth, through Housing Australia, guarantees up to 15% of the property value back to the lender — which is what makes the LMI waiver work commercially.From 1 October 2025 the scheme was significantly expanded: the income caps were abolished (the old $125,000 single / $200,000 couple limits no longer apply), the cap on the number of places was removed (places are now effectively unlimited), and the...
When does first home guarantee apply?
You are buying your first home and have not owned property in Australia in the last 10 years.No income test — income caps were removed on 1 October 2025.You have saved at least a 5% deposit (but less than 20%).The property is below the price cap for your city or region.You intend to be an owner-occupier — investment properties are not eligible.
What should I do if I am rejected for the First Home Guarantee in Australia?
Check your eligibility on the Housing Australia website before house-hunting.Apply through a participating lender — the list is on the Housing Australia website and includes major banks and smaller lenders.Confirm the price cap for the area where you want to buy; caps differ between capital cities and regional areas.You no longer need to rush for a place — since 1 October 2025 the number of guarantees is unlimited, so there is no annual queue to beat.Combine with state first-home-buyer grants if applicable — the federal guarantee does not prevent you from claiming state incentives.
What mistakes should I avoid with first home guarantee?
Don't apply directly to the government — the scheme only works through participating lenders.Don't assume the guarantee is a cash grant — the government does not give you money; it guarantees part of your loan to the lender.Don't buy an investment property under the scheme — you must live in the home. If you move out within the guarantee period you may need to refinance.Don't assume you earn too much — the income caps that used to exclude higher earners were abolished on 1 October 2025.
State-by-state details
New South Wales
Primary statute: Duties Act 1997 (NSW)
NSW first-home buyers can access both the federal First Home Guarantee and the NSW state-level incentives, which together provide significant support for entering the property market.
- The NSW First Home Buyer Assistance Scheme provides stamp duty concessions: full exemption for properties up to $800,000 and a sliding-scale discount for properties up to $1,000,000 (thresholds for new and existing homes).
- The First Home Owner Grant (New Homes) in NSW provides a $10,000 grant for first-home buyers purchasing or building a new home valued up to $600,000 (or $750,000 for house and land).
- NSW also offers the Shared Equity Home Buyer Helper scheme, where the NSW Government contributes up to 40% of the purchase price of a new home (30% for existing homes) in exchange for a proportional interest in the property — reducing the buyer's deposit and mortgage.
- The federal First Home Guarantee and NSW state schemes can be used together, potentially allowing a buyer to purchase with a very low deposit, no LMI, reduced stamp duty, and the FHOG grant.
Queensland
Primary statute: First Home Owner Grant Act 2000 (Qld)
The federal First Home Guarantee is administered by Housing Australia. Queensland offers additional state-level first home buyer assistance, including stamp duty concessions and grants.
- The Queensland First Home Owners' Grant provides $30,000 for eligible first home buyers purchasing or building a new home valued at less than $750,000. This is a boosted amount for contracts signed between 20 November 2023 and 30 June 2026; for later contracts it reverts to $15,000. It is among the most generous first home owner grants in Australia.
- Queensland offers transfer duty (stamp duty) concessions for first home buyers. For homes valued up to $700,000, the transfer duty rate is reduced or eliminated. A concession also applies for homes valued between $700,000 and $800,000.
- The Queensland Housing Finance Loan (through the Department of Housing) provides low-deposit home loans for eligible Queenslanders who cannot access standard finance.
- Queensland's regional areas are eligible for additional support programs targeting first home buyers in rural and remote communities.
South Australia
Primary statute: First Home Owner Grant Act 2000 (SA)
SA residents can access both the federal First Home Guarantee (formerly First Home Loan Deposit Scheme) and state-level concessions including the First Home Owner Grant (FHOG) and stamp duty concessions.
- The SA First Home Owner Grant provides a $15,000 grant for the purchase or construction of a new residential property. For contracts entered into on or after 6 June 2024 the property-value cap was abolished — the grant is available regardless of the home's value (the former $650,000 cap no longer applies). This is administered by RevenueSA.
- SA has also abolished stamp duty entirely for eligible first home buyers who build or buy a new home or vacant land, with no property-value cap, for contracts entered into on or after 6 June 2024 — significantly more generous than the concessions in NSW or Victoria.
- The federal First Home Guarantee allows eligible buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance, with the Government guaranteeing up to 15% of the property value.
- The federal First Home Super Saver Scheme (FHSSS) allows eligible individuals to withdraw voluntary super contributions (up to $50,000) for their first home deposit.
Tasmania
Primary statute: First Home Owner Grant Act 2000 (Tas)
Tasmanian residents can access both the federal First Home Guarantee and state-level concessions including the First Home Owner Grant (FHOG) and duty concessions.
- The Tasmanian First Home Owner Grant provides a $30,000 grant for buying or building a new home. This boosted amount applies to eligible transactions to 30 June 2026; the 2026–27 State Budget has announced it will continue at $20,000 thereafter (it was previously $10,000). Established homes do not qualify for the grant — use the stamp-duty concession instead.
- Tasmania offers a 50% stamp duty concession for eligible first home buyers purchasing an established home, and a full duty exemption for first home buyers purchasing a new home or vacant land to build on, subject to value caps.
- The federal First Home Guarantee allows eligible buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance, with the Government guaranteeing up to 15% of the property value.
- The federal First Home Super Saver Scheme (FHSSS) allows eligible individuals to withdraw voluntary super contributions (up to $50,000) for their first home deposit.
- Tasmania's grants and concessions are administered by the State Revenue Office of Tasmania.
Victoria
Primary statute: First Home Owner Grant Act 2000 (Vic)
Victorian first-home buyers benefit from both the federal First Home Guarantee and Victorian state incentives, including stamp duty concessions and the First Home Owner Grant.
- Victoria provides a First Home Owner Grant (FHOG) of $10,000 for eligible first-home buyers purchasing or building a new home valued up to $750,000.
- The First Home Buyer Duty Exemption/Concession provides full stamp duty exemption for homes valued up to $600,000 and a sliding-scale concession for homes valued between $600,001 and $750,000.
- Victoria's Victorian Homebuyer Fund (VHF) is a shared equity scheme where the Victorian Government contributes up to 25% of the purchase price (or 35% for Aboriginal and Torres Strait Islander buyers) in exchange for a proportional interest in the property.
- Victoria charges a land transfer duty (stamp duty) calculated on a progressive scale. The duty rates and thresholds are set by the Duties Act 2000 (Vic) and are administered by the State Revenue Office (SRO).
Western Australia
Primary statute: First Home Owner Grant Act 2000 (WA)
The federal First Home Guarantee is administered by Housing Australia. WA offers additional state-level first home buyer assistance, including stamp duty concessions and grants.
- The WA First Home Owner Grant provides $10,000 for eligible first home buyers purchasing or building a new home valued at less than $750,000.
- WA offers a transfer duty (stamp duty) exemption for first home buyers purchasing a home valued at up to $430,000 (vacant land up to $300,000). A concessional rate applies for homes valued between $430,000 and $530,000.
- The Keystart home loan program is a significant WA-specific benefit — it provides low-deposit loans (as low as 2% deposit) for eligible first home buyers, without requiring lenders' mortgage insurance.
- WA has specific first home owner programs for regional areas, designed to support population growth outside Perth.
First Home Guarantee in other states
Same topic, different jurisdiction. Pick the one that applies to you.