First Home Buyer Guide Australia (2026) — Step-by-Step
This article provides general information only and does not constitute financial advice. For advice tailored to your situation, consult a licensed financial adviser. Learn more.
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First Home Buyer Guide Australia (2026) — Step-by-Step
Buying your first home is one of the biggest financial decisions you’ll make. In Australia in 2026, first home buyers have access to a range of government schemes, grants and stamp duty concessions — but navigating the process can be overwhelming. This guide walks you through every step, from saving your deposit to receiving the keys.
Step 1 — Work Out What You Can Afford
Before you start looking at properties, you need to understand your borrowing capacity and the total costs involved.
Key figures to calculate:
- Your maximum borrowing power (based on income, expenses, debts)
- The deposit you need (minimum 5% via First Home Guarantee; 20% to avoid LMI)
- Upfront costs beyond the deposit: stamp duty, legal fees, building inspections
Use the borrowing power calculator to estimate how much a lender might approve, and the mortgage calculator to see what monthly repayments look like at different loan sizes.
See how much deposit you need to buy a house and the mortgage affordability guides for income-based breakdowns.
Step 2 — Research Government Schemes You May Be Eligible For
In 2026, first home buyers in Australia can access:
| Scheme | Benefit | Federal / State |
|---|---|---|
| First Home Guarantee (FHLDS) | Buy with 5% deposit, no LMI | Federal |
| Regional First Home Buyer Guarantee | 5% deposit in regional areas, no LMI | Federal |
| Family Home Guarantee | Single parents, 2% deposit, no LMI | Federal |
| Help to Buy | Government co-purchase up to 40% equity | Federal |
| First Home Owner Grant (FHOG) | $10,000–$30,000 cash grant (new builds) | State |
| Stamp Duty Exemptions | Full or partial stamp duty waiver | State |
| FHSS Scheme | Withdraw voluntary super contributions for deposit | Federal |
| Shared Equity (various states) | Government co-ownership programs | State |
See the full government schemes guide and scheme comparison table to understand what you may qualify for.
Step 3 — Save Your Deposit
The deposit is typically the biggest hurdle for first home buyers. Your deposit goal depends on the purchase price and whether you’re using a low-deposit scheme.
Deposit targets:
- 5% deposit — minimum to use the First Home Guarantee (no LMI required under scheme)
- 10% deposit — standard minimum without scheme; LMI still applies
- 20% deposit — avoids LMI entirely; gives access to widest range of lenders and rates
Strategies to save faster:
- Use a high-interest savings account (look for 5.00–5.50% p.a. online savings rates in 2026)
- Make voluntary concessional contributions to super via the FHSS scheme (up to $15,000/year, $50,000 total) — see FHSS guide
- Accept a family gift or guarantee — see gifted deposit guide and going guarantor
- Consider a deposit bond for auction situations — see deposit bonds guide
Step 4 — Get Pre-Approval
Pre-approval (also called conditional approval) is a lender’s preliminary assessment of how much they’ll lend you. It is not a guarantee of finance, but it is essential before making offers on property.
What lenders assess:
- Income, employment type and stability
- Existing debts and liabilities (including HECS/HELP)
- Living expenses (using Household Expenditure Measure benchmarks)
- Credit history (via Equifax/illion/Experian)
- Serviceability at the interest rate plus APRA’s 3% buffer
Pre-approval typically lasts 3–6 months. It is conditional on the property valuing up and no material change in your financial circumstances.
Consider using a mortgage broker — many first home buyers benefit from independent advice across multiple lenders. See using a mortgage broker as a first home buyer for guidance.
Step 5 — Find a Property
Once you have pre-approval, you have a clear price range to shop within. Key considerations:
- Property type: house vs apartment vs townhouse — different risks, strata fees, appreciation potential
- Location: commute, schools, infrastructure, suburb growth fundamentals
- Condition: older properties require higher maintenance budgets (budget 1–2% of value per year)
- Strata: check sinking fund balance, pending special levies and annual fees for apartments
Always get a building and pest inspection before exchanging contracts. Cost is $400–$900 and can save thousands in unexpected repair bills.
For off-the-plan purchases, the process differs — title does not transfer until construction is complete, and property valuations at completion can differ from contract price.
Step 6 — Make an Offer or Bid at Auction
Private treaty (negotiated sale):
- Offer is made in writing via the real estate agent
- Seller may counter-offer; negotiation continues until agreement
- 10-business-day cooling-off period typically applies in most states (not applicable in QLD after going unconditional)
Auction:
- No cooling-off period on auction day
- Finance must be arranged and building inspections complete before bidding
- Winning bid is unconditional — you must complete the purchase
- A 10% deposit is typically required on the day (or deposit bond)
Step 7 — Exchange Contracts and Pay Deposit
Once a price is agreed (or auction won), contracts are exchanged and the deposit (typically 10%) is paid into the agent’s trust account. From this point:
- The purchase is legally binding (subject to any conditions)
- Settlement date is set — typically 4–6 weeks after exchange
- Your conveyancer/solicitor conducts title searches and prepares for settlement
Apply for any government grants (FHOG, stamp duty exemptions) at this stage through your lender or solicitor.
Step 8 — Unconditional Approval and Settlement
Your lender will conduct a formal valuation and issue unconditional approval before settlement. At settlement:
- The loan funds are drawn down and paid to the vendor
- Title transfers to your name (registered on the land titles office)
- Keys are handed over
Step 9 — After Settlement
The work doesn’t stop at settlement. Set yourself up for success:
- Set up repayments: configure automatic fortnightly payments (more effective than monthly)
- Offset account: link a 100% offset account and keep savings there to reduce interest daily
- Review rate annually: don’t be loyal to your lender — compare rates every 12 months
- Maintenance fund: set aside 1–2% of property value per year for repairs
First Home Buyer Timeline (Estimated)
| Stage | Typical Timeframe |
|---|---|
| Saving deposit | 2–7 years (depending on income and target) |
| Research and pre-approval | 2–8 weeks |
| Property search | 1–6 months |
| Exchange to settlement | 4–6 weeks |
| Total from decision to keys | Variable — often 6–24 months |
Frequently Asked Questions
What are the steps to buy your first home in Australia? The main steps are: calculate affordability → research schemes → save deposit → get pre-approval → find property → make offer → exchange contracts → unconditional approval → settlement. The process typically takes 6–24 months from first deciding to buy.
How much do I need to earn to buy my first home in Australia? It depends on the property price and location. As a general guide, a single borrower needs $75,000–$90,000 to buy a $500,000–$600,000 property (with a 20% deposit). In Sydney, where prices are higher, income requirements are correspondingly higher. See the mortgage affordability guides for salary-specific breakdowns.
What government help is available for first home buyers in 2026? The major schemes are: First Home Guarantee (5% deposit, no LMI), Family Home Guarantee (single parents, 2% deposit), Help to Buy (shared equity), FHSS (using super for deposit), FHOG (cash grant for new builds) and state-based stamp duty exemptions. See all government schemes.
What is a cooling-off period when buying a home? A cooling-off period is a window (typically 5–10 business days depending on the state) after exchange of contracts during which you can withdraw from the purchase. A small financial penalty typically applies (usually 0.25% of the purchase price). Cooling-off periods do not apply to auction sales or where the parties agree to waive them.
Related Guides
- How Much Deposit Do I Need?
- First Home Buyer Checklist
- First Home Guarantee Explained
- First Home Buyer Hub
This article provides general information only. Eligibility for government schemes and grants depends on individual circumstances. For advice tailored to your situation, speak with a licensed mortgage broker or financial adviser. Find one through MoneySmart.