How the Government’s First Home Owner Scheme Works
For many Australians, the dream of owning a first home feels increasingly out of reach. Rising property prices, tougher lending rules and the growing cost of living have made saving for a deposit the biggest hurdle for aspiring buyers. In response, federal and state governments have developed a range of programs—commonly grouped under “first home owner schemes”—designed to reduce upfront costs and help people enter the market sooner.
But these programs can be confusing. Some are grants, some are deposit-assistance schemes, and others provide stamp duty relief. Here is a clear breakdown of how the government’s first home owner schemes currently work and who they are designed to help.
1. The First Home Owner Grant (FHOG)
The First Home Owner Grant is a one-off payment offered by state and territory governments to help eligible Australians buy or build their first home.
Although the rules differ across jurisdictions, the FHOG typically:
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Applies only to new homes (newly built, off-the-plan or significantly renovated)
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Ranges between $10,000 and $30,000, depending on the state
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Has a price cap for eligible properties
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Requires applicants to live in the home for a minimum period after purchase (usually 6–12 months)
Who qualifies?
You must generally:
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Be a first-time home buyer
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Be an Australian citizen or permanent resident
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Not have previously received the FHOG in any state
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Not own any other residential property
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Meet the residency requirement
The FHOG is not available for investment purchases.
2. Stamp Duty Concessions for First Home Buyers
Stamp duty is one of the largest upfront costs when buying a home. To ease this burden, most states offer:
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Full stamp duty exemptions for homes below a certain price threshold
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Discounted stamp duty rates for homes above that threshold but within a capped range
These thresholds vary significantly between states. For example:
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NSW may offer full exemption under a price point (often around the $800k bracket for first home buyers)
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Victoria and Queensland offer similar concessions, with different caps
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Some states apply concessions to both new and existing homes
This support often saves buyers tens of thousands of dollars, making a material difference to borrowing capacity.
3. The First Home Guarantee (FHBG)
The First Home Guarantee is a federal initiative that helps buyers purchase a home with a deposit as low as 5% without paying lenders mortgage insurance (LMI).
Rather than giving cash, the government acts as a guarantor for up to 15% of the property’s value—reducing the risk for the bank and removing the need for LMI.
Key features:
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Only 35,000 places are available each financial year
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Applies to both new and existing homes
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Caps apply to income and purchase price
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Must be an owner-occupier (not an investor)
This scheme can save buyers $10,000–$30,000 in LMI costs and dramatically brings forward the timeline for entering the market.
4. The Regional First Home Buyer Guarantee
This operates similarly to the FHBG but is designed specifically for regional buyers.
Key points:
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Allows a 5% deposit without LMI
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Applicants must live or work in a regional area for at least 12 months
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Has separate annual places (about 10,000 per year)
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Supports regional housing growth and local affordability
For many regional Australians—where incomes are lower but land is plentiful—this scheme has fast become one of the most effective tools for home ownership.
5. The Family Home Guarantee (Single Parents Scheme)
The Family Home Guarantee targets single parents or single legal guardians of children—recognising the difficulty of saving for a deposit on one income.
The scheme allows qualifying applicants to buy a home with:
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A deposit as low as 2%
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No lenders mortgage insurance, because the government guarantees up to 18%
This is one of the most generous housing schemes available and can be used for:
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New or existing homes
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First-time or previous home owners (if you do not currently own property)
6. Help to Buy (Shared Equity Program)
Launching progressively, Help to Buy is the government’s shared-equity scheme.
Under the program:
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Government contributes up to 40% of the purchase price for a new home
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Or up to 30% for an existing home
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The buyer needs only a 2% deposit
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The government holds an equity stake, which the buyer can later buy back
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Income and property price caps apply
This reduces the mortgage size and lowers repayments—but owners must eventually repay the government’s share or sell the property.
7. State-Based Shared Equity Programs
Some states, including Victoria, WA and South Australia, have their own shared-equity schemes for first home buyers. These operate similarly to Help to Buy but come with state-specific eligibility rules and caps.
What If You Want to Use Multiple Schemes?
In many cases, buyers can combine schemes—for example:
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FHOG + First Home Guarantee
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Stamp duty exemption + shared equity
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FHOG + Help to Buy
Banks and brokers can help determine which combination maximises benefits, but places in federal guarantee programs are limited, so timing matters.
Who Benefits the Most?
The schemes are most useful for:
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Young buyers struggling to save a large deposit
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Single parents or low-income households
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Regional Australians
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Those buying new builds
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Renters facing rising rental prices and wanting to secure stability
However, buyers must still meet loan serviceability requirements—income support from the government does not guarantee mortgage approval.
The Bottom Line
Australia’s first home owner schemes are designed to remove the biggest barriers to home ownership: high deposits, stamp duty, and LMI. While the programs don’t fix the underlying issue of housing supply, they can make the difference between renting indefinitely and securing a home years sooner.
For buyers who understand the options and move quickly when places open, these schemes can save thousands of dollars and significantly accelerate the journey into the property market.
