Understanding Government Grants and Schemes

The 5% Deposit Scheme is part of the federal Home Guarantee Scheme. The government guarantees part of your loan, so an eligible buyer can purchase with as little as a 5% deposit without paying lenders mortgage insurance (LMI). It is offered through participating lenders.

From 1 October 2025 the scheme was expanded: there are no income caps, no limit on the number of places, and the property price caps were raised. Property price caps still apply and differ by location, and you usually need to live in the property. Other parts of the Home Guarantee Scheme, such as the Family Home Guarantee for eligible single parents, have their own rules.

Each state runs its own First Home Owner Grant. In Queensland and NSW, the grant is generally for buying or building a new home, rather than an established one, and comes with a property value or contract price cap.

Grant amounts and caps have changed several times in recent years and can change with state budgets. You usually need to live in the home for a set period after you move in. Check the Queensland Revenue Office or Revenue NSW for the current amount and conditions.

Some grants are paid at settlement, while for construction they are often paid around the first progress payment. Timing matters, because it affects how much cash you need to have on hand along the way.

Stamp duty (also called transfer duty) can be one of the biggest upfront costs of buying. Both Queensland and NSW offer concessions or exemptions for eligible first home buyers, with full relief below a certain price and partial relief up to a higher threshold.

Concessions may differ between new and established homes, and between houses and vacant land. Thresholds are reviewed from time to time, so run the numbers using the current rules for your state.

The saving from a stamp duty concession can be significant, sometimes tens of thousands of dollars, which is why it can shape the price range you search in. Buying just over a threshold can cost far more than the extra purchase price suggests.

Each scheme sets its own rules, but common requirements include the following. Always check the specific scheme, because there are exceptions.

In many cases you can combine help. For example, an eligible buyer might use the 5% Deposit Scheme, receive a state First Home Owner Grant on a new build and pay little or no stamp duty. Whether that works depends on the property, the price and your circumstances.

Because the details move around, we check current rules with each client before they start house hunting, so the budget is built on what applies today.