Home / First home buyer questions
Short answers to the questions first home buyers ask most, with the number first. Each one names its official source and the date on that page, then points to the full guide and one next step.
Last updated: 28 October 2026
These rules use different dates. Grant and duty rules can depend on the transaction date; Help to Buy income thresholds depend on the assessment period. Check the date basis in each row.
| Rule | When it applies | Date basis | Source |
|---|---|---|---|
| 5% Deposit Scheme: no income cap, unlimited places | From 1 October 2025 | Date the scheme rule changed. Ask a participating lender which date it applies to your application. | Housing Australia |
| Help to Buy income caps $103,000 single, $165,000 joint or single parent | 1 July 2026 to 30 June 2027 | Assessment period. The caps for that financial year are tested on your tax notice of assessment, not on your contract date. | Housing Australia |
| Queensland $30,000 grant continued | Eligible contracts from 1 July 2026 | Contract date. For an owner build, the date foundations start. | Queensland Revenue Office |
| Queensland $0 duty on a new home, no value cap | Contracts from 1 May 2025 (citizenship or residency test from 1 August 2026) | Contract date for the 1 May 2025 change. The citizenship test uses its own start date of 1 August 2026. | Queensland Revenue Office |
| WA first home duty: exempt to $600,000, concession to $800,000 | Eligible transactions from 7 May 2026 | Transaction date, as RevenueWA states it. | RevenueWA |
| ACT $0 duty with no income threshold or value limit | Eligible transactions from 1 July 2026 | Transaction date, as the ACT Revenue Office states it. | ACT Revenue Office |
Saving and deposit
5% is the minimum deposit under the 5% Deposit Scheme for eligible first home buyers, and 2% for eligible single parents. Outside the scheme, a 20% deposit avoids lenders mortgage insurance. Buying costs are extra, the lender must still approve the loan, and scheme price caps apply. The table shows deposits at four prices. 7 questions.
| Price | 2% deposit | 5% deposit | 20% deposit |
|---|---|---|---|
| $500,000 | $10,000 | $25,000 | $100,000 |
| $700,000 | $14,000 | $35,000 | $140,000 |
| $900,000 | $18,000 | $45,000 | $180,000 |
| $1,200,000 | $24,000 | $60,000 | $240,000 |
Illustrative prices, not market medians. The 2% and 5% minimums are scheme rules for eligible buyers only. NestPath arithmetic, 28 October 2026.
5% is the minimum deposit under the Australian Government 5% Deposit Scheme for eligible first home buyers, and 2% for eligible single parents and legal guardians. Buying costs are extra, and the lender still has to approve the loan.
Source: Australian Government and Housing Australia, 5% Deposit Scheme fact sheet, 1 July 2026
20% is a savings goal, not a rule. Moneysmart describes 20% of the price plus buying costs as a good target because it helps you avoid lenders mortgage insurance, and it notes some lenders accept a deposit as low as 5%. If your loan to value ratio is above 80%, you may need to pay that insurance.
Source: ASIC Moneysmart, Buying a house, 14 October 2026
$35,000. A 2% deposit on the same price is $14,000 and a 20% deposit is $140,000. This is the price times the deposit percentage, before stamp duty, legal fees and other buying costs, and the lender valuation and any scheme price cap still apply.
Source: Australian Government and Housing Australia, 5% Deposit Scheme fact sheet (percentages), NestPath arithmetic, 1 July 2026
Add the property price and the buying costs, then take away what you can borrow. The balance is your deposit and your savings goal, according to Moneysmart. In short: price plus costs minus loan equals the deposit you need.
Source: ASIC Moneysmart, Save for a house deposit, 6 August 2026
Moneysmart lists three common places: a high interest savings account, an offset account (only once you have a home loan) and the First Home Super Saver Scheme. A savings account pays interest, while an offset account reduces your loan interest instead of earning any. Each option has its own conditions, so read the product terms.
Source: ASIC Moneysmart, Save for a house deposit, 6 August 2026
Yes. The limits are $15,000 of voluntary contributions counted each financial year and $50,000 in total, per eligible person. A couple can each use their own limits towards the same purchase. What you receive after tax and associated earnings can differ from the contributions counted.
Source: Australian Government, First Home Super Saver Scheme, no date shown
Some lenders accept a family guarantor, but a guarantor must repay the loan if the borrower cannot. Moneysmart says family support may help you buy sooner or reduce the amount you need to save. A guarantee is extra security for the lender, so the lender and the contract still set the cash you need.
Source: ASIC Moneysmart, Save for a house deposit, 6 August 2026
Grants and government schemes
Five kinds of help exist: cash grants, stamp duty relief, the 5% Deposit Scheme guarantee, Help to Buy shared equity and the First Home Super Saver Scheme. Qualifying for one does not mean you qualify for another. Your state, the property and your contract date change the answer. The table shows how each route funds a $700,000 purchase. 13 questions.
| Route | Buyer deposit | Government equity | Remaining loan |
|---|---|---|---|
| 20% deposit | $140,000 | $0 | $560,000 |
| 5% Deposit Scheme | $35,000 | $0 | $665,000 |
| Help to Buy, existing home, maximum share | $14,000 | $210,000 | $476,000 |
| Help to Buy, new home, maximum share | $14,000 | $280,000 | $406,000 |
Loan equals price minus buyer deposit minus government equity. Assumes full eligibility, a valuation equal to the price, the minimum deposit shown and the maximum Help to Buy share. The 5% Deposit Scheme is a guarantee to the lender, not a cash contribution, and Help to Buy equity is not a grant. These are examples, not loan offers.
No. The scheme has had no income cap and no waitlist since the expansion on 1 October 2025. Property price caps and the lender affordability checks still apply, so the scheme does not guarantee a loan.
Source: Australian Government and Housing Australia, 5% Deposit Scheme, no date shown
Places are unlimited, and the scheme participation fee is $0. Help to Buy is different, with 10,000 places each year. Both are run through Housing Australia.
Source: Australian Government and Housing Australia, 5% Deposit Scheme frequently asked questions, no date shown
Possibly. A former owner can qualify under the ordinary pathway if they have not owned Australian property or land in the last 10 years. You must also move in within 6 months of settlement. The Help to Buy rules on past ownership are different.
Source: Australian Government and Housing Australia, 5% Deposit Scheme frequently asked questions, no date shown
Yes. Eligible single parents and legal guardians can buy with a minimum 2% deposit under the government guarantee. They apply on their own, with no joint applications, and the loan is an owner occupier principal and interest loan.
Source: Australian Government and Housing Australia, Single parent pathway, no date shown
The caps depend on the location. For capital cities and designated regional centres versus other areas, they are $1,500,000 and $800,000 in NSW, $1,000,000 and $700,000 in QLD, and $850,000 and $600,000 in WA. Other states and territories have their own caps on the official page.
Source: Australian Government and Housing Australia, Property price caps, no date shown
2% of the purchase price is the minimum deposit. The government can contribute up to 30% of the price for an existing home or 40% for a new home. A participating lender must approve the loan that remains, and buying costs are extra.
Source: Housing Australia, Help to Buy fact sheet, 1 July 2026
$103,000 for a single applicant and $165,000 for joint applicants or a single parent, for 1 July 2026 to 30 June 2027. Housing Australia uses your FY2026 notice of assessment for the current period. The caps change each financial year, and a lender runs its own income assessment as well.
Source: Housing Australia, Help to Buy income and threshold updates, no date shown (periods are listed on the page)
Every applicant must be an Australian citizen aged 18 or over, and you can apply alone or with one other person. Permanent residence alone is not enough. You generally cannot currently own property, and the loan must come from a participating lender.
Source: Australian Government and Housing Australia, Help to Buy, no date shown
No. Help to Buy cannot be combined with another shared equity scheme or a government home purchase loan or guarantee, and the 5% Deposit Scheme is a government guarantee. State grants and duty concessions can remain available alongside Help to Buy.
Source: Housing Australia, Help to Buy fact sheet, 1 July 2026
Income above the applicable threshold for 2 consecutive financial years can trigger a repayment assessment. The amount depends on your financial capacity, so it is not an automatic demand to repay at once. Check the scheme terms for the full process.
Source: Housing Australia, Help to Buy frequently asked questions, no date shown
No. There is no interest or rent on the government contribution and no ordinary monthly repayment to the government. Your mortgage repayments to the lender still apply, and you pay the rates, insurance and maintenance. The government share is repaid when you sell or repay it.
Source: Housing Australia, Help to Buy fact sheet, 1 July 2026
$30,000 for an eligible new home, where the total home and land value is less than $750,000. A value of exactly $750,000 does not qualify. The grant is for new homes, not an ordinary established home purchase.
Source: Queensland Revenue Office, First home owner grant eligibility, 5 August 2026
Yes. The Queensland Government continued the $30,000 grant for eligible contracts signed from 1 July 2026, as QRO’s State Budget 2026 page states. Older articles that say it ended in June 2026 are out of date. Your contract date and the $750,000 value test still decide whether you qualify.
Source: Queensland Revenue Office, State Budget 2026, 23 June 2026
Loans, brokers and approval
No single income multiple decides it. Lenders assess your income, debts, living expenses, deposit and the property. Banks test repayments at a rate at least 3 percentage points above the loan rate, and APRA limits banks to 20% of new lending at a debt to income ratio of 6 or more. Lender policies can be stricter. 8 questions.
APRA regulated banks generally assess repayments with a buffer of at least 3 percentage points above the loan rate, a serviceability buffer APRA kept in place in May 2026. Lender assessment policies can be stricter. They weigh your income, debts, living expenses and deposit. No single income multiple sets the answer, and only a lender can approve a loan.
Source: APRA, APRA maintains current macroprudential policy settings, 28 May 2026
From February 2026, APRA limits banks to 20% of new lending at a debt to income ratio of 6 or more, separately for owner occupier and investor lending, subject to exemptions. This is not an individual borrowing cap or a rule covering every nonbank lender. Lenders also run their own affordability checks.
Source: APRA, Activating debt to income limits as a macroprudential policy tool, 27 November 2025
3 to 6 months, according to Moneysmart. The date in your lender’s own letter sets the actual expiry.
Source: ASIC Moneysmart, Buying a house, 14 October 2026
No. Pre approval shows how much you may be able to borrow, and it is not final approval. The lender still assesses your finances and the property before it approves the loan, so a change in either can change the result.
Source: ASIC Moneysmart, Buying a house, 14 October 2026
There is no single figure. Lenders generally pay brokers a commission, and some brokers also charge a fee directly, which needs a written quote you accept before the service starts. Ask any broker for their fee and commission disclosure before you go ahead.
Source: ASIC Moneysmart, Using a mortgage broker, 13 October 2026
Only lenders on Housing Australia’s participating lender list can offer Help to Buy, which opened for applications on 5 December 2025. The list has changed since the launch. NestPath’s lender page shows each lender with its join date.
Source: Housing Australia, Help to Buy participating lenders, no date shown
LMI may apply when the loan exceeds 80% of the lender’s property valuation. Eligible government guarantee loans can avoid LMI with a smaller deposit. A valuation below the purchase price or financed fees can change your loan to value ratio. The cost depends on the lender and your loan, so check the quote before you commit.
Source: ASIC Moneysmart, Save for a house deposit, 6 August 2026
Get the Key Fact Sheet for each loan and compare the interest rate, fees, repayments, term and features. The comparison rate covers the interest rate and most fees, not every possible cost or condition. Compare loans of the same type and size.
Source: ASIC Moneysmart, Choosing a home loan, 16 September 2026
Costs beyond the deposit
Budget for stamp duty, legal fees, building and pest inspections, lender charges, insurance and moving. Some costs are set by law, some are quoted by providers, and stamp duty depends on your state, the price and whether you qualify for a concession. The 5% Deposit Scheme charges no fee. Get written quotes before you sign. 7 questions.
Moneysmart advises saving 20% of the price plus enough to cover buying costs such as stamp duty, legal fees and building and pest inspections. Stamp duty is a one off state or territory transfer tax that depends on the location, the value and your circumstances. No national dollar figure covers these costs.
Source: ASIC Moneysmart, Buying a house, 14 October 2026
$0 transfer duty can apply to a qualifying new home under contracts from 1 May 2025, with no value cap on the home. For transactions from 1 August 2026 the buyer must also be an Australian citizen, a permanent resident or a specified foreign retiree. The separate $30,000 grant has its own $750,000 value test.
Source: Queensland Revenue Office, First home, new home concession, 31 July 2026
$0 on a home worth $800,000 or less, with a reduced concession above $800,000 and below $1,000,000. For vacant land the exemption is $350,000 or less, with a concession above $350,000 and below $450,000. The buyer must move in within 12 months and live there for at least 12 continuous months.
Source: Revenue NSW, First Home Buyers Assistance Scheme, no date shown
$600,000 is the highest home value that is fully exempt for eligible transactions from 7 May 2026, with a concession band up to $800,000. Vacant land is exempt up to $450,000, with a concession up to $550,000. The WA Government announcement of 23 October 2026 says the announced changes have now been applied.
Source: RevenueWA, Duties fact sheet: first home owner rate, 27 August 2026. Also: WA Government, 2026 to 2027 Housing Taxation Package, 23 October 2026
$0 duty applies to eligible Home Buyer Concession Scheme purchases from 1 July 2026, with no income threshold and no property value limit. Other conditions still apply, so having no income cap does not mean every buyer qualifies.
Source: ACT Revenue Office, About the Home Buyer Concession Scheme, no date shown
$0. There is no fee to use the scheme. You still pay your own loan and buying costs, such as stamp duty and legal fees.
Source: Australian Government and Housing Australia, 5% Deposit Scheme frequently asked questions, no date shown
No. The Help to Buy Directions say Housing Australia must not charge application or approval fees, or fees to cover its operating costs. Valuation and other permitted costs can still be passed on to you, and lenders set their own loan fees.
Source: Commonwealth Government, legislation.gov.au, Help to Buy Directions 2025, section 57, 13 June 2025
Buying, contracts and settlement
Not always. It depends on the state and how the property is sold. Victoria gives 3 clear business days, NSW generally gives 5 business days, and WA has no mandatory cooling off period. Auction buyers should not assume any right to pull out. Have the contract reviewed before you sign, not after. 8 questions.
No. There is no mandatory cooling off period for real estate contracts made in WA. Any cooling off right or finance and inspection condition has to be written into the contract, so have it reviewed before you sign.
Source: Consumer Protection WA, Buying property by private sale, no date shown
3 clear business days for most private sales, with exceptions. If you end the contract in that time, the seller can keep the greater of $100 or 0.2% of the price. Check whether your purchase is one of the exceptions before you rely on it.
Source: Consumer Affairs Victoria, Buying property by private sale, 9 September 2022
5 business days after you exchange contracts for most residential purchases, and 10 business days for off the plan contracts. Ending the contract during cooling off can cost you 0.25% of the price. Settlement usually follows about 6 weeks after exchange.
Source: NSW Government, Contracts and deposits, no date shown
Around 6 weeks after contracts are exchanged is usual in NSW. Your contract sets the actual settlement date, and it can be shorter or longer if the buyer and seller agree.
Source: NSW Government, Contracts and deposits, no date shown
Between 30 and 90 days is the usual range for a negotiated settlement in a Victorian private sale. The date is whatever the contract says, so it is worth agreeing a timeline that suits your loan approval.
Source: Consumer Affairs Victoria, Buying property by private sale, 9 September 2022
10% of the purchase price is the example Moneysmart gives, and it is due immediately if you win. The amount in your own contract is what counts. Have the contract and the finance position checked before the auction day.
Source: ASIC Moneysmart, Buying a house, 14 October 2026
Have a conveyancer or solicitor review the contract before signing. Arrange building and pest inspections before an auction or unconditional commitment. Do not assume a cooling off period exists; its availability and any inspection conditions depend on the state and contract. Fees vary by firm and state, so get a written quote first.
Source: ASIC Moneysmart, Buying a house, 14 October 2026
Start construction within 12 months of land settlement and complete it within 36 months of land settlement. Move in within 3 months of the occupancy certificate being issued, subject to Housing Australia’s full conditions in its building guide.
Source: Housing Australia, Help to Buy: building a new home guide, no date shown (version 260701)
After you move in
No single rule covers every scheme. The 5% Deposit Scheme asks you to move in within 6 months, the Queensland grant within 1 year of completion and then 6 months of living there, and Help to Buy has its own occupancy and notice rules. Duty concessions add separate conditions. Check each benefit you use before you rent the home out. 7 questions.
A transaction account linked to your home loan. In Moneysmart’s example, a $750,000 loan with $50,000 in the offset account means you are charged interest on $700,000. Some banks charge for offset features through a higher rate, account fees or both.
Source: ASIC Moneysmart, Mortgage offset accounts, 29 July 2026
Redraw holds extra payments that go straight onto your loan, and access depends on your loan terms. An offset account is a separate transaction account, so you can still reach your savings when you need them. Check the fees on either feature.
Source: ASIC Moneysmart, Mortgage offset accounts, 29 July 2026
3 months of expenses is the target Moneysmart suggests, and your own circumstances change the right amount. After you buy, repayments, rates, insurance and maintenance all count as expenses.
Source: ASIC Moneysmart, Save for an emergency fund, 8 October 2026
Within 6 months of settlement, and you must keep living there while the guarantee operates. Your lender may require lenders mortgage insurance if you do not move in on time or move out early.
Source: Australian Government and Housing Australia, 5% Deposit Scheme frequently asked questions, no date shown
Yes, as long as you move in within the 6 month timeframe. The official answer covers existing tenants at purchase and does not say you can rent the home out after you move in.
Source: Australian Government and Housing Australia, 5% Deposit Scheme frequently asked questions, no date shown
At settlement for an existing home, unless Housing Australia approves an exemption. For a newly built home it is within 3 months of the construction being completed. The home must then stay your principal residence while you are in the scheme.
Source: Housing Australia, Help to Buy frequently asked questions, no date shown
Yes, for work of $21,000 or more within 12 months, or any work that needs council approval. Notify Housing Australia before you start. Qualifying, notified improvements can change the government percentage so you keep the value the work adds.
Source: Housing Australia, Help to Buy: home improvements guide, no date shown (version 260701)
How we answer. Each answer leads with the number, uses only official government, regulator or scheme pages, and shows that page’s own date or says none is shown. Where a rule depends on your state or contract date, the answer says so.
Answer a few questions about your state, the home and your household, and see which schemes and grants may apply.
Open the first home buyer eligibility checkerHow we checked: every figure on this page was read on the official source pages listed below on 28 October 2026.
The deposit and funding tables are NestPath arithmetic from the stated rules. This page is general information, not personal advice.