The best home loan options for first home buyers in Australia — 2026 guide.

First home buyers in Australia have access to grants, guarantees and concessions that can dramatically reduce upfront costs. Here is what is available and how to access it.

By Jason Given · April 2026 · 6 min read

Start with the government schemes — they change the numbers significantly

Before comparing lenders, first home buyers should understand what government assistance they qualify for. The federal First Home Guarantee, state-based First Home Owner Grants, and stamp duty concessions can collectively reduce upfront costs by $30,000 to $50,000 in some scenarios. Getting these right before you apply matters.

First Home Guarantee

Federal. Buy with 5% deposit, no LMI. Government guarantees up to 15%. Price cap $900k in SA. Income caps apply.

SA First Home Owner Grant

State. $15,000 cash for new builds up to $650,000 in SA. Paid at first progress draw for construction.

Stamp duty concession SA

Full concession to $560,000, partial to $700,000. Saves up to $21,330. Established and new properties.

Family Home Guarantee

Federal. Single parents with one or more dependants. 2% deposit, no LMI. 5,000 places per year.

What makes a good first home buyer loan?

Beyond rate, first home buyers should look for specific features that support their goals. An offset account is valuable if you hold savings. The ability to make extra repayments without penalty allows you to pay down the loan faster as your income grows. Low or no application fees reduce upfront costs.

✓Competitive rate — use the comparison rate, not just the headline
✓Offset account — reduces daily interest on your savings
✓Unlimited extra repayments — allows early payoff without penalty
✓Low or no establishment fees — some lenders charge up to $600
✓No ongoing annual fees — some package loans charge $300 to $400 per year
✓Online banking and app access — for easy account management

How much deposit do first home buyers actually need?

The standard answer is 20% to avoid LMI. The reality for most first home buyers is different. With the First Home Guarantee, 5% is sufficient with no LMI for eligible buyers. With a family guarantee, some buyers can purchase with as little as 2% to 5% without LMI.

Beyond the deposit, first home buyers need funds for stamp duty (or enough to cover what remains after concessions), conveyancing ($1,000 to $2,500), building and pest inspection ($400 to $700), and moving costs. The total upfront requirement is typically the deposit plus 3% to 5% of the purchase price in costs.

Many first home buyers focus on the deposit and underestimate additional costs. On a $600,000 purchase with a 10% deposit, the additional costs — stamp duty after concessions, legal fees, inspection and connection costs — can add another $10,000 to $20,000. Lendology prepares a full upfront cost summary for every first home buyer client.

Frequently asked questions

What is the minimum deposit for a first home buyer in Australia?

The minimum is 5% with the First Home Guarantee for eligible buyers. Without the guarantee, most lenders require at least 5% deposit plus LMI, or 20% to avoid LMI. Some family guarantee structures allow even lower deposits.

Can first home buyers use a mortgage broker?

Yes, and we strongly recommend it. A broker checks your eligibility for every available grant and scheme, compares lenders across the market, and manages the entire application. The service is free to the borrower.

Is the First Home Guarantee available in South Australia?

Yes. The First Home Guarantee applies nationally. In South Australia the property price cap is $900,000. Income caps apply — singles up to $125,000 and couples up to $200,000 combined taxable income.

How long does it take for a first home buyer to get approved?

With pre-approval, the process typically takes 1 to 3 business days for an initial assessment. Full formal approval after a purchase contract is signed takes 1 to 4 weeks depending on the lender. Lendology manages the timeline and keeps you updated throughout.