The Complete First Home Buyer Guide for Australia in 2026

Buying your first home in Australia is a significant milestone — and a complex process. Between saving a deposit, understanding government schemes, navigating lender requirements, and managing settlement, there's a lot to get right. This guide covers the essentials for 2026.

The minimum deposit most lenders require is 5% of the purchase price, though 20% is ideal because it avoids Lenders Mortgage Insurance (LMI). On a $600,000 property, that's the difference between $30,000 and $120,000 upfront. LMI can add $8,000 to $30,000 to your loan, depending on the LVR.

The First Home Guarantee (formerly First Home Loan Deposit Scheme) allows eligible buyers to purchase with as little as 5% deposit without paying LMI. The government guarantees the difference between your deposit and 20% to the lender. Places are limited and allocated on a first-come, first-served basis each financial year.

Every state and territory offers some form of first home buyer grant. The First Home Owner Grant (FHOG) ranges from $10,000 to $30,000 depending on the state and whether you're buying new or building. Stamp duty exemptions and concessions vary by state but can save an additional $10,000 to $30,000.

Lender serviceability assessment is where most first home buyers get surprised. Lenders don't assess you at the actual interest rate — they add a buffer of 2.5% to 3% to ensure you can still afford repayments if rates rise. On a $500,000 loan at 6%, your repayments are assessed as if the rate were 8.5% to 9%.

Working with a mortgage broker gives first home buyers access to products across 30+ lenders, not just the one bank they happen to bank with. A good broker will also help you understand which government schemes you're eligible for, structure the loan to minimise costs, and guide you through the settlement process.

BrokerIQ's borrowing capacity calculator is designed specifically for brokers helping first home buyers. It factors in the serviceability buffer, stamp duty by state, LMI, and government grants — giving clients an accurate picture of what they can actually afford, not just what looks good on paper.