Your complete guide to
buying your first home
Grants, concessions, negotiation scripts, building report analysis, and contract review — everything first home buyers in Australia need to buy smarter, pay less, and avoid expensive mistakes.
Start using BuyerEdge — free to startNo account required · All 8 states covered
How the 2026 Budget changes affect first home buyers
The announced reforms limit negative gearing on established residential property to new builds, with effect from 1 July 2027 (subject to legislation). For first home buyers and owner-occupiers, the main residence CGT exemption is unchanged, and analysts expect reduced investor competition for established stock — the segment first home buyers most commonly target.
CommBank Economics has revised its forecast dwelling price growth to 3% to December 2026, down from 5%. The size and timing of any flow-through to specific suburbs or price segments will vary.
Read the full briefingReforms are announced — not yet legislated.
The 5 things that catch first home buyers out
Most first home buyers don't know what they don't know. Here are the five areas where buyers most commonly get caught out — and how BuyerEdge addresses each.
Overpaying — the biggest first-home risk
Without context, it's hard to know if a price is fair. Agents know their market intimately; most first home buyers don't.
BuyerEdge's negotiation scripts are grounded in FBI and Harvard frameworks — they give you tactics to negotiate price down, not just accept whatever the agent suggests.
Missing building defects
Building inspection reports are 60-page technical documents full of jargon. Most buyers skim them and miss the expensive issues.
Upload your building report PDF to BuyerEdge and get a plain-English breakdown of every defect, estimated repair costs, and exactly how to use each finding to negotiate a lower price.
Understanding the contract
The contract of sale is a complex legal document. Buyers who don't understand what they're signing can end up locked into unfavourable terms.
BuyerEdge reviews your contract across 9 risk areas — cooling-off rights, special conditions, fixtures and chattels, settlement terms — and explains each in plain English.
Calculating the real cost of buying
The purchase price is just the start. Stamp duty, conveyancing, building inspections, lender fees, and moving costs can add $30,000–$60,000+ to your total outlay.
The BuyerEdge buying costs calculator covers all 8 states and territories, includes first home buyer concessions, and lets you model optional costs so you know exactly what to save.
Photos that hide the truth
Listing photos are professionally styled to make properties look their best. First home buyers often fall in love with a property before seeing its real condition.
Upload your own inspection photos or a walkthrough video — BuyerEdge's AI identifies defects, assigns a dollar impact to each, and writes negotiation talking points.
How BuyerEdge works
Add the property once, and every tool is pre-filled — no re-entering the address, price, state, and agent every time.
Add the property
Paste a realestate.com.au or domain.com.au URL to auto-fill the address, price, state, and agent details in one click.
Run the tools you need
Negotiation scripts, building report analysis, contract review, photo analysis, and cost calculator — all pre-filled from your property.
Negotiate with confidence
Go into every agent conversation knowing what to say, what to ask, and what your real ceiling is.
First home buyer grants & stamp duty concessions by state
Every state and territory in Australia offers different grants and stamp duty concessions for first home buyers. Note that the First Home Owner Grant (FHOG) applies to new builds only in all states that offer it — it is not available on established homes. Here's a quick reference — use the calculators below for precise figures.
Figures are indicative — confirm current grant amounts, eligibility conditions, and concession thresholds with your state revenue office before purchasing. Grant eligibility conditions (new builds only, value caps) are subject to change.
First home buyer stamp duty exemption eligibility
Knowing your state's eligibility conditions before you start inspecting can save you tens of thousands. Five states and territories offer full or partial stamp duty exemptions — but each has its own property value cap, residency requirement, and (in one case) an income test. Use the summary below to check whether you qualify before running the calculator.
Full exemption
≤ $650,000· partial to $800,000
Australian citizen or permanent resident, aged 18 or over
Never previously owned residential property anywhere in Australia
Must move in within 12 months of settlement
Must occupy continuously for at least 6 months
No income test — applies regardless of earnings
Established and new homes both qualify
Full exemption
≤ $600,000· partial to $750,000
Australian citizen or permanent resident, aged 18 or over
Never previously held any interest in Australian residential property (new or established, own use or investment)
Must move in within 12 months of settlement
Must reside as principal place of residence for at least 12 months
No income test
Established and new homes both qualify
Full exemption
≤ $500,000· partial to $550,000
Australian citizen or permanent resident, aged 18 or over
Never previously claimed the Queensland first home concession or vacant land concession
Must be your principal place of residence — move in within 1 year
No income test
Established and new homes both qualify
Full exemption
≤ $430,000· partial to $530,000
Australian citizen or permanent resident, aged 18 or over
Never owned residential property in Australia or overseas on or after 1 July 2000
Must occupy as principal place of residence within 12 months
Must reside continuously for at least 1 year
No income test
Established and new homes both qualify
Full exemption
≤ $750,000
Must not have owned residential property in Australia in the 2 years prior to purchase
Income threshold applies — approx. $160,000 (0 dependants) rising with each dependant
Must be your principal place of residence for at least 1 year
Applies via the Home Buyer Concession Scheme (HBCS) — not restricted solely to first home buyers
Established and new homes both qualify
No stamp duty exemption or concession for first home buyers in South Australia
Standard stamp duty rates apply from the first dollar
$15,000 First Home Owner Grant is available for new builds only
No stamp duty exemption or concession for first home buyers in Tasmania
Standard stamp duty rates apply
$30,000 First Home Owner Grant for eligible new or substantially renovated homes
No first home buyer specific stamp duty exemption in the Northern Territory
A general Territory Home Owner Discount of up to $18,601 may apply on properties under $650,000 (not FHB-exclusive)
$10,000 First Home Owner Grant for new or substantially renovated homes
Eligibility conditions and concession thresholds are subject to change. Always confirm current rules with your state revenue office or a licensed conveyancer before purchasing.
First Home Guarantee
The First Home Guarantee (formerly First Home Loan Deposit Scheme) is a federal government program administered by Housing Australia. It allows eligible first home buyers to purchase a property with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI) — the government guarantees the remaining portion of the deposit up to 15%, bridging the gap to a standard 20% deposit.
Key eligibility conditions
Australian citizen or permanent resident aged 18 or over
Taxable income ≤ $125,000 per year (singles) or ≤ $200,000 combined (couples)
Must be purchasing as owner-occupier — investment purchases are not eligible
Property must be under the applicable price cap for your state and city (e.g. $900,000 in Sydney and major metro areas)
Must not have owned Australian residential property in the past 10 years
Participating lender required — not all lenders offer the scheme
Places are limited each financial year — early application is recommended
The First Home Guarantee does not require payment — it is a government guarantee to the lender, not a cash grant. Eligibility criteria and property price caps are updated annually by Housing Australia. Check housingaustralia.gov.au for current caps before applying.
First Home Super Saver (FHSS) Scheme
The First Home Super Saver (FHSS) scheme lets first home buyers save their deposit inside their superannuation fund, taking advantage of the concessional tax rates applied to super contributions. Because super contributions are taxed at 15% rather than your marginal income tax rate, the scheme lets you accumulate a deposit faster than saving in a standard bank account.
How it works
Make voluntary concessional (pre-tax) or non-concessional (after-tax) contributions to your super fund
Maximum eligible contributions: $15,000 per financial year, up to $50,000 total across all years
Apply to the ATO to release funds before signing a contract — you cannot access funds after unconditional exchange
Released amount is taxed at your marginal rate minus a 30% offset, which is typically lower than saving in a bank account
Must have a genuine intention to occupy the property as soon as practicable
Both members of a couple can independently use the FHSS scheme (up to $50,000 each)
The FHSS scheme is administered by the ATO. You must apply for a determination before signing a contract of sale. Read the full eligibility rules on the ATO First Home Super Saver page and speak to a financial adviser before making contributions, as super rules are complex and individual circumstances vary.
Deposit requirements for first home buyers
Understanding how much deposit you actually need — and what lenders are looking for — is one of the most important steps before you start inspecting properties.
Standard deposit: 20%
A 20% deposit is the benchmark that avoids Lenders Mortgage Insurance (LMI). On a $700,000 property that means $140,000 saved — plus stamp duty, conveyancing, and other purchase costs on top.
Low-deposit options: 5%–10%
Some lenders will approve loans with a 5%–10% deposit. If your deposit is under 20%, you will generally be required to pay LMI — a one-off insurance premium that protects the lender (not you). LMI can add $10,000–$30,000+ to your loan depending on the purchase price and deposit amount.
Avoiding LMI: the First Home Guarantee
The First Home Guarantee allows eligible first home buyers to purchase with just 5% and avoid LMI — the federal government guarantees the shortfall. Income caps and property price limits apply (see the First Home Guarantee section above).
Genuine savings requirement
Most lenders require that at least part of your deposit is 'genuine savings' — money you have accumulated yourself over time, typically 3 months or more. Gifts from parents or guarantor support arrangements are treated differently by different lenders.
Budget for costs on top of the deposit
Your deposit is only part of what you need. Stamp duty, conveyancing fees, building and pest inspections, lender fees, and moving costs can add $20,000–$60,000+ depending on the state and purchase price. Use the BuyerEdge buying costs calculator to get a full picture.
First home buyer checklist
Get pre-approval from your lender before inspecting — know your ceiling
Research comparable sales in the suburb (sold prices, not listing prices)
Order a building and pest inspection before bidding or making an offer
Check your stamp duty liability and FHB concession eligibility
Read the Section 32 / Vendor Statement and contract before signing
Understand the cooling-off period and what it costs to exit
Budget for conveyancing, inspection, and lender fees — not just the price
Prepare your negotiation strategy and ceiling price before speaking to the agent
If buying at auction, register on the day and set a walk-away price
Confirm your First Home Owner Grant eligibility with your state revenue office
Grant amounts, concession thresholds, and eligibility rules are updated frequently. Always confirm current figures with your state revenue office, a licensed conveyancer, or a mortgage broker. BuyerEdge provides information tools only and does not provide financial or legal advice.
Related guides & calculators
Property Negotiation Scripts
Word-for-word scripts for 10 scenarios — first offer, pre-auction, defects, and more.
2026 Budget Impact for Buyers
How the May 2026 federal budget changes affect first home buyers and investors.
Stamp Duty Calculator — NSW
Estimate stamp duty and first home buyer exemptions in New South Wales.
Stamp Duty Calculator — VIC
Estimate stamp duty and first home buyer concessions in Victoria.
Built for buyers, not agents
BuyerEdge gives first home buyers negotiation scripts and a buying costs calculator free — no account required. Building report analysis, contract review, and photo analysis are available on Pro.
Start with BuyerEdge — free to startNo account needed · Australian market · 5 tools in one