What Support Is Available for First Home Buyers?

Buying your first home feels like one of those things everyone else has worked out except you.

You're not stuck because you haven't done your homework. You're stuck because the support that exists is scattered across federal and state programs, and no single source explains what applies to you or how to combine different options. What you need is someone to walk you through it in plain language, so you can make a decision with confidence.

The Regional First Home Buyer Guarantee Reduces Your Deposit to 5%

This scheme allows you to purchase with just a 5% deposit without paying Lenders Mortgage Insurance (LMI), which would otherwise add thousands to your upfront costs. It applies to properties in regional areas across Australia, and you must be buying or building a home to live in, not an investment property.

Consider a buyer purchasing a home for $450,000 in Wodonga. With the standard 20% deposit requirement, they would need $90,000 plus costs. Under this scheme, they only need $22,500 as a deposit. Without the scheme, a 5% deposit would usually trigger LMI of around $15,000 to $18,000. The guarantee removes that cost entirely because the government backs the lender for the portion of the loan above 80%.

The catch is availability. There are a limited number of places each financial year, and they're allocated on a first-come basis. Once you're approved in principle for a loan, your broker applies for a spot through a participating lender. If you're considering regional property, this should be one of the first options you explore with your first home buyers specialist.

First Home Owner Grants and Stamp Duty Concessions Vary by State

Each state and territory administers its own first home owner grants and stamp duty concessions, so what you can access depends on where you're buying.

In Victoria, you can receive a $10,000 grant if you're building or buying a new home valued up to $750,000. You may also be eligible for full or partial stamp duty exemptions depending on the property value. In New South Wales, the grant is $10,000 for new homes up to $600,000 in regional areas or $800,000 in metro areas, and stamp duty relief is available for properties up to $800,000.

These aren't add-ons you claim later. They directly reduce what you pay upfront or at settlement. If you're buying in Craigieburn and the property is valued at $580,000, full stamp duty exemption could save you over $30,000. That's the difference between needing help from family and managing the purchase independently.

Your broker should calculate these concessions before you commit to a property, not after. The value thresholds and eligibility criteria change, and missing a concession because you didn't check in time means leaving real money on the table.

How Gift Deposits Work When Family Want to Help

Many buyers receive help from parents or family members, but lenders treat gift deposits differently to savings you've accumulated yourself.

A gift deposit is money given to you that doesn't need to be repaid. Lenders will ask for a signed declaration from the person giving the gift, confirming it's not a loan and there's no expectation of repayment. You'll also need to show the funds entering your account and demonstrate you still have some genuine savings of your own, typically at least 5% of the purchase price.

In a scenario where someone is buying a home for $520,000 in Werribee, they might have saved $15,000 themselves and receive $25,000 from parents. The lender will accept the combined $40,000 as a deposit, provided the gift is properly documented. Without the buyer's own $15,000 in savings, most lenders would decline the application even with the gift, because they want evidence you can manage money independently.

If you're expecting a gift, tell your broker early. They'll make sure the documentation is prepared correctly and that the lender you apply with accepts gift deposits under the terms you're working with. Some lenders are more flexible than others, and choosing the wrong one at the start creates delays you don't need.

Pre-Approval Gives You a Realistic Budget Before You Start Looking

Pre-approval tells you how much a lender is willing to lend before you make an offer on a property. It's conditional, meaning the final approval depends on the property itself, but it gives you a clear budget and makes your offer stronger when you find something you want to buy.

When you apply for pre-approval, the lender assesses your income, expenses, debts, and deposit. They'll give you an approval in principle, usually valid for three to six months. You can then shop within that budget knowing you're not wasting time on properties you can't afford or undershooting what you could actually borrow.

In our experience, buyers who skip this step either make offers they can't settle or spend months looking in the wrong price range. Pre-approval doesn't lock you into that lender, but it does give you certainty while you're looking. If your circumstances change or you find a better rate elsewhere, you can still switch before settlement. The value is in knowing where you stand right now, not in committing to a lender before you've found a property.

Fixed and Variable Interest Rates Affect Your Repayments Differently

A fixed interest rate stays the same for a set period, usually between one and five years. A variable interest rate moves up or down with the market. Your choice affects how much you pay and how much flexibility you have during the loan.

With a fixed rate, your repayments won't change even if rates rise. You'll know exactly what you're paying each month, which helps when budgeting on a single income or tight margins. The downside is less flexibility. Many fixed rate loans limit extra repayments and charge break costs if you want to refinance or sell before the fixed period ends.

With a variable rate, you can usually make unlimited extra repayments, access an offset account, and use a redraw facility if you need funds back. If rates drop, your repayments drop too. If rates rise, so do your repayments, and that can strain your budget if you're already stretched.

Some buyers split their loan, fixing part for certainty and keeping part variable for flexibility. Your decision depends on how much your income might change, whether you plan to make extra repayments, and how comfortable you are with the possibility of rate rises. There's no objectively correct answer, but there is a correct answer for your situation, and that's what your broker should be working out with you.

Call one of our team or book an appointment at a time that works for you. We'll walk through what you're eligible for, what it means in dollar terms, and how to structure your application so you're not leaving support on the table.

Frequently Asked Questions