First Home Buyer Guide Australia 2026 — Grants, Schemes & Step-by-Step Process

Buying your first home in Australia has never been more complex — or more supported. In 2026, there are federal and state schemes worth up to $60,000+ in combined benefits. Here's everything you need to know, in order.

Government Support Available to First Home Buyers in 2026

Step-by-Step: How to Buy Your First Home

Step 1 — Work Out Your Budget (Months 1–3)

Start by calculating: how much you can borrow (use our borrowing power calculator), how much deposit you need, and what your monthly repayments will be. Aim for repayments under 30% of your take-home pay as a sustainability guide.

Step 2 — Build Your Deposit (Ongoing)

You need a minimum of 5% deposit to access the First Home Guarantee, or 10–20% for standard loans. On a $600,000 property, 5% is $30,000 and 20% is $120,000. Use the First Home Super Saver Scheme to save inside super at concessional tax rates — you can withdraw up to $50,000 ($15,000 per year cap) for a deposit.

Step 3 — Get Pre-Approval (1–2 Weeks)

Pre-approval (also called conditional approval or approval in principle) gives you a clear budget before you start inspecting properties. It typically takes 3–7 business days and is valid for 90 days. Documents needed: 2 payslips, 2 years of tax returns, 3–6 months of bank statements, and ID.

Step 4 — Find Your Property (1–6+ Months)

Use realestate.com.au and domain.com.au as primary search tools. Attend open homes, research comparable sales in your target suburb (RP Data or CoreLogic via your broker), and don't skip the building and pest inspection ($500–$800 — worth every cent).

Step 5 — Make an Offer / Bid at Auction

Private sale: make an offer in writing, negotiate on price and conditions (finance clause, building inspection clause). Auction: unconditional on the day — ensure your finance is fully arranged before bidding. Have a solicitor review the contract before you sign anything.

Step 6 — Formal Approval & Settlement (4–8 Weeks)

Once your offer is accepted, apply for formal loan approval with the specific property details. Your lender will conduct a valuation. Settlement typically occurs 30–90 days after contract signing — your conveyancer handles the transfer, stamp duty payment, and title registration.

The First Home Super Saver Scheme (FHSS) — Is It Worth It?

The FHSS lets you make voluntary contributions to super, then withdraw them (plus associated earnings) for a home deposit. Contributions are taxed at 15% inside super instead of your marginal rate — potentially saving 17–30% in tax per dollar saved.

Withdraw up to $15,000 per year (up to $50,000 total). Ideal for people on incomes above $45,000 who have 2+ years before they plan to buy. Downside: the process to withdraw is administrative and takes 15–25 business days — plan ahead.

Lenders Mortgage Insurance — What It Is and How to Avoid It

If your deposit is under 20%, most lenders require LMI — a one-off insurance premium that protects the lender (not you) if you default. On a $600,000 property with a 10% deposit, LMI can cost $10,000–$18,000. The First Home Guarantee eliminates this by having the federal government guarantee the remaining 15%. Places are limited to 35,000 per year — apply early through a participating lender (all major banks and many non-banks).