First Home Buyer's Guide: Australia 2024
Everything you need to know about buying your first home in Australia, from government grants to stamp duty concessions.
Buying your first home is one of the most significant financial decisions you will ever make, and in 2024 the Australian market continues to reward buyers who do their homework. The good news is that first home buyers have access to a wider range of grants, concessions, and shared-equity schemes than at any point in the past decade.
The federal First Home Guarantee allows eligible buyers to purchase with a 5 percent deposit without paying lenders mortgage insurance, while the Regional First Home Buyer Guarantee extends similar support outside capital cities. Stacked alongside state-level First Home Owner Grants — typically between 10,000 and 30,000 dollars for newly built homes — these schemes can shave tens of thousands off your entry costs. Each state also runs its own stamp duty exemption or concession threshold, with NSW, Victoria, and Queensland offering full exemptions on properties below set price caps.
Before you start inspecting, get a clear picture of your borrowing capacity. Lenders assess serviceability against a buffer rate roughly 3 percent above the actual loan rate, so a property that feels affordable today may not pass the bank's stress test. Use a broker to compare at least three lenders — pricing, offset features, and credit policies vary widely, and a 0.3 percent rate difference on a 600,000 dollar loan equals about 1,800 dollars per year.
Deposit size matters beyond the LMI threshold. A genuine 20 percent deposit unlocks sharper pricing tiers, but if waiting another two years means missing a rising market, the guarantee schemes can be the smarter play. Run the numbers both ways and factor in expected capital growth, rent paid while saving, and your job stability.
When choosing where to buy, prioritise transport, schools, and future infrastructure over short-term price hype. Suburbs along committed rail and motorway upgrades typically outperform over a 10-year horizon. For apartments, check the strata report, capital works fund balance, and any defects history before you sign — a cheap headline price can hide tens of thousands in upcoming special levies.
At settlement, budget for stamp duty (where applicable), conveyancing (1,500 to 2,500 dollars), building and pest inspections (500 to 800 dollars), loan application fees, and council rate adjustments. Many first home buyers underestimate these by 10,000 dollars or more.
Finally, treat your first home as a stepping stone, not a forever decision. Most Australians upgrade within seven to ten years. Buy something liveable, well-located, and structurally sound — capital growth and equity will do the heavy lifting from there. With the right preparation, 2024 is a strong year to take the leap.