First Home Buyer: Guide for Tasmania

Buying your first home in Tasmania continues to become more achievable thanks to a range of government assistance programs and shared equity initiatives designed to support home ownership. According to McGrath Research First Home Buyer Report, first home buyer activity remains strong, with demand continuing to grow despite a higher interest rate environment.

Over the past decade, first home buyers have become an increasingly important part of Tasmania's housing market. The share of owner-occupier loans taken out by first home buyers rose from 27% to 37% in Q1 2026, while loan commitments increased 17.5% over the year to reach 2,386 loans. These figures highlight the continued appeal of home ownership among first-time buyers across the state.

Affordable Housing Demand Continues to Support Market Activity

Strong demand for entry-level housing, combined with limited housing supply and a shortage of new construction, has contributed to price growth across Tasmania's more affordable market segments. During the year to Q1 2026:

• Regional Tasmania house prices in the lowest quartile increased by 12% to an average of $513,900.
• Hobart house prices within the lowest quartile rose 9% to $600,000.
• Hobart apartment prices increased 3% to $463,400.
• Regional Tasmania apartment prices rose 1% to $397,800.

Competition from interstate investors seeking relative value has also supported demand, although recent tax changes may gradually reduce investor activity and improve opportunities for first home buyers in entry-level market segments.

Government Incentives Available to Tasmania First Home Buyers

Tasmanian first home buyers may be eligible for several state and federal initiatives that can help reduce upfront costs and lower deposit requirements, including:

First Home Owner Grant (FHOG): Eligible buyers can access a $20,000 grant when purchasing or building a new home, including eligible vacant land purchases, until 30 June 2027.

MyHome Shared Equity Program: The Tasmanian Government's MyHome program allows eligible buyers to purchase with a deposit as low as 2% while sharing equity with Homes Tasmania. Homes Tasmania can contribute up to 30% equity for established homes and up to 40% for new homes or house-and-land packages, subject to program limits.

First Home Guarantee (FHG): Eligible buyers can purchase with a 5% deposit without paying Lenders Mortgage Insurance (LMI), subject to property price caps and participating lender requirements.

Help to Buy: The federal Help to Buy scheme allows eligible buyers to enter the market with a minimum 2% deposit through a shared equity arrangement with the Australian Government.

First Home Super Saver Scheme (FHSSS): Eligible buyers can make voluntary superannuation contributions and withdraw those funds to help build a home deposit, potentially benefiting from lower tax rates in the process.

Key Takeaway for First Home Buyers

Tasmania continues to offer a range of pathways into home ownership, with generous grants, shared equity programs and federal assistance schemes helping eligible buyers overcome deposit and affordability challenges. While property prices have continued to rise across many affordable market segments, careful planning and awareness of available incentives can significantly improve purchasing opportunities.

Before buying, prospective purchasers should budget for additional expenses such as legal fees, inspections, loan establishment charges and moving costs, while also confirming eligibility for available grants and government support schemes.

Read the full McGrath Tasmania First Home Buyer Guide for detailed market insights, eligibility requirements, government assistance programs and practical pathways to home ownership.

Learn more: McGrath Research | First Home Buyer Report | TAS