First Home Buyer Guide Australia

Buying your first home involves more moving parts than a later purchase, largely because first home buyers have access to a range of grants, concessions and schemes that do not apply once you have owned property before. None of these are automatic, and most require specific paperwork to be lodged at the right time, often around settlement. Knowing what exists and how it fits together makes the process considerably easier to plan for.

The First Home Owner Grant

The First Home Owner Grant, commonly known as the FHOG, is a one-off payment available to eligible first home buyers, but the amount, eligibility rules and whether it applies to established homes or only new and off-the-plan properties varies by state. Some states restrict the grant to newly built homes to encourage new supply, while others extend it more broadly. Because the rules differ so much between jurisdictions, it is worth checking the current settings for your specific state, such as Queensland, well before you sign a contract, since eligibility can depend on factors like the purchase price cap and whether you intend to live in the property as your main residence.

Stamp Duty Concessions and Exemptions

Alongside the grant, most states offer a separate stamp duty concession or full exemption for eligible first home buyers, typically tied to the value of the property and, in some cases, whether it is a new or established home. This is administered separately from the FHOG application, and the two should not be confused, since missing the stamp duty concession application deadline can mean paying the full rate even if your grant application was successful. Our stamp duty guide explains how duty is generally calculated and where concessions typically sit within that calculation. Your conveyancer normally handles this application as part of a standard first home buyer transaction, lodging the necessary forms alongside the transfer at settlement.

The First Home Super Saver Scheme

The First Home Super Saver scheme, or FHSS, allows first home buyers to make voluntary contributions into their superannuation fund and later withdraw those contributions, along with associated earnings, to help fund a deposit. Because superannuation contributions can be taxed more favourably than ordinary savings, this scheme can help some buyers build a deposit more efficiently over time, in the same way that general strategies covered in MoneySmart's guide to saving for a house deposit can, though it involves a formal withdrawal request through the Australian Taxation Office and a hard cap on how much can be released. It is worth planning for well in advance of when you intend to buy, since the withdrawal process itself takes some administrative time and is separate from your conveyancer's role in the transaction.

State-Based Shared Equity Schemes

A number of states run shared equity schemes, where a state government or a nominated agency co-invests in your purchase alongside your own deposit and loan, reducing how much you need to borrow. These schemes typically come with conditions, such as income caps, property price limits and rules about paying back the government's share over time or when the property is eventually sold. Shared equity is not available everywhere and the specific structure differs between states, so it is worth checking what applies where you are buying, whether that is Sydney, Queensland or elsewhere, before assuming a particular scheme will be available to you.

What a Conveyancer Checks for First Home Buyers

For a first home buyer, your conveyancer's role extends slightly beyond a standard residential purchase. Alongside the usual searches and contract review, your conveyancer confirms your eligibility documentation is complete for any grant or concession you are applying for, ensures the correct forms are lodged with the relevant state revenue office at the right point in the transaction, and checks that settlement timing does not create a conflict with any scheme conditions, such as a requirement to occupy the property within a set period after settlement. Missing a lodgement deadline or filing incomplete paperwork can mean losing access to a grant or concession entirely, so this is one area where using a conveyancer experienced with first home buyer transactions genuinely matters.

It is also worth understanding your cooling-off rights as a first home buyer, since these vary by state and by whether you are buying at auction, and can affect how much flexibility you have if your finance or grant eligibility needs to be confirmed before you are fully committed to the contract.

Common Mistakes First Home Buyers Make

The most frequent mistake is assuming eligibility for a grant or concession without checking the current criteria for the specific property and state involved, since rules change over time and often differ for new versus established homes. Another common issue is applying for the FHOG and the stamp duty concession as though they are the same process, when in most states they are lodged separately and can have different eligibility tests. Buyers also sometimes leave super contributions for the First Home Super Saver scheme too late, not realising that the withdrawal request itself takes processing time before funds are available for a deposit. Finally, some first home buyers skip a proper contract review because the process feels overwhelming, when in fact this is exactly the stage where a conveyancer can identify a special condition, an unusual settlement period, or a defect disclosure that affects the value of what you are buying.

Getting Started

Because so much of the benefit available to first home buyers depends on timing and correct paperwork, it is worth speaking to a conveyancer before you make an offer rather than after, so any grant, concession or scheme you are relying on can be factored into your settlement timeline from the start. This also gives you a clearer picture of the overall process of buying, covered more generally in MoneySmart's guide to buying a house, since grants, concessions and scheme conditions materially affect how a transaction is structured even though we do not quote specific figures here. A conveyancer who regularly works with first home buyers will also be able to tell you early on whether your intended purchase, whether it is an established house, a unit, or an off-the-plan property, changes which grants and concessions you are likely to qualify for.