Buying your first home is one of the biggest financial decisions you’ll make. Understanding eligibility requirements, government grants, stamp duty exemptions, and borrowing power is essential to making an informed decision in 2026.
First Home Buyer Eligibility 2026
To qualify as a first-home buyer in Australia, you must:
- Be purchasing or building a property to live in as your main residence
- Have never owned property in Australia (with limited exceptions)
- Be an Australian citizen or permanent resident
- Meet state-specific residency requirements
Each state has slightly different definitions and eligibility criteria, so it’s important to check your state’s specific rules before applying for grants or stamp duty concessions.
First Home Buyer Grants 2026
Most Australian states offer grants to first-home buyers purchasing or building new properties:
- Victoria: Up to $20,000 grant for new homes under $750,000
- New South Wales: Up to $20,000 grant for new homes under $800,000
- Queensland: Up to $15,000 grant for new homes under $400,000; up to $10,000 for established homes
- Western Australia: Up to $10,000 grant for new properties
Grants are typically only available for new properties or off-the-plan purchases, not established homes. Some states offer concessional grants for established properties in regional areas.
Stamp Duty Exemptions & Concessions for First-Home Buyers
First-home buyers may be eligible for full stamp duty exemptions or concessions on their purchase:
- Victoria: Exemption on properties up to $750,000; concessional rates up to $960,000
- New South Wales: Exemption on properties up to $800,000; concessional rates up to $1,000,000
- Queensland: Exemption on properties up to $500,000; concessional rates up to $750,000
- Western Australia: Exemption on properties up to $430,000; concessional rates up to $575,000
Stamp duty savings can range from $5,000 to $30,000+ depending on the property price and your state. This is one of the most valuable first-home buyer benefits available.
How Much Can I Borrow?
Your borrowing power depends on your income, expenses, credit history, and deposit. Lenders typically assess your serviceability at a higher interest rate (commonly 3% above the current rate) to ensure you can afford repayments if rates rise.
A general rule: Lenders will approve you for 4.5–5 times your annual gross income, minus expenses. For example, if you earn $80,000 per year with minimal expenses, you might borrow $360,000–$400,000.
Use our borrowing power calculator to estimate your lending capacity based on your personal financial situation.
How Much Deposit Do I Need?
First-home buyers typically need:
- Minimum 5% deposit (though lenders usually prefer 10%+)
- Lenders Mortgage Insurance (LMI) if depositing less than 20% — this adds $15,000–$50,000+ to your loan
- Additional costs: Inspection, valuation, legal fees ($500–$2,000), building insurance
For a $500,000 property with a 10% deposit ($50,000), you’d borrow $450,000 and pay approximately $22,500 in LMI, bringing your total borrowed to $472,500.
Many first-home buyers benefit from the First Home Super Saver Scheme, which allows you to make voluntary superannuation contributions and claim a tax deduction, then withdraw up to $50,000 for your home purchase.
State-by-State Comparison: Costs & Support
| State | Stamp Duty Exemption | Grant Available | Concession Band |
|---|---|---|---|
| Victoria | Up to $750,000 | Up to $20,000 | $750,000–$960,000 |
| NSW | Up to $800,000 | Up to $20,000 | $800,000–$1,000,000 |
| Queensland | Up to $500,000 | Up to $15,000 | $500,000–$750,000 |
| Western Australia | Up to $430,000 | Up to $10,000 | $430,000–$575,000 |
First Home Buyer Checklist
Before you buy:
- Check your state’s eligibility requirements and deadlines
- Get a mortgage pre-approval to understand your borrowing power
- Calculate total costs (stamp duty, legal, inspection, insurance, LMI)
- Explore grants and tax concessions available in your state
- Save for your deposit (5–20% depending on LMI tolerance)
- Have a building inspection completed
- Review the contract with a lawyer
- Arrange home and contents insurance before settlement
Common First-Home Buyer Mistakes to Avoid
1. Not maximizing stamp duty concessions: Missing eligibility windows or not claiming available exemptions costs thousands.
2. Over-borrowing: Just because a lender approves you doesn’t mean you should borrow the maximum. Leave a buffer for rate rises and life events.
3. Overlooking ongoing costs: Rates, insurance, maintenance, and body corporate (if applicable) add $200–$500+ per month.
4. Skipping the inspection: A $400 building inspection can save you $50,000+ in hidden defects.
5. Not locking in rates: Once pre-approved, lock in your interest rate to protect against unexpected rises.
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FAQs
Q: Do I qualify as a first-home buyer if I’ve owned property before?
A: In most cases, no. However, some states allow exceptions (e.g., if you owned property overseas or inherited property). Check your state’s specific rules.
Q: Can I use the First Home Super Saver Scheme with a grant?
A: Yes. You can combine the First Home Super Saver Scheme (tax-deductible contributions) with stamp duty exemptions and grants. This maximizes your first-home buyer support.
Q: What’s the maximum property price I can buy and still get stamp duty exemption?
A: It varies by state. Victoria exempts up to $750,000; NSW up to $800,000; Queensland up to $500,000; WA up to $430,000. Above these thresholds, you may qualify for concessional (not exempt) stamp duty.
Q: Can I get a first-home buyer grant for an established property?
A: Grants are primarily for new properties or off-the-plan purchases. Some states offer limited grants for established properties in regional areas. Check your state’s scheme.
Q: How much deposit do I really need as a first-home buyer?
A: The legal minimum is 5%, but lenders typically prefer 10%+. Deposits below 20% incur Lenders Mortgage Insurance (LMI), which adds $15,000–$50,000+ to your total cost.
Q: What is Lenders Mortgage Insurance (LMI) and how much does it cost?
A: LMI is insurance that protects the lender if you default. It’s required when your deposit is less than 20%. Costs range from 2–8% of the loan amount, depending on your deposit size and lender.
Q: Should I buy an investment property or my own home first?
A: That depends on your financial situation, goals, and risk tolerance. Many first-home buyers purchase an owner-occupied home first to build equity, then add investment properties later. Others go straight into investment. There’s no one-size-fits-all answer — consult a financial adviser.
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