First Home Buyer Guide Australia: Your Complete Roadmap
Buying your first home in Australia feels overwhelming. Between saving a deposit, understanding government grants, choosing between new builds and existing homes, and navigating the loan process, it’s a lot.
This first home buyer guide breaks it all down. Whether you’re in Queensland, Victoria, or anywhere else in Australia, you’ll walk away knowing exactly what steps to take, what grants you’re entitled to, and how to buy your first home, even with a low deposit.
Buying your first home in Australia feels overwhelming. Between saving a deposit, understanding government grants, choosing between new builds and existing homes, and navigating the loan process, it’s a lot.
This first home buyer guide breaks it all down. Whether you’re in Queensland, Victoria, or anywhere else in Australia, you’ll walk away knowing exactly what steps to take, what grants you’re entitled to, and how to buy your first home, even with a low deposit.
Why 2025–2026 Is a Great Time to Buy Your First Home
Despite what the headlines say, first home buyers have more support than ever. The Australian Government and state governments offer a stack of grants and schemes designed specifically to get you into your first home sooner:
- First Home Owner Grant (FHOG): Up to $30,000 in QLD and $10,000 in VIC for new builds
- First Home Guarantee (NHG): Buy with just a 5% deposit and pay no Lenders Mortgage Insurance (LMI)
- First Home Super Saver Scheme (FHSS): Use your superannuation to save for a deposit faster
- Stamp duty concessions: Significant savings in both QLD and VIC for eligible first home buyers
When you stack these together, especially on a new-build home, the numbers work out better than most.
Why 2025–2026 Is a Great Time to Buy Your First Home
Despite what the headlines say, first home buyers have more support than ever. The Australian Government and state governments offer a stack of grants and schemes designed specifically to get you into your first home sooner:
- First Home Owner Grant (FHOG): Up to $30,000 in QLD and $10,000 in VIC for new builds
- First Home Guarantee (NHG): Buy with just a 5% deposit and pay no Lenders Mortgage Insurance (LMI)
- First Home Super Saver Scheme (FHSS): Use your superannuation to save for a deposit faster
- Stamp duty concessions: Significant savings in both QLD and VIC for eligible first home buyers
When you stack these together, especially on a new-build home, the numbers work out better than most.
Step 1: Work Out What You Can Afford
Before you start browsing homes, you need to understand your borrowing capacity. This depends on:
- Your income (individual or combined if buying with a partner)
- Your existing debts (car loans, personal loans, credit cards, HECS-HELP)
- Your living expenses
- Your deposit amount
A common misconception: You don’t need a 20% deposit. With the First Home Guarantee, eligible buyers can purchase with as little as 5% deposit and avoid LMI entirely. On a $750,000 home, that’s $37,500 instead of $150,000.
Getting Pre-Approved
Pre-approval (also called conditional approval) gives you a clear budget and shows sellers you’re serious. It typically lasts 3–6 months and involves:
- Submitting income evidence (payslips, tax returns)
- Providing bank statements
- Declaring your assets and liabilities
- A credit check
Low Deposit Homes can connect you with mortgage brokers who specialise in first home buyer lending and know how to structure applications that maximise your borrowing power.
Step 2: Understand the Grants and Schemes Available to You
This is where most first home buyers leave money on the table. There are multiple schemes that can be combined:
First Home Owner Grant (FHOG)
A one-off payment from your state government when you buy or build a new home.
- Queensland: $30,000 for new homes valued under $750,000
- Victoria: $10,000 for new homes valued under $750,000
First Home Guarantee (formerly First Home Loan Deposit Scheme)
A federal government scheme that allows you to buy with a 5% deposit without paying LMI. The government guarantees the remaining 15%. Limited places are available each financial year.
First Home Super Saver Scheme (FHSS)
Allows you to make voluntary contributions to your super and withdraw them (plus earnings) for a home deposit. The tax advantages mean you save faster than a regular savings account.
Stamp Duty Concessions
Both QLD and VIC offer stamp duty concessions or exemptions for first home buyers, potentially saving you thousands.
Step 3: Choose Between a New Build and an Existing Home
For first home buyers, new builds almost always come out ahead. Here’s why:
- Higher grants: The FHOG only applies to new homes
- Lower maintenance costs: Everything is new and under builder warranty
- Better energy efficiency: Lower power bills from day one
- You can lock in today’s price while the home is being built, giving you more time to save
- Stamp duty savings: Many states offer stamp duty concessions or exemptions on vacant land for first home buyers, which can significantly reduce upfront costs when building a new home
Step 4: Find the Right Location
Location is everything. You want somewhere with:
- Good growth potential
- Proximity to infrastructure (schools, transport, shops)
- Affordable land prices that fit within grant thresholds
- Active builders delivering quality homes
In South-East Queensland, areas like Beaudesert, Toowoomba, the Moreton Bay Region, Ipswich and Logan are popular with first home buyers. In Victoria, locations such as Pakenham, Wallan, Craigieburn, Melton, Werribee, Bendigo and Geelong are also in high demand. These areas are attractive because they offer new house and land packages that fall within the First Home Owner Grant (FHOG) price thresholds.
Location is everything. You want somewhere with:
- Good growth potential
- Proximity to infrastructure (schools, transport, shops)
- Affordable land prices that fit within grant thresholds
- Active builders delivering quality homes
In South-East Queensland, areas like Beaudesert, Toowoomba, the Moreton Bay Region, Ipswich and Logan are popular with first home buyers. In Victoria, locations such as Pakenham, Wallan, Craigieburn, Melton, Werribee, Bendigo and Geelong are also in high demand. These areas are attractive because they offer new house and land packages that fall within the First Home Owner Grant (FHOG) price thresholds.
Step 5: Get Your Finance Sorted
With your pre-approval, grants identified, and property chosen, it’s time to lock in your finance. This involves:
- Formal loan application with your chosen lender
- Valuation of the property
- Grant applications (FHOG, NHG, your broker can help with these)
- Loan approval and contract signing
What About Lenders Mortgage Insurance (LMI)?
If you’re borrowing more than 80% of the property value, lenders normally charge LMI, which can cost $20,000–$35,000. But with the First Home Guarantee, eligible buyers avoid this entirely.
Step 6: Settlement and Moving In
Once your loan is approved and contracts are exchanged:
- For new builds: You’ll typically settle on the land once the title is registered, allowing construction of your home to begin. Your deposit is usually held in a trust account and construction payments are made in stages as the build progresses.
Your conveyancer or solicitor handles the legal transfer. On settlement day, you get the keys.
How Low Deposit Homes Helps!
Low Deposit Homes specialises in helping first home buyers, particularly those who think they can’t afford to buy yet. We:
- Connect you with proven builders in QLD and VIC
- Help you access and stack every grant you’re eligible for
- Work with brokers who specialise in low-deposit lending
- Guide you through the entire process from first conversation to getting your keys
It costs you nothing to chat with us. We earn our fee from the builder, not from you. Ready to see what you qualify for? Book a free 15-minute consultation and we’ll map out your options.
Frequently Asked Questions
How much deposit do I need to buy my first home in Australia?
With the First Home Guarantee, you can buy with as little as 5% deposit and avoid LMI. On a $750,000 home, that’s just $37,500. Some buyers also use the FHSS scheme to boost their deposit using super savings.
Can I use the First Home Owner Grant as part of my deposit?
In most cases, the FHOG is paid at settlement or after completion, so it usually can’t be used as the upfront deposit when you sign contracts. However, some lenders may allow the grant to be factored into your overall funds to complete, meaning it can reduce the amount of savings you need. In certain new-build scenarios, lenders may also allow the FHOG to be “stacked” with genuine savings or other grants as part of your contribution. A mortgage broker can confirm which lenders allow this and how it applies to your situation.
What grants can first home buyers get in 2025–2026?
The main grants and schemes are the FHOG (state-based), First Home Guarantee (federal), FHSS (federal), and stamp duty concessions (state-based). The amounts and eligibility vary by state. (Verify current figures before applying.)
Is it better to buy a new build or an existing home as a first home buyer?
For most first home buyers, new builds offer better value because you can access the FHOG, avoid immediate maintenance costs, and lock in today’s price while the home is built.
How does Low Deposit Homes make money if the service is free for buyers?
We earn a referral fee from our partner builders when a sale goes through. This means our service is completely free for buyers, you don’t pay us anything.
All government grant amounts, thresholds, and eligibility criteria should be verified against the relevant government websites before publishing. Figures cited are accurate as of early 2026 but may change with new budgets or policy updates.