Home Loans for First Home Buyers Australia

What is a first home buyer loan?

A first home buyer loan is a home loan designed for people purchasing their first residential property. While the loan itself works like any standard home loan (you borrow from a lender and repay over time with interest), first home buyers can access a range of government grants, stamp duty concessions, and guarantee schemes that significantly reduce upfront costs.

The key advantage of working with a broker like Rovo Finance is that we know which schemes you qualify for, which lenders participate in those schemes, and how to structure your application to maximise every dollar of support available to you.

Government grants and schemes for first home buyers in 2026

There are four main types of government support available to first home buyers in Australia. In many cases, you can stack multiple schemes together to dramatically reduce your upfront costs.

First Home Guarantee (formerly First Home Loan Deposit Scheme)

The federal government guarantees up to 15% of your home loan, allowing you to buy with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). On a $600,000 property, this can save you $15,000 to $20,000 in LMI alone. Places are now unlimited with no income caps, making the scheme accessible to far more buyers than in previous years.

For single parents with at least one dependent child, the Family Home Guarantee allows purchases with as little as a 2% deposit.

First Home Owner Grant (FHOG)

This is a one-off cash payment from your state or territory government, primarily for new builds or substantially renovated homes. Grant amounts vary by state:

Grant amounts and conditions are current as of early 2026 and may change. We confirm your eligibility during your strategy call.

Stamp duty concessions

Most states offer stamp duty exemptions or reductions for first home buyers. In NSW, for example, first home buyers pay no stamp duty on properties up to $800,000 for new homes and $650,000 for existing homes. These concessions can save you $20,000 or more depending on where you buy.

Help to Buy (shared equity scheme)

Under this federal scheme, the government contributes up to 30% of a new home’s purchase price (or 25% for existing homes), reducing the amount you need to borrow. You need as little as a 2% deposit. When you sell, the government receives its proportional share of the sale proceeds. This scheme is means-tested and suited to lower-to-middle income earners.

First Home Super Saver Scheme (FHSSS)

You can make voluntary contributions to your super fund and then withdraw up to $50,000 to put toward your first home deposit. Because super contributions are taxed at a lower rate (15%) than most people’s marginal tax rate, this can help you save faster than a standard savings account.

How much deposit do you need for your first home in Australia?

The short answer: it depends on which schemes you use.

• Without any scheme: Most lenders require 20% to avoid LMI. On a $600,000 home, that is $120,000.
• With the First Home Guarantee: You can buy with 5% ($30,000 on a $600,000 home) and skip LMI entirely.
• With the Family Home Guarantee (single parents): As little as 2% ($12,000 on a $600,000 home).
• With Help to Buy: As little as 2%, with the government contributing equity.

On top of the deposit, you need to budget for stamp duty (unless exempt), conveyancing fees, building and pest inspections, loan application fees, and moving costs. We walk you through all of these during your strategy call so there are no surprises.

Fixed vs variable rates: which is better for first home buyers?

This is one of the most common questions we hear. Here is the honest answer: there is no universally “better” option. It depends on your cash flow, risk tolerance, and how long you plan to stay in the property.

Variable rate: Your repayments move up or down with the market. You get more flexibility (extra repayments, offset accounts, redraw) and you benefit if rates fall. The risk is that repayments increase if rates rise.

Fixed rate: Your repayments are locked for a set period (usually 1 to 5 years). This gives you certainty for budgeting. The trade-off is less flexibility and potential break costs if you want to exit early.

Split loan: Many first home buyers fix a portion of their loan for certainty while keeping the rest variable for flexibility. This is a common middle-ground approach.

We model all three scenarios for you and show you exactly what your repayments look like under each option.

What is Lenders Mortgage Insurance (LMI)?

LMI is a one-off insurance premium that protects the lender (not you) if you borrow more than 80% of the property’s value and default on the loan. It can cost anywhere from $5,000 to $30,000 depending on the loan amount and your LVR.

The good news: if you qualify for the First Home Guarantee, you avoid LMI entirely even with a 5% deposit. Some professions (doctors, lawyers, accountants) may also qualify for LMI waivers through certain lenders. We check all available options for you.

How Rovo Finance helps first home buyers – step by step

1. Free strategy call – We assess your deposit, income, expenses, and goals. We check which grants and schemes you qualify for and give you a realistic picture of your borrowing power and budget.

2. Pre-approval – We help you get pre-approved so you can search with confidence. Pre-approval tells real estate agents you are a serious buyer and gives you a clear price range.

3. Lender comparison – We compare products across 40+ lenders, modelling different scenarios for fixed, variable, and split structures. We present a shortlist with clear reasoning, not just the lowest rate.

4. Grant and scheme coordination – We confirm your eligibility for the First Home Guarantee, FHOG, stamp duty concessions, and any other applicable schemes, and ensure the application is lodged correctly with the participating lender.

5. Application and approval – We handle the paperwork, chase the lender, and keep you updated at every stage.

6. Settlement and beyond – We see you through to settlement day and stay in touch for rate reviews and future lending needs as your circumstances change.

Common mistakes first home buyers make

Only talking to one bank. Every lender assesses your application differently. One bank might decline you while another approves you at a better rate. A broker compares dozens of options for you.

Not getting pre-approved before searching. Without pre-approval, you risk falling in love with a property you cannot afford, or losing out because you cannot move fast enough.

Forgetting about the costs beyond the deposit. Stamp duty (if not exempt), conveyancing, inspections, insurance, and moving costs can add $15,000 to $30,000 on top of your deposit. We build a full cost estimate before you start looking.

Choosing the lowest rate without checking the features. A loan with a slightly higher rate but a good offset account or free extra repayments can save you more over the life of the loan than a bare-bones low-rate product.

Not checking grant eligibility before signing a contract. Some grants have strict timelines, property value caps, and residency requirements. If you miss a step, you miss the money. We verify everything before you commit.

Why use Rovo Finance as your first home buyer mortgage broker?

• First home buyer finance is one of our three core specialisations alongside SMSF loans and investment lending
• We know the grant and scheme landscape inside out and check every option you may qualify for
• Access to 40+ lenders including those participating in the First Home Guarantee and Help to Buy
• We explain everything in plain English with no jargon and no pressure
• No cost to you – the lender pays our fee when your loan settles
• Ongoing support including rate reviews and guidance when you are ready to upgrade or invest