If you are buying your first home in 2026, the financial landscape looks markedly different from previous years. The RBA cash rate sits at 4.35% – unchanged since late 2024 – and the lowest advertised variable home loan rates hover around 5.69%. APRA’s serviceability buffer remains at 3% , so lenders must assess your ability to repay at a rate of at least 8.69% . Furthermore, the Australian Prudential Regulation Authority (APRA) has reinforced a debt-to-income (DTI) cap of 6x for new mortgage approvals, effective February 2026, to slow excessive borrowing.
On the federal front, the First Home Guarantee (FHBG) has been revamped from July 2026: there is no income cap for applicants, you only need a 5% deposit (the government guarantees the remaining 15% to avoid Lenders Mortgage Insurance), and the property price caps have been lifted to: · Sydney – $1,500,000 · Brisbane – $1,000,000 · Melbourne – $950,000 · Perth – $850,000 · Other capital cities and regional centres have adjusted caps (see Housing Australia’s website for your specific postcode).
Understanding the full picture also means factoring in state‑based grants and stamp duty concessions. Below we break down every state and territory’s package for 2026, including eligibility thresholds, dollar amounts, and cut‑off prices.
First Home Owner Grant (FHOG) in 2026
The national First Home Owner Grant (FHOG) is a one‑off cash payment, but each state sets its own amount and rules. In 2026, the grants remain largely unchanged from 2025, except for a few indexation updates. The grant is typically available for new homes (or substantially renovated properties) valued below a certain threshold. Existing dwellings generally do not qualify.
Key parameters for 2026: · NSW – $10,000 for new homes valued up to $800,000 (land and house package up to $1 million). · Victoria – $10,000 for new homes valued up to $750,000; regional first‑home buyers may be eligible for an additional $20,000 under the Regional First Home Buyer Guarantee (subject to federal scheme caps). · Queensland – $15,000 for new homes valued up to $750,000 (in place since 2023, extended to mid‑2027). · Western Australia – $10,000 for new homes valued up to $430,000 (house and land package up to $430,000). · South Australia – $15,000 for new homes valued up to $650,000. · Tasmania – $10,000 for new homes valued up to $600,000. · ACT – No FHOG available since 2023; replaced by the Home Buyer Concession Scheme (stamp duty relief). · Northern Territory – $10,000 to $20,000 (tiered based on value and location; new homes up to $650,000).
Stamp duty concessions: the bigger saving for most buyers
For many first‑home buyers, the stamp duty exemption or concession delivers a far larger saving than the cash grant. Every state offers either a full exemption on the first slice of the purchase price or a reduced rate up to certain thresholds. In 2026, the caps have been indexed in several states.
New South Wales
First‑home buyers can claim a full exemption on stamp duty for properties valued at $800,000 or less. A sliding concession applies for properties between $800,001 and $1,000,000 – above that, no concession is available.
· Example: A property purchased for $780,000 saves approximately $29,000 in stamp duty. · The exemption applies to both established and new homes, but property must be owner‑occupied for at least 12 months. · For new homes only, the FHOG of $10,000 is also available.
Victoria
Victoria offers a full stamp duty exemption for first‑home buyers on properties valued at $600,000 or less. A concessional rate applies for properties priced between $600,001 and $750,000, with the duty gradually increasing up to the standard rate at $750,000.
· From July 2026, the thresholds are indexed to the Consumer Price Index but remain at the above levels for the current financial year. · In regional Victoria, first‑home buyers can also access the Regional First Home Buyer Guarantee (federal) but that does not affect the stamp duty calculation. · The FHOG of $10,000 is available only for new homes under $750,000.
Queensland
Queensland provides a full stamp duty exemption for first‑home buyers on properties valued at $500,000 or less. A concession is available for properties between $500,001 and $600,000, with the duty calculated on the portion above $500,000 at a reduced rate.
· Above $600,000, no first‑home buyer concession is available. · The FHOG of $15,000 for new homes under $750,000 remains one of the most generous cash grants nationally.
Western Australia
Western Australia’s stamp duty concession for first‑home buyers offers a full exemption on properties valued at $430,000 or less. For properties between $430,001 and $530,000, a sliding scale applies, reducing the duty proportionally. Above $530,000, standard rates apply.
· The FHOG of $10,000 is only for newly constructed homes up to $430,000. · The state also offers a $50,000 Homes for Heroes grant for eligible critical workers (police, nurses, teachers) purchasing a first home in regional WA.
South Australia
South Australia has a full stamp duty exemption for first‑home buyers on properties valued at $650,000 or less. That threshold is significantly higher than most states and covers a large portion of the Adelaide market.
· No concession for properties above $650,000. · The FHOG of $15,000 applies only to new homes below $650,000.
Tasmania
Tasmania provides a full stamp duty exemption for first‑home buyers on properties valued at $500,000 or less. A partial concession is available for homes up to $600,000, with duty calculated at a reduced rate.
· The FHOG of $10,000 is available for new homes under $600,000. · Tasmania also offers a separate $30,000 grant for first‑home buyers building a new home in regional areas (subject to limited funding).
Australian Capital Territory
The ACT abolished its FHOG in 2023. In its place, first‑home buyers can benefit from the Home Buyer Concession Scheme (stamp duty relief) on properties valued at $750,000 or less. The concession is means‑tested (household income below $160,000) and can reduce duty by up to $25,000.
· For new apartments, an additional $7,000 grant may apply through the Home Buyer Assistance Program (income tested). · The land tax surcharge for vacant land is also waived for first‑home buyers who build within two years.
Northern Territory
The Northern Territory has no stamp duty for first‑home buyers on properties valued at $600,000 or less – effectively a full exemption. For homes between $600,001 and $700,000, a concessional rate applies.
· The FHOG ranges from $10,000 (for existing homes) up to $20,000 (for new homes under $650,000). · No income cap applies for the stamp duty exemption.
Eligibility cut‑offs and traps
Across all states, the most important cut‑off to watch is the property price threshold for the stamp duty exemption. If you exceed that by even $1, you lose the full benefit and may only receive a small concession (or none). In 2026, with house prices in many capitals still high, buyers should aim to negotiate below the cap or consider suburbs where median prices are lower.
Other eligibility criteria to note: · Owner‑occupier requirement – most concessions require you to move in within 12 months and live there for at least 6–12 months. · First‑home buyer definition – you must not have owned a home in any country before (some states exclude previous ownership of investment property). · Income limits – while the federal FHBG no longer has an income cap, state stamp duty concessions do not impose income limits, except in the ACT and Victoria’s regional scheme. · Time limits – you must usually complete the purchase within a set period after approval; grants are paid on settlement.
Making the numbers work in 2026
With the RBA’s cash rate at 4.35% and lenders applying a 3% buffer, servicing a mortgage remains challenging. A first‑home buyer with a 5% deposit under the FHBG will need to demonstrate they can afford repayments at an assessment rate of approximately 8.69%. For a $900,000 property in Melbourne (below the $950k FHBG cap), the monthly repayment on a 30‑year loan at 5.69% (variable) would be around $5,090 per month. Add rates, insurance, and body corporate fees, and the total housing cost can exceed $6,000 monthly.
The DTI cap of 6x means that if your household income is $150,000, the maximum loan you can access (without special exemption) is $900,000. That aligns neatly with the FHBG caps for most capitals, but borrowers with lower incomes may be restricted.
FAQ – First home buyer grants and concessions 2026
Q1: What is the maximum stamp duty saving I can get as a first‑home buyer in 2026? A: The largest stamp duty savings are in NSW (up to ~$29,000 on an $800,000 property) and South Australia (up to ~$31,000 on a $650,000 property). Exact amounts depend on the purchase price and state formula.
Q2: If I use the federal First Home Guarantee, can I still get the state FHOG cash grant? A: Yes, in most cases. The FHBG is a separate federal scheme and does not affect your eligibility for the state‑based FHOG. However, you must still meet the state’s definition of a first‑home buyer (never owned a home before). Some states, like NSW, allow both the grant and the stamp duty concession simultaneously.
Q3: Are there any income limits for state stamp duty concessions? A: Generally no, except in the ACT (household income below $160,000) and for Victoria’s Regional First Home Buyer Guarantee (income limit applies). Most other states do not impose income caps for stamp duty relief.
Q4: What happens if I buy a property just $10,000 over the stamp duty exemption threshold? A: In most states, you lose the full exemption and must pay the full stamp duty (or a reduced concessional rate if the state offers a taper). Always check the exact threshold for your property postcode – even a dollar over can trigger a large extra cost.
Q5: Can I get the FHOG if I buy an existing home? A: Generally no. The FHOG is only for new homes, substantially renovated homes, or owner‑builder situations. Each state defines “new home” differently – usually a dwelling that has never been occupied or sold as a residence before. If you are buying an established property, you cannot claim the FHOG.
Sources
· Housing Australia – First Home Guarantee eligibility and price caps (housingaustralia.gov.au) · APRA – Macroprudential measures and DTI limits (apra.gov.au) · RBA – Current cash rate and monetary policy statements (rba.gov.au) · Revenue NSW – First home buyer stamp duty exemptions (revenue.nsw.gov.au) · State Revenue Office Victoria – First home buyer duty concessions (sro.vic.gov.au) · Queensland Revenue Office – First home concession (qro.qld.gov.au) · Department of Finance WA – First Home Owner Grant (finance.wa.gov.au) · RevenueSA – Stamp duty concession for first home buyers (revenuesa.sa.gov.au) · Tasmanian Revenue – First Home Owner Grant and stamp duty relief (sro.tas.gov.au) · ACT Revenue Office – Home Buyer Concession Scheme (revenue.act.gov.au) · NT Treasury – Stamp duty and FHOG (treasury.nt.gov.au)
Use our stamp duty calculator
Before you start searching, calculate exactly how much stamp duty you will pay – and how much you can save – for any property price in your state. Try our Stamp Duty Calculator to see the first‑home buyer concession amounts instantly.
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For more detail on how the federal guarantee works with a 5% deposit, read our guide: The First Home Guarantee in 2026 – everything you need to know.
If you want to understand how a 5% deposit compares to a standard 10% or 20% deposit (and the LMI you avoid), see: How the First Home Guarantee eliminates LMI.
And for a direct comparison between the FHBG and buying with LMI, check: FHBG vs LMI – which saves you more?.
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