Buying Your First Home in Australia: 2026 Complete Guide

Is Now a Good Time to Buy?

With interest rates stabilising and government incentives still available, 2026 presents a reasonable window for first home buyers. The key is preparation and understanding the full cost of buying.

How Much Deposit Do You Need?

Most lenders require a minimum 5-20% deposit:

Deposit Tiers

• 5% deposit — Available with Lenders Mortgage Insurance (LMI), adds $8,000-$30,000 to your costs
• 10% deposit — Reduced LMI, still significant additional cost
• 20% deposit — No LMI required, best interest rates, strongest negotiating position

For a $600,000 property, that's $30,000 (5%), $60,000 (10%), or $120,000 (20%).

First Home Buyer Grants & Schemes

Federal Schemes

• First Home Guarantee — Buy with 5% deposit, no LMI (limited places)
• Regional First Home Buyer Guarantee — Same benefit for regional purchases
• Family Home Guarantee — Single parents with 2% deposit

State Grants

• NSW — $10,000 grant for new homes under $600,000
• VIC — $10,000 grant for new homes under $750,000
• QLD — $30,000 grant for new homes (boosted 2026)
• SA — $15,000 grant for new homes under $575,000
• WA — $10,000 grant for new homes under $750,000

Stamp Duty Concessions

Most states offer reduced or zero stamp duty for first home buyers under certain thresholds. Check your state's revenue office for current limits.

Hidden Costs of Buying

Beyond the deposit, budget for:

1. Stamp duty — $10,000-$25,000 (unless exempt)
2. Conveyancing/solicitor — $1,500-$3,000
3. Building & pest inspection — $500-$800
4. Loan application fees — $0-$600
5. Moving costs — $500-$2,000
6. Council and water rates — adjusted at settlement
7. Home and contents insurance — $1,500-$3,000/year

Steps to Buying

1. Get pre-approved for a home loan
2. Set your budget (including all costs above)
3. Research suburbs and attend open homes
4. Make an offer or bid at auction
5. Get a building and pest inspection
6. Exchange contracts and pay deposit
7. Arrange final loan approval
8. Settlement (usually 30-90 days)
9. Collect the keys

Tips for First Buyers

• Get pre-approval before you start looking — it sets your budget and shows sellers you're serious
• Don't stretch to your absolute maximum — leave room for rate rises and unexpected costs
• Consider buying in growth corridors where infrastructure is planned
• Engage a conveyancer early, not after you've found a property
• Always get a building and pest inspection, even for new builds