Australian property prices are famous; the pathways around them are less so. Between the expanded Home Guarantee Scheme, the super-powered FHSS, and state stamp-duty concessions, first buyers in 2026 have more leverage than the headlines suggest — if they know the sequence. Here it is.
The deposit: 20% is the ideal, not the rule
- 20% deposit avoids Lenders Mortgage Insurance entirely — but on a $750,000 home that's $150,000 plus costs, which is why most first buyers use another route.
- The Home Guarantee Scheme: buy with as little as 5% deposit and no LMI, with the government guaranteeing the gap. From late 2025 the scheme expanded significantly — no income caps and more places — making it the default first-buyer route. Property price caps apply per city/region; check the current caps at Housing Australia.
- First Home Super Saver (FHSS): salary-sacrifice into super (taxed at 15% instead of your marginal rate), then withdraw up to $15,000/year, $50,000 total of voluntary contributions plus earnings for a deposit. For a 30%+ marginal-rate saver it's the fastest legitimate deposit accelerator in the country — start it early, even at $100/fortnight.
- Family guarantee: parents securing part of your loan against their equity skips LMI without cash changing hands — with real risk to the guarantor; everyone should get advice.
The government sweeteners, state by state
- Stamp duty is the big up-front tax (roughly $10,000–$40,000+ on typical homes, varying by state). Every state offers first-home concessions — full exemptions below thresholds (e.g. NSW exempts well into the $800,000s, VIC to $600,000 with tapering above) and discounts beyond. This alone can be worth more than any grant.
- First Home Owner Grants ($10,000–$30,000 depending on state) generally apply to new builds, not established homes.
- Buying as a permanent resident: you're treated like a citizen for most schemes. Temporary visa holders generally need FIRB approval and pay surcharges — factor it before falling in love with a listing. (New PR? Sequence this after the first-90-days basics.)
The process, start to finish
- Know your number: model repayments with our home loan calculator and sanity-check against take-home pay (pay calculator) — lenders will test you at the rate plus ~3%.
- Pre-approval (2–6 weeks validity ~90 days): a lender or broker verifies income and commits in principle. Brokers are paid by lenders and free to you; a good one shops 30+ lenders.
- Hunt with data: realestate.com.au and Domain listings, recent sold prices (not asking prices), and suburb due diligence — flood maps, planned developments, commute at rush hour.
- Before you offer: building & pest inspection ($400–$700 — never skip), strata report for apartments, and a conveyancer/solicitor ($1,200–$2,500) to review the contract.
- Buy: private treaty (offer, negotiate, cooling-off period applies) or auction — where there is no cooling-off and the deposit is due on the fall of the hammer; get everything checked beforehand.
- Exchange → settlement (typically 30–90 days): your conveyancer and lender handle transfers; you do a final inspection the week of settlement, then collect keys.
Choosing the loan itself
- Variable vs fixed: variable moves with the market and allows unlimited extra repayments; fixed buys certainty but penalises breaking. Splitting 50/50 is a legitimate hedge, not indecision.
- Offset accounts (usually on variable loans) turn your savings into effective mortgage prepayment while staying accessible — the single most valuable feature for most owner-occupiers.
- Comparison rate (advertised beside every rate by law) folds fees in — compare that, not the headline.
- Refinancing every 2–3 years is normal here; loyalty is systematically punished with a "loyalty tax" of 0.3–0.5%.