First home buyer guide — Australia 2026.

The schemes, ranked by dollar impact.

You don’t have to pick one — most buyers stack two or three. The sequencing matters: FHSS takes 6 weeks to release, so it’s the first thing to start; HGS places are allocated each financial year and run out; stamp duty concessions apply automatically at settlement once you tick the FHB box. FHOG applies only to new builds — if you’re buying established, skip it.

Home Guarantee Scheme — the big one.

Under HGS (formerly the First Home Loan Deposit Scheme), Housing Australia guarantees up to 15% of the loan so you can borrow at 95% LVR without paying Lenders Mortgage Insurance (LMI). LMI on a 95% LVR loan is typically $15,000-$35,000 — HGS wipes it entirely.

Eligibility (2025-26):

• Australian citizen (permanent residents also eligible from 2025).
• First home buyer — haven’t owned property in AU for 10+ years.
• Owner-occupier — must live in the property, not rent it out.
• Taxable income under $125,000 single / $200,000 couple.
• Property price under the state cap — $900K NSW/VIC metro, $800K QLD/ACT metro, $700K WA/SA metro, $600K everywhere else (regional rates vary).

HGS places are capped per financial year and typically allocated Jul–Dec. If you’re planning to buy late in the year, apply as early as eligibility allows. Your lender (not Housing Australia directly) reserves a place as part of pre-approval.

First Home Super Saver — the underused one.

FHSS lets you make voluntary contributions to your super fund — up to $15,000 per financial year, $50,000 total per person — and later withdraw them as deposit for your first home. The contributions are taxed at super’s concessional rate (15%) instead of your marginal rate (up to 45%).

At a 37% marginal rate, the tax saving on a $50,000 contribution is roughly ($50K × 37%) − ($50K × 15%) = $11,000 net benefit, less a small withdrawal tax adjustment. At 45% marginal it’s ~$15,000. A couple both contributing stacks these — $22,000+ in net tax saved on a combined $100K deposit uplift.

How it works:

1. Make voluntary super contributions (concessional via salary sacrifice, or non-concessional).
2. Apply for an FHSS determination from the ATO before signing a contract.
3. Request release of funds; ATO + fund process over 4-6 weeks.
4. Withdrawn amount (plus deemed earnings) goes into your deposit; deemed earnings taxed at your marginal rate minus 30% offset.

FHSS only works if you contribute voluntarily. SG (employer) contributions are not eligible for release. Authority: ITAA 1997 Div 313 and the Superannuation Industry (Supervision) Act 1993.

State FHB stamp duty concessions.

Every state runs a different scheme. The highlights, by dollar value on a typical metro FHB purchase:

On an $800,000 NSW FHB purchase, full exemption saves ~$31,000 at settlement. On a $750,000 VIC FHB purchase with 50% concession, the saving is ~$20,000. These apply automatically once you tick the FHB box on the duties form — there’s no separate application.

The deposit strategy.

Four realistic deposit positions for first home buyers:

1. 5% + HGS (no LMI). Best if eligible. 95% LVR, zero LMI, fastest path to market. Only works under property caps and income caps.
2. 5-10% + LMI.If you’re over HGS caps but market is rising fast. LMI of $15-30K is less than 12-months’ appreciation in a 5%+ growth market.
3. 20% + no LMI, conventional. Best rates, no insurance, strongest negotiation position. Slowest to get to — usually 2-4 years of saving after first home.
4. FHSS-boosted deposit. Orthogonal to LVR choice. Adds $11K-$22K of net tax saving to whichever of the above you pick. Start contributing 12+ months before you expect to buy.

The trap: “genuine savings”. Most lenders require 5% of the purchase price to be in your account for 3+ months as evidence of savings discipline. Gifted deposits don’t count. If your entire deposit is gifted, lenders accept 3 months of on-time rental payments as substitute evidence — but plan this before you ask family for help.

The five most expensive FHB mistakes.

1. Not starting FHSS early. Contributions have to be in super 12 months before withdrawal for tax treatment. Most buyers learn about FHSS 3 months out — too late for the main benefit.
2. Applying for HGS in Feb. Places are mostly gone by then. Apply as close to 1 July as lender pre-approval allows.
3. Choosing a property $20K above the concession cap. At $820K in NSW you pay $20K+ of full stamp duty. At $799K you pay $0. The $21K price difference costs you $41K total. Sometimes the right move is to buy 3% smaller.
4. Close any old credit card before applying. A $15K credit card limit you never use reduces assessed capacity by ~$40K. Close before pre-approval, not after.
5. Accepting the bank’s own maximum.It’s the theoretical ceiling, not the right price. Leave $1,000+/mo of headroom for vacancy, rate rises, repairs, or job changes. First homes fail on repayment stress, not on purchase price.

The short version.

Start FHSS 12 months out. Reserve an HGS place as early in the financial year as pre-approval allows. Pick your deposit strategy from the four above based on your market, not your guilt about LMI. Don’t go $5K over your state’s FHB cap. Leave repayment headroom. In that order.

The difference between buyers who stack schemes and buyers who don’t is roughly $60,000-$90,000of combined tax saved + LMI avoided + stamp duty waived + cash grant received over the first three years. At your marginal rate, that’s 15-24 months of take-home pay. Worth getting right.