Government Schemes and First Home Support
Straight answers on the government schemes that help first home buyers, from the expanded First Home Guarantee and Help to Buy shared equity to regional support, using a gift as deposit, and builder rebates. Current for 2026.
Government support for buyers expanded in late 2025. The First Home Guarantee now lets eligible first home buyers purchase with a 5 per cent deposit and no Lenders Mortgage Insurance, with income caps and place limits removed. The federal Help to Buy offers shared equity with a 2 per cent deposit, the former regional guarantee is now part of the main scheme, and rules apply to using gifts as a deposit and to builder rebates. These guides explain each, current for 2026. General information, not advice.
Clear answers to common questions about government home buyer schemes in Australia: the expanded First Home Guarantee 5 per cent deposit scheme, regional first home buyer support, shared equity schemes including the federal Help to Buy, using a gift or inheritance as a deposit, and builder or vendor rebates. Scheme details are grounded in current government sources and dated to 2026, with lender policy items described qualitatively. General information, not advice, with rules to be confirmed with Housing Australia and state authorities.
The First Home Guarantee has expanded
From 1 October 2025 the scheme removed income caps and place limits and lifted price caps, so eligible first home buyers can buy with a 5 per cent deposit and no Lenders Mortgage Insurance, without a race for places.
Regional support is now in the main scheme
The former Regional First Home Buyer Guarantee was absorbed into the main First Home Guarantee, with higher regional price caps, on top of state grants and concessions that vary by area.
Shared equity lowers entry but shares growth
The federal Help to Buy lets eligible buyers purchase with a 2 per cent deposit while the government takes an equity share. Some state schemes still operate, while the Victorian Homebuyer Fund has closed to new applicants.
Deposit sources and rebates have rules
Gifts and inheritances can often be used as a deposit with the right documentation, and builder or vendor rebates can count if disclosed and reflected in the valuation. Policies vary by lender.
Where to get help
These are general guides, not advice. A broker can confirm scheme eligibility and match you to a participating lender, usually at no cost to you, and you should verify scheme rules with Housing Australia and your state authorities.
- From 1 October 2025 the First Home Guarantee removed income caps and place limits and lifted price caps, with the Adelaide cap at 900,000 dollars.
- The former Regional First Home Buyer Guarantee is now part of the main First Home Guarantee, with higher regional price caps, alongside state grants.
- The federal Help to Buy is the main shared equity scheme, with a 2 per cent deposit and the government taking an equity share, subject to income caps and places.
- Gifts and inheritances can often be used as a deposit with a gift letter and the right lender, though genuine savings rules and scheme requirements may apply.
- Builder and vendor rebates can count toward a purchase if disclosed and reflected in the valuation, and undisclosed rebates are a serious problem.
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Government Schemes and First Home Support: common questions
How do I secure a spot under the First Home Guarantee 5 per cent scheme?
The First Home Guarantee, now part of the expanded Australian Government scheme administered by Housing Australia, lets eligible first home buyers purchase with a 5 per cent deposit and no Lenders Mortgage Insurance. From 1 October 2025 income caps and place limits were removed, so there is no longer a race for places, but you still need at least a 5 per cent genuine savings deposit and to meet the eligibility rules.
What support is there for regional first home buyers in 2026?
Regional first home buyers can use the main First Home Guarantee, which from 1 October 2025 absorbed the former Regional First Home Buyer Guarantee, with higher price caps in many regional areas. On top of the federal scheme, some states offer their own regional grants or concessions. The exact support depends on your state and area, so it is worth checking the current rules.
How do government shared equity schemes work in 2026?
Under a shared equity scheme, the government contributes part of the purchase price in exchange for an equity share in your home, reducing the deposit and loan you need. The main national scheme in 2026 is the federal Help to Buy, with a 2 per cent deposit and income caps. Some state schemes still operate, such as in South Australia, while the Victorian Homebuyer Fund has closed to new applicants.
Can I use a gift or inheritance as my deposit?
Often yes. Lenders generally distinguish between genuine savings, money saved over time, and other funds such as a gift, inheritance or bonus. Some lenders require part of your deposit to be genuine savings, while others will accept a gift or inheritance as the whole deposit, particularly with a larger deposit or under certain products. A gift usually needs a gift letter. Policies vary by lender.
Can a builder or vendor rebate count toward my purchase?
It depends on the lender and the disclosure. Some lenders allow a developer or builder rebate, or a vendor contribution, to form part of the funds toward a purchase, but they generally require it to be disclosed and reflected in the valuation. Undisclosed rebates are a serious problem. Many lenders treat rebates cautiously because they can affect the true price and the valuation, so policies vary.
General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.