First Home Buyer Grants, Schemes and LMI Waivers: What ADF Members Can Do to Buy a Home

Planning a home purchase works differently when your pay includes allowances, your postings change every few years and you can access a subsidy most buyers can't. The RBA raised the cash rate by 0.25 percentage points to 4.85% on 3 November, and the ABS reported annual inflation of 4.3% in the year to September. Grants, concessions and LMI options can reduce the cash and insurance you need upfront, and this guide covers what is available to ADF members.

Key takeaways

• The 5% Deposit Scheme has no income caps, no place limits and no LMI, so it's the first thing to check.
• Every state and territory has a grant, a stamp duty concession or both, and most favour new homes.
• Fewer lenders offer LMI options to ADF members, but the Defence Home Ownership Assistance Scheme (DHOAS) can subsidise your interest.
• DHOAS loans come from three providers, so compare any LMI saving against your subsidy before choosing a lender.
• You can often combine a grant, a concession and a super release, so check each one's conditions.

Federal help: deposit schemes and super

Four federal options matter most for ADF members buying a home to live in. Each has its own conditions, and rules, caps and dates change and apply on the contract date.

5% Deposit Scheme

The 5% Deposit Scheme lets you buy with a deposit as low as 5%, or 2% for single parents and legal guardians, with no LMI. The government backs part of the loan instead. Since 1 October 2025 it has had no income caps and no limit on places, and Treasury confirmed that property price caps rose at the same time.

It is open to first home buyers and people who haven't bought in the last 10 years. Single parents and guardians with a dependent can use the 2% stream even if they have owned before.

You apply through a Participating Lender as part of a home loan application, not directly. After pre-approval you have 90 days to find a home and sign a contract. Price caps vary by location, so check the price cap tool for your area. You must live in the home as an owner-occupier, or the lender may require LMI or other costs.

Help to Buy

Help to Buy is a shared equity scheme, which means the government owns part of your home alongside you. It contributes up to 30% of an existing home's price, or up to 40% of a new home's, and you need a deposit of at least 2%. When you sell or buy out the government's share, it shares in any gain or loss in proportion to its contribution.

The income caps for 1 July 2026 to 30 June 2027 are:

• $103,000 for a single applicant
• $165,000 for single parents and joint applicants

Applicants must be Australian citizens aged 18 or over who don't own property in Australia or overseas, and must live in the home. It can't generally be combined with other government help for the purchase, such as another shared equity scheme or a state or territory loan. Stamp duty concessions and grants are still allowed.

First Home Super Saver Scheme

The First Home Super Saver Scheme lets you release voluntary super contributions towards a first home. The ATO says you can release up to $15,000 a year, to a total of $50,000. Non-concessional contributions release in full and concessional contributions release at 85%, both with associated earnings.

The assessable amount goes in your tax return with a 30% tax offset, so speak with an accountant about how it affects you.

The ATO also says you must request a determination before ownership transfers, which is generally before settlement. You must move in as soon as practicable and live there for at least 6 of the first 12 months. Eligibility is individual, so each partner can use their own contributions for the same property.

Defence Home Ownership Assistance Scheme (DHOAS)

DHOAS pays eligible members a monthly subsidy toward the interest on a DHOAS home loan. DVA sets the loan limits each financial year. For 2026-27 they are:

• Tier 1: loan limit of $455,622
• Tier 2: loan limit of $683,433
• Tier 3: loan limit of $911,244

The maximum monthly subsidies change with the median interest rate. Currently they are up to $607 for Tier 1, up to $911 for Tier 2 and up to $1,215 for Tier 3. Check the current DVA/DHOAS tier table before relying on any figure.

DVA requires service on or after 1 July 2008, with a qualifying period of 2, 4 or 8 years for permanent members and 4, 8 or 12 years for reservists. You must live in the home for at least 12 months from when the subsidy starts.

DHOAS loans come from Australian Military Bank, Defence Bank or NAB. You apply to DVA on 1300 434 627 for a subsidy certificate. Approval doesn't set your borrowing amount, as your lender does, so ask the lender how your allowances are assessed because policies vary.

State and territory grants and stamp duty

Every state and territory offers something, the rules differ, and most grants are for new homes only. Figures can change, so confirm each row with the relevant state or territory revenue office before relying on it.

State First home owner grant Stamp duty support Watch for NSW $10,000 for new homes up to $600,000, or $750,000 for house and land No duty on homes up to $800,000 and reduced duty to $1m; for land, no duty up to $350,000 and reduced duty to $450,000 Duty rates apply 1 July 2026 to 30 June 2027 VIC $10,000 for new homes valued at $750,000 or less No duty up to $600,000, tapering to $750,000 Check residency rules for ADF members and reservists with the State Revenue Office QLD $30,000 for new homes under $750,000 Full concession on new homes and residential land with no price cap; for established homes, a $17,350 deduction under $710,000, falling to nil at $800,000 From 1 August 2026, buyers generally need to be citizens or permanent residents WA Available for eligible new homes: confirm the amount and caps with the WA Department of Treasury and Finance Homes to $800,000: no duty up to $600,000, then $16.15 per $100 to $800,000; land to $550,000: no duty up to $450,000 Applies to agreements from 7 May 2026 SA $15,000 for new homes, off-the-plan, substantially renovated or building contracts, with no value cap Full relief on new homes, off-the-plan apartments and vacant land with no value cap; established homes aren't covered You and your partner can't have owned residential property before TAS Unconfirmed: check the grant amount and start date with the State Revenue Office Unconfirmed: check current duty relief with the State Revenue Office Tasmanian relief may have changed from 1 July 2026 ACT None covered here No income threshold or price limit from 1 July 2026, with $0 duty for eligible buyers No buyer or domestic partner can have owned property in the previous 5 years NT $50,000 HomeGrown Territory Grant for new homes with no price cap, or the $30,000 FreshStart New Home Grant, but not both Not covered here: check the NT Treasury HomeGrown contracts must be signed between 1 October 2024 and 30 September 2027 Prior ownership rules matter more than most buyers expect. Several states exclude you if you or your partner have owned a home before, which can catch people who owned a share in a home before a separation.

Five ways to avoid or reduce LMI

You can avoid or reduce LMI in five ways, and the right one depends on your deposit, your loan size and your lender. LVR, or loan-to-value ratio, is the size of your loan compared with the property's value. LMI, or lenders mortgage insurance, usually applies when you borrow more than 80% of a property's value, and it protects the lender, not you. At 20% equity it generally doesn't apply.

1. Use the 5% Deposit Scheme, which removes LMI on a deposit as low as 5%, subject to price caps and a Participating Lender.
2. Qualify for a profession LMI waiver, where LMI would normally apply but isn't charged because of your job (most waivers go up to 90% LVR).
3. Choose lender-paid LMI, where the loan is still insured but the lender pays the premium, which is reflected in the pricing.
4. Pick a no-LMI product, which some lenders offer to any borrower at up to 85% or 90% LVR.
5. Save a larger deposit.

A waiver saves the LMI cost, but compare the rate, fees and features too. Risk fees, lender-paid LMI and different pricing can sometimes cost more over time than paying LMI, and each lender sets its own conditions on repayment type, loan size and income. Lender criteria change often and all lending is subject to credit approval.

Can ADF members avoid paying LMI?

Fewer lenders offer LMI options for ADF members. Where a lender waives LMI, it means LMI would normally apply but isn't charged because of your job. Lender policies change often, and not every lender has been reviewed, so a broker can check which options you qualify for.

How to compare them

• Eligibility differs, so check each lender's income, registration, work history and employment conditions against your situation.
• A waiver saves the LMI cost, but compare the rate, fees and features too, and weigh it against the 5% Deposit Scheme on total cost.
• If you want DHOAS, weigh any LMI saving against your subsidy and check with DVA first, as not every lender is a DHOAS provider.

Lender criteria change often, and a broker can check which options you qualify for. All lending is subject to credit approval.

How to combine the options

You combine the options in layers, starting with federal help and finishing with the checks that can rule you out. Work through these steps in order.

1. Check federal eligibility first: the 5% Deposit Scheme and Help to Buy suit different buyers, and Help to Buy can't generally be used alongside other government help for the purchase.
2. Add your state or territory support: the grant, the stamp duty concession and whether the home needs to be new.
3. Start a super release early: contributions are made in advance and an ATO determination is needed before settlement.
4. Match your situation to an LMI option and compare it against the 5% Deposit Scheme on total cost, not just on LMI. Add DHOAS as a layer here: you apply to DVA for a subsidy certificate, and your lender sets your borrowing amount.
5. Check prior ownership and residency rules: most programs require you to live in the home, often for 6 to 12 months, and several exclude people who have owned before.

Price caps and income caps decide more outcomes than the headline amounts, so confirm them for the exact property and your income before you sign a contract.

Small steps taken early can give you more options later. [Book an appointment] at a time that suits you, and bring your recent payslips, your ADF identification, your service history and your savings records.

This article is general information only and doesn't consider your personal circumstances. Grants, concessions and lender policies change, and all lending, including any LMI waiver, is subject to lender criteria and credit approval. Speak with your accountant about tax.

Frequently Asked Questions