Top 10 First Home Buyer Stats You Need to Know

The Australian Government 5% Deposit Scheme has removed income caps and annual place limits from 1 October 2025, fundamentally changing who qualifies and when they can apply.

31 Lenders Now Offer the 5% Deposit Scheme

Applications for the Australian Government 5% Deposit Scheme are processed through a participating lender panel of 31 lenders comprising three major banks and 28 non-major lenders. You cannot apply directly to Housing Australia. The expansion to 28 non-major lenders means options exist beyond the household banking names. In our experience, borrowers who were declined by one of the major three often secured approval through a regional bank or non-bank lender on the same panel, purely because the serviceability model differed.

Consider a buyer with irregular overtime income or a second job that hasn't reached six months tenure. One lender counts that income in full, another ignores it entirely. The application goes to the same government guarantee, but the outcome depends entirely on which of the 31 lenders assesses it first. That's why applying through a broker familiar with the panel matters. Pre-approval with one lender doesn't mean you've exhausted the scheme.

Property Price Caps Reached $1,500,000 in Sydney

Sydney's property price cap under the 5% Deposit Scheme sits at $1,500,000, while Melbourne is capped at $950,000 and Brisbane at $1,000,000. Regional caps also increased from 1 October 2025. These figures reflect the reality that a 5% deposit buyer in Sydney can now access properties well above the median without needing to wait years for a 20% deposit.

That higher cap creates a second dynamic. Buyers who would have settled for a unit in an outer suburb can now consider a house closer to work or family. The decision shifts from "what can I afford with my deposit" to "what do I actually want to buy". In practical terms, that means more time spent on location and less time calculating how to avoid lenders mortgage insurance. Anyone applying under the scheme should understand that the government guarantees the gap between your deposit and 20%, not the gap between your deposit and the purchase price.

Help to Buy Covers Up to 40% of a New Home Purchase Price

Under Help to Buy, the Australian Government contributes up to 40% of the purchase price for a new home and up to 30% for an existing home in exchange for a proportional equity stake. A minimum 2% deposit is required, and income limits are $100,000 for individuals and $160,000 for joint applicants or single parents. The scheme operates in New South Wales, Victoria, Queensland, South Australia, the Australian Capital Territory, the Northern Territory, and Western Australia joined in early 2026. Tasmania has opted out.

The equity contribution is not a grant. The government owns a share of your home equivalent to the percentage they contributed. When you sell or refinance, they receive that same percentage of the sale or valuation price. If the property increases in value, so does the government's share. If it falls, their share falls too. The buyer must occupy the property as their principal place of residence and cannot use Help to Buy alongside the 5% Deposit Scheme. You pick one path or the other based on whether you'd rather avoid a larger debt now or retain full ownership from settlement.

Queensland's First Home Owner Grant Dropped from $30,000 to $15,000

Queensland's First Home Owner Grant was $30,000 for eligible contracts signed between 20 November 2023 and 30 June 2026, but reduced to $15,000 for contracts signed from 1 July 2026. The grant remains available only for new homes valued under $750,000. Buyers of established homes receive no grant.

That $15,000 reduction matters when calculating how much cash you need at settlement. As an example, a buyer planning to exchange in August and expecting $30,000 toward their deposit found themselves $15,000 short after missing the deadline by weeks. They could have exchanged earlier on a different property or adjusted their deposit source, but the contract timing ruled out the higher grant. If you're considering new builds in Queensland and the grant forms part of your deposit calculation, confirm the contract date and settlement timeline with your conveyancer before making an offer.

The ACT Removed All Property Value and Income Limits from 1 July 2026

From 1 July 2026, eligible buyers in the Australian Capital Territory are fully exempt from conveyance duty regardless of the value of the property purchased and regardless of household income. The property value limit and income threshold that applied to transactions before that date have both been removed. All other eligibility requirements continue to apply, including the requirement to own and occupy the property as a principal place of residence continuously for a minimum of one year commencing within 12 months of settlement.

This shift means buyers earning above the previous income cap or purchasing above the previous property threshold now qualify for the full duty exemption. In a scenario where a household earning $180,000 jointly purchases an apartment in Braddon, they previously would have paid standard conveyance duty. Under the new rules, that duty is waived entirely. The ACT Revenue Office website is being updated to reflect these changes. Anyone applying for the concession should confirm current eligibility directly with their conveyancer or the Revenue Office.

Tasmania's Grant Increased to $20,000 but Stamp Duty Exemptions Ended

Tasmania's First Home Owner Grant increased to $20,000 for new homes from 1 July 2026, subject to assent, but the full duty exemption that applied to first home buyers of established homes with a dutiable value of $750,000 or less for purchases settling between 18 February 2024 and 30 June 2026 has ended. No equivalent exemption for established homes is in place from 1 July 2026 under current Tasmanian law.

The practical outcome is that buyers purchasing an established home now face standard stamp duty, which can run into tens of thousands depending on the purchase price. The $20,000 grant for new homes partially offsets that change, but only if you're buying new. Buyers who planned to purchase an established property in Hobart or Launceston and expected the duty exemption to apply should recalculate their settlement costs and deposit requirements accordingly. If your first home loan application assumed zero duty, you may need additional genuine savings or a larger loan to cover the gap.

Northern Territory Offers a $50,000 Grant for New Homes Until September 2027

The Northern Territory's HomeGrown Territory Grant provides $50,000 for new homes and applies to contracts signed by 30 September 2027. A separate $10,000 grant for established homes ended 30 September 2025. The Territory Home Owner Discount provides a reduction of up to $18,601, but no broad general stamp duty exemption equivalent to other jurisdictions applies.

That $50,000 grant is the highest in the country. Combined with the Australian Government 5% Deposit Scheme, a buyer purchasing a new home in Darwin or Palmerston can access substantial government support. From 1 July 2026, two property price caps apply for the 5% Deposit Scheme in the Northern Territory: Darwin $750,000 and the rest of the Northern Territory $600,000. The grant and the scheme can be used together, but the lower property cap outside Darwin limits where the combination applies. Buyers considering regional locations in the Territory should confirm the applicable cap before committing to a purchase.

Single Parents Can Apply with a 2% Deposit Under the 5% Deposit Scheme

Eligible single parents or legal guardians can purchase with a 2% deposit under the Australian Government 5% Deposit Scheme. Housing Australia guarantees the difference between the deposit and 20% of the property value. No lenders mortgage insurance is payable.

The lower deposit threshold recognises that single parents often face a longer savings timeline while managing sole household costs. In practical terms, a 2% deposit on a property within the scheme cap requires far less upfront cash than the standard 5% or 10%. The eligibility criteria for single parents or legal guardians are set by Housing Australia and assessed through the participating lender. You apply via one of the 31 lenders on the panel, not directly to the government. If you're unsure whether you meet the single parent criteria under the scheme, speak with a broker familiar with the panel before making assumptions based on general eligibility descriptions.

Victoria's Off-the-Plan Concession Ends 31 October 2026

Victoria's off-the-plan concession applies to strata or community title contracts signed on or before 31 October 2026 for properties not yet titled or substantially completed. Duty is calculated on land value at contract date only and is available to a broader group of buyers beyond first home buyers during the eligible period. The Victorian Homebuyer Fund closed September 2025.

The concession reduces duty significantly because the valuation excludes the building component at contract date. A unit valued at completion around $650,000 might have a land value of $250,000 when the contract is signed, and duty is calculated only on that lower figure. Buyers who exchange before 31 October 2026 lock in that saving. After that date, standard duty applies. If you're considering an off-the-plan purchase in Melbourne or regional Victoria and want the concession, confirm the contract timing with your conveyancer. Missing the deadline by days removes the concession entirely.

South Australia Removed Property Price Caps for New Homes

South Australia's First Home Owner Grant of $15,000 for new homes has no property price cap for eligible contracts entered into on or after 6 June 2024. Full transfer duty concession on new homes and vacant land to build also has no price cap on residential land from 1 May 2025. On established homes, nil duty applies up to $700,000, with a concession up to $800,000.

Removing the cap means buyers purchasing new homes in Adelaide or regional South Australia qualify for both the grant and the duty concession regardless of price. That opens up higher-value new builds without forfeiting government support. Buyers considering established homes face a lower duty threshold, which can make the new build option more appealing purely from a cost perspective. If you're weighing new versus established in South Australia, calculate the total settlement cost including duty and grants before deciding. The gap between the two paths can run to $30,000 or more depending on the property.

When the numbers behind the schemes are clear, the decision becomes less about guessing and more about planning. Call one of our team or book an appointment at a time that works for you.

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