Unlocking First Home Buyer Support in South Australia (SA)

If you’re a first home buyer in South Australia, there’s a range of support available to help reduce upfront costs and make getting into the market more achievable.

But just because a scheme is available doesn’t mean it’s the right one for you long term.

In this guide, we’ll break down what’s available right now (as of October 2025), how it works, and when it makes sense to use it, including:

• Stamp duty relief on new homes and vacant land

• The $15,000 First Home Owner Grant (FHOG)

• The federal First Home Guarantee Scheme

This resource supports Episode 18 of the First Home Unlocked Podcast, where Jack walks through each scheme and how it fits into your overall strategy.

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Stamp Duty Relief for First Home Buyers in SA

Stamp duty is a one-off government tax based on your property’s value and it can easily add tens of thousands to your upfront costs.

To help first home buyers, the South Australian Government offers full stamp duty relief for eligible buyers who are building or buying a new home, an off-the-plan apartment, or vacant land where you plan to build your principal place of residence.

Eligibility

To qualify, you must:

• Be 18 years or older

• Be an Australian citizen, permanent resident, or NZ Special Category Visa holder

• Include your spouse or partner’s details (even if they’re not on the title)

• Have never owned residential property in Australia before

• Live in the home for at least six continuous months, starting within 12 months of settlement or completion

If you’re purchasing land to build on, you must move in within a year of the build being completed (or within three years of buying the land, whichever comes first).

There are no property price caps, and your conveyancer will usually lodge the relief application at settlement. If they don’t, you can apply for a refund within five years of settlement.

Strategy Insight

A full exemption on new homes, off-the-plan apartments, and vacant land can save you tens of thousands of dollars, but remember, this only applies to new properties, not established homes.

That means your options may lean toward new estates or house-and-land packages, which can carry different risks and long-term performance compared to established areas.

Before buying purely to avoid stamp duty, ask yourself:

• Does this location fit my long-term plan for work, family, and lifestyle?

• Is there strong demand, or could there be an oversupply of similar new homes?

• Would an established home, even with stamp duty payable, offer better long-term growth?

As we cover in Episode 6: Unlocking Asset Quality, the right location and asset type often matter far more than saving upfront.

A well-located, high-quality property can outperform over time, helping you build equity and flexibility for your next move.

You can find all the details and eligibility information on the Stamp Duty Relief here

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First Home Owners Grant in SA

Let’s move on to another one of the supports available for first home buyers in South Australia, the First Home Owner Grant.
If you’re buying or building a brand-new home, this grant can give your deposit a boost.

What Is It?

The First Home Owner Grant is a $15,000 one-off payment to eligible first home buyers who buy or build a new home to live in as their principal place of residence.

It can apply to:

• Newly built homes

• Off-the-plan apartments

• Substantially renovated homes

• Comprehensive building contracts or owner-builder projects

There are no price caps, but vacant land purchases alone don’t qualify.

Eligibility

You must:

• Meet the same eligibility criteria as the stamp duty relief

• Apply separately for the grant (it’s not automatic)

• Live in the home as your main residence within 12 months of completion

Extra Info to Keep in Mind

• You can only receive one grant per property, not per person.

• The grant can be used alongside other incentives like the First Home Guarantee Scheme (5% deposit with no LMI).

Strategy Tip

A $15,000 grant can be a great boost to your deposit, but it’s only for new homes, and new doesn’t always mean better.

Before you decide, take a step back and think strategically:

• Is a new build the right fit for your long-term lifestyle and goals?

• Does the area have strong demand drivers, like proximity to work, schools, and transport?

• Are you prioritising short-term savings, or buying a quality home that will grow in value?

Sometimes building new can make sense. Other times, an established home, even with stamp duty payable, may offer better value and stronger long-term growth.

A quality asset in a desirable location typically outperforms over time, helping you build equity, flexibility, and confidence for the future.

You can find all official information on the First Home Owners Grant here

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First Home Guarantee (FHGS)

The First Home Guarantee Scheme (FHGS) is a federal initiative managed by Housing Australia. It helps first home buyers purchase a home with a smaller deposit and no Lenders Mortgage Insurance (LMI), while keeping full ownership.

You can buy with as little as a 5% deposit, and the government acts as a guarantor for the remaining 15% normally required by lenders.

That means:

• You don’t pay LMI (which can save you $10,000–$30,000+)

• You still access competitive interest rates

• You keep 100% of the equity and future growth

We break this down in full in Episode 10 of the podcast, including how the scheme works, the pros and cons, and how to eventually remove the guarantee once your equity grows. It’s a must-listen if you’re considering using this option.

SA Property Price Caps (from 1 October 2025)

To qualify, your property must fall under Housing Australia’s updated limits:

• Adelaide: Up to $900,000 (previously $600,000)

• Rest of SA: Up to $500,000 (previously $450,000)

This limit applies to both new and existing homes.

Strategy Tip

This scheme is one of the most effective ways to get into the market sooner.

With the First Home Guarantee, you can:

• Avoid LMI, saving tens of thousands of dollars upfront

• Buy with just a 5% deposit instead of 20%

• Retain 100% ownership and all future equity

And now, with income caps removed as of 1 October 2025, it’s more accessible than ever, especially for South Australian buyers who were previously just above the income limit or priced out of the market.

But as always, don’t let speed override strategy. The goal isn’t just to buy fast, it’s to buy well.

Make sure the home you choose:

• Fits your long-term lifestyle and financial goals

• Has strong fundamentals, good location, land value, and demand

• Offers room to grow with your future plans, not restrict them

Because the right property will continue to serve you for years to come, helping you build equity, stability, and options for the next stage of life.

If you’re not sure whether the First Home Guarantee is the right fit for you, we can help you assess your options, compare lenders, and build a clear strategy that works for your life, not just your loan. You can Book a Get to Know You Chat and we can see how the scheme could work for your situation.

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HomeStart Shared Equity Option (SA)

The HomeStart Shared Equity Option is a South Australian Government initiative designed to help more people enter home ownership.

It’s offered by HomeStart Finance, a state-owned lender and can be used as an additional, interest-free, repayment-free loan alongside your main mortgage.

How It Works

HomeStart contributes up to 25% of the property’s value (capped at $200,000) to reduce your main loan amount.
You don’t pay any interest or monthly repayments on their share, but HomeStart owns that same percentage of your home.

When you sell, refinance, or move out, you repay their portion, plus or minus a share of any capital gain or loss.

Example:
If you buy a $600,000 home and HomeStart contributes 25% ($150,000), they own that same percentage. If the home later sells for $720,000, HomeStart receives their $150,000 plus 25% of the $120,000 gain ($30,000), for a total repayment of $180,000.

You can make voluntary repayments of at least $10,000 at any time to reduce their share (a valuation is required before doing so).

Key Eligibility Details

• Household income must be below $110,000 per year

• Property price cap: $675,000

• You can retain up to $40,000 in personal savings

• Owner-occupied only (not available for investment properties or apartments over three storeys)

• Must buy in eligible areas (Metro Adelaide and select regional locations)

• You remain the registered owner, but HomeStart holds a mortgage over their share

• You must hold your main loan with HomeStart Finance

What Makes It Different

Unlike the First Home Guarantee, where the government acts as a guarantor, HomeStart actually owns a share of your property. You don’t pay interest or repayments on that portion, but you’ll need to buy back their share if you want full ownership later.

Because the government retains part ownership, you have less flexibility to refinance or sell until their share is repaid.

Strategy Insight

Shared equity options like HomeStart can make ownership more achievable upfront, but they also come with trade-offs.

Before applying, consider:

• Is giving up a portion of your future growth worth the short-term affordability boost?

• Could the First Home Guarantee help you buy sooner without losing ownership?

• Does the property meet your asset quality standards, strong location, scarcity, and appeal to future buyers?

As we discuss in Episode 11: Unlocking Shared Equity Schemes, these programs can work for some buyers but aren’t always ideal for long-term wealth creation.

Focus on buying a quality property that aligns with your life plan and keeps as much ownership and flexibility as possible.

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Final Thoughts: Don’t Just Chase the Incentives

Government grants and schemes in South Australia, like Stamp Duty Relief, the First Home Owner Grant, the First Home Guarantee Scheme, and HomeStart’s Shared Equity Option can make getting into your first home feel far more achievable.

But these supports are only part of the picture. They help reduce upfront costs, not guarantee long-term success.

The best outcomes come from having a clear strategy, choosing a quality asset, and structuring your plan around your life goals, not just what’s available right now.

That’s where we come in. We’ll help you:

• Compare all your options, including federal state, and best lending policies for your situation

• Find the right structure and timing for your situation

• Make sure you’re using what South Australia offers without sacrificing long-term value or flexibility

Listen to Episode 18 for the full breakdown or Book a Get to Know You Chat to map out your plan with clarity and confidence.

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