First home buyers guide

Home loans generally come with a range of upfront and ongoing costs, in addition to your deposit. These can include stamp duty, legal fees, lender charges and other related expenses, with the most common costs being:

• Application (establishment) fees: One-off costs to set up your loan. In most cases, it ranges from $150 to $700.
• Valuation fees: Lenders usually require a property valuation before approval, which can cost about $100 to $300 as a rough guide, although some lenders may waive this fee.
• Conveyancing or legal fees: Includes costs for handling the legal transfer of the property, which can vary by state and provider, and usually range from $500 to $2,500.
• Stamp duty: Also known as transfer duty, this is often the largest upfront cost after your deposit. It varies by state, though eligible first home buyers may receive concessions or exemptions. Most of Australia’s states and territories either waive or discount stamp duty for first home buyers, making it less of an obstacle to home ownership. However, property price caps apply to be eligible for these discounts, so check your state or territory’s relevant caps before applying for a concession or exemption.
• Lenders mortgage insurance (LMI): Applies if your deposit is below 20%, although eligible buyers may avoid this cost through schemes such as the 5% Deposit Scheme.
• Ongoing account fees: Monthly or annual fees for managing your loan.
• Discharge or break fees: May apply if you repay your loan early or switch lenders.
• Home Insurance: You’ll generally need to have home insurance, as most lenders will only arrange for settlement after being named as the financial institution on a home insurance policy attached to the property in question. The timing can vary by state or territory, and in some cases, you may become responsible for the property as soon as the contract is signed. For strata properties, insurance may be covered through strata fees.
• Building and pest inspections: These are not compulsory in most cases but are highly recommended. These inspections and other due diligence enquiries can help identify any potential problems with a property, potentially lowering the asking price or even helping you decide against buying it.
• Other property costs: This can include home and contents insurance, utility connections and moving expenses.

While these are the more common costs you’ll encounter as a first home buyer, be sure to do your research on any home loan products you’re considering to make sure you have a thorough understanding of the charges.

First home buyers can choose from different loan structures such as variable, fixed or split rate home loans, along with features such as redraw facilities and offset accounts to help manage repayments. They generally have access to the same range of home loan features as existing homeowners.

Some of the home loan features that could be available to first home buyers include:

• offset accounts
• redraw facilities
• flexible repayment options, including the option to take a repayment holiday
• extra repayments
• cashback offers and introductory rates
• package options (e.g. bundled credit card, offset account)
• split rate option
• line of credit facility.

For those not looking for any fancy features, ‘no frills’ home loans without any extra features generally come with lower interest rates and fees. So even those looking for simplicity first and foremost can still find a great value home loan that meets their needs.

The First Home Owner Grant (FHOG) is a one-off payment made towards your home loan for buying or building a new home. It is funded by individual state and territory’s government, with each one imposing slightly different rules regarding borrower and property eligibility.

Despite these varying eligibility rules, the thing most states and territories have in common when it comes to the FHOG is that you must be either buying or building a new (i.e. never lived in) home, or a substantially renovated home, to be eligible.

You can find detailed information about the FHOG in your state or territory below (information correct as of May 2026):

• ACT: The ACT scrapped its FHOG in 2019 and now offers significant stamp duty concessions for first home buyers instead.¹
• New South Wales: First home buyers in NSW can receive $10,000 through the state’s FHOG program.²
• Northern Territory: The FHOG on offer to first home buyers up north is $10,000 for established homes or $50,000 for new homes.³
• Queensland: The ‘Sunshine State’ first homeowner grant reverts to $15,000 from 30 June 2026, and applies only to new homes valued at less than $750,000 (including land).⁴
• South Australia: SA’s first-time borrowers can access up to $15,000 in government funding to help them get on the property ladder.⁵
• Tasmania: Eligible first home buyers in Tasmania may receive $10,000 or $30,000 in government grants for new homes, depending on the transaction period.⁶
• Victoria: The Victorian government will contribute $10,000 for its eligible first home buyers.⁷
• Western Australia: First home buyers in the country’s westernmost state could receive up to $10,000 through its FHOG program.⁸

If you want to apply for your state or territory’s FHOG, be sure to check the current rules and eligibility requirements to make sure you still qualify.

You’ll generally have to pay stamp duty when buying a house, which could add up to thousands or even tens of thousands of dollars. Stamp duty, also known as transfer duty, is essentially a tax on sales and transfers of property and land.

While stamp duty can be expensive, most states and territories offer significant stamp duty concessions and discounts for first home buyers.

• ACT: Eligible first home buyers can access up to $35,238 in stamp duty concessions from 1 July 2025 for property value up to $1,020,000.¹
• New South Wales: Depending on the value of the property they’re buying, eligible first home buyers in NSW will either pay no stamp duty or receive a concession on the stamp duty they do have to pay.⁹
• Northern Territory: The NT does not currently offer any specific stamp duty-related incentives for its first home buyers. But full stamp duty relief is available for eligible buyers purchasing a qualified house and land package.¹⁰
• Queensland: Depending on the value of the property they’re buying, first home buyers in Queensland may be eligible for either a full stamp duty exemption, or a stamp duty concession of up to $24,525 on properties valued under $800,000.¹¹
• South Australia: Eligible first home buyers in SA may pay reduced or no stamp duty when purchasing or building a new home, depending on the contract date and eligibility criteria.¹²
• Tasmania: Australia’s smallest state offers a 100% discount on stamp duty to eligible first home buyers on properties valued up to $750,000, saving them up to $28,900. However, this discount is not available to those who have received or plan on applying for Tasmania’s FHOG. ¹³
• Victoria: First home buyers in Victoria may be eligible for a full stamp duty exemption (referred to as ‘stamp duty relief’) when purchasing a property valued at $600,000 or less, and at a concessional rate for home priced between $600,000 and $750,000.¹⁴
• Western Australia: WA’s first home buyers will pay no stamp duty on properties with a dutiable value of $500,000 or less and will pay a reduced rate on the amount up to $700,000 in metro regions.¹⁵

Visit your state or territory revenue office website for more information on whether you’re eligible for these stamp duty exemptions and discounts and how much they could save you.

Formerly known as the First Home Guarantee, the Australian Government 5% Deposit Scheme lets eligible Australians buy their first home with a deposit of 5%, and single parents or legal guardians with a deposit of just 2%, subject to eligibility requirements.¹⁶ The federal government then guarantees the lender up to 15% of the property value (or up to18% in case of eligible single parents or legal guardians), which saves the borrower from having to pay lenders mortgage insurance.

As of May 2026, the eligibility requirements include:

• being an Australian citizen or permanent resident
• being at least 18 years of age
• saved a minimum deposit of 5% under the general stream, and 2% under the single parent stream.
• intending to be an owner-occupier of the property in question
• not having owned or had an interest in a property in Australia in the past 10 years.

Additionally, the property in question must be either:

• an existing house, townhouse, or apartment
• a house and land package
• vacant land and a separate building contract to build a home
• an off-the-plan apartment or townhouse.

Additionally, different postcodes have different property price caps for eligibility, so be sure to check your desired postcode’s price cap before applying.

The First Home Super Saver Scheme (FHSSS) allows you to voluntarily contribute to your superannuation fund’s balance (either before or after-tax) and use those contributions to form part of your house deposit.¹⁷ Under this scheme, $15,000 worth of your voluntary super contributions can be made a year, up to a total of $50,000 across all years as of May 2026.

You can only request a release under the FHSSS scheme once and it must be for your first home; if you have any outstanding government debt (not including HECS or HELP debts), your withdrawal may be offset by the amount you owe.

Loan-to-value ratio (LVR) measures how much you’ve borrowed relative to the value of the property in question. It is influenced by the size of your deposit – the smaller your deposit, the higher your LVR.

For example, if you borrow $480,000 to help buy a $600,000 property, your deposit is 20%, meaning you still owe 80% of the property’s value to your lender. In this instance, your LVR would be 80%.

A higher LVR could lead to a lender imposing a higher interest rate on your home loan, due to its perceived higher risk.

Lenders mortgage insurance (LMI) is an insurance policy that lenders can utilise to protect themselves against the risk of a borrower defaulting on their home loan repayments. It’s usually required when your loan-to-value ratio is above 80%, meaning your deposit is less than 20%.

Having to pay LMI can often cost you thousands of dollars either upfront or over the life of a home loan, and can drive up the loan amount and ongoing costs of buying a home. However, it can also be the difference between being able to buy a home or not, so it could ultimately represent a net positive for some homebuyers.

As discussed, however, the 5% Deposit Scheme can help you avoid paying LMI by guaranteeing up to 15% of your property’s value, with a minimum of 5% required on your end. This means that you won’t be required to pay LMI if you meet the eligibility criteria.

Borrowing power is the maximum estimated amount you’ll be able to borrow for a home loan. This is calculated using things such as income, your household expenditure, deposit size, number of dependants and desired home loan term. You should get an understanding of your borrowing power before applying for a home loan, so you have a general idea of how much you might be eligible to borrow.

It may be a good idea to seek pre-approval on a loan before you make any offers on a home. Home loan pre-approval can give you a much more accurate understanding of your borrowing power and what type of home you can realistically afford. It can also help you avoid wasting your time on properties you can’t afford in the first place.

When you’re in the market for a home loan, each lender will have specific eligibility requirements you’ll need to meet. Some of them are common across most lenders (e.g. being 18 years of age or older and a permanent resident of Australia), but others may be more niche and specific to one lender. Ask about a given lender’s requirements before you apply.

When you apply for a home loan, you’ll need to submit some documents. These can include, but aren’t limited to primary and secondary forms of identification, proof of employment and recent payslips, details of your assets and financial situation, including any outstanding debts or lines of credit.

It’s vital that you compare a broad range of home loan products based on your needs, and look at things like interest rates, fees, repayment types, features and loan terms. If you need a hand comparing your options or want to talk to an expert, our team of online mortgage brokers are on-hand and ready to help!