Can I Use the First Home Super Saver Scheme Alongside the Government’s 5% Deposit Scheme?
Using voluntary super contributions to build your deposit, then purchasing with 5% under the guarantee, is a strategy that works — but only if the timing and structure are set up correctly.
Yes — and this combination is one of the more powerful options available to first home buyers who have time to plan. But the mechanics matter. Using both schemes together requires understanding how each one works before you can see how they interact.
How the FHSS Works
You make voluntary contributions to your super (up to $15,000 per year, $50,000 lifetime per person). When you’re ready to buy, you apply to the ATO to release those contributions, plus associated earnings, as a deposit. The tax advantage comes from the concessional rate at which contributions are taxed inside super versus your marginal rate outside it.
How the First Home Guarantee Works
Eligible buyers purchase with a 5% deposit and no LMI. The government guarantees the remaining 15% to the lender. No income caps apply in 2025–26, and there is no annual place limit.
Using Them Together
Your FHSS withdrawal can form part — or all — of your 5% deposit. The lender doesn’t care where the deposit came from, provided you can show genuine savings or an eligible source. The combination means you’re potentially building your deposit in a tax-advantaged environment and then entering the market with a smaller deposit and no LMI.
What to Watch
- FHSS withdrawals can take 15–20 business days from the ATO — don’t leave this to the week before settlement
- You must have a signed contract before you can withdraw — the sequence matters
- The $50,000 lifetime cap applies per person, so couples can access up to $100,000 combined
- Not all contributions qualify — only voluntary contributions made on or after 1 July 2017
You may wish to speak with a licensed mortgage broker to assess your personal circumstances.
This is general information only. FHSS eligibility and withdrawal timing are subject to ATO conditions. Speak with a licensed mortgage broker and a financial adviser before combining schemes. All loans are subject to lender approval.
Sources: ATO, First Home Super Saver Scheme; Housing Australia, First Home Guarantee 2025–26; ASIC MoneySmart, Saving for a Home 2025.
