By Chaice Paterson, Founder, Low Deposit Homes
Short version: there isn’t one “best” first home buyer scheme — there’s the best scheme for your situation, and the real skill is stacking the ones that work together. The honest rule of thumb: if your blocker is the deposit, the 5% Deposit Scheme is usually your anchor; if your blocker is income/serviceability, Help to Buy is the one that can get you in. Here’s every scheme compared, what each is best for, the catch, and which ones combine.
First home buyer schemes at a glance (2026)
| Scheme | Deposit impact | Cash value | Best for | Combine? |
|---|---|---|---|---|
| 5% Deposit Scheme (First Home Guarantee) | 5% of the price | $0 — the government guarantees the gap | Buyers who can service the loan but can’t save the deposit | Yes — stacks with the stamp-duty saving (and the $10k FHOG in VIC) |
| $0 Stamp Duty (new builds) | Lowers upfront costs, not the deposit | Saves ~$38,000 on a $1M QLD purchase | Every first home buyer on a new build | Yes — stacks with everything |
| First Home Owner Grant (FHOG) | Cash on top, not a deposit reducer | VIC $10,000; QLD $30,000 (capped) | First home buyers on a NEW build under the cap | Yes where eligible — stacks with the 5% scheme and stamp-duty saving |
| Help to Buy (shared equity) | As little as 2% + costs | $0 | Buyers whose ceiling is income/serviceability, not deposit | No — cannot be combined with the 5% First Home Guarantee |
| Family Home Guarantee | As little as 2% | $0 | Single parents / single legal guardians | Standalone guarantee — used instead of the 5% scheme |
| First Home Super Saver (FHSSS) | Helps you build the deposit faster | Up to $50,000 of voluntary super | Anyone saving a deposit | Yes — feeds your deposit for any of the above |
Each scheme — what it is, who it suits, the catch
5% Deposit Scheme (First Home Guarantee)
Best for: Buyers who can service the loan but can’t save the deposit
Income caps removed Oct 2025 (no income cap). Price caps apply: ~$1,000,000 in Brisbane/Gold Coast/Sunshine Coast, $700,000 regional QLD, ~$950,000 Melbourne/Geelong.
Combines with others? Yes — stacks with the stamp-duty saving (and the $10k FHOG in VIC). Cannot combine with Help to Buy.
$0 Stamp Duty (new builds)
Best for: Every first home buyer on a new build
QLD: $0 stamp duty for first home buyers on a new home. VIC: exempt to $600,000, concession to $750,000. This — with no LMI — is the real reason a $1M QLD new build needs about $54,500 to get into versus $122,000 established.
Combines with others? Yes — stacks with everything.
First Home Owner Grant (FHOG)
Best for: First home buyers on a NEW build under the cap
VIC’s $10,000 grant is genuinely usable at Victorian price points. QLD’s $30,000 grant has a $750,000 price cap, and most new house-and-land packages exceed it — so for the typical Queensland buyer it often doesn’t apply. Honest point: in QLD the saving is the $0 stamp duty and no LMI, not the grant.
Combines with others? Yes where eligible — stacks with the 5% scheme and stamp-duty saving.
Help to Buy (shared equity)
Best for: Buyers whose ceiling is income/serviceability, not deposit
The government takes an equity share of up to 40% and shares in the gain. Income caps ~$160,000 household. Australian citizens only. You buy their share back over time.
Combines with others? No — cannot be combined with the 5% First Home Guarantee. Pick one path.
Family Home Guarantee
Best for: Single parents / single legal guardians
Doesn’t have to be your first home. 2% deposit, no LMI.
Combines with others? Standalone guarantee — used instead of the 5% scheme.
First Home Super Saver (FHSSS)
Best for: Anyone saving a deposit
Withdraw up to $50,000 of voluntary super contributions toward your deposit — effectively saving with pre-tax income.
Combines with others? Yes — feeds your deposit for any of the above.
How to choose (the decision in one minute)
Ask one question first: what’s actually stopping you?
If it’s the deposit — you earn enough to make the repayments but can’t save it — your anchor is the 5% Deposit Scheme, and on a new build the $0 stamp duty and no LMI are what bring a $1,000,000 Queensland home down to about $54,500 to get into (versus $122,000 established). Feed the deposit with the First Home Super Saver, and in Victoria add the $10,000 grant. That’s the path most of our buyers take.
If it’s income/serviceability — the bank says you can’t borrow enough — then Help to Buy is worth a serious look, because the government’s equity share shrinks the loan you have to service. The trade-off is shared ownership, and you can’t combine it with the 5% scheme.
If you’re a single parent, the Family Home Guarantee lets you in with a 2% deposit.
Frequently asked questions
Is there an income limit for the First Home Guarantee (5% Deposit Scheme) in 2026?
No. On 1 October 2025 the income caps were removed entirely — there is no upper income limit on the First Home Guarantee (the 5% Deposit Scheme). The old $125,000 single and $200,000 couple caps were scrapped, and the cap on the number of places was removed too. Property price caps still apply: around $1,000,000 in metro Brisbane, the Gold Coast and Sunshine Coast, $700,000 in regional Queensland, and around $950,000 in Melbourne and Geelong. Many guides still quote the old income caps — as of June 2026 they no longer apply.
Can permanent residents use the 5% Deposit Scheme?
Yes. The 5% Deposit Scheme (First Home Guarantee) is open to both Australian citizens and permanent residents who are 18 or over, are first home buyers who have not owned property in Australia in the last 10 years, and intend to live in the home. This is different from Help to Buy, which is open to Australian citizens only.
Do I pay Lenders Mortgage Insurance with a 5% deposit under the scheme?
No. Under the 5% Deposit Scheme the government guarantees the portion of the loan that would normally require Lenders Mortgage Insurance, so you do not pay LMI. On a typical purchase that can save a first home buyer tens of thousands of dollars compared with putting down a small deposit without the scheme.
Which first home buyer scheme is best?
It depends on your binding constraint. If your blocker is the deposit but you can comfortably service the loan, the 5% Deposit Scheme is usually best — 5% down, no LMI, and on a new build the $0 stamp duty means a $1,000,000 Queensland home needs about $54,500 to get into rather than $122,000. If your blocker is income/serviceability rather than deposit, Help to Buy can be the one that gets you in. Single parents should look at the Family Home Guarantee.
Can you use more than one scheme together?
Yes — most stack. A typical new-build first home buyer uses the 5% Deposit Scheme (no LMI) + $0 stamp duty, feeds the deposit with the First Home Super Saver, and in Victoria adds the $10,000 First Home Owner Grant. The exceptions: Help to Buy cannot be combined with the 5% First Home Guarantee, and Queensland’s $30,000 grant has a $750,000 cap that most new packages exceed.
Do I need a 20% deposit to buy my first home?
No. Under the 5% Deposit Scheme you buy with a 5% deposit and pay no Lenders Mortgage Insurance. On a $1,000,000 Queensland new build that means about $54,500 of real cash to get in — versus about $122,000 for an established home of the same price, because new builds attract $0 stamp duty and no LMI.
Is the Queensland First Home Owner Grant worth chasing?
For most Queensland new-build buyers, no — the $30,000 grant has a $750,000 price cap and most packages sit above it. The bigger Queensland saving is structural: $0 stamp duty (around $38,000 on a $1M purchase) and no LMI. In Victoria, the $10,000 grant is usable and worth claiming.
Which scheme is best if my partner has owned a home before?
The grants and the 5% guarantee generally require that neither applicant has owned before, so prior ownership usually rules them out as a couple. Help to Buy uses a current-ownership test, so a partner who owned previously but has since sold can still qualify. Get your specific situation checked.
See your real numbers
The fastest way to know which combination fits you is to run your situation. Use our free calculators, or book a free 15-minute call and we’ll map the exact stack for your price, state and timing. Low Deposit Homes is free to you; we’re paid by builders, not buyers, and we’re not a lender or broker — we line up the scheme stack and connect you with licensed professionals for the finance.
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General information only — not financial or credit advice. Eligibility, caps and dates vary by individual circumstances and can change; figures current as at June 2026. Finance is arranged through licensed mortgage brokers and lenders. Low Deposit Homes operates under Winning Homes Australia Pty Ltd.