The short answer: first home buyers in Australia in 2026 can access several federal schemes, plus state-based grants and stamp duty concessions that differ depending on where you buy. The headline federal one is the Australian Government 5% Deposit Scheme, which lets eligible first home buyers purchase with a 5% deposit and no lenders mortgage insurance, as long as the property sits under a location-specific price cap. There is also the First Home Super Saver Scheme and the Help to Buy Scheme. On top of those, each state and territory runs its own First Home Owner Grant and stamp duty concessions. The catch is that eligibility and caps are specific to your situation and your postcode, so this guide gives you the map, and then you confirm the detail for your exact location.
There are three main federal schemes worth knowing. The 5% Deposit Scheme lets eligible first home buyers buy with a smaller deposit and no lenders mortgage insurance, within price caps. The First Home Super Saver Scheme lets you save for a deposit inside your super, which can be more tax-effective. The Help to Buy Scheme is a shared-equity program where the government takes a share in the property to lower what you need to borrow. Each has its own eligibility rules, and you can check them on the government's first home buyers site.
The 5% Deposit Scheme lets you buy with a 5% deposit while avoiding lenders mortgage insurance, which can save a significant upfront cost. According to the government's first home buyers site, both the purchase price and the lender-assessed value of the home must sit at or below the price cap for the location, and if you are building on vacant land with separate contracts, the land price plus build cost combined must come in under the cap. It covers a range of property types, including new and existing homes, townhouses, apartments and house-and-land packages.
The caps are set by location, so the same scheme allows a higher-priced home in a capital city than in a regional area. These are the current caps published by the government.
States - capital city & regional centres cap / other areas cap
Regional centres included at the higher cap: NSW - Central Coast, Coffs Harbour–Grafton, Illawarra, Mid North Coast, Richmond-Tweed, Newcastle and Lake Macquarie; VIC - Geelong; QLD -Gold Coast and Sunshine Coast.
Territories - single cap per area
The higher capital-city cap also covers listed regional centres, which include the Central Coast, Coffs Harbour to Grafton, Illawarra, Mid North Coast, Richmond-Tweed, and Newcastle and Lake Macquarie in New South Wales, Geelong in Victoria, and the Gold Coast and Sunshine Coast in Queensland. Because some suburbs span more than one postcode with different caps, always confirm your specific suburb and postcode using the government's Postcode Search Tool rather than relying on the state figure.
On top of the federal schemes, each state and territory runs its own support, and this is where it pays to check locally. Most states offer a First Home Owner Grant, often aimed at new builds, and many offer stamp duty exemptions or concessions for first home buyers up to certain price thresholds. The amounts and thresholds differ a lot between states and change from time to time. Your state or territory revenue office is the source of truth for what applies where you are buying, so check there for the current figures.
You can often combine schemes, which is where the real value is. A first home buyer might use the 5% Deposit Scheme to avoid lenders mortgage insurance, draw on First Home Super Saver savings for the deposit, and claim a state grant or stamp duty concession as well, depending on eligibility. The rules on stacking vary, so the practical step is to map out which schemes you qualify for before you start house hunting, so you know your real budget and buying power from the outset rather than discovering it late.
Can I buy a home with a 5% deposit in Australia? Eligible first home buyers can, through the Australian Government 5% Deposit Scheme, which also lets you avoid lenders mortgage insurance, provided the property is at or below the price cap for its location and you meet the scheme's eligibility rules.
What is the price cap for the 5% Deposit Scheme in my area? Caps are set by state and location, ranging widely, and some suburbs have more than one postcode with different caps. Use the government's Postcode Search Tool to confirm the cap for your specific suburb and postcode.
Do first home buyer grants differ by state? Yes. Each state and territory runs its own First Home Owner Grant and stamp duty concessions, with different amounts and thresholds. Check your state or territory revenue office for the current details.
Can I use more than one first home buyer scheme? Often yes, depending on eligibility. Many buyers combine a federal scheme with a state grant or stamp duty concession. The rules on combining vary, so confirm what you qualify for early.
Written by Ashley, founder of Noma Finance. Before becoming a finance and asset broker, Ashley worked at car dealerships and has personally held every loan type Noma helps with. Noma compares options across a panel of lenders to help people find finance that fits their situation, explained in plain English.
If you want help working out which schemes you qualify for and what you can actually borrow, that is exactly the sort of thing we untangle for first home buyers. Book a call or apply online.
This article is general information only. It does not take into account your objectives, financial situation or needs, and it is not financial or credit advice. Scheme rules, price caps and grant amounts change and are location-specific, so the information is current as at the date below only. Always confirm the current detail for your situation and postcode with the linked government sources before acting.
Last updated: July 2026.
- Australian Government, 5% Deposit Scheme property price caps: https://firsthomebuyers.gov.au/australian-government-5-percent-deposit-scheme/property-price-caps
- Australian Government, First Home Buyers (schemes overview): https://firsthomebuyers.gov.au
- ASIC Moneysmart, First home buyers: https://moneysmart.gov.au/buying-a-home/first-home-buyer-grants-and-schemes
Sources last checked July 2026.
Written by Ashley, founder of Noma Finance. Before becoming a finance and asset broker, Ashley worked at car dealerships, and has personally held every loan type Noma helps with. Noma compares options across a panel of lenders to help people find finance that fits their situation, explained in plain English.
This article is general information only. It does not take into account your objectives, financial situation or needs, and it is not financial, credit or tax advice. Consider whether it is appropriate for you and seek advice from a licensed professional before making a decision. Tax outcomes for novated leases and chattel mortgages depend on your circumstances, so speak with a licensed tax adviser or accountant. Any figures used are illustrative only.
