Updated: November 2026
Government assistance may help eligible buyers reduce the deposit or upfront costs needed to purchase a home. However, each program works differently, and qualifying for a government scheme does not automatically mean that a lender will approve your home loan.
This guide provides an overview of the main Australian first-home-buyer schemes, including the Australian Government 5% Deposit Scheme, Help to Buy, the First Home Super Saver Scheme and state-based grants and transfer-duty assistance.
If you are preparing to purchase your first property, our First Home Buyer home loan service explains how CBM Mortgages can help you assess your deposit, borrowing capacity and loan options.
First-home-buyer schemes at a glance
| Scheme | How it may help | Important consideration |
|---|---|---|
| Australian Government 5% Deposit Scheme | Eligible first home buyers may purchase with a minimum 5% deposit without paying Lenders Mortgage Insurance. | Property-price caps, participating-lender requirements and lending criteria apply. |
| Help to Buy | Eligible buyers may purchase with a minimum 2% deposit, with the Australian Government contributing up to 30% of an existing home’s purchase price or 40% of a new home’s purchase price. | The Australian Government receives a corresponding equity share in the property. |
| First Home Super Saver Scheme | Eligible buyers can make voluntary super contributions and later apply to release eligible amounts to help fund a first-home deposit. | Contribution, release and timing rules apply. |
| First Home Owner Grant | A state or territory grant may be available when purchasing or building an eligible new home. | Grant amounts, property thresholds and eligibility rules vary by location. |
| Transfer-duty assistance | Eligible buyers may receive an exemption or concession on transfer duty. | Property-value thresholds and residency requirements vary between states and territories. |
Scheme rules and thresholds can change. Always check the relevant government website and confirm your position before relying on a particular benefit.
Australian Government 5% Deposit Scheme
The Australian Government 5% Deposit Scheme helps eligible first home buyers purchase a home with a minimum 5% deposit. A minimum 2% deposit pathway is also available for eligible single parents and legal guardians.
Under the scheme, the Australian Government provides a guarantee to a participating lender. This may allow an eligible buyer to borrow with a smaller deposit without paying Lenders Mortgage Insurance (LMI).
The scheme currently has no income caps, no waiting list and no annual place limit. However, buyers must still meet eligibility requirements, purchase within the applicable property-price cap and satisfy the participating lender’s credit and home loan approval criteria.
The government guarantee is not a cash payment to the buyer and does not reduce the amount borrowed. A smaller deposit generally means a higher loan-to-value ratio (LVR) and may result in a larger home loan and higher total interest costs.
You can check the current rules on the official Australian Government 5% Deposit Scheme website.
For a more detailed explanation, read our guide to how the Australian Government 5% Deposit Scheme works.
Australian Government Help to Buy Scheme
Help to Buy is a shared-equity program. It is different from the 5% Deposit Scheme because the Australian Government contributes part of the home’s purchase price in exchange for a corresponding ownership interest.
Eligible buyers need a minimum 2% deposit. The Australian Government may contribute:
- up to 30% of the purchase price of an existing home; or
- up to 40% of the purchase price of a newly built home.
The buyer obtains a home loan from a participating lender for the remaining amount. No rent or interest is charged on the Australian Government’s equity share, but the government participates proportionally in any increase or decrease in the property’s value.
Income limits, property-price caps, home ownership rules and participating-lender requirements apply. Help to Buy may also be available to some people returning to home ownership, not only first home buyers.
Check the current rules and participating lenders on the official Australian Government Help to Buy website.
Read our detailed explanation of the Australian Government Help to Buy Scheme.
First Home Super Saver Scheme
The First Home Super Saver Scheme may help eligible buyers save for a deposit by making voluntary contributions to superannuation and later applying to release eligible contributions and associated earnings.
Eligible voluntary contributions are limited to $15,000 in a financial year and $50,000 across all years. The amount ultimately available for release depends on the type of contributions made, applicable tax and the associated earnings calculated under the scheme.
Timing is important. Buyers should obtain a First Home Super Saver determination and understand the release requirements before settlement. Consider speaking with a registered tax agent or licensed financial adviser about how the scheme may affect your personal tax and superannuation position.
Read the current requirements on the Australian Taxation Office First Home Super Saver Scheme page.
First Home Owner Grant
The First Home Owner Grant is administered separately by each state and territory. It generally supports eligible buyers purchasing or building a new home, rather than an established property.
The available grant, property-value threshold and residence requirements depend on where the property is located. Buyers should not assume that rules applying in one state also apply in another.
For a purchase in New South Wales, eligibility should be checked directly with Revenue NSW before contracts are exchanged or financial decisions are made.
Transfer-duty exemptions and concessions
Transfer duty can be a significant upfront purchase cost. Australian states and territories offer different exemptions or concessions for eligible first home buyers.
In New South Wales, the First Home Buyers Assistance Scheme may provide eligible buyers with a transfer-duty exemption or concession, depending on the property’s dutiable value and the current scheme rules.
Transfer-duty assistance is separate from the First Home Owner Grant. Depending on the property and the buyer’s eligibility, more than one form of assistance may be available.
Check the latest thresholds and requirements in the Revenue NSW First Home Buyers Assistance Scheme guide.
Our dedicated guide to first-home-buyer grants and government assistance in NSW provides more information about NSW programs.
Can first-home-buyer schemes be combined?
Some programs can be used together, but this depends on the rules of each scheme and the buyer’s circumstances.
For example, an eligible buyer may be able to use the Australian Government 5% Deposit Scheme alongside state-based transfer-duty assistance or a First Home Owner Grant. The First Home Super Saver Scheme may also help an eligible buyer accumulate part of the deposit.
However, buyers should not assume that every program can be combined. Eligibility must be checked separately, and the chosen lender must participate in the relevant home loan scheme.
Government scheme eligibility does not guarantee loan approval
A buyer may satisfy a government scheme’s eligibility rules but still be unable to obtain the required home loan.
A participating lender will ordinarily assess factors such as:
- income and employment;
- existing debts and credit limits;
- regular living expenses;
- credit history;
- deposit and genuine savings requirements;
- the property’s value and suitability as security; and
- the buyer’s ability to meet repayments if interest rates or expenses increase.
It is also important to budget for costs that a government scheme may not cover, including legal or conveyancing fees, inspections, insurance, moving expenses and adjustments at settlement.
Which first-home-buyer scheme may suit you?
The appropriate pathway depends on your deposit, income, borrowing capacity, preferred property and long-term plans.
The Australian Government 5% Deposit Scheme may suit an eligible buyer who can service a regular home loan but has not saved a 20% deposit. Help to Buy may suit an eligible buyer who could benefit from a smaller home loan and is comfortable with the Australian Government holding an equity share.
The First Home Super Saver Scheme may assist someone still building a deposit, while state-based grants and transfer-duty assistance may reduce some upfront costs.
Before deciding, consider:
- how much you have available for a deposit and purchase costs;
- how much you may be able to borrow;
- whether the property is within the relevant price cap;
- whether participating lenders offer a suitable home loan;
- the repayments and total borrowing required with a smaller deposit; and
- the long-term obligations attached to a guarantee or shared-equity arrangement.
How CBM Mortgages can help
CBM Mortgages can help first home buyers understand how a government scheme may fit alongside their home loan application.
We can help you:
- review your deposit and likely upfront purchase costs;
- estimate your borrowing capacity;
- understand which participating lenders may suit your circumstances;
- compare suitable home loan options;
- prepare the documents required for an application; and
- work through the steps towards pre-approval and settlement.
Government agencies determine scheme eligibility, and participating lenders make their own credit decisions. CBM Mortgages can help you understand the lending side and identify possible issues before you make an offer.
Not sure where to begin? Visit our First Home Buyer home loan service or contact CBM Mortgages to discuss your deposit, borrowing position and home loan options.
Frequently asked questions
Can every first home buyer purchase with a 5% deposit?
No. A 5% deposit option depends on scheme eligibility, property-price caps, the chosen property and approval by a participating lender. The lender must still be satisfied that the buyer can afford and repay the home loan.
Does using the 5% Deposit Scheme mean the government owns part of the property?
No. Under the Australian Government 5% Deposit Scheme, the government provides a guarantee to the participating lender. The government does not take an equity share in the property.
Does the government own part of a Help to Buy property?
Yes. Help to Buy is a shared-equity scheme. The Australian Government contributes part of the purchase price and receives a corresponding equity interest in the home.
Can I receive a First Home Owner Grant when buying an established home?
Grant rules vary between states and territories, but the First Home Owner Grant generally applies to eligible new homes rather than established properties. Check the current rules for the state or territory where you plan to buy.
Can I combine a government scheme with NSW transfer-duty assistance?
Potentially. An eligible NSW buyer may be able to use a federal scheme alongside a NSW transfer-duty exemption or concession. Each program’s requirements must be checked separately.
Will CBM Mortgages determine whether I qualify for a government scheme?
CBM Mortgages can help you understand the published eligibility rules and assess home loan options available through participating lenders. Final scheme eligibility and home loan approval remain subject to the relevant government program and lender requirements.
Disclaimer: This article provides general information only and does not constitute personal financial, legal, tax or credit advice. Government programs, thresholds and eligibility rules can change. Check current official information and consider obtaining advice appropriate to your circumstances before acting.
