By James Gregors

First home buyers can absolutely be purchase-ready to buy their first house by March 2026, and The Property Education Company is here to help.

The trick is to focus on what you can control, including your deposit, your borrowing power, your pre-approval, and your decision-making.

The good news is that in 2026, there’s fresh help on the table for eligible first home buyers, including low-deposit pathways.

Please note this isn’t personal advice… but our talented first home buyer brokers would be happy to provide guidance that is tailored to your needs. Take a look at our first home buyer guide, then contact me, and we can have a no-obligation chat.  

Buy your first house in Australia in 2026:

In short:

• New in 2026: Many first home buyers can buy with a smaller deposit (from 5%) and no lenders mortgage insurance under the expanded Home Guarantee Scheme. The Help to Buy Scheme is also available for some buyers.
• Interest rates are on watch: Inflation is still impacting economic decisions, so the RBA is cautious and interest rates, although lower than in 2024, are not guaranteed to drop further.
  
• House prices are still expected to rise: Multiple forecasts point to continued growth through 2026, largely due to supply shortages and demand.
• Best time to buy? If you’re ready, “now” usually beats “later” in a rising market. Waiting can mean a higher purchase price and a bigger house deposit.
• Your next steps to buy your first house: Clarify your budget, build your deposit, understand loan options, get pre-approval, and learn the home buying process so you don’t waste time or money.
  

By the way, The Property Education Company helps first home buyers across Australia with borrowing power checks, pre-approval strategy, and step-by-step property education so you can buy confidently.

What’s new for first home buyers in 2026?

2026 is shaping up as a big year for home buyers because of one key shift: low-deposit buying is now far more accessible.

The Australian Government’s expanded Home Guarantee Scheme came into force in late 2025, and allows many first home buyers to buy with as low as a 5% deposit. The expanded scheme has removed income caps, raised the property price caps and waived lenders mortgage insurance (LMI) for those who are using it.

What this means in plain English:

• You may not need a 20% house deposit to buy your first property (it can even be as low as 2% under the Government’s Help to Buy Scheme).
• You could avoid paying LMI (which can be tens of thousands added to your loan amount).
• You can potentially get into your first home sooner while continuing to save, rather than staying on the sidelines.

There are still rules around eligibility and property type/price, but the direction is clear: government support is designed to reduce the deposit barrier for eligible first home buyers. We are already seeing people take advantage of this scheme, and helping our clients to do so.

What’s happening with interest rates and inflation in Australia right now?

Interest rates are not a set-and-forget story heading into 2026. Inflation bounced around in 2025, and the Reserve Bank of Australia has been signalling it will keep rates under review as new data lands.

So if you’re thinking, “maybe I should wait for rates to drop more”, that’s understandable, but here’s the reality:

• Rates may move, but no one really gets 100% perfect timing when they buy their first house.
• Lenders assess your borrowing power on serviceability buffers anyway, not wishful thinking about future rate changes.
• A small rate cut may bring out more active buyers and push prices higher, so for this reason it doesn’t pay to wait for change.

The smarter play is usually to get purchase-ready now, so if the right property appears, you can move quickly.

Read more: One habit that separates wealth builders from everyone else

Are property prices really expected to keep rising in 2026?

Yes, and this is the reason many first home buyers decide the best time to buy is now.

Recent forecasts expect national prices to rise through 2026, with some cities performing stronger than others. Core drivers include population growth, low supply, and policy support for home buyers.

Even if growth slows in some pockets, the baseline expectation is higher prices by late-2026 than early-2026.

Translation: if you’re waiting for the market to suddenly get cheaper, you may end up chasing a moving target, with a bigger deposit needed for the same right property.

How do I get purchase-ready to buy first house with a 5% deposit by March 2026?

Let’s make this simple. Purchase-ready means:

1. You know your numbers and can prove you’re a good candidate to borrow,
2. Your finance is lined up, and you have your deposit ready
3. You understand the home-buying journey well enough to take action.

Here’s the step-by-step breakdown of how it works.

What are the first steps in the home buying process?

1. Work out your real budget (not your “hopeful” one)

Start with:

• Your income and regular costs
• Any existing debts
• Your savings rate
• Your comfort level with home loan repayments
  

Your budget should include more costs than just the basic mortgage repayments, like:

• Building inspection and pest inspections (and a pest report) before you buy; this will be around $600
• Conveyancing/legal fees (around $2000-$3000)
• Moving costs
• Council rates and utilities
• Potential land tax, depending on state and property type
• Ongoing maintenance of your home or unit
  

Once you know how much you can afford to spend, a mortgage broker can help you model different loan options and repayment scenarios.

2. Check your borrowing power early

Borrowing power is what a lender may let you borrow based on your income, debts and interest-rate buffers. It’s the backbone of your plan.

Knowing how much you can borrow early stops you wasting time looking at property you can’t afford or under-shopping out of fear. It also helps you choose between buying property now versus saving longer.

Test your borrowing power here.

3. Build (or refine) your deposit

Your deposit is the cash contribution you bring to the property purchase.

In 2026, the growing use of low-deposit schemes means:

• Some first home buyers may buy with a 5% deposit and no LMI
• Others can buy with as little as 2% down (conditions apply)
• Others will use a traditional path with 10–20%.
  

Either way, your focus should be on:

• Having a clear savings plan
• Keeping a separate “house deposit” account
• Having proof of genuine savings so the bank knows you are capable of saving money (i.e. a gift from Mum and Dad is great, but we need some strategy behind it)
• Keeping your spending stable in the months leading to pre-approval

4. Get pre-approval from a lender

Pre approval (also called conditional approval) gives you:

• A lender-backed borrowing limit
• Confidence to negotiate with a real estate agent
• Speed when you find your first home

It doesn’t lock you into a loan, but it makes the home buying journey real and competitive.

So, how do you get pre-approval? Don’t attempt this on your own. There are dozens of lenders and loans to compare, and it’s all very confusing! Let a property education expert help you.

How do I choose the right property without getting overwhelmed?

Once your finances are in order, it’s time to shop smart.

Start with your first home non-negotiables

Think:

• Location
• Commute and public transport access
• Safety and community feel
• Property type (unit, townhouse, house)
• Lifestyle needs now and in 5 years
  

Then do a reality check on affordability

Ask:

• Will this property still work if rates move a bit?
• Does it have a resale/rental appeal?
• Are there red flags in the strata or building inspection?
• Are you buying privately, or through a real estate agent?
  

If you’re buying privately, you’ll need to be extra cautious on due diligence, because there’s no agent process to lean on.

You can always ask your broker for their insights before you buy. We have seen a lot of people do the wrong thing and we’re excited to help you nail your first property purchase.

Don’t skip inspections when searching for your first home

For most first property purchases, a building inspection and pest report are non-optional. They cost money up front, but they can save you a genuine financial disaster later.

Buying my first house: What happens after I find “the one”?

Once you’ve found the right property:

1. You make an offer/bid at auction
2. Your loan moves from pre-approval to formal approval (your broker will help)
3. Contracts are exchanged
4. You pay your deposit
5. You prepare for settlement (usually around 6 weeks)

Your conveyancer or solicitor will confirm your settlement date, and you’ll do a final inspection before the handover.

This stage is exciting, but also the moment many first home buyers get spooked. Which is why clarity before you start is everything.

How The Property Education Company helps first home buyers

Buying your first home should feel like an exciting time, not a fog of acronyms, pressure, and guesswork.

At The Property Education Company, we help you buy first house with:

• Education without jargon: you understand what matters, why it matters, and what to do next.
• Responsive service: we keep momentum so the process doesn’t feel dragged out.
• Confidence through the whole home buying process: from borrowing power to settlement date.
• A focus on fun, not fear: because home buying should be a life milestone you enjoy.
  

Our mortgage brokers work across loan options and lenders (including major banks like Commonwealth Bank where appropriate) to match you with a home loan that suits your real life, not just a shiny rate.

Buy Your First Home: FAQs

Do first home buyers pay stamp duty in 2026?

Stamp duty rules are set by each state/territory, and many offer concessions or exemptions for eligible first home buyers under certain price thresholds. In some cases, you may pay reduced stamp duty; in others, none at all. The key is checking your state’s current thresholds and how they apply to your purchase price.

What government incentives are available for first home buyers in 2026?

The big one is the Home Guarantee Scheme / First Home Guarantee, which can allow a 5% deposit and no lenders mortgage insurance for eligible first home buyers. Some states also offer grants (such as FHOG equivalents), stamp duty relief, or regional incentives. Eligibility depends on your income, residency, property type and price cap.

How do I choose the best mortgage broker for first home buyers?

‘Best’ is subjective, but you should look for a broker who:

• Explains loan options without jargon
• Works with a broad panel of lenders
• Models repayments clearly (including penalties/LMI implications)
• Has strong first home buyer experience and reviews
• Is MFAA or FBAA accredited
  

Most importantly: choose someone who makes you feel informed and calm, not rushed.

The Property Education Company can help. Contact us for more information.

Can I afford to buy my first house?

You can afford to buy when:

• Your borrowing power supports a realistic loan amount
• Repayments fit your budget even if rates rise a little
• Your deposit and costs (stamp duty, inspections, legal fees) are covered
• You still have a buffer after settlement
  

If you’re unsure, a broker from The Property Education Company can run the numbers with you and show what’s possible now versus in 3–6 months so you can move with confidence. Or you can try our free borrowing power calculator, which only takes a few minutes to complete.

Buying Your First Home:

Where to Next?

Don’t be overwhelmed! Let our team break things down for you step by step, whether you are self-employed, buying with your partner or consider getting financial help from your parents.

The first part is easy: reach out to The Property Education Company. We can’t wait to point you in the right direction. You can even call us directly, on 0468 026 200.

About the author:

As an MFAA-certified finance broker, James Gregors has been helping people just like you to build their property portfolio for many years. He is especially dedicated to helping first time buyers experience the excitement of buying their first home.

James loves learning about property opportunities then sharing what he has learnt with his clients. He has a natural flair for figures, which makes him a whiz at working out the most advantageous borrowing opportunities.

Disclaimer: This advice is general in nature. Your full financial situation would need to be reviewed prior to acceptance of any offer or product.

Licensing Statement: Credit Representative 365124) is authorised under Australian Credit Licence 389328.