For first home buyers, the path to property ownership can be exciting – and complicated. Gone are the days when the process was as simple as saving a deposit and buying a home. Now, buyers face a range of government assistance schemes, each with different rules, benefits, and trade-offs.
To explore this dilemma, I spoke with Grant Schwulst from Loan Market. With over 25 years in the finance industry, including the last five as a mortgage broker, Grant specialises in helping buyers navigate the lending process — from first-time homeowners through to investors and refinancers. His experience means he’s well-placed to help buyers decide whether to take advantage of government incentives or skip them in favour of a different strategy, such as buying an investment property first.
The Main Types of Assistance Available
According to Grant, there are three main categories of government assistance: grants, stamp duty concessions, and government guarantees.
Grants are typically offered for new builds or brand-new properties, with amounts and eligibility varying between states. In Queensland, for example, eligible buyers can receive $30,000 for a new build. However, this money usually goes directly to the builder to offset construction costs, not into the buyer’s pocket.
Stamp duty concessions can save buyers thousands. In Queensland, no stamp duty is payable for properties up to $700,000 for eligible first home buyers. Discounts apply for purchases between $700,000 and $800,000, after which full stamp duty rates apply.
The government guarantee is often the most popular option. It allows buyers to purchase with a smaller deposit — sometimes as low as 5% — without paying lenders mortgage insurance (LMI). In Queensland, a new scheme is planned that will allow purchases of up to $1 million with a deposit of just 2%.
Why Grants Aren’t Always the Best First Step
While grants can be tempting, they often come with conditions that limit the type of property you can buy. New builds may not suit everyone — and they can come with their own challenges.
“Building comes with uncertainty,” Grant explains. “Borrowers might be paying rent while servicing a land loan and later a construction loan. Costs can blow out, and higher interest rates mean borrowing capacity is already stretched.”
In contrast, buying an established property allows you to see exactly what you’re getting, move in immediately, and often secure a better location. It can also be a more straightforward stepping stone for building equity.
Considering Rentvesting
If the grants and concessions aren’t the right fit, some buyers turn to rentvesting — buying an investment property in an affordable, high-growth area while continuing to rent where they want to live.
This approach can work well for buyers who can’t afford to purchase in their preferred suburb but don’t want to be left behind in a rising market. The rental income from the investment property can help with loan servicing, and in some cases, improve borrowing capacity.
“Rentvesting gives buyers flexibility,” Grant says. “You’re not restricted to units or townhouses if that’s not what you want. You might be able to buy a freestanding house in a growth location and build equity for a future home purchase.”
How to Decide
The right path depends on your financial position, goals, and lifestyle priorities. Grant’s advice is clear: don’t make the decision in isolation. A mortgage broker can run side-by-side comparisons to show how different scenarios play out — factoring in grants, concessions, investment returns, and your personal circumstances.
Working with an expert also means identifying and resolving any roadblocks early. That might include improving savings habits, consolidating debt, or addressing credit issues. Grant recommends starting the conversation at least six months before you think you’ll be ready to buy.
Practical Tips for First Home Buyers
From our discussion, three key points stand out:
- Seek advice early – The sooner you speak with a broker, the more time you’ll have to prepare and improve your position.
- Track your spending – Knowing exactly where your money goes will help you save more effectively and demonstrate genuine savings to lenders.
- Stay persistent – The path to your first property may take time, but with the right strategy and mindset, it’s achievable.
Final Thoughts
Whether you take advantage of government grants or pursue an investment-first approach, the important thing is to get into the market in a way that supports your long-term goals. As Grant puts it, “It’s not about having the perfect property from day one — it’s about getting started, building equity, and creating more choices for your future.”
If you’d like help weighing up your options, speak to a qualified mortgage broker who can walk you through the numbers and match your strategy to your circumstances. And when you’re ready to find the right property, The Property Frontline can help you secure one that meets your needs and positions you for success.
Author: Debra Beck-Mewing
Debra Beck-Mewing is the Editor of Property Portfolio Magazine and CEO of The Property Frontline. With over 20 years of experience buying property across Australia, Debra is a skilled property strategist and buyers agent known for uncovering tailored opportunities — from family homes to multi-use investments.
She has deep expertise in advanced strategies including renovations, granny flats, sub-division, and development. A Qualified Property Investment Advisor (QPIA®), licensed real estate agent, and holder of a Bachelor of Commerce and Master of Business, Debra combines strategic insight with hands-on experience.
Debra is the creator of the Property Smart Track System™ – a professional property buying system that enables buyers to select, assess and buy property independently in today’s market. She also leads Buy Like A Genius™, a premium end-to-end buyers’ agency service for busy professionals seeking expert property acquisition without the stress.
As a passionate advocate for greater transparency in the property and wealth industries, Debra is a sought-after speaker, author, podcast host, and participates on numerous committees including the Property Owners’ Association.
