Beginner's Guide to First Home Buyer Support for Teachers

Primary school teachers can use several federal and state schemes to buy a first home, and the right mix depends on the state you buy in and the type of home. Some schemes help with your deposit, some cut stamp duty, and some pay a grant. This guide covers the main ones so you know what to ask before you sign anything.

What First Home Buyer Support Is Available in Australia?

First home buyer support comes in four main forms: a low deposit scheme, a shared equity scheme, a state first home owner grant, and stamp duty relief. Which ones apply depends on where you buy and whether the home is new or established.

The federal 5% Deposit Scheme lets eligible first home buyers buy with a 5% deposit and no Lenders Mortgage Insurance (LMI). There are no income caps, but there are price caps that vary by location. Applications go through a participating lender, not directly to Housing Australia. The trade-off is that the backing protects the lender, not you, and you still pay all loan costs and repayments. You can read more on our page about the 5% Deposit Scheme for teachers, and our page on LMI waivers for teachers explains other ways to avoid that insurance cost.

State grants and stamp duty concessions can generally be used alongside the 5% Deposit Scheme. Each state sets its own rules, so check the one where you plan to buy.

How Does the 5% Deposit Scheme Work for a First Home Buyer?

The 5% Deposit Scheme lets you buy with a 5% deposit because the government backs the part of the loan between your deposit and 20% of the property value. That means no LMI is payable.

To qualify, you must be an Australian citizen or permanent resident aged 18 or over, and you must live in the home. You can apply alone or with one other person, and both must meet the criteria. Both the purchase price and the lender's valuation must be at or below the price cap for the suburb. Caps differ by state and by area. For example, in Queensland the cap is $1,000,000 for the capital city and regional centres such as the Gold Coast and Sunshine Coast, and $700,000 elsewhere. Housing Australia has a postcode search tool that shows the cap for your suburb.

You must move in within six months of settlement and keep living there while the backing is active. If you do not, the lender may require you to pay LMI.

Can a Teacher Use Help to Buy to Reduce the Deposit?

Help to Buy may suit a teacher on a modest income, because the Australian Government contributes part of the purchase price in exchange for an equity share. You make no monthly repayments and pay no interest or rent on the government's share. You repay it by buying it back, when you sell, or if you are required to repay as your financial position improves.

For an existing home the government contributes between 5% and 30%, and for a new home between 5% and 40%. You need a deposit of at least 2% from savings. For the period from 1 July 2026 to 30 June 2027, the income threshold is $103,000 for a single applicant and $165,000 for joint applicants, based on your most recent Notice of Assessment. You must not own any property, and you cannot combine it with other shared equity or loan support schemes from the government or a state.

As an example, Housing Australia shows a $750,000 home in Geelong with a $50,000 deposit and $550,000 of borrowing capacity. That leaves a $150,000 gap, which the government fills as a 20% share. The trade-off is that the government owns a share of your home. It rises and falls with the property value, and you may need to buy it back if your income stays above the threshold for two consecutive financial years and you can afford to. Our Help to Buy scheme page goes further.

How Much Can a First Home Owner Grant and Stamp Duty Relief Save?

First home owner grants and stamp duty relief vary widely by state, and most grants apply to new homes only. Check your state before you start house hunting.

Here is a sample of what applies:

• New South Wales: a $10,000 grant for new homes up to $600,000, and no transfer duty on homes valued at $800,000 or less for first home buyers.
• Victoria: a $10,000 grant for new homes up to $750,000, and no duty up to $600,000.
• Queensland: a $30,000 grant for new homes valued under $750,000, and no duty on established homes at $700,000 or under.
• Western Australia: a $10,000 grant for new homes, and no duty on homes up to $600,000 from 7 May 2026.
• Tasmania: a $20,000 grant for new homes for transactions starting from 1 July 2026 and before 1 July 2027.

These rules have conditions, such as moving in within a set time and living there for a minimum period. Tasmania's duty exemption for established homes ended on 30 June 2026. Always confirm with your state revenue office before you commit.

Using the First Home Super Saver Scheme to Build a Deposit

The First Home Super Saver scheme lets you release voluntary super contributions towards a first home deposit. You can have up to $15,000 of voluntary contributions count in a single year and $50,000 in total.

Concessional contributions are taxed at 15% in the fund, and the amount you release is taxed at your marginal rate less a 30% offset. A teacher who salary sacrifices is making concessional contributions. The trade-off is that your money is locked in super until you request release, and you must sign a contract to buy or build within the time limits or additional tax applies. Speak to your accountant about how this affects your tax. The FHSS scheme is separate from state concessions, and using state concessions does not affect your access to FHSS. Check with your state revenue office whether using FHSS affects your eligibility for each state concession.

A Scenario: Two Teachers Buying Their First Home Together

Consider two primary school teachers buying in Queensland with a modest deposit each. They are both first home buyers on a combined income within the Help to Buy limit for joint applicants, and they want a home within the regional cap.

They could use the 5% Deposit Scheme to avoid LMI, and claim the stamp duty concession if the home falls at or under $700,000, which means no transfer duty on an established home. Both must live in the home and meet the eligibility rules. Help to Buy participants cannot receive help from other schemes, including Australian Government loan backing. The 5% Deposit Scheme is government loan backing, so it is unlikely to be combined with Help to Buy, and they would confirm this with a participating lender or Housing Australia. They would weigh the lower deposit against owing the government a share of the home. With a broker, they compare lenders, confirm the price cap for the suburb and settle on the 5% Deposit Scheme. The outcome is a smaller deposit, no LMI and no duty, with the trade-off that they carry the full loan.

Why Get Pre-Approval Before You Look at Homes?

Pre-approval shows you what a lender may let you borrow before you bid or sign. It helps you set a realistic budget and protects you from falling in love with a home you cannot afford.

For Help to Buy, Housing Australia says not to put down a deposit or bid at auction without conditional approval from a participating lender and Housing Australia. Our page on getting loan pre-approval explains how it works, and the borrowing capacity calculator gives you a starting number. Pre-approval is not a final offer, and the lender will still check the property and your circumstances at the formal application stage.

See our home loans for teachers page and our mortgages for teachers page for more.

Call one of our team or book an appointment with a mortgage broker for teachers at a time that works for you. We will check which schemes you qualify for in your state and explain the trade-offs before you commit.

Frequently Asked Questions