Unlock Your First Home in 2025
- Cyan Dai
- Sep 25
- 8 min read
How to Buy with Just 5% Deposit and $30,000 in Grants
Australia’s first-home buyers are about to get a major boost. From October 2025, sweeping federal and Queensland housing reforms will slash the upfront costs of buying, allowing many to enter the market with as little as a 5% deposit — and in some cases just 2%. With new grants, stamp duty exemptions, and shared-equity programs, buyers stand to save tens of thousands of dollars and secure their first property sooner than ever before.
1. Federal / National Schemes & Reforms
At the national level, the Australian Government has rolled out and expanded several schemes to reduce the upfront cost burdens (deposit, insurance, equity gap) for first-home buyers. Below are the key ones as of mid-2025.
1.1 Home Guarantee Scheme (HGS) / First Home Guarantee & Variants
The Home Guarantee Scheme is the umbrella under which “First Home Guarantee” and related guarantee programs operate.
From 1 October 2025, major changes take effect:
Unlimited places — no cap on the number of first home buyers who can use the guarantee.
Removal of income caps — earlier versions had limits on individual/couple income to qualify. From Oct-2025, those caps are abolished.
Increased property price caps for each region—to reflect local market conditions.
5% deposit, no LMI (Lender’s Mortgage Insurance) — meaning eligible first home buyers can purchase with as little as 5% deposit and avoid costly mortgage insurance.
Under the traditional setup, there were three variants:
First Home Guarantee (for standard buyers)
Regional First Home Buyer Guarantee (for properties in designated regional areas)
Family Home Guarantee (for single parents or guardians)
The purpose: reduce the deposit barrier and allow more buyers to avoid LMI by having the government guarantee part of the loan.
1.2 Help to Buy (Shared Equity) Scheme
Help to Buy is a shared equity program: the federal government co-invests in a portion of the home (i.e. government owns part, buyer owns part) so that the buyer’s loan size is smaller.
Key terms (as of 2025) include:
For new homes, government may contribute up to 40% equity; for existing homes, up to 30%.
Buyer must contribute at least 2% deposit.
Income caps will be increased to broaden eligibility (e.g. single income up to $100,000, couples higher) and property price caps will be aligned more closely with market values in each area.
The scheme is expected to open in late 2025 (precise date TBD).
The government recoups its share when the property is sold (or via planned “buy-backs”), plus a share of capital gains.
1.3 First Home Super Saver Scheme (FHSS)
The FHSS allows first buyers to make voluntary contributions into their superannuation, and later withdraw (along with associated earnings) to help fund a home deposit.
Limits: Up to $15,000 per financial year, and $50,000 total withdrawal cap (plus “assessable earnings”).
Procedure: before signing contract, apply for FHSS determination from ATO; after signing, apply release from super fund.
2. State Level / Queensland Specific Supports
Because you are in Queensland (QLD), the state government has additional incentives specifically for first home buyers. Let’s break them down.
2.1 First Home Owner Grant (FHOG, QLD)
QLD offers a grant of $30,000 to eligible first home buyers, for purchase or building of a new home / substantially renovated home / off-the-plan (i.e. not secondhand).
The property must have a value less than $750,000 (for QLD).
The grant is tax-free.
Eligible applicants must satisfy first home buyer status, be Australian citizens or permanent residents, and occupy the property as their principal place of residence within a stipulated timeframe.
2.2 Transfer Duty (Stamp Duty) Concessions / Exemptions
From 1 May 2025, QLD provides full exemption from stamp duty (transfer duty) on new homes or vacant land for building a new home for first home buyers (no upper price limit) subject to meeting eligibility rules.
For existing homes (secondhand), concessional rates or partial exemption applies, but not full exemption.
Note: Some uncertainty exists whether these stamp duty concessions can be stacked with other schemes (e.g. shared equity) — detailed rules will depend on final regulation.
2.3 Boost to Buy (Shared Equity, QLD)
Announced in the 2025–26 Queensland Budget, Boost to Buy is QLD’s state-level shared equity scheme to help reduce deposit burdens.
Key features:
Up to 30% government equity contribution for new homes; up to 25% for existing homes.
Buyer needs a minimum 2% deposit.
Property price cap: $1 million.
Income caps: single applicants up to $150,000; couples up to $225,000.
The scheme is expected to open for applications later in 2025; currently, prospective buyers can register interest.
Up to 1,000 homes will be supported under the initial funding.
This program is considered one of the most generous shared equity schemes in Australia.
3. How These Policies Compare & Can Be Combined
3.1 What You Can Stack / Combine
It is possible to combine multiple incentives, e.g. using a guarantee scheme (HGS / First Home Guarantee) plus state grant (FHOG) plus stamp duty exemption, plus optionally shared equity.
For example, in QLD, a first home buyer choosing a new home might (in future) combine:
HGS guarantee (5% deposit, avoid LMI)
$30,000 FHOG
Stamp duty exemption
Boost to Buy shared equity (if eligible)
FHSS withdrawal to bolster deposit
However, combining shared equity schemes (Help to Buy, Boost to Buy) with guarantee schemes depends on final rules and lending policies. Some lenders or schemes may disallow layering, or apply special adjustments.
3.2 Potential Savings & Benefits (Illustrative Example)
According to Money.com.au, a first home buyer in QLD buying a $500,000 home with 5% deposit could access up to $55,778 in combined “government contributions” via FHOG, stamp duty exemption, and LMI savings via the guarantee scheme.
The guarantee schemes primarily save cost by eliminating LMI or reducing required deposit size.
The shared equity schemes reduce the size of the buyer’s mortgage and interest burden (since government shares part of equity).
State grants and tax breaks reduce immediate out-of-pocket costs (e.g. stamp duty, land transfer costs).
3.3 Risks / Things to Watch Out For
Equity sharing means the government owns part of the property; when you sell or refinance, you usually have to buy-back government’s share (often with proportional capital gains).
Interest rates, appreciation, and loan serviceability still matter—shared equity does not free you from these risks.
Eligibility rules (income caps, property types, location, occupancy) must be strictly met.
It is not yet fully clear whether shared equity schemes can stack with guarantee schemes in all cases.
Timing matters: some schemes are not yet open; applying early, registering interest, and coordinating your finance strategy is crucial.
4. Timeline & Key Changes Ahead (2025–2026)
Date | Policy Event / Change |
1 May 2025 | QLD: Stamp duty exemption on new homes or vacant land for first home buyers comes into effect. |
Later in 2025 | QLD Boost to Buy scheme to open for applications; interest registration already open. |
1 October 2025 | Federal: Home Guarantee Scheme fully expanded — unlimited places, no income caps, higher property caps. |
Late 2025 (anticipated) | Federal Help to Buy opens for applications under revised income/price caps. |
30 June 2026 | QLD: $30,000 First Home Owner Grant in QLD is set to expire / return to prior levels (depending on legislation). |
5. Practical Steps: How to Turn Policy into Your First Home
To “land” your first home with maximum benefit, here is a suggested roadmap:
Determine Eligibility Early
Confirm first home buyer status (i.e. haven’t owned property before).
Check your citizenship / residency, age, and whether you satisfy occupancy requirements.
Understand property type and location (new vs existing, regional vs metro).
Select the Best Policy Mix
Start with the federal guarantee scheme (HGS / First Home Guarantee) to allow a smaller deposit and avoid LMI.
If buying a new home in QLD, layer in: $30,000 FHOG + stamp duty exemption + Boost to Buy (if open/applicable).
Consider using FHSS to pull forward more deposit contributions.
If eligible, use shared equity schemes (Help to Buy or Boost to Buy) to further reduce your mortgage burden.
Lender & Bank Rules Alignment
Not all lenders accept all combinations—check with your mortgage broker or lender whether they support layering schemes.
Ensure the lender recognizes the guarantee or shared equity arrangement in their loan servicing calculations.
Register / Apply on Time
For schemes not yet open (e.g. Boost to Buy, Help to Buy), register interest early.
Prepare documentation ahead: proof of income, identity, first home buyer declarations, evidence of deposit, etc.
Forecast Costs & Exit Strategy
Model what happens when you need to buy out equity (government’s share) later.
Understand capital gains sharing obligations.
Plan for refinancing or sale scenarios.
Professional Support & Guidance
Use a buyer’s agent or real estate adviser who knows these government programs inside out.
Use a mortgage broker familiar with grant stacking and guarantee/shared equity rules.
Work with your agent to choose property types and locations that maximize the incentives (e.g. new builds, areas within caps, eligible suburbs).
6. Call to Action: Blue Coast Can Be Your Guide to Perfect First Home Entry
Navigating all these federal and Queensland-level schemes can be complex: which ones you qualify for, how they stack, which properties are eligible, how lenders view them, and what your long-term obligations will be. Mistakes or misunderstandings can be costly.
Blue Coast Properties offers:
Personalized eligibility assessment (which grants, guarantees, equity schemes you qualify for)
Strategic planning (which scheme combinations give you the most benefit)
Property sourcing (projects and resale homes structured to maximize incentives)
Guidance through application, negotiation, loan structuring, and equity buy-out planning
If you’re planning your first home purchase in Queensland (or anywhere in Australia), let us be your partner. Contact Blue Coast now and let us map your path from “dreaming” to “owning” with clarity, confidence, and maximum benefit.
7. Case Studies: How Blue Coast Helps Buyers Maximise Government Support
Example 1: Emma – Young Professional Buying in Brisbane
Scenario: Emma is 27, works in IT, and has saved $45,000. She wants to buy a new townhouse in Indooroopilly priced at $700,000.
Blue Coast Strategy:
Use the Home Guarantee Scheme (HGS) from October 2025 — she only needs 5% deposit ($35,000) and avoids ~$28,000 in LMI.
Secure the $30,000 Queensland FHOG, directly reducing her upfront cost.
Apply Stamp Duty Exemption (from May 2025), saving another ~$17,000.
Result: Emma can comfortably purchase with her existing savings, keep $10,000 in reserve for furniture and moving, and step into her first home 12–18 months earlier than if she saved for a 20% deposit.
Blue Coast Value: We identified the timing (after 1 Oct 2025) to maximise the guarantee, matched her to a new project eligible for FHOG, and calculated total savings of nearly $75,000.
Example 2: David & Lily – Family with Two Kids on Brisbane’s Southside
Scenario: David and Lily rent in Sunnybank and want a family home. Their combined income is $200,000, and they’ve saved $25,000. They’re eyeing a new house-and-land package in Rochedale worth $950,000.
Blue Coast Strategy:
Register them early for Boost to Buy (QLD shared equity) — government takes up to 30% equity, reducing their mortgage size to ~$665,000.
Combine with HGS 5% deposit guarantee, meaning their $25,000 savings are sufficient to qualify.
Add the $30,000 FHOG and stamp duty exemption, further lowering out-of-pocket costs.
Result: Without these schemes, David & Lily could not enter the market. With Blue Coast’s planning, they secure a near-$1M home with only a $25,000 deposit, and monthly repayments remain manageable.
Blue Coast Value: We advised them on timing, government applications, and structured the purchase so they could own their dream home without waiting years.
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