First Home Buyer Guide 2025
Everything you need to know about buying your first home
Key Takeaways
- First Home Guarantee: Buy with just 5% deposit, no LMI (35,000 spots available)
- First Home Super Saver: Withdraw up to $50,000 from super for your deposit
- State grants: $10,000-$30,000 for new homes (varies by state)
- Stamp duty: Concessions or exemptions for first home buyers in every state
- Timeline: Expect 3-6 months from offer to settlement
Government Schemes for First Home Buyers
1. First Home Guarantee (Federal)
The First Home Guarantee (formerly First Home Loan Deposit Scheme) allows eligible first home buyers to purchase with just a 5% deposit without paying Lenders Mortgage Insurance (LMI). The government guarantees the remaining 15%.
Eligibility Requirements:
- Australian citizen aged 18+
- Single income up to $125,000 p.a. OR couple income up to $200,000 p.a.
- Intend to live in the property as your home
- Haven't previously owned property in Australia
| Location | Property Price Cap |
|---|---|
| Sydney | $900,000 |
| Melbourne | $800,000 |
| Brisbane, ACT | $700,000 |
| Adelaide, Perth | $600,000 |
| Hobart | $550,000 |
| Regional areas | Varies ($350,000-$600,000) |
2. Regional First Home Buyer Guarantee
An additional 10,000 spots specifically for regional buyers. Same 5% deposit, no LMI, with regional-specific price caps.
3. Family Home Guarantee
For single parents with dependents. Buy with just 2% deposit, no LMI. 5,000 spots available per year.
4. First Home Super Saver Scheme (FHSSS)
The FHSSS allows you to save for a home deposit inside your super fund, benefiting from lower tax rates:
- Maximum withdrawal: $50,000 per person ($100,000 for couples)
- Tax benefit: Contributions taxed at 15% instead of your marginal rate
- Earnings: Deemed at shortfall interest charge (SIC) rate
FHSSS Example:
Sarah earns $90,000 and salary sacrifices $15,000 to super for 3 years. Instead of paying 32.5% tax ($4,875), she pays 15% ($2,250). After 3 years, she withdraws $45,000 + deemed earnings of ~$4,000. Total saving: ~$8,000 compared to saving in a regular account.
First Home Owner Grants by State
| State | Grant Amount | Property Type | Value Cap |
|---|---|---|---|
| NSW | $10,000 | New home only | $600,000 |
| VIC | $10,000 (metro) $20,000 (regional) | New home only | $750,000 |
| QLD | $30,000 | New home only | $750,000 |
| WA | $10,000 | New home only | No cap |
| SA | $15,000 | New home only | $650,000 |
| TAS | $30,000 | New home only | No cap |
| NT | $10,000 | New home only | No cap |
| ACT | Stamp duty abolished | N/A | N/A |
Note: All states require the property to be newly built or substantially renovated. Grants do not apply to established homes.
Stamp Duty Concessions for First Home Buyers
| State | Full Exemption | Concession |
|---|---|---|
| NSW | Up to $800,000 (new) Up to $650,000 (existing) | $800K-$1M (new) $650K-$800K (existing) |
| VIC | Up to $600,000 | $600K-$750K |
| QLD | Up to $500,000 (home) | $500K-$550K |
| WA | Up to $430,000 | $430K-$530K |
| SA | N/A | Stamp duty relief available |
| TAS | 50% discount available | Up to $600,000 |
| ACT | Full exemption all FHBs | N/A |
| NT | Up to $500,000 | N/A |
Step-by-Step: Buying Your First Home
Step 1: Assess Your Financial Position (3-12 months before)
- Check your credit score: Free via Equifax, Experian, or illion
- Calculate your borrowing power: Banks typically lend 5-6x your income
- Save your deposit: Aim for 10-20% plus costs (3-5% of purchase price)
- Review your spending: Banks check 3-6 months of statements
Upfront Costs to Budget For
- Deposit: 5-20% of purchase price
- Stamp duty: 3-5.5% (unless exempt)
- Conveyancing: $1,500-$3,000
- Building/pest inspection: $500-$800
- Lenders Mortgage Insurance: $10,000-$50,000 (if deposit <20%)
- Loan application fees: $0-$600
- Moving costs: $500-$2,000
Step 2: Get Pre-Approval (2-4 weeks)
Pre-approval (also called conditional approval) tells you how much a lender will lend you. It typically lasts 3-6 months and requires:
- Proof of income (payslips, tax returns)
- Bank statements (3-6 months)
- ID documents (driver's license, passport)
- Details of existing debts
Step 3: Find Your Property (1-6 months)
When searching, consider:
- Location: Commute time, schools, amenities, crime rates
- Property type: House, townhouse, apartment (affects insurance, strata)
- Growth potential: Infrastructure projects, rezoning plans
- Rental yield: In case you need to rent it out later
Step 4: Make an Offer (1-3 weeks)
Private Treaty
- Listed price is a starting point
- Can negotiate price and conditions
- Add cooling-off period (3-5 days)
- Can make offer subject to finance/inspection
Auction
- No cooling-off period if sold at auction
- Exchange contracts on auction day
- Must have finances sorted beforehand
- 10% deposit due immediately
Step 5: Exchange Contracts
Once your offer is accepted:
- Your conveyancer reviews the contract
- You pay the deposit (usually 10%, can negotiate 5%)
- Cooling-off period begins (if applicable)
- Arrange building and pest inspections
- Finalize your loan application
Step 6: Settlement (4-6 weeks after exchange)
On settlement day:
- Your lender transfers funds to the seller
- Conveyancers handle all paperwork
- You receive the keys
- The property is registered in your name
Home Loan Comparison: What to Look For
| Feature | Why It Matters |
|---|---|
| Comparison rate | Includes fees for true cost comparison |
| Offset account | Reduces interest by offsetting your savings |
| Redraw facility | Access extra repayments if needed |
| Extra repayments | Pay off loan faster without penalty |
| Fixed vs variable | Fixed = certainty, Variable = flexibility |
| LVR requirements | Affects LMI and available rates |
Common First Home Buyer Mistakes
- Not getting pre-approval first: You could lose your dream home while waiting for finance
- Ignoring ongoing costs: Rates, insurance, maintenance add $5,000-$15,000 annually
- Buying at your maximum budget: Leave room for rate rises and emergencies
- Skipping building inspection: Can save you from $50,000+ in hidden defects
- Not understanding the contract: Always have a conveyancer review before signing
- Forgetting about strata: Apartment levies can be $3,000-$10,000 per year
Related Calculators
First Home Buyer Checklist
- ☐ Check eligibility for First Home Guarantee
- ☐ Apply for First Home Super Saver release
- ☐ Check state grant and stamp duty concession eligibility
- ☐ Get pre-approval from 2-3 lenders
- ☐ Engage a conveyancer/solicitor
- ☐ Research suburbs and attend inspections
- ☐ Book building and pest inspection
- ☐ Review contract before signing
- ☐ Arrange home and contents insurance
- ☐ Complete settlement and get keys!
Buying your first home is one of the biggest financial decisions you'll make. Take advantage of government schemes, do your research, and don't rush the process. With careful planning and the right support, you can navigate the property market successfully.
IntuitiveCalc Team
This guide is for general information only. Property markets and government schemes change regularly. Always verify current eligibility and seek professional advice.