Buying your first home is a big milestone. It’s exciting, but it can feel overwhelming with rising prices and upfront costs. Many ask: “Does the Australian government help first-time home buyers?”
The answer is yes. There are several government grants and first-home buyer schemes designed to make the process easier. These programs can help you save thousands, buy with a smaller deposit, and avoid Lenders Mortgage Insurance (LMI) through federal and state support. This guide covers the key options available in 2025 and how they can benefit you.
Why does the Australian Government help first-time Home Buyers?
Because owning a home isn’t just a financial decision, it’s about building stability, security, and a stronger future. Buying a home has become tougher for many Australians, with a median price of $844,000 and a 20% deposit of over $160,000 creating a huge barrier for first-time buyers. (Prime Minister’s Office, 2025).
To make homeownership more achievable, the Australian Government provides programs that lower deposits, reduce upfront costs, and support first home buyers. These initiatives aim to help young families and individuals secure a home, build long-term financial security, and keep the property market moving.
Government Schemes Available for First-Time Home Buyers in Australia
First Home Owner Grant (FHOG)
The First Home Owner Grant is one of the most popular government grants for first-time home buyers. It’s a one-off payment to help eligible buyers purchase or build their first home. The amount is usually $10,000, though it varies by state (State Revenue Office Victoria, 2025).
To qualify, you must be over 18, an Australian citizen or permanent resident, and buying or building a new home within the property value limits. For example, Victoria offers $10,000 for homes under $750,000, while Queensland offers $15,000. It can also be combined with other support like deposit schemes and stamp duty concessions (Queensland Government, 2025).
First Home Guarantee (FHBG)
The First Home Guarantee (formerly the Home Loan Deposit Scheme) is a federal program that lets eligible buyers purchase a home with just a 5% deposit. The government guarantees the remaining 15%, so you can avoid paying Lenders Mortgage Insurance (LMI) and save tens of thousands of dollars (Housing Australia, 2024).
From October 2025, property price caps are $1.5M in NSW, $950,000 in VIC, and $1M in QLD, with no income caps or place limits. Single parents can buy with just a 2% deposit (Treasury, 2025).
For example, on a $950,000 Melbourne home, a 5% deposit is $47,500, and buyers can save $30,000 – $40,000 in LMI. The scheme is run by Housing Australia through 30+ participating lenders.
Regional First Home Buyer Guarantee
The Help to Buy Scheme, launching later in 2025, is designed for buyers who’ve saved part of a deposit but need help reaching their property goal. With a minimum 2% deposit, the government can contribute up to 30% for existing homes or 40% for new builds. In return, it holds a share of the property, which can be repaid later or when you sell (OIA/PMC, 2025). This shared equity model lowers borrowing costs, reduces repayments, and makes home ownership more accessible.
Family Home Guarantee
The FHSS Scheme lets first home buyers save their deposit through their super, taking advantage of lower tax rates and faster growth. You can withdraw up to $50,000 in voluntary contributions if you’re 18 or older and haven’t owned property before (Australian Taxation Office, 2022). It’s a smart way to boost savings alongside other grants.
Shared Equity Schemes
Shared Equity Schemes are another powerful way governments support first-time buyers. Unlike grants or guarantees, the government contributes a share of the property’s price and in return holds a proportional share (or “equity”) in your home. You still live in and own the property, but with a smaller loan and lower repayments.
You contribute a small deposit (as low as 2–5%), and the government can cover up to 25% or more of the price (State Revenue Office Victoria, 2025). For example, Victoria’s Homebuyer Fund offers up to 25% (35% for eligible buyers), while WA’s Key Start helps reduce deposit and loan size. This means no LMI and an easier path to buy sooner. These programs are state-based and some, like Victoria’s, are time-limited (Keystart, 2025).
State-Based Schemes for First-Time Home Buyers
While federal schemes are available nationwide, each state and territory has its own programs. Let’s take a closer look at Victoria first, then briefly cover other states.
Victoria (Most Recent Updates – 2025)
In Victoria, first home buyers can access several support options that make a real difference. You may be eligible for a $10,000 First Home Owner Grant for new homes valued up to $750,000. If your property is under $600,000, you could get a full stamp duty exemption, and homes up to $750,000 may receive stamp duty concessions (State Revenue Office Victoria, 2025; Victorian Government, 2025).
The Victorian Homebuyer Fund can contribute up to 25% of the property price, helping you buy with a smaller deposit. There’s also extra support through the Regional First Home Buyer Guarantee (Housing Australia, 2024).
Keep in mind, the Homebuyer Fund is only available for a limited time, so it’s smart to explore these options early.
NSW, QLD, WA & Others (Short Overview)
- NSW: Stamp duty exemptions up to $800,000 and concessions up to $1 million, plus First Home Buyers Assistance (Revenue NSW, 2025).
- Queensland: $15,000 FHOG, regional grants, and stamp duty concessions (Queensland Government, 2025).
- WA: $10,000 FHOG and stamp duty relief for properties under $430,000 (Suncorp, 2025)
- SA: $15,000 FHOG and 2% deposit support (RevenueSA, 2025).
- Tasmania: $30,000 FHOG and stamp duty discounts (Premier of Tasmania, 2024).
- ACT: Home Buyer Concession Scheme (no stamp duty for eligible buyers (Revenue ACT, 2025).
- NT: $10,000 FHOG and additional renovation grants (Northern Territory Government, 2025).
Each state sets its own property value caps and eligibility rules, so it’s best to check your state’s revenue website for the latest information.
Stamp Duty Concessions: What They Mean for Your First Home
Stamp duty is a major upfront cost when buying a home, but many states offer concessions or full exemptions for first home buyers. In Victoria, it’s waived under $600,000 (concessions up to $750,000); in NSW, up to $800,000; and in Queensland, under $550,000. For example, buying a $700,000 home in NSW could save you around $27,000 (State Revenue Office Victoria, 2025; Revenue NSW, 2025; Queensland Government, 2025).
Are You Eligible for First-Home Buyer Government Assistance?
While each program has its own rules, the common eligibility criteria include:
- You must be at least 18 years old
- Be an Australian citizen or permanent resident
- You must not have owned property in the past 10 years (for FHBG)
- The property must be below the scheme’s price cap
- You must live in the property (no investment properties)
It’s also important to note that some schemes have extra rules, such as income thresholds, property location, or the type of home you can buy.
What Can You Save Through These Programs?
Combining government programs can lead to major savings for first home buyers.
For example, on a $650,000 home in Victoria, you could receive a $10,000 First Home Owner Grant, save around $34,000 in stamp duty through the full exemption for properties up to $600,000 (with concessions between $600,001 and $750,000), and avoid roughly $25,000 in LMI through the First Home Guarantee, which allows eligible buyers to purchase with just a 5% deposit.
That’s a total saving of around $69,000, a game changer for many first home buyers (State Revenue Office Victoria, 2025).
Limitations or Conditions of These Schemes to Keep in Mind
These programs come with a few key conditions. Property caps set maximum price limits, and most require you to live in the home rather than rent it out. Not all lenders offer the First Home Guarantee, and some shared equity schemes, like in VIC, will end once funding runs out. Knowing this early helps you plan smart.
Step-by-Step Process to Access First-Time Buyer Assistance
Here’s a simple step-by-step guide to applying:
- Check your eligibility for grants and schemes.
- Talk to a participating lender if you want to apply for the First Home Guarantee.
- Lodge applications (like the FHOG) through your state or territory revenue office.
- Prepare your documents:
- Proof of ID
- Income verification
- Contract of sale
- Loan details
- Work with a mortgage broker who can help you combine multiple grants and get the best loan structure.
A good broker can also help you understand timelines and avoid common application mistakes.
Final Thoughts
So, does the Australian government help first-time home buyers?
Yes, absolutely.
There are more options than ever before to make buying your first home possible , from the First Home Owner Grant and First Home Guarantee to stamp duty concessions and shared equity schemes.
These programs can save you tens of thousands of dollars, help you buy with a smaller deposit, and get into your first home sooner. The key is knowing what you’re eligible for and using the right mix of support.
Clear Path Financial Group can guide you through every step, making the process simple and stress-free. Talk to us today and let’s find the best path to your first home.
Note: All information was accurate at the time of publishing, but government programs and eligibility criteria may change.
