Do your first home loan right: The 2026 roadmap to home ownership
- You do not need a 20% deposit to buy your first home in 2026
- Government schemes and state support can reduce upfront costs significantly
- The right loan structure can make entering the market sooner more achievable
Making sense of the 2026 market
If you are buying your first home in 2026, it probably feels like the goalposts keep moving.
Prices have risen, deposits feel harder to save, and the number of schemes and options can be overwhelming. But there is another side to the story.
Support for first-home buyers has expanded. There are now more ways to enter the market than there were even a few years ago. The challenge is not a lack of options. It is knowing which ones actually apply to you.
Take South-East Queensland as an example. PropTrack data shows the median house value in Ipswich reached $800,000 in March 2026, up from $445,000 five years ago. That kind of growth makes saving a 20% deposit feel like a moving target.
This is where doing your first home loan right matters.
It is not just about getting approved. It is about understanding your options early, structuring things properly, and making decisions that support you long after settlement.
Part 1: Your deposit options
The deposit is usually the biggest hurdle, but it is also where most of your flexibility sits.
The 20% gold standard
A 20% deposit is still considered the benchmark. That’s because it allows you to:
- Avoid lender’s mortgage insurance (LMI)
- Reduce your overall loan size
- Access a broader range of lending options
For some buyers, this is still the preferred path. But in a rising market, waiting to reach 20% can take years.
The 5% first home guarantee
The Australian government 5% deposit scheme, formerly known as the First Home Guarantee, is one of the most practical ways to enter the market sooner.
It allows eligible first-home buyers to purchase with a 5% deposit without paying lender’s mortgage insurance.
Here is how it works:
- You contribute a 5% deposit
- The federal government guarantees a portion of your loan
- The lender treats it as lower risk and waives lender’s mortgage insurance
There are eligibility criteria and property price caps, but the scheme has broadened over time. For many buyers, it can remove one of the biggest upfront costs.
The 2% family home guarantee
For single parents or legal guardians, the Family Home Guarantee provides another pathway.
It allows eligible applicants to purchase with as little as a 2% deposit, again without paying lender’s mortgage insurance.
This can be a meaningful option if you are balancing housing costs with raising a family and need a lower entry point.
Deposit comparison
Here is how the different options typically compare:
- 2% deposit: Lowest upfront cost, limited to specific eligibility groups
- 5% deposit: More accessible with government support, avoids lender's mortgage insurance
- 10% to 15% deposit: More flexibility with lenders, lower lender's mortgage insurance costs
- 20% deposit: No lender's mortgage insurance, strongest lending position
There is no single right answer. It depends on how your deposit, income and timeline all line up.
State-based support in Queensland
State support can make a meaningful difference to your upfront costs, especially in the early stages of buying your first home.
Transfer duty concessions
Transfer duty is one of the largest upfront costs when buying property. It is calculated based on the purchase price and can run into tens of thousands of dollars.
In Queensland, first-home buyers may be eligible for significant concessions or even a full exemption, depending on the property and how it will be used.
For first-home owner-occupiers:
- You may pay no transfer duty on homes valued up to $700,000.
- Concessions apply on homes valued between $700,000 and $800,000.
- Above this threshold, standard rates generally apply.
To qualify, you must:
- Move into the property as your principal place of residence.
- Do so within a set timeframe, typically within one year of settlement.
- Live in the property for a continuous period, usually at least 12 months.
These concessions can significantly reduce the upfront cash required to buy, which is why they are often a key part of a first-home buyer strategy.
First home owner grant
The first home owner grant supports eligible buyers purchasing or building a new home.
Key points:
- Up to $30,000 available until 30 June 2026.
- Reverts to $15,000 after this date.
- Applies to new homes valued under $750,000.
This can be used to support your overall purchase position.
Boost to Buy
Boost to Buy is a shared equity scheme designed to help buyers enter the market sooner.
Key features:
- Minimum deposit of 2%.
- The state government contributes up to 30% for new homes and 25% for existing homes.
- Property price cap of $1 million.
- Income caps of up to $150,000 for individuals and $225,000 for couples or single parents.
What this means in practice:
- You borrow less from the lender.
- Your repayments may be lower.
- The government holds an equity share in the property.
You will need to meet eligibility criteria and use an approved lender.
Budgeting for the extras
The deposit is only one part of the upfront cost.
First home buyer success checklist
Make sure you plan for:
- Conveyancing and legal fees.
- Building and pest inspections.
- Loan application or settlement fees.
- Moving costs.
- Initial repairs or furnishings.
- A buffer for unexpected expenses.
Planning for these early helps avoid pressure later.
What about lender's mortgage insurance?
If your deposit is below 20% and you are not using a scheme, lender's mortgage insurance may apply.
Key points to understand:
- It is a one-off cost.
- It protects the lender, not you.
- It is often added to your loan.
Whether it makes sense depends on your situation. For some buyers, it supports an earlier entry into the market. For others, building a larger deposit may feel more comfortable.
Why doing it right matters
Your first home loan sets the foundation for what comes next. A well-structured loan can give you flexibility over time, whether that means making extra repayments when you can, using features like an offset account, or adapting if your plans change.
That is why it is worth taking the time to understand your options properly from the start.
How Loan Market Ignite can help
At Loan Market Ignite, the focus is on making the process clear and manageable. We help you understand your borrowing capacity, compare lenders and loan structures, and navigate government schemes in a way that actually makes sense for your situation.
We also work with you to plan your deposit and upfront costs, so there are no surprises along the way, and guide you through the application process with confidence.
Because we work with a wide range of lenders, you are not limited to one approach. Instead, you can explore options and move forward with a loan suited to your needs.
Find the right loan for your first home
Waiting to save a full 20% deposit while property values grow can make your target harder to reach.
That is why it is worth understanding your options now.
If you are ready to explore what is possible, the team at Loan Market Ignite can help you map it out. Reach out for a conversation to find a loan suited to your needs.
FAQs
How much deposit do I need for a first home in 2026?
You may be able to buy with as little as 2% to 5%, depending on your eligibility.
What is the Australian Government 5% Deposit Scheme in 2026?
It is a federal scheme that allows eligible first-home buyers to purchase with a 5% deposit without paying lender’s mortgage insurance.
Is the first home owner grant still available?
Yes. In Queensland, eligible buyers can receive up to $30,000 for new homes until 30 June 2026, after which it reduces to $15,000.
What is Boost to Buy?
Boost to Buy is a shared equity scheme where the Queensland Government contributes up to 30% of the purchase price for new homes and 25% for existing homes in exchange for equity.
Do I have to pay lender's mortgage insurance?
It usually applies if your deposit is below 20% and you are not using a scheme that waives it.
How can a mortgage broker help first-home buyers?
A mortgage broker can explain your options, compare lenders and help structure a loan that fits your deposit, income and goals.