Know Your Alphabet of First Home Buyer Entitlements in 2026

Know Your Alphabet of First Home Buyer Entitlements in 2026

Buying your first home can feel like learning a new language.

FHSS. DHOAS. HPAS. HPSEA. FHOG.

Then add the Australian Government 5% Deposit Scheme, Help to Buy, state-based transfer duty concessions and first home owner grants, and it is understandable why many buyers aren’t sure where to start.

For Australian Defence Force members, it can be even more complex because Defence-specific housing benefits may potentially operate alongside federal and state home buyer assistance.

The opportunity, however, can be significant.

Understanding which schemes you may qualify for—and importantly, how they interact before you sign a contract—could materially change the amount you need to save, your upfront purchasing costs and how you structure your first home purchase.

Here is the updated Capital Properties guide to the alphabet of first home buyer entitlements in 2026.

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On the go? Here’s 30 seconds of key takeaways

• The former Home Guarantee Scheme was rebranded and expanded as the Australian Government 5% Deposit Scheme from 1 October 2025.
• Eligible first home buyers can potentially purchase with a minimum 5% deposit without paying Lenders Mortgage Insurance (LMI).
• The 5% Deposit Scheme now has no income caps, unlimited places and no waiting list.
• The First Home Super Saver Scheme (FHSS) allows up to $15,000 of eligible voluntary contributions per financial year to count towards the scheme, up to $50,000 across all years.
• Help to Buy is now available and allows eligible buyers to purchase with a minimum 2% deposit, with the Australian Government contributing up to 30% toward an existing home or 40% toward a new home.
• Eligible ADF members may have additional assistance through DHOAS, HPAS and HPSEA.
• HPAS currently provides a one-off payment of $16,949 before tax for eligible members.
• DHOAS 2026–27 subsidised loan limits are now as high as $911,244 at Tier 3.
• State and territory grants and transfer duty concessions vary considerably, so they need to be checked based on where and what you are buying.
• Eligibility for one scheme does not automatically mean you qualify for another.

Sources: Australian Government First Home Buyers, Australian Taxation Office, Department of Defence and DHOAS. (First Home Buyers)

F – First Home Super Saver Scheme (FHSS)

The First Home Super Saver Scheme allows eligible first home buyers to use certain voluntary superannuation contributions to help save for their first home.

Under the current rules, up to $15,000 of eligible voluntary contributions from any one financial year can count towards FHSS, subject to an overall limit of $50,000 across all years.

Eligible amounts can include voluntary concessional contributions, such as salary sacrifice, and voluntary non-concessional contributions. The amount actually released depends on the contribution type, together with associated earnings calculated under the scheme. (Australian Taxation Office)

For eligible buyers, FHSS can provide a tax-effective way of building part of their home deposit.

There are important timing rules.

You should obtain an FHSS determination before ownership of any real property transfers to you. Under rules applying to determinations made from 15 September 2024, buyers can request release before signing a contract or within the applicable period afterwards. The ATO advises that release can take approximately 15–20 business days. (Australian Taxation Office)

Important: FHSS does not mean you can simply withdraw your existing compulsory superannuation balance to purchase a home. It applies to eligible voluntary contributions and associated earnings under the scheme.

5% – Australian Government 5% Deposit Scheme

One of the biggest changes since our original article is the expansion of the federal home guarantee arrangements.

From 1 October 2025, the Home Guarantee Scheme was rebranded as the Australian Government 5% Deposit Scheme.

For eligible first home buyers, the scheme can allow a purchase with a minimum 5% deposit without Lenders Mortgage Insurance.

Significantly, the current scheme has:

• No income caps
• Unlimited places
• No waiting list
• No LMI for eligible purchases
• Higher location-based property price caps than the previous scheme. (First Home Buyers)

Eligible first home buyers generally need to be Australian citizens or permanent residents aged at least 18, have at least the minimum required deposit, buy within the relevant property price cap and live in the property as an owner-occupier.

The definition has also broadened beyond people who have literally never owned property. Under the scheme, an applicant may qualify if they are a first home buyer or have not owned a home or land in Australia during the previous 10 years. (First Home Buyers)

The scheme is a government guarantee to the participating lender. It is not a cash payment towards your purchase.

What are the 2026 property price caps?

Current caps include:

For Queensland, the Gold Coast and Sunshine Coast are included as regional centres for these caps. Buyers should always confirm the cap for the specific postcode and property with a participating lender before proceeding. (First Home Buyers)

H – Help to Buy

Another major addition for 2026 is the Australian Government’s Help to Buy Scheme, which opened for applications on 5 December 2025.

Unlike the 5% Deposit Scheme, Help to Buy is a shared equity scheme.

Eligible buyers can purchase with a minimum 2% deposit, while the Australian Government may contribute up to:

30% of the purchase price of an existing home, or
40% of the purchase price of a new home. (First Home Buyers)

That government contribution reduces the amount the purchaser needs to borrow, but the Commonwealth retains an equity share in the property.

Importantly, Help to Buy is not limited exclusively to people who have never previously owned property. Eligibility conditions apply, including property ownership requirements at the time of application and purchase.

For 2026–27, the indexed income thresholds are:

Single applicant: $103,000
Single parent: $165,000
Joint applicants: $165,000. (First Home Buyers)

Help to Buy is very different from a grant. Buyers should understand how the Commonwealth’s equity share works, including what happens when the property is sold, the owner wants to buy back part of the Government’s share, or certain changes are made to the property.

D – DHOAS

For eligible serving and former ADF members, the Defence Home Ownership Assistance Scheme (DHOAS) can provide an additional home ownership benefit.

DHOAS provides eligible members with a monthly subsidy towards the interest on an eligible DHOAS home loan.

Eligibility and the level of assistance depend heavily on effective service.

For 2026–27, the current tiers are:

*Maximum monthly subsidy estimates shown by DHOAS are based on the August 2026 median interest rate and can fluctuate as the median rate changes. (Defence Home Ownership Assistance Scheme)

The subsidised loan limits are based on 40%, 60% and 80% of the national weighted average housing price for Tiers 1, 2 and 3 respectively. For 2026–27, the housing price figure used by DHOAS is $1,139,055. (Defence Home Ownership Assistance Scheme)

The subsidy itself is calculated as 37.5% of the median interest expense on the eligible subsidised portion of the loan, calculated as though it were repayable over 25 years. (Defence Home Ownership Assistance Scheme)

DHOAS also has occupancy, loan-provider, service-credit and other conditions, so it should be considered as part of the overall finance strategy rather than simply assuming the maximum advertised subsidy will apply.

H – HPAS

HPAS – the Home Purchase Assistance Scheme – is another Defence-specific benefit and should not be confused with DHOAS.

HPAS provides a one-off payment of $16,949 before tax to eligible ADF members purchasing a home.

Unlike DHOAS, which provides an ongoing home-loan subsidy, HPAS is generally payable only once during a member’s ADF service.

The home must satisfy the relevant Defence requirements, including being lived in and located in the member’s applicable housing or family benefit location. (Federal Register of Legislation)

This distinction matters.

DHOAS = ongoing home-loan subsidy.

HPAS = one-off home purchase assistance.

They are separate Defence benefits with different eligibility requirements.

H – HPSEA

HPSEA – Home Purchase or Sale Expenses Allowance – can assist eligible Defence members with certain reasonable costs associated with selling and subsequently purchasing homes due to postings.

The scheme effectively operates through a sell-buy-sell cycle linked to the member’s posting history.

Eligible purchase costs can include certain:

• solicitor or conveyancer fees
• broker fees
• government duties or fees
• pest inspections
• building inspections.

Not every expense is reimbursable and not every purchase qualifies. Importantly, Defence states that if you sign a contract to buy a home before receiving the official posting order, you will not be eligible for HPSEA for that purchase. (pay-conditions.defence.gov.au)

This is exactly why ADF members should investigate their entitlements before signing a property contract.

G – First Home Owner Grants

The First Home Owner Grant (FHOG) remains state and territory based rather than one uniform national payment.

Eligibility, property types, purchase-price limits and grant amounts vary depending on where you purchase.

In many jurisdictions, the grant focuses on new homes, rather than established properties.

Queensland, for example, confirmed in its 2026–27 Budget that its $30,000 First Home Owner Grant will continue for eligible contracts signed from 1 July 2026 onwards. (Queensland Revenue Office)

Because state schemes change regularly, buyers should check the relevant state revenue office immediately before purchasing rather than relying on an old article, social media post or a friend’s previous experience.

S – Stamp Duty and Transfer Duty Concessions

Transfer duty can represent one of the largest upfront costs of buying property.

Again, there is no single national first home buyer stamp duty rule.

Each state and territory determines its own thresholds, exemptions and concessions.

For example, in NSW the First Home Buyers Assistance Scheme currently provides eligible purchasers with a full transfer duty exemption on new or existing homes valued at $800,000 or less, with a concessional rate applying above $800,000 and below $1 million. (Revenue NSW)

Queensland has different rules. For eligible first home purchases under the current general first-home concession, a home valued at $700,000 or less can attract no transfer duty, with the concession phasing out through higher values. Queensland also has separate arrangements for eligible first-home new homes and vacant land. (Queensland Revenue Office)

From 1 August 2026, Queensland also introduced citizenship/residency requirements for its relevant home transfer-duty concessions. (Queensland Revenue Office)

The key point is simple:

Never assume that a first home buyer automatically pays no stamp duty.

The outcome depends on the state, property value, property type and individual eligibility.

Can You Combine First Home Buyer and ADF Entitlements?

Potentially, yes.

This is where the conversation becomes particularly important for Defence members.

Depending on individual circumstances, a first home buyer may potentially be eligible for a combination of:

FHSS + 5% Deposit Scheme + state first home buyer assistance + DHOAS + HPAS

However, these schemes have different eligibility tests, timing requirements, property caps, occupancy conditions and lending requirements.

Some schemes can complement each other; others may affect how a transaction needs to be structured.

Defence’s own guidance confirms that DHOAS does not displace HPAS or HPSEA, but each benefit still has its own conditions. (pay-conditions.defence.gov.au)

The objective shouldn’t be to collect every entitlement available.

It should be to understand which combination produces the most appropriate home-buying strategy for your circumstances.

Why Timing Matters

One of the biggest mistakes a first home buyer can make is investigating entitlements after signing a contract.

Some schemes contain strict timing requirements.

FHSS has determination and release requirements. HPSEA can depend on when an official posting order was received. Government-backed home buyer schemes require lender approval and property eligibility. State concessions can depend on contract dates and occupancy requirements. (Australian Taxation Office)

Before making an offer or signing a contract, ideally establish:

1. What schemes you may qualify for.
2. How much deposit you actually need.
3. Your borrowing capacity.
4. The relevant property price limits.
5. Whether the property must be new or can be established.
6. Your owner-occupancy requirements.
7. Which Defence entitlements may apply.
8. The order in which applications or approvals need to occur.

Strategy first. Property second.

What This Means for ADF First Home Buyers

ADF members can have a very different first-home buying position from the average Australian buyer.

You may have access to mainstream first home buyer programs while also potentially qualifying for Defence-specific benefits.

That creates opportunity—but also complexity.

A property that qualifies for one scheme may not necessarily suit another. Your posting location, expected length of service, DHOAS tier, deposit, income, borrowing capacity and whether you are purchasing a new or established home can all influence the strategy.

Before focusing on listings, establish the financial and entitlement framework around the purchase.

That can help answer a much more useful question than:

“How much can I borrow?”

Instead ask:

“What is the smartest way to structure my first property purchase based on the benefits, finance and options available to me?”

Get Expert Support With Capital Properties

At Capital Properties, we work extensively with current and former Australian Defence Force members navigating property ownership and investment.

Our process is designed to help you understand your current position before choosing a property.

That can include identifying the relevant property pathway, understanding how your ADF circumstances affect the strategy, working with suitable finance professionals and researching locations and properties that align with your longer-term objectives.

Whether you’re purchasing your first home to live in or considering how that first purchase fits into a longer-term property portfolio, the starting point is the same:

Get the strategy right first.

Book a Complimentary Discovery Session

If you’re an ADF member considering buying your first home, book a complimentary Capital Properties Discovery Session.

We’ll discuss where you are now, what you’re trying to achieve and the next practical steps towards purchasing your first property.

Book your complimentary Discovery Session today.

Frequently Asked Questions

Can ADF members use DHOAS and first home buyer schemes together?

Potentially. DHOAS is a Defence home-loan subsidy, while federal and state first home buyer schemes operate under separate rules. Your eligibility for each needs to be assessed individually. Defence specifically states that DHOAS does not displace HPAS or HPSEA. (pay-conditions.defence.gov.au)

How much is HPAS in 2026?

The current HPAS benefit is a one-off payment of $16,949 before tax for eligible ADF members. (Federal Register of Legislation)

What are the current DHOAS limits?

For 2026–27, subsidised loan limits are $455,622 for Tier 1, $683,433 for Tier 2 and $911,244 for Tier 3. Maximum monthly subsidy estimates for August 2026 are up to $588, $882 and $1,176 respectively. (Defence Home Ownership Assistance Scheme)

Can first home buyers still buy with a 5% deposit?

Yes. Under the Australian Government 5% Deposit Scheme, eligible first home buyers can purchase with a minimum 5% deposit without LMI. The scheme currently has no income caps, unlimited places and no waiting list, subject to eligibility, lender approval and property price caps. (First Home Buyers)

How much can I use through the First Home Super Saver Scheme?

Up to $15,000 of eligible voluntary contributions in any financial year can count towards the scheme, subject to an overall $50,000 contribution limit across all years. The actual releasable amount depends on the type of contributions and associated earnings. (Australian Taxation Office)

What is the difference between the 5% Deposit Scheme and Help to Buy?

The 5% Deposit Scheme involves the Government guaranteeing part of the loan to the lender, helping eligible buyers purchase with a smaller deposit without LMI. Help to Buy is a shared equity scheme, where the Commonwealth contributes towards the purchase and retains an equity interest in the home. (First Home Buyers)

Do first home buyers automatically receive a stamp duty exemption?

No. Transfer duty rules differ between states and territories and usually depend on the purchase price, property type and eligibility criteria.

Source and Attribution

Information fact-checked as at 28 August 2026 against official sources including the Australian Government First Home Buyers portal/Housing Australia, Australian Taxation Office, Department of Defence Pay and Conditions, DHOAS/DVA, Revenue NSW and Queensland Revenue Office. Because eligibility thresholds and benefits can change, buyers should confirm current requirements with the relevant government agency and their finance, tax and legal advisers before purchasing. (First Home Buyers)

Disclaimer

This article contains general information only and does not constitute financial, credit, legal, taxation or investment advice. Eligibility for government and Defence schemes depends on individual circumstances and can change. Property purchasing and borrowing involve risk. Capital Properties recommends confirming current eligibility directly with the relevant government agency and obtaining independent professional advice before entering into a property contract or making a financial decision.