First Home Buyer Guide Adelaide - Everything You Need to Know
Buying your first home in Adelaide represents one of life’s most significant financial decisions. South Australia offers several programs designed to help first home buyers enter the property market, but navigating eligibility requirements and application processes can feel overwhelming. This guide covers everything Adelaide first home buyers need to understand in 2026.
Adelaide’s First Home Buyer Landscape
Adelaide remains one of Australia’s more affordable capital cities for first home buyers. According to recent data from the Real Estate Institute of South Australia (REISA), Adelaide’s median house price sits significantly below Sydney and Melbourne, making homeownership more achievable for many buyers.
However, affordability is relative. Rising property values across Adelaide’s metropolitan area mean first home buyers still need substantial deposits and borrowing capacity. Understanding available assistance programs becomes essential for making homeownership achievable.
First Home Owner Grant South Australia
The First Home Owner Grant (FHOG) in South Australia provides eligible first home buyers with a $15,000 grant when purchasing or building a new home. RevenueSA administers this program on behalf of the State Government.
FHOG Eligibility Requirements
To qualify for the $15,000 First Home Owner Grant in SA:
- You must be purchasing or building a new home (not an established property)
- The property value must be under the threshold ($650,000 for houses, $500,000 for other residential property)
- You must be an Australian citizen or permanent resident
- You or your partner must not have previously owned residential property in Australia
- You must move into the property within 12 months and live there for at least 6 continuous months
The “new home” requirement catches many first home buyers off guard. Established properties, no matter how recently renovated, do not qualify for the FHOG. However, off-the-plan apartments and house-and-land packages typically qualify if construction hasn’t commenced before your contract date.
How to Apply for FHOG
Applications for the First Home Owner Grant go through your lender or solicitor during the settlement process. Required documentation includes:
- Completed First Home Owner Grant application form
- Proof of identity (passport, driver’s licence)
- Evidence of citizenship or permanent residency
- Contract of sale or building contract
- Evidence the property is new
RevenueSA processes applications and pays the grant directly to your lender at settlement. If you’re exploring your home loan options with an Adelaide broker, they’ll guide you through the FHOG application as part of your loan process.
Stamp Duty Relief for First Home Buyers
South Australia offers significant stamp duty concessions for first home buyers, potentially saving thousands of dollars.
Stamp Duty Exemptions and Concessions
New Homes Under $650,000: First home buyers pay no stamp duty on new homes valued up to $650,000. This stacks with the FHOG, meaning eligible buyers of new homes can receive both benefits.
New Homes $650,000-$700,000: Partial stamp duty relief applies on a sliding scale.
Established Homes Under $506,500: First home buyers of established homes valued up to this threshold pay no stamp duty.
Established Homes $506,500-$591,000: Partial concessions apply on a sliding scale.
For a first home buyer purchasing an established home at $500,000, the stamp duty saving compared to a non-first-home-buyer exceeds $21,000. This represents genuine financial benefit that makes budgeting easier.
Off-the-Plan Stamp Duty Concessions
Purchasing off-the-plan apartments or townhouses offers additional stamp duty advantages. You typically pay stamp duty only on the land value at contract date, not the completed property value. For Adelaide developments in growth areas like Morphett Vale or apartment projects near Glenelg, this can mean substantial savings.
Deposit Requirements: How Much Do You Need?
Most lenders require between 5% and 20% deposit for home loan approval. However, deposit size significantly affects your borrowing costs.
20% Deposit: The Gold Standard
With a 20% deposit, you avoid paying Lenders Mortgage Insurance (LMI) and typically access better interest rates. On a $500,000 property, that’s $100,000 saved before purchasing.
For many Adelaide first home buyers, saving $100,000 while paying rent takes years. That’s why smaller deposit options exist.
5-10% Deposits and LMI
Lenders will approve loans with 5-10% deposits, but you’ll pay Lenders Mortgage Insurance. LMI protects the lender (not you) if you default. On a $500,000 property with 10% deposit, LMI might cost $8,000-$15,000, typically added to your loan balance.
Some first home buyers accept LMI as the cost of entering the market sooner. With Adelaide property values rising, buying earlier with LMI might work out better than waiting years to save a larger deposit.
First Home Guarantee Scheme
The federal government’s First Home Guarantee allows eligible first home buyers to purchase with just 5% deposit without paying LMI. The government guarantees the additional 15% to the lender.
Places in this scheme are limited each financial year. Commonwealth Bank, NAB, Westpac, and numerous other participating lenders offer these loans. An experienced mortgage broker can advise whether you qualify and help secure a place.
The First Home Buying Process in Adelaide
Understanding each step helps first home buyers feel confident throughout the journey.
Step 1: Assess Your Financial Position
Before looking at properties, understand your borrowing capacity. This involves reviewing your income, expenses, existing debts, and savings. A pre-approval from a lender gives you a clear budget.
Our broker matching service connects you with Adelaide professionals who specialise in first home buyer loans and can provide accurate borrowing assessments.
Step 2: Research and Property Search
With budget clarity, begin exploring Adelaide suburbs that match your price range and lifestyle needs. First home buyers often find value in:
- Growth corridors: Areas like Seaford, Aldinga, and northern suburbs offer newer homes at accessible prices
- Established suburbs: Character homes in areas like Norwood or Prospect appeal to those wanting established amenities
- Adelaide Hills: Suburbs like Mount Barker combine lifestyle with relative affordability
Step 3: Make an Offer
When you find a suitable property, make an offer through the real estate agent. In South Australia, cooling-off periods apply to residential property contracts, giving you time to finalise finance and conduct inspections.
Step 4: Finalise Finance
Once under contract, your lender completes full assessment and issues formal approval. This involves property valuation, verification of your documents, and confirmation of loan terms.
Step 5: Settlement
Settlement typically occurs 30-90 days after contract signing. Your conveyancer or solicitor coordinates with the seller’s representative, your lender, and relevant authorities. On settlement day, ownership transfers to you.
Common First Home Buyer Mistakes to Avoid
Learning from others’ experiences helps you navigate the process smoothly.
Underestimating Costs: Beyond the purchase price, budget for stamp duty (even with concessions), conveyancing fees ($1,500-$2,500), building and pest inspections ($400-$600), and moving costs. First home buyers often budget for the deposit but forget these extras.
Skipping Pre-Approval: Looking at properties without pre-approval risks falling for a home you cannot finance. Get pre-approval first.
Ignoring Ongoing Costs: Mortgage repayments are just one ownership cost. Factor in council rates, building insurance, maintenance, and utility costs when assessing affordability.
Rushing Due to FOMO: Fear of missing out leads to poor decisions. Adelaide’s market moves quickly at times, but buying the wrong property costs more than waiting for the right one.
Getting Expert Help
First home buyers benefit significantly from professional guidance. Mortgage brokers who specialise in first home purchases understand the grant applications, lender requirements, and government schemes inside out.
Adelaide Finance Broker connects first home buyers with experienced local brokers through our free matching service. Whether you’re buying in the Adelaide Hills or coastal areas near Glenelg, we match you with brokers familiar with your target locations.
Next Steps for Adelaide First Home Buyers
Ready to begin your first home buying journey? Here’s your action plan:
- Review your savings and income to estimate borrowing capacity
- Research first home buyer grants and concessions you might qualify for
- Connect with an experienced Adelaide mortgage broker for pre-approval
- Begin your property search with clear budget parameters
- Take your time, ask questions, and make informed decisions
Buying your first home should be exciting, not stressful. With proper preparation and expert guidance, Adelaide first home buyers can navigate the process confidently and secure their place in the property market.