Each of the three important and most popular schemes for first-home buyers in Australia has different income caps, property price limits, and eligibility rules, which cannot be combined. A professional mortgage broker, like one at VOXFIN, checks which scheme applies to your situation and applies on your behalf at no cost to you.
There are three distinct federal schemes available to Australian home buyers in 2026. Each targets different people, works differently, and has different financial outcomes – the First Home Guarantee Scheme (FHGS) allows eligible first-home buyers to purchase with 5% deposit and no LMI, the Family Home Guarantee lets single parents buy with just 2% deposit and is not limited to first-time buyers, whereas Help to Buy is a shared equity scheme where the government co-purchases up to 40% of your home to reduce your loan size.
Each of these schemes has different property price limits statewide in Australia and eligibility criteria, which cannot be combined. Understanding which one applies to you or whether more than one does is worth thousands of dollars. That’s where VOXFIN’s expert First Home Mortgage Brokers help you.
If you’ve searched ‘first-home buyer grants Australia‘ recently, you have already met the confusion – three schemes, overlapping acronyms, and government pages that somehow make things less clear the more you read them.
- Sydney: up to $1.3M
- Melbourne: up to $950k
- Brisbane & ACT: up to $1M
- Adelaide: up to $900k
- Perth: up to $850k
(Regional caps vary by postcode.)
1. First Home Guarantee Scheme (FHGS)
Previously: FHLDS / First Home Guarantee: Buy with 5% deposit, zero LMI
The FHGS is Australia’s flagship first-home buyer program. It removes the biggest single obstacle for most buyers, the need for a 20% deposit, by having the government guarantee the gap between your 5% deposit and the lender’s 20% threshold. This eliminates Lenders Mortgage Insurance (LMI).
On a $750,000 property, LMI at 95% LVR would typically cost $25,000-$35,000. Under the FHGS, you pay zero. The government guarantee costs you nothing; it is not a debt you repay.
Key eligibility and features
| Minimum deposit | 5% of the purchase price |
| LMI cost | Zero – government guarantees up to 15% of property value |
| Who qualifies | First-home buyers only, must not have previously owned property in Australia |
| Income cap | From 1 Oct 2025: No Income Cap |
| Property price cap | Varies by state and region, check current caps at VOXFIN or Housing Australia |
| Places available | 35,000 per financial year, places can run out, especially early in the FY |
| Updated | Expanded as of 1 October 2025, higher property caps and broader eligibility |
| Can’t be combined | Cannot be used simultaneously with the Family Home Guarantee or Help to Buy |
Read VOXFIN’s dedicated FHGS guide voxfin.com.au/first-home-guarantee-scheme-and-first-home-grants
2. Family Home Guarantee
For single parents: 2% deposit, no LMI, open to previous homeowners too
People are often confused about the Family Home Guarantee and the FHGS because of overlapping naming. However, it targets a completely different set of people with a fundamentally different eligibility rule, meaning it is not restricted to first-home buyers.
A single mother who owned a home during a marriage, sold it after a divorce, and has been renting for the past four years can access the Family Home Guarantee. A first-home buyer who is also a single parent can access it too. The defining criteria are being a single parent or single legal guardian with at least one dependent child, not whether you have owned before.
Key eligibility and features
| Minimum deposit | 2% of the purchase price (lower than FHGS) |
| LMI cost | Zero – government guarantees up to 18% of property value |
| Who qualifies | Single parents or single legal guardians with at least one dependent child |
| Previous ownership | Allowed – previous homeowners ARE eligible (unlike FHGS) |
| Income cap | No Income Cap |
| Property price cap | Varies by state: same caps as FHGS in most regions |
| Places available | 5,000 per financial year – significantly fewer than FHGS, apply early |
| Can’t be combined | Cannot be used with FHGS or Help to Buy simultaneously |
Explore all first-home buyer loan options at voxfin.com.au/first-home-buyers-loan
3. Help to Buy
Shared equity: Government co-owns up to 40% of your home, reducing your loan
Help to Buy is structurally different from the other two schemes. Rather than guaranteeing your loan, the Australian Government becomes a co-owner of your property. It contributes up to 40% of the purchase price for new homes and up to 30% for existing properties. This reduces your loan principal directly, meaning lower repayments from day one.
What is the trade-off? When you sell the property, the government receives its equity share of the sale proceeds (or you can buy out the government’s share at any time). It is not a grant; it is a genuine equity stake. For buyers with very limited savings but stable income, it can make otherwise unaffordable properties reachable.
Key eligibility and features
| Minimum deposit | 2% of the purchase price |
| Government contribution | Up to 40% for new homes · Up to 30% for existing homes |
| Your loan size | Dramatically reduced – borrow only 58-68% instead of 95% |
| Who qualifies | Australian citizens who don’t currently own property (not just first-time buyers) |
| Income cap | $100,000 per year for singles · $160,000 combined for couples |
| Property price cap | Varies by state: generally aligned with median prices in each region |
| Buying out the government | You can purchase the government’s equity share at any time |
| Can’t be combined | Cannot be used with FHGS or Family Home Guarantee simultaneously |
Already read our 5% deposit guide?
Comparing Side-by-Side: Which Scheme Fits You?
| FHGS | Family Home Guarantee | Help to Buy | |
| Min. deposit | 5% | 2% | 2% |
| LMI payable | None | None | None |
| Govt contribution | Guarantee (15%) | Guarantee (18%) | Equity (up to 40%) |
| First-home buyers only | Yes | No (previous owners OK) | No (non-owners OK) |
| Single parents only | No | Yes | No |
| Income cap (single) | No Cap | No Cap | $100,000 |
| Income cap (couples) | No Cap | N/A – single applicant | $160,000 |
| Places/yr | 35,000 | 5,000 | TBC – rolling |
| Share property? | No, full ownership | No, full ownership | Yes, the government co-owns |
Your Quick Decision Guide: Which Scheme Should You Apply for?
What About the First Home Owner Grant (FHOG) and Stamp Duty Concessions?
The three schemes above are federal programs. On top of them, most Australian states offer their own First Home Owner Grant (FHOG), a one-off cash payment, typically $10,000-$30,000, for eligible buyers purchasing or building new properties. State-based stamp duty exemptions and concessions also apply independently.
Critically, you can stack the FHOG and stamp duty concessions on top of whichever federal scheme you use. These are separate, complementary programs, not alternatives to each other.
Check VOXFIN’s full guide to first home grants and schemes:
voxfin.com.au/first-home-guarantee-scheme-and-first-home-grants
You may also want to read
Why home loan applications get declined (And how to avoid it)
Still not sure which scheme you qualify for? VOXFIN checks it for FREE – call us now.
Our first-home buyer mortgage brokers in Melbourne and across Australia confirm your eligibility for all three federal schemes, stack any applicable state grants, and submit your application to the right lender at zero cost to you.
Most clients receive fast pre-approval within 24 hours.
Book your free eligibility check at voxfin.com.au/first-home-buyers-loan
