First Home Buyer Statistics: Everything You Need to Know

First home buyer schemes have changed substantially in the last year. The Australian Government 5% Deposit Scheme now has no income caps and no annual place limits, Victoria offers full stamp duty exemptions on properties valued up to $600,000, and buyers entering the market today face a different set of conditions than those who purchased even six months ago.

How Many First Home Buyers Are Using the 5% Deposit Scheme

The Australian Government 5% Deposit Scheme has been open to unlimited participants since 1 October 2025. No annual place caps apply and no income limits restrict eligibility. Applications are made through a participating lender panel and cannot be made directly to Housing Australia. In Victoria, the property price cap is $950,000 for capital city and regional centres including Newport, which falls within the Greater Melbourne area.

We regularly see buyers who assume they need a 20% deposit to avoid lenders mortgage insurance. Under the 5% Deposit Scheme, Housing Australia guarantees the difference between the buyer's deposit and 20% of the property value, which means no LMI is payable. Consider a buyer who has saved $50,000 and is looking at properties around the Newport median. With a 5% deposit, that buyer can borrow against a property valued up to the scheme cap without paying the additional cost of LMI, which would otherwise add thousands to the upfront expense.

The scheme can be used in combination with Victorian state concessions. A buyer purchasing an established home under $600,000 would pay no stamp duty and no LMI, reducing entry costs significantly. For those considering a first home loan application, understanding which lender participates in the scheme and what loan features are available under that structure is part of the preparation process.

Stamp Duty Concessions and How They Apply in Newport

Victoria provides a full stamp duty exemption on properties valued up to $600,000 for eligible first home buyers. A sliding scale concession applies to properties valued between $600,001 and $750,000. Above $750,000, standard rates apply. The concession applies to both new and established homes where the buyer intends to live in the property as their principal place of residence.

The buyer must move in within 12 months of settlement and reside there for at least 12 months. Newport sits on the western edge of Port Phillip Bay, bordered by Williamstown to the south and Spotswood to the north. The suburb has a mix of period homes, particularly Edwardian and Californian bungalows, and newer townhouse developments near the Hobsons Bay Coastal Trail. Property values vary depending on proximity to the water and transport links, with homes closer to Newport Lakes and the foreshore commanding higher prices than those set back toward the railway line.

In a scenario where a buyer is purchasing a property valued at $650,000, the stamp duty concession would reduce the upfront cost by several thousand dollars compared to the standard duty calculation. That reduction can be redirected toward settlement costs, furniture, or building a buffer in an offset account after settlement. For buyers working within a defined budget, the concession changes what is affordable at the point of purchase.

What the First Home Owner Grant Covers in Victoria

Victoria offers a $10,000 grant for first home buyers purchasing a new home valued up to $750,000. The grant does not apply to established homes. A new home includes a newly built dwelling that has not been previously occupied or sold as a place of residence, or a home that has been substantially renovated.

Newport has limited stock of newly built detached homes, though townhouse developments and dual-occupancy builds appear periodically, particularly in areas undergoing subdivision. A buyer purchasing a new townhouse valued at $700,000 would be eligible for the $10,000 grant, provided they meet the occupancy requirements. That amount can be applied to the deposit, used to cover settlement costs, or held in reserve.

The grant is separate from the stamp duty concession and can be used alongside it. A buyer of a new home under $600,000 would receive the $10,000 grant and pay no stamp duty. Both concessions require the buyer to occupy the property as their principal place of residence, and buyers should confirm eligibility with their conveyancer before exchanging contracts.

How Income and Deposit Size Affect Borrowing Capacity

Borrowing capacity is determined by income, existing debts, living expenses, and the deposit size. Lenders assess serviceability using a buffer above the current interest rate to ensure the buyer can continue to meet repayments if rates rise. A buyer with a higher deposit may access a lower interest rate or additional loan features such as an offset account, depending on the lender's criteria.

In our experience, buyers entering the market with a 10% deposit often have more lender options than those applying with 5%, even when both are using a government-backed scheme. Some participating lenders under the 5% Deposit Scheme offer variable rate loans with offset accounts, while others restrict features or apply a higher rate. Confirming what is available before committing to a lender is part of the preparation process.

A buyer earning $85,000 annually with no dependents and minimal debt would have a different borrowing capacity than a buyer earning the same amount with a car loan and childcare costs. Running a detailed assessment of what you can service, rather than what you can technically borrow, helps avoid overcommitment. For buyers in Newport where property values sit above the state median, understanding how deposit size and income interact with lender criteria is particularly relevant. A mortgage broker in Newport can run scenarios across multiple lenders to show what structure delivers the most suitable outcome.

Combining Federal and State Support

The Australian Government 5% Deposit Scheme can be used alongside Victorian stamp duty concessions and the first home owner grant where applicable. Help to Buy, which allows the government to take an equity stake in the property, cannot be combined with the 5% Deposit Scheme but can be used with state concessions in participating jurisdictions including Victoria.

Consider a buyer purchasing a new home valued at $700,000 in Newport. Using the 5% Deposit Scheme, the buyer would need a $35,000 deposit and would pay no LMI. Because the property is a new build under $750,000, the buyer would also receive the $10,000 grant. Because the property is valued under $750,000, a partial stamp duty concession would apply under the sliding scale. All three forms of support can be accessed in the same transaction, reducing the total upfront cost by tens of thousands of dollars compared to a buyer purchasing without concessions.

Help to Buy has income limits of $100,000 for individuals and $160,000 for joint applicants. The government contributes up to 30% of the purchase price for an existing home or 40% for a new home in exchange for an equivalent equity share. The buyer holds the majority equity and has pathways to buy out the government's share over time. Property price caps apply and vary by postcode. Buyers considering Help to Buy should confirm the applicable cap for Newport through the postcode search tool at firsthomebuyers.gov.au before proceeding.

Using the First Home Super Saver Scheme to Build a Deposit

The First Home Super Saver Scheme allows buyers to make voluntary contributions into their superannuation fund and release up to $50,000 toward a home deposit. Contributions are taxed at 15% rather than at marginal income tax rates, which provides a tax advantage for those earning above the tax-free threshold. Up to $15,000 of contributions from any one financial year can be released.

A buyer earning $75,000 annually and paying a marginal tax rate of 32.5% would save 17.5% in tax on each dollar contributed through the FHSS compared to saving in a standard bank account. Over three years, a buyer contributing $15,000 annually would accumulate $45,000 in eligible contributions plus associated earnings, all of which can be released toward a deposit.

The scheme requires forward planning. Contributions must be made into superannuation and cannot be accessed immediately. Buyers generally need to obtain a determination from the ATO before signing a purchase contract, which adds a step to the timeline. For buyers who are 12 to 24 months away from purchasing, the FHSS can be a tax-effective way to accelerate deposit savings. For those ready to purchase within the next few months, the scheme offers limited immediate benefit. More detail on structuring a deposit and understanding borrowing capacity is available through a broker consultation.

What Documentation Lenders Require from First Home Buyers

Lenders assess income, employment stability, existing debts, and savings history when reviewing a home loan application. Documentation typically includes recent payslips, tax returns if self-employed, bank statements showing savings and spending patterns, and proof of identity. Buyers using gifted funds or a guarantor will need additional documentation to satisfy the lender's requirements.

Savings must generally be held for at least three months to be considered genuine savings, though some lenders accept shorter timeframes or allow certain government grants to substitute for genuine savings. A buyer who has saved $40,000 over two years will present differently to a lender than a buyer who has received a $40,000 gift four weeks before applying. Both may be acceptable depending on the lender's policy, but the documentation required will differ.

Pre-approval provides an indication of borrowing capacity and gives buyers certainty when making an offer. Pre-approval is not a guarantee of final approval, and lenders will reassess the application at settlement, but it does confirm that the buyer meets serviceability criteria at the time of application. For buyers in competitive areas such as Newport where properties can move quickly, having pre-approval in place before attending inspections reduces delays once an offer is accepted.

Call one of our team or book an appointment at a time that works for you. We work with first home buyers across Newport and the broader Hobsons Bay area, and we can run scenarios across participating lenders to show what structure fits your deposit, income, and timeline.

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