The budget-friendly path to your first home

If you're saving for your first home in 2026, the rules have changed. The deposit is no longer just about banking 20%. It's about understanding which schemes you qualify for, how to stack them, and which lenders will treat your situation favourably.

Start with the maths

Before you set a savings target, work backwards from a property:

• Median first-home buyer purchase in your state.
• Stamp duty (or concession) at that price.
• Lender's Mortgage Insurance, if applicable.
• 6–8 weeks of buffer for moving, repairs, settlement costs.

Most first-home buyers under-estimate the total cash needed by $10k–$20k. Get this number first, then build your savings plan around it.

Use every government scheme that fits

The biggest leverage available to first-home buyers right now:

• First Home Guarantee (5% deposit, no LMI): expanded from 1 October 2025. Higher price caps in most states. Income limits apply.
• State stamp duty concessions: NSW, VIC, QLD all have full or partial exemptions for first-home buyers under certain price thresholds. The thresholds have shifted — check the current bracket for your target purchase.
• First Home Super Saver Scheme: lets you save extra contributions into your super for a deposit. Strong tax benefits if your marginal rate is high.

These aren't either/or. A well-structured first-home buyer in NSW could use all three.

Lender choice matters more than you'd think

Two lenders looking at the same applicant on the same income will calculate borrowing capacity differently. Pre-2024 differences of $30k–$50k between best and worst lender for the same scenario have widened, not narrowed.

The five variables that move the most:

1. HEM treatment: does the lender accept your declared expenses or apply a strict benchmark?
2. Existing debt: how aggressively does the lender stress-test credit cards and BNPL?
3. Income type: PAYG full-time, contract, freelance — each lender weighs them differently.
4. Postcode policy: some lenders cap LVRs in certain postcodes.
5. Genuine savings rules: does the lender accept rental history as genuine savings?

A broker maps your specific profile to the best-fit lender. That alone can shift your deposit timeline by months.

The savings habit

Beyond schemes, the deposit is still mostly about consistent saving. The lever that moves the dial fastest isn't earning more — it's automating the saving. Set the transfer the day your salary hits. Pre-pay rent fortnightly. Move discretionary spending to one tracked card. Boring works.