Buying your first home is one of the most significant financial decisions of your life — and also one of the most exciting. The good news is that Australian first home buyers have access to a range of government schemes, grants, and specialist loan products that can make the path to homeownership far more achievable than it might appear. Here’s your complete guide.
Government Schemes Available to First Home Buyers
First Home Guarantee (FHBG) — The Federal Government guarantees up to 15% of the loan for eligible first home buyers with a 5% deposit, eliminating the need for LMI. Income caps and property price caps apply and vary by location. Limited places are available each financial year.
Regional First Home Buyer Guarantee — Similar to the FHBG but specifically for buyers purchasing in regional Australia. Separate allocation of places with potentially more availability.
Family Home Guarantee — For eligible single parents (not just first home buyers), allowing purchase with as little as 2% deposit and no LMI, with a government guarantee of up to 18%.
First Home Owner Grant (FHOG) — A state government cash grant (amounts vary by state, typically $10,000–$30,000) available for first home buyers purchasing or building a new home. Most states limit this to new or off-the-plan properties.
Stamp Duty Concessions — Most states offer stamp duty exemptions or concessions for first home buyers below certain price thresholds. In some cases, this can save $20,000–$30,000 in upfront costs.
First Home Super Saver Scheme (FHSSS) — Allows you to save up to $50,000 for your deposit within super, paying the lower super tax rate on those contributions. The funds are then withdrawn and applied to your deposit.
How Much Can You Borrow as a First Home Buyer?
Your borrowing capacity depends on your income, expenses, debts, and the size of your deposit. As a very rough guide, most lenders will lend approximately 5–6 times your annual household income, subject to stress testing at rates 3% above the current rate. A broker can give you a precise figure based on your actual circumstances — which is far more useful than any rule of thumb.
What Loan Features Matter Most for First Home Buyers?
Offset account — Connecting your savings to your mortgage reduces the interest you pay every month. Over a 30-year loan, having $20,000 in an offset from day one could save $40,000+ in interest.
Extra repayments without penalty — Being able to pay more than the minimum whenever you have extra funds can dramatically shorten your loan term.
Redraw facility — Accessing those extra repayments if you need them later gives you a financial safety net.
Competitive rate — Even a small difference in rate compounds significantly over 30 years. A 0.3% lower rate on a $600,000 loan saves approximately $45,000 in interest over 25 years.
The First Home Buyer Process: Step by Step
Talk to a mortgage broker → Get pre-approval → Assess government schemes you qualify for → Search for properties within your budget → Make an offer (subject to finance and B&P) → Formal approval → Exchange contracts → Settlement. Your broker handles all finance-related steps throughout this process.
Assembly Finance for First Home Buyers
We specialise in helping first home buyers navigate every step of the purchase process — from understanding your borrowing capacity and identifying government schemes you qualify for, to selecting the right loan and managing your application through to settlement. Our service is completely free to you.
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