Buying your first home can feel a bit like tackling Mount Everest – the peak looks amazing, but the climb? Brutal. Between rent, bills, and trying to stash away savings, it’s easy to feel like you’re running out of oxygen before you’ve even left base camp.
Thankfully, the government has set up a couple of handy ropes and ladders to help you scale the mountain:
- First Home Guarantee (FHG)
- First Home Super Saver Scheme (FHSSS)
So if 2025 is the year you’re ready to plant your flag on “Homeowner Summit,” here’s a rundown of how these schemes work.
The First Home Guarantee (FHG)
The FHG is designed to give first-home buyers a leg-up, even if their deposit isn’t huge. Think of it as a shortcut track on the property trail.
Normally, lenders want at least 20% saved. With the FHG, you only need 5%. On a $600,000 property, that’s $30,000 instead of $120,000.
On top of your deposit, you’ll also need to cover costs like legals, insurance, rates adjustments, and building & pest. Budget around $5,000 for this. So in the example above, your total savings goal would be $35,000.
If your deposit is under 20%, you’d usually have to pay LMI, adding thousands to your loan. With the FHG, the government steps in as your safety rope, so you skip that cost.
Each area has a maximum property value, keeping the scheme focused on realistic first homes rather than luxury ones.
In short: The FHG helps you buy sooner with a much smaller deposit and no LMI, instead of slogging away for years trying to reach the “traditional” 20%.
The First Home Super Saver Scheme (FHSSS)
The FHSSS takes a different route. Instead of shrinking the deposit you need, it helps you save smarter by using your superannuation account.
You can make extra contributions into your super – usually done before tax (salary sacrifice), but it can also be done after tax (personal/non-concessional contributions). Later, you can withdraw that money to use as your home deposit.
If your contributions have been deposited before tax, your savings go further compared to putting the same money in a regular bank account. That means your deposit grows faster.
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If you decide not to buy, the money isn’t lost. It stays in your super for retirement – your “future self” will thank you.
If you’ve made after-tax (non-concessional) contributions, you may still be eligible. You’ll just need to lodge a notice of intent form with your super fund before the end of the financial year (ideally by May).
First, complete a determination form through the ATO.
Then request a release of funds either:
- before signing a contract (you’ll then have 12 months to buy), or
- within 90 days of signing a contract (if your determination was after 15 Sept 2024 – otherwise you only get 14 days).
Don’t forget to notify the ATO once you’ve purchased, or they’ll think you ghosted them.
When you pull the money out, the ATO takes a small slice (usually 15%). Here’s how they work it out:
- 100% of your eligible non-concessional contributions (personal after-tax contributions you didn’t claim a deduction for)
- 85% of your salary sacrifice contributions (before-tax, concessional contributions)
- 85% of your personal concessional contributions (after-tax contributions you did claim a deduction for)
So no, you don’t get every cent back — but you’re still miles ahead compared to stashing it in a savings account.
In short: The FHSSS basically turns your super account into a turbo-charged first-home savings vehicle.
How the First-Home Buyer Schemes Work Together
Get this?! You don’t have to pick just one. First-home buyers can use both:
- FHSSS to grow your deposit faster through super
- FHG to get into the market sooner with only 5% deposit (+ $5k for costs) and no LMI
The key is to plan early and check your eligibility. From 1 October 2025, the government’s throwing the gates wide open with unlimited places – so no more FOMO if you didn’t get in fast enough.
Next Steps To Buying Your First Home
Buying your first home doesn’t have to feel like dragging yourself up Everest without a sherpa. The First Home Guarantee and the First Home Super Saver Scheme are tools that can shave years off your savings journey and save you thousands along the way.
If you’d like to know whether you qualify, let’s chat. We’ll handle the fine print, crunch the numbers, and guide you up the mountain towards your very own place to call home.
And hey – if your brain tapped out halfway through (ADHD crew, I see you 🙋♀️), skip the details and book an appointment. We’ll do the thinking for you.
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