The Australian Dream: The Ultimate Guide to Your First Home

Updated October 2026 to reflect current government scheme settings.

Buying your first home can feel complex, but with the right information it's an achievable goal. This guide covers saving a deposit, government support, the buying process and alternative ways into the market.

The first hurdle: saving your deposit

The deposit is the largest upfront cost, but not the only one. You'll also need to budget for stamp duty (which first home buyers may pay less of, or none), building and pest inspections, legal or conveyancing fees and loan application costs. A 20% deposit avoids Lenders Mortgage Insurance (LMI), but government schemes let eligible buyers purchase with much less.

Government grants and schemes

Australian Government 5% Deposit Scheme

Eligible first home buyers can buy with a deposit of as little as 5%, and eligible single parents with as little as 2%, without paying LMI. Since 1 October 2025 the scheme has no income caps and no limit on places. Property price caps still apply and vary by location. In Queensland they are $1,000,000 for Brisbane, the Gold Coast and the Sunshine Coast, and $700,000 for the rest of the state.

First Home Owner Grant

Each state offers a grant for eligible first home buyers purchasing or building a new home. In Queensland it is $30,000 for eligible new homes valued under $750,000. Check your state revenue office for current amounts and rules.

First Home Super Saver Scheme

Lets you save for your deposit inside your super fund using voluntary contributions, which can help you save faster because of super's lower tax rate.

Help to Buy

A federal shared equity scheme where the government contributes part of the purchase price, reducing the loan you need. Income and price caps apply.

The path to ownership

1. Save your deposit
2. Get pre-approval
3. Find a property
4. Make an offer
5. Get formal approval
6. Settle and collect your keys

Where to look

Prices vary dramatically across Australia. Regional centres and outer suburbs often offer better value than inner-city markets, with strong growth potential and good amenities. Always research specific suburbs carefully.

Building your own home

Building a new home gives you full control of the design and access to new home incentives like the First Home Owner Grant. It works differently from buying an established home, usually with a construction loan paid out in stages as the build progresses.

1. Secure your land
2. Choose your builder and plans
3. Arrange your construction loan
4. Progress through the construction stages
5. Final inspection
6. Handover

Alternative housing options

Modular and prefab homes

Built in sections in a factory and assembled on site. They offer strong quality control and fast construction, often at a lower cost.

Kit homes

Pre-cut materials delivered to your site. Cost-effective if you have the skills to build as an owner-builder or can hire contractors.

Tiny homes

Small, efficient homes on wheels or a permanent foundation. Finance and council rules can be harder to navigate, so talk to a broker early.

Ready to map out your first home journey? Gwen at Ferns Finance can check which schemes you qualify for and what you can borrow.

General information only, current as at October 2026. It does not consider your personal circumstances. Eligibility criteria, price caps and lender credit criteria apply and can change.