This article was last Updated in October 2025 and all information is accurate as of this time.
Buying your first home is one of the biggest milestones in life but it can also be one of the most daunting. Between saving a deposit, understanding government schemes, and choosing the right lender, there’s a lot to wrap your head around.
That’s where mortgage brokers come in. Whether you’re purchasing an apartment in the city, a family home in the suburbs, or a regional property with acreage, mortgage brokers help first home buyers navigate the process with confidence from pre-approval right through to settlement.
With a range of government incentives and lender options available, it’s important to understand how first home buyer loans actually work and what steps you can take to put yourself in the strongest position to enter the market.
How First Home Buyer Loans Work in Australia
A first home buyer loan is simply a standard home loan, but designed for people purchasing their first property. These loans often come with government-backed incentives such as lower deposits, waived Lenders Mortgage Insurance (LMI), or grants to help cover upfront costs.
To qualify as a first home buyer in Australia, generally you need to:
- Be an Australian citizen or permanent resident
- Be at least 18 years old
- Intend to live in the property as your main residence for at least 6 to 12 months (depending on your state or territory).
- Have not owned property in Australia before
Most lenders require a minimum deposit of 5–20%, but government initiatives like the First Home Guarantee can allow eligible buyers to purchase with as little as 5% down and no LMI.
The First Home Owner Grant (FHOG)
Introduced in 2000, the First Home Owner Grant has helped thousands of Australians achieve their dream of home ownership and take that important first step onto the property ladder.
Each Australian state and territory offers a version of the First Home Owner Grant (FHOG) to help first-time buyers purchase or build a new home.
First Home Buyer Queensland (QLD)
Grant Amount: $30,000
Property Cap: Up to $750,000
Eligible Properties: New homes (including off-the-plan and new builds)
Current Offer: Contracts signed 20 Nov 2023 – 30 Jun 2026
Introduced to stimulate new housing, Queensland’s FHOG offers one of the largest incentives in the country. It can be used toward newly built homes, off-the-plan apartments, or building on your own land.
Read our QLD First Home Buyer Guide for more info 👉
First Home Buyers New South Wales (NSW)
Grant Amount: $10,000
Property Cap: Up to $750,000
Eligible Properties: New homes only
NSW’s FHOG is available for new homes up to $750,000 and can be combined with first-home stamp duty exemptions on properties valued under $800,000.
Read our NSW First Home Buyer Guide for more info 👉
First Home Buyers Victoria (VIC)
Grant Amount: $10,000
Property Cap: Up to $750,000
Eligible Properties: New homes only
The Victorian FHOG supports new builds and off-the-plan purchases, with additional regional concessions available for buyers outside Melbourne.
Read our VIC First Home Buyer Guide for more info 👉
First Home Buyers South Australia (SA)
Grant Amount: $15,000
Property Cap: No limit (as of June 2024)
Eligible Properties: New homes only
South Australia recently removed its property value cap, making it easier for first-time buyers to access the grant regardless of property price.
Read our SA First Home Buyer Guide for more info 👉
First Home Buyers Western Australia (WA)
Grant Amount: $10,000
Property Cap: Up to $750,000 (south of 26°) / $1 million (north)
Eligible Properties: New homes only
WA’s FHOG applies to new homes, including off-the-plan apartments and owner-builders, with regional property caps adjusted for northern developments.
Read our WA First Home Buyer Guide for more info 👉
First Home Buyers Tasmania (TAS)
Grant Amount: $10,000
Property Cap: None
Eligible Properties: New homes or off-the-plan purchases
Tasmania’s FHOG continues to provide consistent support for first home buyers, particularly in regional and growing areas.
Read our TAS First Home Buyer Guide for more info 👉
First Home Buyers Northern Territory (NT)
Grant Amount: Up to $50,000
Eligible Properties: New homes or construction projects
The Northern Territory offers one of Australia’s most generous grants, providing up to $50,000 toward new homes or owner-builder projects.
Read our NT First Home Buyer Guide for more info 👉
First Home Buyers Australian Capital Territory (ACT)
Grant Availability: Not available for contracts after 1 July 2019
Alternative Support: Stamp duty concessions apply
While the FHOG has been discontinued in the ACT, eligible buyers may still receive reduced stamp duty on new or existing homes. For more information visit ACT Revenue Office.
Other National Schemes & Incentives for First Home Buyers
Australia offers several other national first home buyer schemes that can make entering the property market a little easier. Whether you’re struggling with a deposit or looking to reduce upfront costs, these initiatives are designed to help eligible Australians buy sooner, with less savings required.
Some of the key programs currently available include:
Home Guarantee Scheme
The First Home Guarantee (also known as the 5% deposit scheme) helps eligible buyers purchase a home with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI).
Under the scheme, the Australian government acts as a partial guarantor on your loan, meaning you don’t need to save the full 20% deposit most lenders require.
Key details:
- No cap on the number of places available
- Applies to new and existing homes (location dependant)
- Property price caps vary by state and region
- Available for use in metro and regional areas of Australia
Tip: This scheme can be combined with state-based grants for even more support — we’ll cover those in the next section.
First Home Super Saver Scheme (FHSSS)
The First Home Super Saver Scheme allows you to use your superannuation to help fund your first home deposit.
Eligible buyers can make voluntary contributions of up to $15,000 per year (to a total of $50,000) into their super, then withdraw those savings plus earnings to use toward a deposit.
Because super contributions are taxed at a lower rate than your regular income, it’s a tax-effective way to save for your first home faster.
Eligibility highlights:
- Must be at least 18 years old
- Never owned property in Australia
- Contributions must be voluntary, not employer-paid super
- Apply through the ATO before signing a contract
Help to Buy Scheme (Coming 2025–2026)
The federal government’s upcoming Help to Buy Scheme (expected rollout in 2025–2026) will see the Commonwealth co-purchase up to 40% of a home for eligible buyers.
In exchange, you’ll own a smaller share of the property (e.g. 60%) and repay the government’s portion later — similar to shared equity models already in place in VIC and WA.
Proposed benefits:
- Buy with as little as 2% deposit
- No LMI payable
- Government holds equity share, not a loan
- Available to low- and middle-income earners
Keep an eye out for updates on this one soon!
Common Mistakes First Home Buyers Make
Buying your first home is exciting and it’s easy to overlook the small details that can make a big difference in a property purchase.
Our brokers work with first home buyers every week and some of the most common mistakes we see include:
- Overstretching your budget – borrowing to the limit without leaving a buffer for rate rises or bills.
- Skipping pre-approval – making offers before knowing your true borrowing capacity.
- Forgetting upfront and ongoing costs – things like stamp duty, conveyancing fees, insurance, and maintenance.
- Missing out on grants or incentives – many buyers don’t realise they qualify for multiple government programs.
- Choosing the wrong loan – a slightly lower rate doesn’t always mean a better deal.
- Going It Alone – getting advice from a mortgage broker could save you thousands (and remember – mortgage brokers are paid by the bank not you!).
The best way to avoid these pitfalls? Get professional guidance early. A quick chat with a mortgage broker can help you understand what’s realistic for your budget and ensure you don’t miss any opportunities or benefits.
Why Use a Mortgage Broker
Getting into the housing market can feel overwhelming but you don’t have to do it alone. Mortgage brokers act as the expert in your corner ready to guide you through the entire process, helping you find the right loan, lender, and structure for your situation.
Here’s how a mortgage broker can make your first home journey easier:
- Compare dozens of lenders – We have access to a wide panel of banks and specialist lenders, so you’re not limited to one option.
- Save you time and stress – We handle the paperwork, negotiations, and communication with lenders so you can focus on finding your home.
- Help you access grants and incentives – Our brokers stay up to date on every first home buyer scheme, so you don’t miss out on potential savings.
- Tailor your loan to your goals – Whether you’re looking for low repayments, flexibility, or room to pay down faster, we’ll structure your loan accordingly.
- Support you beyond settlement – Your broker remains a long-term partner, reviewing your loan as your needs evolve.
Buying your first home is a big step — and whilst the process can feel a bit daunting – the right broker can make all the difference.
From understanding your borrowing power to accessing every available grant or incentive, QPF Finance is here to help you every step of the way.
Whether you’re just starting to plan or already house-hunting, our experienced mortgage brokers can guide you through the process and find a loan that fits your goals.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
