More has changed for first home buyers in Australia since October 2025 than in the previous five years combined, and most guides havenโt caught up yet. The FHGS (5% Deposit Scheme) now has unlimited places and no income cap. Help to Buy launched in December 2025. The ACT scrapped stamp duty for first home buyers entirely from 1 July 2026. Queensland extended its $30,000 new-build grant beyond June 2026. And the Budgetโs investor pullback means first home buyers are facing less competition than at any point in the past decade. Hereโs the complete July 2026 update.
Most First Home Buyer Guides Are Already Out of Date. Hereโs Whatโs Actually Changed.
Iโve been placing first home buyer loans for over a decade. Iโve never seen the policy landscape shift as dramatically or as quickly as it has since October 2025. Four separate changes across federal schemes, state grants, interest rates, and the investor market have landed in eight months. Almost none of the guides currently ranking on Google reflect all of them accurately.
If youโre planning to buy your first home in the next three to twelve months, this is the article you need to read first. Not because of anything Iโm selling but because getting this information wrong will cost you money you donโt need to spend.
5 Things That Have Changed for First Home Buyers Since October 2025
Read each of these carefully. At least two will directly affect what you can access and how you should plan.
- October 2025 โ FHGS Now Has Unlimited Places and No Income Cap
The 5% Deposit Scheme (FHGS) removed its annual place cap and income limits from 1 October 2025. Previously, 35,000 places per year created urgency and income thresholds locked out some borrowers. Now, any eligible first home buyer who meets the property price cap and lender requirements can access the scheme โ no quota, no race for places, no income limit. This is the single biggest underreported change in Australian first home buyer policy. Most guides still incorrectly state that places are limited.
- December 2025 โ Help to Buy Is Now Live
Help to Buy officially launched on 5 December 2025 after passing federal parliament. Under this scheme, the government takes a co-ownership stake of up to 40% on new builds (30% on existing homes), reducing your loan size significantly. You need just a 2% deposit. The governmentโs equity share is interest-free โ you pay no rent or interest on their portion. Income caps apply ($90,000 single / $120,000 couple), and it cannot be combined with the FHGS. It is available to any eligible buyer who hasnโt owned a home in the past 10 years, not just first-time buyers.
- June 2026 โ Queenslandโs $30,000 New-Build Grant Extended
Queenslandโs boosted First Home Owner Grant of $30,000 for new builds was widely expected to revert to $15,000 on 1 July 2026. The 2026-27 Queensland Budget (handed down 23 June 2026) extended the $30,000 amount beyond that date. Any guide or calculator still showing $15,000 for Queensland is now wrong. Queensland retains the largest new-build first home buyer grant in the country โ $30,000 on top of federal scheme benefits.ย ย
- June 2026 โ RBA Paused โ Borrowing Capacity Has Stabilised
The RBA held the cash rate at 4.35% at its 16 June 2026 meeting following three consecutive rate rises in 2026. Big four variable rates currently sit between 5.99% and 6.44%. Serviceability is still assessed at the rate plus the 3% APRA buffer, meaning lenders test your capacity at approximately 9%. The key message: borrowing capacity stopped tightening after three consecutive rises compressed it. If youโve been waiting for rates to fall before calculating what you can borrow, the pause means those calculations are valid again.ย
- 1 July 2026 โ ACT Scraps Stamp Duty for First Home Buyers Entirely
From 1 July 2026, eligible first home buyers in the Australian Capital Territory pay zero conveyance duty (stamp duty), regardless of income or property value. There is no threshold above which stamp duty kicks in. For a first home buyer in Canberra purchasing a $750,000 property, this represents a saving of approximately $28,000 in upfront costs. This is the most generous stamp duty position for first home buyers in Australia and applies from this month.
The Market Shift Nobody Is Talking About โ But Every First Home Buyer Should Know
The 2026-27 Federal Budgetโs restriction of negative gearing to new builds means established property investors are stepping back from the market. The governmentโs own modelling projects approximately 75,000 homes released from investor competition and available to first home buyers over the next decade.
I see this in real time in my practice. Auction clearance rates on established properties in the sub-$1M range, historically dominated by investor bidders, have softened. The first home buyer pool is larger, the investor pool is smaller. For buyers who have been priced out or outbid for years, this is a structural shift worth acting on.
Your First Home Buyer Checklist for July 2026
Work through this in order. Each step depends on the one before it.
Before You Look at a Single Property
- Check your FHGS eligibility โ unlimited places, no income cap since October 2025. If you havenโt owned property in Australia in the past 10 years and meet the property price cap for your state, you are likely eligible.
- Check your Help to Buy eligibility โ income cap $90K single / $120K couple. If eligible, model both FHGS and Help to Buy to see which delivers the better outcome for your deposit size. Note: they cannot be combined.
- Check your stateโs FHOG and stamp duty position, especially if youโre in QLD ($30K grant, confirmed extended), ACT (zero stamp duty from 1 July 2026), or NSW ($0 stamp duty under $800K). These change frequently.
- Get a formal borrowing power calculation from a broker, not an online calculator. Lenders use different serviceability models, and the gap between the highest and lowest result across 40+ lenders can be substantial.
- Get pre-approval before you inspect a single property, not during, not after. Pre-approval gives you a price ceiling and a competitive edge at auction.
Before You Make an Offer or Bid at Auction
- Confirm your full upfront cost breakdown โ deposit + stamp duty (if applicable) + conveyancing + building and pest inspection + lender fees. Know the total number before you commit.
- Check the property price cap for your scheme in your state/suburb โ FHGS price caps differ between capital cities and regional areas. Buying above the cap disqualifies the application.
- Order a building and pest inspection before bidding at auction, not after. Auction contracts are unconditional. An $800 inspection can reveal $80,000 in problems.
- Confirm your pre-approval validity and timeline โ most pre-approvals are valid for 90 days. If yours is approaching expiry, contact VOXFIN to extend before it lapses.
Before Settlement
- Confirm your FHGS or Help to Buy application is submitted through a participating lender โ you cannot apply directly to Housing Australia. VOXFIN identifies which participating lenders have the best rates and fastest processing.
- Verify your grant applications are lodged through your state revenue office if applicable โ FHOG and stamp duty concessions are state-based and separate from federal scheme applications.
- Check whether your profession qualifies for additional benefits โ medical, dental, legal, and other professionals may access no-LMI loans independently of the FHGS.
Where does your situation actually sit right now?
VOXFINโs first home buyer brokers confirm which schemes you qualify for, calculate your genuine borrowing power across 40+ lenders, and have you pre-approved within 24 hours.
Frequently Asked Questions
Does the FHGS (5% Deposit Scheme) still have limited places in 2026?
No, the First Home Guarantee Scheme (FHGS) has removed its annual place cap and income limits from 1 October 2025. This means the scheme that had only 35,000 places per financial year previously is now available for all eligible first home buyers from October 2025. However, eligibility is still subject to property price caps that vary by state and region, and applicants must meet standard first home buyer criteria, including Australian citizenship or PR, along with an intention to occupy the property as their principal place of residence.
What is the first home buyer stamp duty exemption in each Australian state in 2026?
Stamp duty concessions for first home buyers in Australia vary significantly by state.
- In NSW, eligible first home buyers pay zero stamp duty on properties up to $800,000, with a concession up to $1 million.
- In Victoria, full exemption applies up to $600,000, with concessions to $750,000.
- In Queensland, duty concessions apply up to $700,000 for new homes and $800,000 for vacant land.
The ACT introduced full stamp duty exemption for eligible first home buyers from 1 July 2026 โ the most generous position nationally, with no income or property value threshold. Western Australia, South Australia, and Tasmania have their own threshold structures.
Can I combine the FHGS (5% Deposit Scheme) and the Help to Buy scheme?
No, you cannot combine both in the same property purchase. You have to choose one. The FHGS allows you to purchase with a 5% deposit while retaining full ownership of the property, with the government guaranteeing 15% of the loan to eliminate LMI. On the other hand, Help to Buy requires only a 2% deposit and reduces your loan size by having the government co-own up to 40% of the property, but you share future capital growth proportionally.
Has the Queensland First Home Owner Grant changed in 2026?
Yes, the Queensland First Home Owner Grant was widely expected to revert from $30,000 to $15,000 on 1 July 2026, but the 2026-27 Queensland Budget (handed down 23 June 2026) confirmed the $30,000 amount will continue beyond that date. Queensland now retains the largest first home buyer new-build grant in Australia. Contact us to learn more about this.
How has the 2026 Budget affected competition for first home buyers at auction?
The 2026-27 Federal Budgetโs restriction of negative gearing to new builds from 1 July 2027 has started reducing established property investor competition, and first home buyers are a direct beneficiary. The federal governmentโs own modelling projected approximately 75,000 homes freed from investor competition over the next decade. In practical terms, auction clearance rates on established properties in the sub-$1 million range have softened since Budget night as investor demand contracts.
Should I wait for interest rate cuts before buying my first home?
Waiting for rate cuts before buying is a strategy that comes with a significant risk factor. The RBA paused the cash rate at 4.35% in June 2026 following three consecutive rises, and multiple forecasters expect gradual cuts beginning in late 2026. However, if rates fall, property prices in the segments first home buyers target historically respond by rising, meaning lower repayments but higher purchase prices. Our experts would recommend a more reliable approach: buy at a price your current serviceability supports, with the rate cut as upside if and when it arrives. We calculate your borrowing power under current conditions across 40+ lenders and stress-test repayments at both current and historic higher rates.
VOXFIN confirms which schemes youโre eligible for, checks current grant amounts in your state, calculates your genuine borrowing power across 40+ lenders, and gets you pre-approved in 24 hours. Melbourne, Brisbane, and all over Australia.
