Buying your first home in 2026: the complete guide

Published 10 August 2026 · DeMarque Home Loans

First home buyers in 2026 have more government help than any generation before them — and higher rates and prices to contend with. This guide walks the whole path, from first savings to settlement, as the rules stand today.

Here’s the journey in order.

Step 1: know your number

Two numbers, actually.

What you can borrow. Lenders assess your income, commitments and living expenses, then test the loan at a buffer above the actual interest rate — with the cash rate at 4.35% (as at 10 August 2026), that assessment is meaningfully tougher than it was during the 2025 rate cuts. Our borrowing capacity calculator gives you a working estimate.

What you can repay comfortably. A different question. Run the loan you’re contemplating through the repayments calculator and sanity-check it against your real budget.

Step 2: the deposit — smaller than you think

The traditional 20% deposit is no longer the entry ticket. Since 1 October 2025, the expanded First Home Guarantee lets eligible first home buyers purchase with as little as a 5% deposit and no lenders mortgage insurance — with income caps and place limits abolished. In Sydney the property price cap is $1.5 million (as at 10 August 2026).

We’ve written up how the First Home Guarantee works in 2026 and how much deposit you really need in detail.

Boosting the deposit itself: the First Home Super Saver scheme lets you release up to $15,000 of voluntary super contributions per financial year (max $50,000 total) for a first home, with a tax advantage over saving in cash for many people.

Step 3: the government help stack

As at 10 August 2026, an eligible NSW first home buyer may be able to combine:

• First Home Guarantee — 5% deposit, no LMI (price caps apply).
• NSW First Home Buyers Assistance — zero stamp duty up to $800,000, sliding concession to $1 million. Details in our NSW stamp duty guide for first home buyers, or just run the stamp duty calculator.
• Help to Buy — the Commonwealth shared-equity scheme launched December 2025: from a 2% deposit, with the government taking up to a 40% stake in a new home (30% existing). Income caps and limited places apply, and it suits a narrower group — worth professional advice before committing.

Eligibility criteria apply to all of these, and the details move at every budget. We check the current rules against your situation before you rely on any of them.

Step 4: pre-approval before house-hunting

Pre-approval tells you your real budget, signals to agents that you’re serious, and takes pressure off auction day. It typically holds for around 90 days. We arrange it across our lender panel — and it costs you nothing, because with residential mortgages the lender pays the broker’s commission.

Step 5: offer, exchange, settle

Once your offer is accepted: contract review by your solicitor or conveyancer, formal loan approval, valuation, then exchange and settlement. Allow 4–6 weeks for a typical settlement, and budget for the extras — conveyancing, inspections, and moving costs.

Why most first home buyers don’t do this alone

Nine out of ten first home buyers use a mortgage broker — the scheme stack above is exactly why. Matching the guarantee, the stamp duty concession, the right lender and the right structure is where the money is.

Start with our free home loan health check or talk to us about where you stand.