First home buying comes with its own language — grants, guarantees, LMI, serviceability, settlement. Here is every term that matters, in plain English, so you can walk into any conversation knowing exactly what each one means and how it affects your deposit.

Deposit

The upfront cash you contribute toward a property purchase. The old benchmark was 20%, but eligible first home buyers can now buy with as little as 5% (or 2% under some schemes) without paying Lenders Mortgage Insurance — about $54,500 on a typical $1,000,000 Queensland new build.

Lenders Mortgage Insurance (LMI)

A one-off insurance premium lenders usually charge when you borrow more than 80% of a property’s value. It protects the lender, not you, and can cost many thousands of dollars. Government guarantee schemes let eligible first home buyers avoid LMI entirely with as little as a 5% deposit.

First Home Guarantee (5% Deposit Scheme)

A Commonwealth scheme where the government guarantees the gap between your deposit and 20%, letting eligible first home buyers purchase with a 5% deposit and pay no LMI. As of October 2025, income caps and annual place limits were removed; property price caps still apply (~$1,000,000 metro QLD, $700,000 regional, ~$950,000 Melbourne/Geelong).

First Home Owner Grant (FHOG)

A one-off cash grant for buying or building a NEW home. In Victoria it’s $10,000 and genuinely usable at Victorian price points. In Queensland it’s $30,000 but carries a $750,000 price cap that most new house-and-land packages exceed — so it often doesn’t apply, and the bigger Queensland saving is the $0 stamp duty and no LMI. Established homes never qualify.

Stamp Duty (Transfer Duty)

A state tax on property purchases. Queensland first home buyers generally pay $0 stamp duty on a new home — a saving of around $38,000 on a $1,000,000 purchase. Victoria gives a full exemption to $600,000 and a concession to $750,000. It’s one of the largest upfront costs a concession can remove.

Help to Buy

A Commonwealth shared-equity scheme where the government takes an equity share of up to 40% of the home, reducing the loan you must service. You can buy with as little as a 2% deposit. Income caps apply (~$160,000 household), it’s for Australian citizens, and it cannot be combined with the First Home Guarantee.

Family Home Guarantee

A scheme allowing eligible single parents or single legal guardians to buy with as little as a 2% deposit and no LMI. It is not limited to first-home purchases.

First Home Super Saver (FHSSS)

A scheme letting you withdraw up to $50,000 of voluntary superannuation contributions toward your first home deposit — effectively saving with pre-tax income.

House and Land Package

Buying a block of land and a new home to be built on it, usually as one combined or two linked contracts. House-and-land packages are how most first home buyers access $0 stamp duty and the 5% scheme on a new build.

Serviceability

A lender’s assessment of whether you can afford the repayments based on income, expenses and other debts. When serviceability — not the deposit — is the blocker, shared-equity options like Help to Buy can help by shrinking the loan.

Price Cap

The maximum property price allowed under a government scheme. For the First Home Guarantee, caps are ~$1,000,000 in metro Queensland, $700,000 regional, and ~$950,000 in Melbourne and Geelong. Buying above the cap makes a property ineligible — and pushes the deposit sharply higher.

Equity

The share of your home you actually own — its value minus what you owe. Under a normal mortgage you build 100% of the equity; under shared-equity schemes like Help to Buy, the government holds a share until you buy it back.

Conditional vs Unconditional

Stages of a contract. A contract is conditional while it still depends on things like finance approval; it becomes unconditional once those are met and the sale is locked in. Unconditional is the point of genuine commitment.

Settlement

The final stage where ownership legally transfers, the balance is paid and you receive the keys. For a new build, settlement happens after construction is complete and the land has registered.

Registration (of land)

The legal process where a new estate’s land titles are created so blocks can settle. Build and settlement timing on a house-and-land package depend on when the land registers.

Put the terms to work

Now that you know the language, see which grants and schemes apply to your situation — it’s free and takes a couple of minutes.

See if you qualify →Compare the schemes →

General information only — not financial or credit advice. Definitions are simplified for clarity; eligibility, caps and dates depend on individual circumstances and can change. Figures current as at June 2026. Low Deposit Homes operates under Winning Homes Australia Pty Ltd.