For the first time, Australian first home buyers face genuine options for entering the property market despite soaring prices in capital cities. The federal government has expanded the First Home Guarantee, introduced shared equity schemes, and committed $10 billion to build 100,000 homes exclusively for first home buyers. Combined with state-based grants and superannuation access, these programs create multiple pathways to homeownership with minimal deposits.
First Home Guarantee: 5% Deposit, No Insurance
The First Home Guarantee scheme, expanded from 1 October 2025, allows eligible buyers to purchase established or newly built homes with just 5 per cent down. The government guarantees the remaining 15 per cent, eliminating lender mortgage insurance entirely. Income caps have been removed, creating unlimited access for eligible Australian citizens and permanent residents. Previously, the scheme had annual caps and income restrictions; those are now gone.
State Grants: Up to $30,000
Queensland and Victoria offer the most generous state support in the country. Both provide $30,000 grants for new homes on contracts signed before 30 June 2026. A first home buyer in Victoria purchasing a new $500,000 home could combine $25,000 in personal savings, a $30,000 state grant, and the federal First Home Guarantee to complete the purchase without paying lender mortgage insurance, reducing entry costs by roughly $15,000.
Help to Buy: 2% Deposit with Shared Equity
The Help to Buy scheme allows buyers to purchase with deposits as low as 2 per cent. The government holds equity in the property, contributing up to 40 per cent for new homes or 30 per cent for existing homes. When the property is sold, the government receives its initial contribution plus its share of any gain. This approach makes entry possible for buyers with minimal savings, though it does mean surrendering some future upside.
Superannuation Access: Up to $50,000
The First Home Super Saver Scheme permits buyers to withdraw up to $50,000 tax-free from superannuation contributions to fund a deposit. Many buyers combine this with other schemes to reach required deposit thresholds without triggering lender mortgage insurance requirements.
100,000 New Homes: Timeline and Access
The federal government has committed $10 billion to deliver 100,000 new homes reserved exclusively for first home buyers. Construction will commence in 2026–27 with residents moving in from 2027–28. These homes target younger Australians priced out of existing markets, particularly in growth regions where demand is highest.
Location and Timing Matter
The schemes exist, but real calculations depend heavily on location. A buyer in Queensland benefits from the $30,000 state grant; a Sydney buyer does not. Regional locations offer greater value within these programs. For those planning to enter the market, the cost of entry has fallen materially, but careful scheme selection and geographic consideration are essential.