It’s a big deal to buy your first home, but it’s not easy to save up for a deposit and pay stamp duty in today’s market. Fortunately, the federal and state governments in Australia offer a number of first home buyer grants, programs, and stamp duty breaks for new home buyers. These are meant to make it possible for new buyers to get on the property ladder in 2025.
First home buyer grants are money from the state and federal governments that help eligible Australians buy their first home. Most of the time, grants are paid as a one-time, tax-free amount, which means you don’t have to pay as much cash up front. Some come with extra benefits, like exemptions from stamp duty or government-backed deposit guarantees, to make things even easier on your wallet.
The First Home Guarantee Scheme (FHBG) is the main federal program.
The plan lets people who qualify buy a home with only a 5% down payment in 2025. The government guarantees the rest of the deposit, which will save you thousands in Lenders Mortgage Insurance (LMI) and get you to ownership faster.
Important changes as of October 2025: The program will be much easier to get into because there will be no more limits on the number of spots (up from 35,000), higher caps on property prices, and plans to get rid of income caps.
A Regional First Home Buyer Guarantee is also available for people buying homes in rural areas. It has similar requirements but more people can apply.
Every state or territory has its own First Home Owners Grant (FHOG), which has different amounts and rules:
New South Wales: Up to $600,000 for first-time buyers of new homes (or up to $750,000 for new land and build packages).
Victoria: You can get $10,000 off the price of a new home or building worth up to $750,000.
Queensland: You can get up to $30,000 for a new home (until June 2025). This includes houses, units, and townhouses.
Western Australia, South Australia, Tasmania, and the Northern Territory: Grants range from $10,000 to $30,000, depending on where you live and when you sign the contract. Most of them are about new buildings or buildings that have been completely remodelled.
Eligibility: Most of the time, grants are only available for brand new or heavily renovated homes, and applicants must live in the home for a certain amount of time.
Most states give first-time home buyers cash grants and stamp duty exemptions. These incentives can save you thousands of dollars, especially if you own a property that isn’t worth much. Visit the websites of each state’s revenue office to find out the most up-to-date thresholds and requirements.
Most of the time, the requirements for eligibility are:
Must not have owned property in Australia before.
At least one person who applies must be an Australian citizen or permanent resident.
You have to be at least 18 years old.
The value of the property must be less than certain price limits set by the state or territory.
Promise to live in the house for at least 12 months in a row.
Promise to live in the house for at least 12 months in a row.
Federal programs are becoming even easier to get into in 2025, with fewer income limits and application caps.
Combine grants: If you can, combine federal deposit guarantees with state FHOGs, stamp duty breaks, or regional incentives to save the most money.
Talk to a mortgage broker: As new scheme rules go into effect in late 2025, an accredited broker can help you figure out if you qualify, get the best loan structure, and give you advice on when to apply.
Check the details again: rules change, and timing is important. Check the caps and conditions again, especially if you’re buying off-the-plan or in a rural area.
From October 1, 2025, the Australian Government will make major changes to the First Home Guarantee Scheme. These changes will help more people who are buying their first home get into the market faster.
Unlimited Places: There will no longer be a limit on how many people can join, so any first-time homebuyer who meets the requirements can apply, regardless of how many other people join the scheme.
No Income Caps: Before, some higher earners couldn’t qualify because their income was too high. These limits will be lifted in October 2025, making it possible for a wider range of buyers to get in.
Higher Property Price Caps: Price limits will go up a lot, which will let buyers look for homes in areas where prices are higher. For instance, Sydney’s cap rises from $900,000 to $1,500,000, and Brisbane’s rises from $700,000 to $1,000,000. This lets buyers look at more types of property and in better locations, like apartments and townhouses in both metro and rural areas.
Simplified Scheme Access: The regional first home buyer guarantee will be added to the main scheme, making it easier to apply and ensuring the same eligibility rules across Australia.
These changes make it easier for buyers to save for a down payment because they only need a 5% deposit and don’t have to pay for lenders mortgage insurance (LMI). This saves buyers thousands of dollars in upfront costs. Many more Australians are likely to become homeowners sooner because more people will be able to qualify and the price limits will be higher.
Experts say, however, that these benefits can make it difficult to find housing and property prices can increase over time.
People who want to buy a home should go to the official Home Guarantee Scheme page to get the most up-to-date information and see if they qualify. They should also think about talking to a mortgage broker in Australia to help them understand the new rules.
With so many first-time home buyer grants, deposit plans, and other benefits available in Australia, 2025 is a great year for people looking to buy their first home. Use the latest government incentives to become a property owner sooner. Combine federal and state programs, get expert advice, and more. Are you ready to get started? For personalized help and the best chance of getting the most recent grants, talk to an expert mortgage broker near you.
