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First Home Buyer Grants SA - What You Can Claim in 2026

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Jason Given
Mortgage broker · MFAA member · Lendology, Adelaide
By Jason Given · March 2026 · 6 min read

South Australia has some of the most generous first home buyer incentives in the country. Most eligible buyers miss out on at least some of what they are entitled to simply because they do not know the full picture.

The First Home Owner Grant - $15,000 cash

The FHOG is a $15,000 cash grant for eligible first home buyers purchasing or building a new home valued under $650,000 in SA. Key eligibility criteria:

  • You must not have previously owned a residential property in Australia
  • At least one applicant must be an Australian citizen or permanent resident
  • The property must be a new home - not an established property
  • You must live in the property for at least six months within 12 months of settlement

Stamp duty abolished for first home buyers

Stamp duty has been completely abolished for eligible first home buyers of new homes in South Australia under $650,000. On a $600,000 purchase this saves you over $26,000.

The First Home Guarantee - 5% deposit, no LMI

The Federal Government's First Home Guarantee allows eligible buyers to purchase with just a 5% deposit without paying Lenders Mortgage Insurance. Places are limited each financial year - we help you secure one.

The three benefits available to SA first home buyers right now

South Australia offers three main pathways to reduce the cost of buying your first home: the federal First Home Guarantee, the SA First Home Owner Grant for new builds, and a stamp duty concession. Used together correctly, these can reduce your upfront costs by tens of thousands of dollars.

The key is understanding which benefits you qualify for and applying for them at the right time. Lendology checks eligibility for every available incentive as a standard part of the loan process - at no extra cost.

First Home Guarantee
Buy with a 5% deposit without paying LMI. The federal government guarantees up to 15% of the property value. SA price cap: $900,000.
First Home Owner Grant
A $15,000 cash payment for eligible buyers of new builds in SA. Paid at the first progress payment for construction loans.
Stamp duty concession
Full concession on purchases up to $560,000. Partial concession tapering to $700,000. Could save you up to $21,330.

The First Home Guarantee - how it actually works

The First Home Guarantee (FHBG) is a federal government scheme that allows eligible first home buyers to purchase with as little as a 5% deposit without paying Lenders Mortgage Insurance. The government guarantees up to 15% of the property value, meaning you effectively have an 80% LVR from the lender's perspective - without needing a 20% deposit.

The guarantee does not mean the government pays any part of your loan. It simply removes the LMI requirement, saving you thousands upfront. You still borrow 95% of the purchase price and make normal repayments.

In South Australia, the First Home Guarantee applies to purchases up to $900,000. Income caps apply - singles up to $125,000 and couples up to $200,000 combined annual taxable income. Lendology confirms your eligibility before you apply.

The First Home Owner Grant for new builds

The SA First Home Owner Grant is a one-off payment of $15,000 available to eligible buyers purchasing or building a new home. It applies to new builds only - not established properties. The property value must be $650,000 or less.

For construction loans, the grant is paid at the first progress draw. For off-the-plan purchases, it is paid at settlement. The grant cannot be used as the deposit itself - you still need genuine savings - but it can be applied toward the loan balance or costs immediately after settlement.

Stamp duty concession for first home buyers in SA

First home buyers in South Australia who purchase an established or new property as their principal place of residence may be eligible for a stamp duty concession. The full concession applies to purchases up to $560,000 - eliminating stamp duty entirely. A partial concession applies on a sliding scale up to $700,000.

On a $550,000 purchase the stamp duty would normally be approximately $17,330. With the full first home buyer concession, you pay nothing. On a $650,000 purchase the concession reduces proportionally - Lendology calculates the exact figure for your purchase price.

Can you use all three benefits together?

Yes, in some circumstances. A first home buyer purchasing a new build in SA for under $650,000 could potentially access all three: the First Home Guarantee (no LMI on 5% deposit), the First Home Owner Grant ($15,000 cash), and the stamp duty concession (up to $21,330 saving). The combined benefit can exceed $35,000 in some scenarios.

Eligibility for each benefit has its own criteria and they do not always stack perfectly - for example, the First Home Owner Grant requires the property to be a new build, while the stamp duty concession applies to both new and established. Lendology maps exactly which combination applies to your situation.

Sources: RevenueSA (First Home Owner Grant) · Housing Australia (First Home Guarantee). Information current as at April 2026 - confirm details with Lendology or the relevant body before making decisions.
Frequently asked questions

Do I have to be an Australian citizen to access these grants?

You must be an Australian citizen or permanent resident. Temporary visa holders are not eligible for the First Home Guarantee or the SA First Home Owner Grant.

Can I use the First Home Guarantee to buy an investment property?

No. The First Home Guarantee requires the property to be your principal place of residence. You must move in within 12 months of settlement and intend to live there.

What happens to the First Home Guarantee if I sell the property?

The government's guarantee is released when your LVR drops below 80% - either through repayments or property value growth. There is no restriction on selling the property, though you should check with your lender.

Is the First Home Owner Grant taxable?

No. The First Home Owner Grant is a tax-free payment and does not need to be declared as income.

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