First Home Buyer Guide Australia | Grants, Costs & Steps

By AusTaxTools Editorial Team ·

Short answer

First home buyers in Australia have access to grants and concessions that can materially reduce upfront costs — but eligibility rules vary by state and property type. The bigger risk is underestimating total costs beyond the deposit. Most first-time buyers budget for the deposit and forget about everything else.

Government incentives

FHOG, stamp duty concessions, and the First Home Super Saver Scheme. Eligibility depends on state, property type, and price caps. Check your state's rules before budgeting — assumptions cost money.

True upfront costs

Deposit + stamp duty + LMI + conveyancing + building inspection + moving costs. Most first buyers underestimate total upfront costs by 20–30%. Budget for all of it, not just the deposit.

Borrowing capacity

Banks assess income, expenses (using HEM benchmarks), existing debts, and living situation. Pre-check your borrowing power before falling in love with a property outside your range.

Common mistakes

  • Assuming FHOG applies to established properties — most states restrict the grant to new builds or substantially renovated homes.
  • Budgeting only for the deposit and ignoring stamp duty, LMI, conveyancing, and settlement costs.
  • Not checking state-specific concession thresholds before choosing a price range — buying $10k above a threshold can cost $15k+ in lost concessions.
  • Stretching to maximum borrowing power without stress-testing repayments at +1% and +2% rates.

First home buyer calculator

Estimate deposit, duties, grants, and repayments for your first purchase scenario.

Full buying costs breakdown

See every upfront cost — stamp duty, LMI, conveyancing, and more — in one view.

Check borrowing capacity

Find out what lenders are likely to approve before you start looking.

Pre-approval planning

Work backwards from comfortable repayments to a safe borrowing range.

Pre-approval checklist

Step-by-step guide to preparing documents and avoiding common application mistakes.

Budget before browsing

Government incentives help, but realistic budgeting protects.

Model your full costs — deposit, duties, insurance, and repayments — before you start inspecting properties.

Open first home buyer calculator

Related Guides

Refinancing Guide

When switching loans saves money and when break costs eat the benefit.

Buying Costs Beyond the Deposit

Stamp duty, LMI, conveyancing, and the hidden costs most buyers miss.

Borrowing Power

How lenders calculate what you can borrow — income, expenses, and buffers.

Frequently Asked Questions

What grants are available for first home buyers in Australia?
The First Home Owner Grant varies by state, typically $10k to $30k for new builds. Some states also offer stamp duty concessions or exemptions below certain price thresholds.
How much deposit do I need as a first home buyer?
Most lenders require 5% to 20%. Below 20% you will likely pay Lenders Mortgage Insurance, which can add $10k to $40k to your costs depending on the loan size.
Can I use my super for a house deposit?
The First Home Super Saver Scheme lets you withdraw voluntary super contributions up to set limits for a deposit, with potential tax advantages over saving in a standard bank account.