First home buyers
First home buyers in 2026 have more lending options than at any point in recent memory. The Federal First Home Guarantee was materially expanded in October 2025, with income caps removed and places made unlimited. The Help to Buy shared-equity scheme launched in December 2025, allowing eligible buyers to enter the market with a 2% deposit and government equity of up to 40% of the property value. State stamp duty concessions vary materially by jurisdiction and shifted in several through 2025. Maxfin maps the schemes to the buyer's situation, deposit, location and income, and structures the lender match accordingly.
What we cover
Federal First Home Guarantee
Buying with a 5% deposit and no Lenders Mortgage Insurance, with the Australian Government providing a guarantee of up to 15% of the property value to the participating lender. From 1 October 2025, income caps were removed entirely (previously $125k single / $200k joint) and places were made unlimited. Property price caps for 2026: Sydney and NSW regional centres $1,500,000; Brisbane and QLD regional centres $1,000,000; Melbourne and Geelong $950,000; Adelaide $900,000; Perth $850,000; Darwin $750,000 from 1 July 2026 (rest of NT $600,000). Hobart and Canberra apply lower-tier caps published by Housing Australia.
Help to Buy shared-equity scheme
Launched 5 December 2025. Eligible buyers can purchase with a deposit as low as 2%, with the government taking an equivalent equity share in the property: up to 40% for new homes and 30% for existing homes. Income caps: $100,000 for individuals, $160,000 for joint applicants and single parents. 40,000 places available over four years. Initial lender panel: Bank Australia and Commonwealth Bank, with more lenders joining the panel through 2026. Subject to scheme criteria.
State stamp duty concessions
Stamp duty position varies materially by state. NSW: full exemption to $800,000, concession to $1,000,000. Victoria: $0 duty to $600,000, sliding-scale concession to $750,000. Queensland: brand-new homes attract a full transfer duty exemption with no value cap (May 2025 reforms); established homes exempt to $700,000, concession to $800,000. Maxfin factors the relevant state position into the deposit and settlement plan from the first conversation.
Parent-guarantor lending
Limited guarantee structures using a parent's property as security to avoid Lenders Mortgage Insurance. The guarantor's property is encumbered for the limited guarantee portion only. Maxfin plans the guarantor release at the outset, typically once the loan amortises below the LVR threshold (usually 80%), so both the buyer and the guarantor know the exit timeline before settlement.
Low-deposit lending with LMI
5% to 10% deposit loans with Lenders Mortgage Insurance structured efficiently, including LMI capitalisation where appropriate. LMI premiums vary materially across lenders for the same LVR; the right combination of rate plus LMI is the actual cost of the loan, not rate alone. Particularly relevant where the buyer doesn't qualify for the FHG or Help to Buy schemes.
First-home buyer with complex income
Self-employed, contract or commission-based first-home buyers can access the schemes the same as PAYG buyers, but the income assessment behind the lender's approval is more complex. Maxfin matches the income profile to lenders that read self-employed or non-PAYG income favourably under FHG or Help to Buy policies, rather than treating complex income as an exception.
Pre-approval through to settlement
Conditional approval to confirm borrowing capacity before the buyer makes offers. Property search support: timing, what lenders will accept, valuation considerations. Formal approval after a contract is signed. Settlement coordination with the buyer's solicitor or conveyancer. Schemes have administrative deadlines that don't move; Maxfin sequences each gate so a deadline isn't missed at the wrong moment.
Stacking schemes correctly
Federal guarantees and state stamp duty concessions can typically be combined where the buyer qualifies for each. Help to Buy is a separate pathway with its own deposit structure and lender panel; it can stack with state stamp duty concessions but is generally chosen as an alternative to (rather than alongside) the Federal Home Guarantee on a given purchase. Stacking is the work; eligibility tests cut off at thresholds, and missing one by a few thousand dollars can change the cost of acquisition by tens of thousands.
Queensland First Home Owner Grant ($30,000)
For first home buyers building or buying a brand-new home in Queensland valued under $750,000 (including land), the First Home Owner Grant currently sits at $30,000. The boosted amount applies to contracts signed between 20 November 2023 and 30 June 2026 (both dates inclusive). After 30 June 2026, the grant reverts to $15,000. For owner-builders, the foundations must be laid within the same window. The grant is in addition to (not instead of) Queensland's stamp duty exemption on new builds.
Buying with a 5% deposit and no Lenders Mortgage Insurance, with the Australian Government providing a guarantee of up to 15% of the property value to the participating lender. From 1 October 2025, income caps were removed entirely (previously $125k single / $200k joint) and places were made unlimited. Property price caps for 2026: Sydney and NSW regional centres $1,500,000; Brisbane and QLD regional centres $1,000,000; Melbourne and Geelong $950,000; Adelaide $900,000; Perth $850,000; Darwin $750,000 from 1 July 2026 (rest of NT $600,000). Hobart and Canberra apply lower-tier caps published by Housing Australia.
Launched 5 December 2025. Eligible buyers can purchase with a deposit as low as 2%, with the government taking an equivalent equity share in the property: up to 40% for new homes and 30% for existing homes. Income caps: $100,000 for individuals, $160,000 for joint applicants and single parents. 40,000 places available over four years. Initial lender panel: Bank Australia and Commonwealth Bank, with more lenders joining the panel through 2026. Subject to scheme criteria.
Stamp duty position varies materially by state. NSW: full exemption to $800,000, concession to $1,000,000. Victoria: $0 duty to $600,000, sliding-scale concession to $750,000. Queensland: brand-new homes attract a full transfer duty exemption with no value cap (May 2025 reforms); established homes exempt to $700,000, concession to $800,000. Maxfin factors the relevant state position into the deposit and settlement plan from the first conversation.
Limited guarantee structures using a parent's property as security to avoid Lenders Mortgage Insurance. The guarantor's property is encumbered for the limited guarantee portion only. Maxfin plans the guarantor release at the outset, typically once the loan amortises below the LVR threshold (usually 80%), so both the buyer and the guarantor know the exit timeline before settlement.
5% to 10% deposit loans with Lenders Mortgage Insurance structured efficiently, including LMI capitalisation where appropriate. LMI premiums vary materially across lenders for the same LVR; the right combination of rate plus LMI is the actual cost of the loan, not rate alone. Particularly relevant where the buyer doesn't qualify for the FHG or Help to Buy schemes.
Self-employed, contract or commission-based first-home buyers can access the schemes the same as PAYG buyers, but the income assessment behind the lender's approval is more complex. Maxfin matches the income profile to lenders that read self-employed or non-PAYG income favourably under FHG or Help to Buy policies, rather than treating complex income as an exception.
Conditional approval to confirm borrowing capacity before the buyer makes offers. Property search support: timing, what lenders will accept, valuation considerations. Formal approval after a contract is signed. Settlement coordination with the buyer's solicitor or conveyancer. Schemes have administrative deadlines that don't move; Maxfin sequences each gate so a deadline isn't missed at the wrong moment.
Federal guarantees and state stamp duty concessions can typically be combined where the buyer qualifies for each. Help to Buy is a separate pathway with its own deposit structure and lender panel; it can stack with state stamp duty concessions but is generally chosen as an alternative to (rather than alongside) the Federal Home Guarantee on a given purchase. Stacking is the work; eligibility tests cut off at thresholds, and missing one by a few thousand dollars can change the cost of acquisition by tens of thousands.
For first home buyers building or buying a brand-new home in Queensland valued under $750,000 (including land), the First Home Owner Grant currently sits at $30,000. The boosted amount applies to contracts signed between 20 November 2023 and 30 June 2026 (both dates inclusive). After 30 June 2026, the grant reverts to $15,000. For owner-builders, the foundations must be laid within the same window. The grant is in addition to (not instead of) Queensland's stamp duty exemption on new builds.
Approach
First-home buyer, Federal Home Guarantee plus state stamp duty concession
A buyer in Sydney purchasing at $750,000 with a 5% deposit. Federal Home Guarantee removes the LMI exposure (saving $20,000 to $40,000), and the NSW first-home buyer stamp duty exemption applies fully (saving the standard duty that would otherwise apply at this price band). Out-of-pocket costs reduce by tens of thousands of dollars relative to a non-scheme purchase. Lender selected from those participating in the FHG with appetite for the buyer's income profile.
Help to Buy shared-equity purchase in Queensland
A real-world Maxfin settlement: a Queensland family purchasing at $780,000 used the Help to Buy scheme with a 5% deposit, $517,000 loan, and a 30% government equity share. The borrower is now in their family home with a meaningfully smaller loan than a standard 95% LVR purchase would have required, and servicing on the smaller loan brings the file inside lender borrowing-capacity assessment. The trade-off accepted: the government holds an equity stake and shares in capital growth. Buy-out option preserved for the future.
First-home buyer with parent guarantor
Strong income but limited deposit. Parent-guarantor structure across a lender that prices these competitively. The parent's property is encumbered for the limited guarantee portion only, with a clear release plan once the loan reaches the LVR threshold (usually 80%). Maxfin models the release timeline upfront so both the buyer and the guarantor understand the exit. Subject to lender criteria.
Self-employed first-home buyer
A self-employed buyer with twelve to twenty-four months trading history and prior PAYG income in the same industry. The income profile is matched to lenders that handle self-employed under the Federal Home Guarantee, rather than defaulting to a generalist FHG lender that may treat the income as alt-doc by exception. Documentation pathway typically full-doc where two years of returns exist; alt-doc where the trading history is shorter.
First-home buyer in Queensland buying a new build
Queensland's May 2025 reforms removed the value cap on stamp duty exemption for first-home buyers purchasing brand-new homes. A first-home buyer purchasing a new build at any price point pays $0 in transfer duty. Combined with the Federal Home Guarantee at 5% deposit, this can result in materially reduced upfront costs at price points that would otherwise be heavily duty-loaded.
A buyer in Sydney purchasing at $750,000 with a 5% deposit. Federal Home Guarantee removes the LMI exposure (saving $20,000 to $40,000), and the NSW first-home buyer stamp duty exemption applies fully (saving the standard duty that would otherwise apply at this price band). Out-of-pocket costs reduce by tens of thousands of dollars relative to a non-scheme purchase. Lender selected from those participating in the FHG with appetite for the buyer's income profile.
A real-world Maxfin settlement: a Queensland family purchasing at $780,000 used the Help to Buy scheme with a 5% deposit, $517,000 loan, and a 30% government equity share. The borrower is now in their family home with a meaningfully smaller loan than a standard 95% LVR purchase would have required, and servicing on the smaller loan brings the file inside lender borrowing-capacity assessment. The trade-off accepted: the government holds an equity stake and shares in capital growth. Buy-out option preserved for the future.
Strong income but limited deposit. Parent-guarantor structure across a lender that prices these competitively. The parent's property is encumbered for the limited guarantee portion only, with a clear release plan once the loan reaches the LVR threshold (usually 80%). Maxfin models the release timeline upfront so both the buyer and the guarantor understand the exit. Subject to lender criteria.
A self-employed buyer with twelve to twenty-four months trading history and prior PAYG income in the same industry. The income profile is matched to lenders that handle self-employed under the Federal Home Guarantee, rather than defaulting to a generalist FHG lender that may treat the income as alt-doc by exception. Documentation pathway typically full-doc where two years of returns exist; alt-doc where the trading history is shorter.
Queensland's May 2025 reforms removed the value cap on stamp duty exemption for first-home buyers purchasing brand-new homes. A first-home buyer purchasing a new build at any price point pays $0 in transfer duty. Combined with the Federal Home Guarantee at 5% deposit, this can result in materially reduced upfront costs at price points that would otherwise be heavily duty-loaded.
Common questions
Do I qualify for the Federal Home Guarantee in 2026?
From 1 October 2025, all income caps were removed and places were made unlimited. Eligibility now turns on: being a first home buyer (no prior property ownership in Australia), Australian citizenship or permanent residency, intention to occupy the property as principal place of residence within twelve months, and the property price falling within the relevant cap for the location (Sydney $1.5M, Brisbane $1M, Melbourne $950k, etc.). Subject to scheme criteria.
What's the difference between the Federal Home Guarantee and Help to Buy?
The Home Guarantee solves the LMI problem: borrowers with a 5% deposit avoid the LMI premium that would otherwise add $20,000 to $40,000 to acquisition costs. The Help to Buy scheme solves the deposit and borrowing capacity problem: a 2% deposit plus up to 40% government equity means borrowing significantly less, and servicing on a smaller loan is materially easier. The trade-off with Help to Buy is the equity stake. The government shares in capital growth and any sale proceeds, proportional to its initial contribution. Buy-out options are preserved for the future.
Can I combine the Help to Buy with the Federal Home Guarantee?
Generally no, on the same purchase. The two schemes have different deposit structures and different lender panels and are typically chosen as alternative pathways. However, Help to Buy can stack with state stamp duty concessions and other state-based first home buyer support, which can substantially compound the benefits depending on the jurisdiction. Subject to scheme criteria.
How much can I actually borrow as a first-home buyer in 2026?
Borrowing capacity depends on income, expenses (HEM benchmark applies as a floor), existing debts (including credit-card limits, not just balances), dependents, and the lender's serviceability buffer (currently 3% above contracted rate). The new APRA debt-to-income cap (effective 1 February 2026) limits high-DTI lending at lenders close to their cap. Lenders use different calculators, so the same applicant can borrow materially different amounts across the panel. Maxfin models the spread before recommending where to submit.
What state-based grants and concessions still apply?
Vary by state. NSW: First Home Buyers Assistance scheme (full exemption to $800k, concession to $1M on stamp duty). Victoria: First Home Buyer concession ($0 duty to $600k, sliding scale to $750k); 12-month principal-residence requirement. Queensland: full stamp duty exemption with no value cap on brand-new homes (May 2025 reforms); established homes exempt to $700k, concession to $800k; First Home Owner Grant of $30,000 for new builds under $750,000, contracts signed by 30 June 2026 (reverts to $15,000 after that). State and federal positions can change without warning, so Maxfin confirms the current state position when scoping each application.
Should I use a parent-guarantor structure?
It works well for buyers with strong income but limited deposit, and avoids LMI without requiring a scheme. The trade-off: the guarantor's property is encumbered until the guarantee releases (typically three to five years, depending on amortisation and any extra repayments). Maxfin models the release plan upfront so the guarantor knows the timeline. Where the buyer also qualifies for FHG or Help to Buy, the schemes generally preserve the parent's property entirely, which is often preferable.
Does my credit file affect my first-home buyer application?
Yes. Australian comprehensive credit reporting gives lenders 24 months of monthly repayment history across every credit account, plus credit limits, account dates and credit enquiries. A clean recent payment history reads strongly. Multiple recent enquiries (six or more in twelve months) can read as credit-shopping. Closing unused credit cards before applying generally improves the file's borrowing-capacity profile. Two to six months of clean recent behaviour can materially improve a previously stressed file.
What documentation will I need?
Typically: 100 points of ID, proof of deposit (savings statements, gift letters if applicable), three months of bank statements, recent payslips and tax return for PAYG borrowers (or business financials and BAS for self-employed), credit-card and personal-loan statements, and details of any other liabilities. For scheme applications, additional evidence may be required (citizenship documentation, evidence of first-home status). Maxfin sends a precise checklist tailored to the lender and scheme before the buyer starts gathering anything.
How long does the first-home buyer process take?
Pre-approval typically completes in one to two weeks. Once a contract is signed, formal approval typically follows within one to three weeks, depending on lender processing and any conditions to clear (valuation, employment confirmation, deposit verification). Settlement is usually four to six weeks from contract for an established property. Scheme applications have specific administrative deadlines that don't move; Maxfin sequences the application so the deadlines align.
From recent first-home buyers
★★★★★
“Big thank you to Russell and Janette for helping my husband and I through the process of purchasing our first home. They had great advice and jumped to solve any problems that arose for us in a timely manner. Highly recommend Maxwell Financial!”
★★★★★
“Couldn't recommend Maxfin more!!! Russell and Janette were so easy to deal with and made the whole process of securing finance for our first home feel simple and stress free. They took the time to explain everything clearly, were always quick to respond, and genuinely went above and beyond to help us. We felt really supported throughout the entire process and are so grateful for their help.”
★★★★★
“Highly recommend Maxfin! Russell and Janette are superstars at what they do - they assisted us with securing finance for our first home and talked us through our best options. No question was ever left unanswered and they were always very responsive and went above and beyond many times throughout the process for which we were very grateful for! We could not recommend them more!!”
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