By Jason Given · 2026-05-13 · 8 min read · Updated October 2026
The three policies that matter most in 2026
Three federal policies shape what first home buyers can do in 2026: the unlimited 5% deposit scheme (expanded from 1 October 2025, before the Budget), the Help to Buy shared equity scheme, and the 100,000 homes program funded in the May 2026 Budget. Here is what each one does and who can access it.
1. Unlimited First Home Guarantee (5% deposit, no LMI)
The First Home Guarantee - previously known as the First Home Loan Deposit Scheme - was expanded significantly from 1 October 2025, before the Budget rather than as part of it. There are now no place limits and no income caps. Any eligible first home buyer can purchase with a 5% deposit without paying Lenders Mortgage Insurance.
What this means in practice: on a $700,000 property, you need $35,000 deposit (5%) instead of $140,000 (20%). You save on LMI costs - which would otherwise add $15,000-$25,000 on a loan of that size - and you access the market sooner.
The catch: Property price caps still apply by location. In Adelaide, the cap is $900,000. Properties above that price point are not eligible regardless of deposit size. Source: Housing Australia.
2. Help to Buy - shared equity
Help to Buy is the more transformative policy. The federal government contributes up to 40% of a new home's purchase price (30% for existing), meaning you only need to finance 60% (or 70%) of the property value.
Eligibility: income limits of $103,000 for singles and $165,000 for joint applicants (from 1 July 2026). Minimum 2% deposit required. You own your home and can live in it normally - the government is a silent equity partner that gets paid when you sell or buy out their share.
Example: $600,000 new build. Government contributes $240,000 (40%). You finance $360,000. On a typical variable rate over 30 years, your monthly repayment is approximately $2,280 versus $3,790 if you financed the full amount. That is roughly $1,510 per month less. Illustrative only, not a quote or an offer of credit.
3. 100,000 homes program
The government has allocated $3.1 billion to build 100,000 homes sold exclusively to first home buyers at below-market prices, as part of the broader $47 billion "Homes for Australia" housing package. Construction starts in 2026-27, with availability expected from 2028 onwards. These homes will be allocated through a government portal - details vary by state.
In SA, the government is working with Housing SA on land releases. Early indications suggest properties will be in growth corridors in the north and south of Adelaide - not inner suburbs.
4. Negative gearing and CGT reform
The Budget also announced significant changes for property investors. From 1 July 2027, the rules on negative gearing change for established (existing) investment properties purchased after Budget night (12 May 2026). New builds are not affected. Existing holdings are grandfathered. Your accountant can tell you how the changes apply to you.
The CGT discount is also changing from 1 July 2027. Read our full guide to the negative gearing and CGT reforms.
How to use these schemes together
The First Home Guarantee and Help to Buy cannot be combined simultaneously. However, you can use the First Home Guarantee now - if eligible properties are available - rather than waiting two years for the new builds.
SA stamp duty concessions may also apply separately, reducing the upfront cost further. See our SA stamp duty guide for first home buyer concessions.
Lendology's role: We work with approved lenders for the First Home Guarantee and can assess your eligibility for Help to Buy as part of your loan consultation. Book a first home buyer chat →
Frequently asked questions
What is the Help to Buy scheme?
Help to Buy is a shared equity scheme where the federal government contributes up to 40% of the purchase price for a new home (or 30% for an existing home). You need a minimum 2% deposit. Income limits are $103,000 for singles and $165,000 for joint applicants. You own a share of the property from day one, but the government retains its equity share until you buy it out, sell, or the property is no longer your primary residence.
What is the 5% deposit scheme?
The First Home Guarantee (now expanded and unlimited) allows eligible first home buyers to purchase with just a 5% deposit without paying Lenders Mortgage Insurance (LMI). Previously there were place limits and income caps - both were removed from 1 October 2025 (this was not a 2026 Budget measure), meaning any eligible first home buyer can access the scheme regardless of when they apply.
When does the 100,000 homes program start?
The government has allocated $3.1 billion to build 100,000 homes sold exclusively to first home buyers at below-market prices, as part of a $47 billion housing package. Construction is expected to commence in 2026-27, with the first homes available in 2028. Applications will be managed through a government portal - details are being finalised with state governments.
How do I access these schemes?
The First Home Guarantee is available through participating lenders - Lendology can apply on your behalf as part of your home loan application. Help to Buy is managed through Housing Australia and requires a separate application. Lendology can advise which scheme is most beneficial for your situation and help you work through both processes simultaneously.
Find out which grants and schemes you qualify for
Tell us where you are at. Jason or Steve will check your eligibility for the First Home Guarantee, the First Home Owner Grant and stamp duty relief.
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