Everything You Need to Know Before Buying Your First Home

Buying your first home is an exciting milestone, but it can also feel overwhelming. Between saving a deposit, understanding government incentives, securing finance and finding the right property, there's a lot to learn.

The good news is that both the Australian Government and the Victorian Government offer a range of programs to help eligible first home buyers enter the property market sooner.

At MR Estates, we've helped many first home buyers purchase their first home across Melbourne. This guide explains the key government initiatives available in 2026 and how they may help you achieve your goal of home ownership.

1. Australian Government Home Guarantee Scheme (5% Deposit)

The Home Guarantee Scheme (HGS) helps eligible buyers purchase a home with as little as a 5% deposit, without paying Lenders Mortgage Insurance (LMI).

Normally, lenders require a 20% deposit to avoid LMI. Under the Home Guarantee Scheme, Housing Australia guarantees part of your home loan to participating lenders, allowing eligible buyers to borrow up to 95% of the property's value without paying LMI.

Example

• Purchase Price: $700,000

Traditional Purchase

• - Deposit Required: $140,000 (20%)

• - LMI: Not payable

Using the Home Guarantee Scheme

• - Deposit Required: $35,000 (5%)

• - LMI: Waived through the Government Guarantee

This means many buyers can enter the property market years earlier instead of waiting to save another $105,000.

Important: The Government does not give you the missing 15% deposit. Instead, it provides a guarantee to the lender. You are still responsible for repaying the full home loan.

Ideal for: Buyers who have saved around a 5% deposit and have sufficient income to comfortably service a larger mortgage.

2. Help to Buy Scheme (Shared Equity)

The Help to Buy Scheme is very different from the Home Guarantee Scheme.

Instead of simply guaranteeing your loan, the Australian Government contributes part of the purchase price through a shared equity arrangement.

Depending on the property type, the Government may contribute:

• - Up to 40% of the purchase price for a new home.

• - Up to 30% of the purchase price for an existing home.

You only need a minimum 2% deposit, with the balance funded by your home loan.

Example

Purchase Price: $800,000

• - Your Deposit (2%): $16,000

• - Government Contribution (30%): $240,000

• - Home Loan Required: $544,000

Compared with borrowing almost the full purchase price, this significantly reduces your monthly repayments.

When you eventually sell the property or buy out the Government's share, the Government receives the same percentage of the property's market value.

Ideal for: Buyers with lower savings who want smaller mortgage repayments and meet the scheme's eligibility criteria.

3. Victorian First Home Owner Grant

If you're purchasing or building a new home valued up to $750,000 in Victoria, you may be eligible for the First Home Owner Grant (FHOG).

Eligible buyers can receive a $10,000 grant, which can be used towards purchasing costs or your deposit.

Please note:

• - The grant generally applies only to new homes.

• - Existing homes are not eligible.

• - The property must be your principal place of residence, and residency requirements apply.

4. Stamp Duty Savings in Victoria

Stamp duty is often one of the biggest upfront costs when purchasing a property.

Fortunately, eligible first home buyers in Victoria may receive:

• - Full stamp duty exemption on eligible properties up to the applicable value threshold.

• - Reduced (concessional) stamp duty on properties above that threshold and up to the

• maximum eligible purchase price.

These savings can amount to tens of thousands of dollars, making it much easier to buy your first home.

5. First Home Super Saver Scheme

The First Home Super Saver Scheme (FHSSS) allows eligible buyers to make voluntary contributions into their superannuation to help save for a home deposit.

Because superannuation is taxed differently from ordinary income, this can be a tax-effective way to build your savings faster than using a regular bank account.

Eligibility rules and contribution limits apply.

Which Scheme Should You Choose?

Every buyer's financial situation is unique.

For example:

The Home Guarantee Scheme may be ideal if you've saved a 5% deposit and want to avoid paying Lenders Mortgage Insurance while retaining 100% ownership of your property.

The Help to Buy Scheme may be better suited if your savings are limited and you'd prefer lower monthly repayments, understanding that the Government will hold an equity interest in the property.

Many buyers purchasing a new home may also be eligible for the First Home Owner Grant, while stamp duty concessions can further reduce the upfront cost of buying.

Choosing the right combination of assistance depends on your income, deposit, borrowing capacity and long-term financial goals.

How MR Estates Can Help

Purchasing your first home is one of the biggest financial decisions you'll ever make.

At MR Estates, we don't just help you find a property—we help you understand the buying process from start to finish.

Our experienced team can:

• - Explain which government assistance programs may suit your circumstances.

• - Connect you with trusted mortgage brokers and conveyancers.

• - Help you understand your borrowing capacity.

• - Find homes that meet your budget and lifestyle.

• - Guide you through negotiations, contracts and settlement.

Whether you're searching for your first home in Melbourne CBD, Southbank, Docklands, Brunswick East, St Kilda Road or the surrounding suburbs, we're here to make your first home buying journey as smooth as possible.

Take the First Step Towards Home Ownership

Government support has made home ownership more accessible than ever before. With the right advice and the right property, your first home could be closer than you think.

If you're ready to explore your options, contact MR Estates today. Our team is here to answer your questions, explain the available government schemes and help you find the perfect first home.

Written by: Lionel Shi – MR Estates
Published: 1 August 2026
Last Updated: 1 August 2026

Disclaimer: Government programs, eligibility criteria, income thresholds, property price caps and participating lenders may change over time. Always refer to the official Australian Government, Housing Australia and Victorian Government websites or seek professional financial advice before making a purchasing decision.