For many people, buying their first home is often the biggest purchase they will make in their lifetime. However, with increasing property values, fluctuating interest rates, and an elevated cost of living, it is also normal to feel like the Australian dream is out of reach. Luckily, multiple federal and state government grants and schemes are available to help you take the first step on the property ladder.
Whether you are looking to leave the family home for the first time or make a permanent move with your household, there are several options to help you find a place of your own and set out the welcome mat. Here’s how.
Even before deciding on a location and making a shortlist of potential homes, you will need to demonstrate to your mortgage provider how you will finance the purchase. If the ‘bank of mum and dad’ is closed, you may be entitled to use many government-managed programs at once to ease your application and get you through the front door sooner. They are:
First Home Loan Deposit Scheme (FHLDS) — Australia-wide
First Home Super Saver Scheme (FHSSS) — Australia-wide
First Home Owner Grant (FHOG) — NSW
First Home Buyers Assistance Scheme (FHBAS) — NSW
However, it is important to verify whether you qualify for these initiatives — many set conditions on whether it is available to new or existing properties. They may also not apply to properties over a certain value, or if you previously owned property within the previous 10 years.
Typically, a deposit or equity of 20% is required when purchasing a property to avoid the buyer having to pay Lenders Mortgage Insurance (LMI). LMI is a type of insurance that protects the lender against any losses should the borrower fail to meet their home loan repayment requirements.
The First Home Loan Deposit Scheme (FHLDS) works by allowing first homeowners to submit only a 5% deposit without the need for LMI. Instead, the government provides a guarantee for the remaining amount needed to submit a deposit, up to 15% of the property’s value. Additionally, single parents or guardians are only required to make a 2% deposit under the scheme.
The FHLDS also presents a significant opportunity to save money on the total cost of servicing your mortgage by eliminating the need to pay for LMI. LMI can range from 1% to over 5% of your total loan amount, depending on the size of your loan, your Loan-to-Value Ratio (LVR), and your chosen lender.
From 1st October 2025, all eligible first home buyers will have access to the scheme, with no caps on places, income limits, or stipulations on whether it can be used on new or existing properties.
However, in NSW, it can only be used for properties with a value of up to $1,500,000 in capital cities and regional centres, or $800,000 in all other areas of the state. In the ACT, it applies to any property with a value of up to $1,000,000.
To be eligible for the FHLDS, you need to:
Have a minimum 5% deposit saved, or 2% if you are a single parent
Be at least 18 years old
Be an Australian citizen
Live in the property
Not have owned an interest in a property for the previous 10 years
For more information, refer to Housing Australia and the scheme’s information guide.
The First Home Super Saver Scheme (FHSSS) allows you to take advantage of the tax benefits and earning potential your superannuation provides to go towards your home deposit and mortgage.
Excluding the compulsory contributions made by your employer, the scheme allows you to withdraw any voluntary payments you’ve made through salary sacrifice and personal contributions since 1 July 2017, as well as their associated earnings.
FHSSS enables you to use funds that may already be available within your superannuation or make saving for a deposit more effective. Under the scheme, you can access up to $15,000 of voluntary contributions per financial year, with a total cap of $50,000. As the scheme applies to individuals, eligible couples may combine their entitlements and contribute up to $100,000 towards the purchase of their first home.
Consult the ATO for more information.
Even when you can service the cost of a mortgage and provide a deposit, it can be too onerous to cover a second lump sum payment for stamp duty. To lower the cost of entry into the property market, the FHBAS provides an exemption or reduced rate of stamp duty for eligible first-home buyers and properties. Under the scheme:
You will not pay stamp duty on properties up to $800,000
You will pay stamp duty at a reduced rate on properties up to $1,000,000
On the other hand, if you prefer to build your own home, you will avoid paying stamp duty on vacant land costing less than $350,000, or at a reduced rate for land selling up to $450,000.
To qualify, you must:
Be at least 18 years old
Be purchasing a whole property, not a share or interest
Be purchasing as an individual, not in a trust or a company
Not having owned property prior
You can confirm your eligibility by using the NSW Government’s Stamp Duty Calculator.
Typically, purchasing your first home involves substantial upfront costs — not just the deposit, but also legal fees, stamp duty, loan‑establishment costs, and other incidental expenses. The FHOG is designed to help lessen the financial burden for eligible first‑home buyers in NSW by providing a one-off payment of $10,000.
The FHOG is available for the purchase of a home that is newly built, purchased off the plan, or has been substantially renovated.
Eligible buyers can purchase:
A newly built or renovated house, townhouse, apartment, or unit up to $600,000
House and land packagetotalling up to $750,000
While there are no restrictions on your income, you are required to occupy the property within 12 months of its construction or purchase, and live within it for six consecutive months. You also must be:
An Australian citizen
At least 18 years old
Purchasing a home as your residence
Purchasing a whole property, not a share or interest
Purchasing as an individual, not in a trust or a company
Not having owned property prior
For more information, refer to the NSW Government’s website.
Navigating grants, schemes, and eligibility criteria as a first-home buyer can be overwhelming, especially when the fine print carries significant legal and financial implications. Whether you’re considering leveraging various initiatives or entering into a mortgage alone, understanding your rights and obligations is key before signing any contract or committing to a purchase.
At Brydens Lawyers, we provide expert legal advice to ensure your interests are fully protected throughout the home-buying process. From reviewing contracts to clarifying your legal entitlements, our experienced team is here to help you make informed decisions with confidence.
Take the first step towards home ownership with certainty — contact Brydens Lawyers today for a comprehensive contract review and legal guidance.
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