Do You Still Own Property in South Africa? How It Affects Buying Your First Australian Home (2026)

June 17, 2026

Many South Africans in Australia still own — or once owned — a house or flat back home, and they assume that disqualifies them from "first home buyer"…

By Chaice Paterson, CEO & Founder, Low Deposit Homes | Updated June 2026

Many South Africans in Australia still own — or once owned — a house or flat back home, and they assume that disqualifies them from “first home buyer” schemes here. The truth is more nuanced and mostly good news: it depends on the scheme, and on whether you owned versus lived in the property. The federal 5% Deposit Scheme only looks at whether you’ve owned property in Australia — your South African property generally doesn’t count. The Victorian First Home Owner Grant is stricter and does look at worldwide ownership. And Help to Buy turns on whether you currently own property. Getting this right is exactly the kind of question we untangle for South African clients every week. Here’s the accurate breakdown — and please confirm your specific situation with us, because the detail matters. This is general information, not financial or legal advice.

The key distinction: owned vs occupied, Australia vs worldwide

Two distinctions decide almost everything:

Did you just own it, or did you live in it? Several schemes only count property you owned and occupied as a residence — an investment property you never lived in may not affect you.
Does the scheme test Australian property only, or worldwide property? This varies scheme by scheme, and it’s where most of the confusion comes from.

Let’s go scheme by scheme.

The 5% Deposit Scheme: South African property generally doesn’t count

The federal 5% Deposit Scheme (the First Home Guarantee) assesses whether you’ve owned residential property in Australia — broadly, you qualify if you haven’t owned property in Australia in the past 10 years. Property you own or owned in South Africa generally does not disqualify you from this scheme. For most South Africans, this is the headline: your home back in Johannesburg or Cape Town doesn’t lock you out of the country’s flagship low-deposit scheme.

The First Home Owner Grant: Victoria is strict, Queensland focuses on Australia

This is where you must be careful, because the grants use different definitions:

Victoria: the VIC First Home Owner Grant looks at worldwide ownership. You’re generally ineligible if you (or your partner) have owned and occupied residential property anywhere in the world after 1 July 2000. So if you owned and lived in a home in South Africa after that date, the Victorian grant is likely off the table — though the 5% Scheme and other levers may still apply. (An overseas property you owned purely as an investment and never lived in may not disqualify you — this is exactly the owned-vs-occupied distinction.)
Queensland: the QLD First Home Owner Grant focuses on whether you’ve previously owned and lived in residential property in Australia. Owning property in South Africa is treated differently from owning in Australia — but the rules are specific, so confirm your exact position.

The takeaway: a South African property is far more likely to affect a Victorian grant claim than a Queensland one. We check this precisely before you rely on any grant.

Help to Buy: it’s about what you own NOW

Help to Buy (citizens only) requires that you do not currently own property. Importantly, prior ownership is fine if you’ve sold — it is not strictly first-home-buyer-only. The practical implication for South Africans: if you currently own a home back in South Africa, that may need to be addressed before a Help to Buy application, whereas a property you’ve already sold doesn’t hold you back. Because this is the one scheme where current worldwide ownership is most likely to matter, confirm your situation early if Help to Buy is your intended path.

How does your South African property affect what you can borrow?

Separate from scheme eligibility, an existing property back home shows up in your serviceability assessment:

If it earns rent, some lenders will count a portion of that rental income — but they apply a conservative discount, and currency and evidence requirements matter. Treat any overseas rental income as a possible help, not a guaranteed one.
If it has a bond (mortgage) against it, those repayments are a liability that reduces your borrowing capacity, the same way any debt does. Declare it.
Either way, declare it. Undisclosed overseas assets or debts discovered during the process raise questions. Disclosed, they’re simply part of your picture.

As with everything else: the 5% Scheme reduces your deposit, not your loan. Your income, net of commitments including any overseas mortgage, sets your borrowing capacity, and no responsible application stretches the loan past roughly 6.5 times a single income, or 6 times where you support dependants.

A worked illustration

Pieter and Anke moved to Brisbane on PR and still own a townhouse in Pretoria they rent out. They worry they’ve “already used” their first home buyer status. In fact: the 5% Deposit Scheme doesn’t count their South African property (it only tests Australian ownership), so they can buy a new build in a Brisbane growth corridor with a 5% deposit and no LMI. The Queensland grant question turns on Australian ownership, not their Pretoria townhouse. Their rental income back home might be partially counted, while the bond on it is a declared liability. They buy an $880,000 package, with the 5% Scheme and stamp duty exemption removing most of the upfront cash. (Illustrative; your numbers and the rules will need confirming for your case.)

What if I’m thinking of selling my South African property?

That’s a cross-border tax and exchange-control question — involving SARS, SARB and possibly Australian tax — and it’s specialist territory. If selling is part of your plan (for example to clear a Help to Buy hurdle, or to fund your deposit), get qualified cross-border advice on the timing, tax and transfer mechanics. We’ll point you to the right specialists rather than guess rules that change.

How does Low Deposit Homes help?

We confirm, scheme by scheme, exactly how your South African property affects your eligibility and your borrowing — before you rely on anything. We get you a full bank approval before you’re placed on any package — our finance partners (licensed brokers) review your borrowing capacity and match you to the lender whose policy suits your overseas-asset picture — and find you a right-sized new-build package your income services. Where selling or transferring South African property or funds is involved, we connect you with cross-border specialists.

We build across Queensland and Victoria — from the Ipswich and Logan growth corridors in Brisbane to Melbourne’s western, northern and south-eastern growth corridors and beyond — and match you to the area that fits your life, not the other way around.

Worth knowing early: settlement is not handover. Settlement is when the land title transfers; handover is when you collect the keys, often months later.

Frequently asked questions

I own a house in South Africa — can I still use the 5% Deposit Scheme?
Generally yes. The 5% Scheme assesses Australian property ownership only, so your South African property typically doesn’t disqualify you.

Does my South African property affect the First Home Owner Grant?
In Victoria, yes — the VIC grant counts worldwide owned-and-occupied property after 1 July 2000. In Queensland, the test focuses on Australian ownership. Confirm your exact position.

Can I use Help to Buy if I still own property in South Africa?
Help to Buy requires you don’t currently own property; prior ownership is fine if sold. Current overseas ownership may need addressing first — confirm early.

Will my overseas rental income help my application?
Possibly — some lenders count a discounted portion, with currency and evidence requirements. Any bond on the property is a liability you must declare.

Should I sell my South African property?
That’s a cross-border tax and exchange-control decision needing specialist advice. We’ll connect you with the right people.

Do I have to buy in a particular suburb?
No. The corridors mentioned are examples of where we build and where the value is strong — we build across Queensland and Victoria and match you to the area that suits your work, family and budget.

Your next step

Book a free 15-minute consultation and we’ll work out exactly how your South African property affects your options here.

Book your free call → Book your free call | 1800 920 172

Related reading: South African First Home Buyer Guide (pillar) · First Home Buyer Schemes by Visa for South Africans · Bringing Money From South Africa for Your Deposit · Help to Buy for South Africans.

Low Deposit Homes operates under Winning Homes Australia Pty Ltd (ACN 633 321 758). All calculations indicative. Not financial advice.