Introduction
For first home buyers, every dollar counts. While falling mortgage rates — like BOQ’s 4.89% fixed deal and NAB/ANZ’s 5.19% rates — are making repayments more affordable, tax concessions and government grants continue to play a critical role in helping Australians get on the property ladder.
Heading into 2026, changes to stamp duty, federal incentives, and state-based first home buyer schemes will shape how affordable entry into the market really is. Whether you’re in Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart, Canberra, or Darwin, understanding these updates is crucial to maximising your buying power.
The Current Support Landscape
1. First Home Guarantee (Federal)
- Allows buyers to enter the market with just a 5% deposit, without paying Lenders Mortgage Insurance (LMI).
- Single parents may qualify under the Family Home Guarantee with deposits as low as 2%.
2. First Home Owner Grant (FHOG)
- Lump sum grants for eligible buyers of new builds.
- Amounts vary by state — ranging from $10,000 to $30,000.
3. Stamp Duty Concessions
- Several states, including NSW and Victoria, are expanding concessions.
- In some regions, first home buyers may pay no stamp duty at all below certain thresholds.
What’s Changing in 2026?
- NSW: Gradual transition from stamp duty to an annual property tax continues, giving buyers more flexibility in budgeting.
- Victoria: Stamp duty concessions are expected to expand to cover more price brackets, particularly in regional areas.
- Queensland: Additional grants may be introduced for new eco-builds, aligning with green housing initiatives.
- National Outlook: Federal incentives are unlikely to be rolled back, as affordability remains a pressing issue.
Why These Changes Matter
For a first home buyer, saving tens of thousands in upfront costs can be the difference between entering the market in 2026 — or waiting years longer.
Example: Sydney apartment ($750,000)
- Stamp duty without concession: approx. $29,000
- With NSW concession: potentially reduced to $0
- With First Home Guarantee: avoid $20,000+ in LMI
- Total potential saving: nearly $50,000
Capital City Realities
- Sydney: Stamp duty concessions and tax reforms provide major relief in a high-cost market.
- Melbourne: Expanded concessions make regional properties more accessible.
- Brisbane: Grants and sub-5% rates improve affordability for young families.
- Perth: State FHOG incentives for new builds remain highly attractive.
- Adelaide: Lower prices mean federal guarantees are often enough to support entry.
- Hobart: Smaller but targeted grants still play an important role.
- Canberra: Local concessions continue to reduce upfront costs.
- Darwin: Generous grants for regional builds help offset higher construction costs.
Real Client Story: Jack & Emily in Melbourne
“We thought we’d never get ahead with a 20% deposit target. Our broker explained the First Home Guarantee and state stamp duty concessions. Between avoiding LMI and not paying $25,000 in duty, we bought a townhouse a year earlier than planned.”
Why Brokers Are Key for First Home Buyers
- Expert Knowledge – Every state’s grants and concessions differ.
- Application Support – Brokers manage FHOG, stamp duty exemption, and federal guarantee paperwork.
- Access to 50+ Lenders – Not every bank participates in government programs — brokers know which do.
- Deposit Strategy – Brokers show whether it’s better to wait, or buy sooner with LMI or schemes.
Risks of Going It Alone
- Missing out on government incentives.
- Applying for a loan with a lender that doesn’t participate in schemes.
- Paying unnecessary stamp duty or LMI.
- Losing time in a competitive market where demand may surge after RBA cuts.
Practical Steps for Buyers in 2026
- Check your state’s rules — eligibility differs everywhere.
- Get pre-approved early — government guarantee schemes have limited places each year.
- Review your budget — sub-5% rates lower repayments, but grants reduce upfront hurdles.
- Work with a broker — they’ll connect you with lenders who accept scheme-backed loans.
📅 Book Your Free, No-Obligation Chat
At Money Tree Mortgage Brokers, we specialise in helping first home buyers access every possible concession, grant, and scheme. From the federal First Home Guarantee to state-specific tax breaks, we’ll help you unlock your path to home ownership in 2026.
