The first home buyer's guide to Tasmania

A note before we begin. This guide is general information only, current at July 2026. Grants, thresholds and legislation change — always confirm current settings with the State Revenue Office of Tasmania (sro.tas.gov.au) and take independent legal and financial advice before you sign anything.

Buying your first home in Tasmania is one of the more consequential decisions you'll make. It's also, in the current market, one of the more competitive. The settings shifted meaningfully on 1 July 2026: the temporary full stamp duty exemption on established homes has ended, but the First Home Owner Grant for new builds has been boosted to $20,000. If you're building, you're better off than you were a year ago. If you're buying established, budget for full transfer duty and factor it into your offer.

This guide walks through it in the order you'll actually meet each step.

1. Work out what you can borrow (before you fall in love)

A pre-approval from a bank or broker tells you two things: what you can spend, and what deposit you'll need. Most lenders want a 5–20% deposit plus buffer for costs. Under 20% and you'll typically pay Lenders Mortgage Insurance (LMI) — often $8,000–$25,000 added to the loan — unless you qualify for the federal Home Guarantee Scheme (see below).

Budget for the real total, not just the price:

• Deposit — 5% minimum for most schemes, 10–20% ideal
• Transfer (stamp) duty — payable in full on established homes since 1 July 2026; roughly $22,000 on a $600,000 home, $32,000 on a $800,000 home
• Legal / conveyancing — $1,200–$2,500
• Building and pest inspection — $500–$900 combined
• Loan application, valuation, registration — $500–$1,500
• Council and water rates adjustment at settlement — a few hundred to $2,000
• Moving, connections, and a contingency — treat 1% of purchase price as a healthy buffer

2. Grants and schemes you may qualify for

First Home Owner Grant (FHOG) — Tasmania

$20,000 one-off payment for eligible first home buyers who build a new home or buy a newly built home in Tasmania. The grant was boosted from the legislated $10,000 to $20,000 in the 2026-27 State Budget. Established homes do not qualify for the FHOG.

A "new home" is one that has not previously been occupied or sold as a place of residence, and includes kit homes.

Core eligibility (simplified):

• You (and your co-applicant, if any) are an Australian citizen or permanent resident, 18+
• Neither of you has previously owned residential property in Australia
• You'll live in the home as your principal place of residence for at least six continuous months, starting within 12 months of settlement or completion

Property transfer duty — no first home buyer exemption from 1 July 2026

The 100% duty exemption for first home buyers of established homes valued up to $750,000 applied to transactions settling between 18 February 2024 and 30 June 2026 inclusive. It is not available for transactions settling after 30 June 2026.

That means if you're buying an established home now, budget for full property transfer duty at standard rates. It's the single biggest change to first home buyer economics in Tasmania this year, and it materially changes the calculus between buying established and building new.

Talk to your conveyancer early about the exact duty payable on any property you're seriously considering — it scales with the dutiable value and can shift your usable budget by tens of thousands of dollars.

First Home Super Saver Scheme (federal)

Voluntary super contributions can be withdrawn (up to $50,000 per person, $100,000 per couple) toward a deposit. Tax-effective for most PAYG earners — worth modelling with your accountant if you have 12+ months before buying.

Home Guarantee Scheme (federal)

Lets eligible first home buyers purchase with as little as 5% deposit and no LMI, with the government guaranteeing the balance. Places are released each financial year through participating lenders. There's also a Family Home Guarantee (2% deposit) for single parents and guardians.

3. Understand a Tasmanian contract before you sign

This is the part most first home buyers underestimate. Tasmania has no statutory cooling-off period for private-treaty residential sales. Once you and the vendor have both signed a contract, you are bound — subject only to whatever written conditions are in that contract.

That means the conditions you negotiate before signing are your only real safety net. The four you should almost always ask your solicitor or conveyancer to include:

1. Subject to finance — a specific date by which unconditional loan approval must be received, from a nominated lender, for a nominated amount. Vague finance clauses fail.
2. Subject to satisfactory building inspection — by a licensed inspector, within a set number of business days.
3. Subject to satisfactory pest / timber pest inspection — same principle.
4. Subject to review of the vendor statement and any encumbrances, easements or covenants on title.

If you're bidding at auction, none of these apply — auction contracts are unconditional at the fall of the hammer. Do your finance approval, inspections and legal review before you raise your paddle.

4. Engage a conveyancer or property lawyer early

Do this before you make an offer, not after. A good conveyancer will:

• Review the contract and vendor statement before you sign
• Explain the title, zoning, easements and any restrictions
• Handle searches (council, water, land tax, planning)
• Coordinate settlement and adjustments
• Register the transfer with the Land Titles Office

Expect $1,200–$2,500 all up. A conveyancer who's slow to answer the phone before you engage them will be slower after. Choose accordingly.

5. Building and pest inspections — do them properly

For any established home, a licensed building inspection and a separate timber pest inspection are non-negotiable. Combined cost is usually $500–$900. The report should cover the roof space, subfloor, wet areas, structural elements and site drainage. Ask for photos and a phone call to walk through anything material.

Common Tasmanian issues to look for:

• Rising damp and subfloor moisture — older stone or brick foundations, poor cross-flow ventilation
• Timber pest activity — subterranean termites are present in parts of the state; borers are common in older weatherboard homes
• Roof condition — corrugated iron with rust perforation, or aged tile roofs
• Heating and insulation — many older homes are under-insulated for our winters. Check ceiling and (if possible) wall insulation, and the age and type of heating
• Bushfire attack level (BAL) rating — matters for insurance and any future building work

If the inspection turns up something serious, you can walk away (if you inserted the right clause), renegotiate the price, or ask for repairs before settlement.

6. The offer, the contract, the deposit

Making an offer. In Tasmania most private-treaty offers are made in writing on a standard REIT contract via the agent. Include your special conditions (finance, building, pest, legal review) and a proposed settlement date — typically 30–60 days.

Deposit. Usually 10% of the purchase price, held in the agent's trust account. Some sellers accept a smaller deposit ($1,000–$5,000) at signing with the balance on finance approval — worth asking.

Signing. Both parties sign; the contract is dated; time starts running on your special conditions. Diary every date. Missing a finance deadline by one business day can put you in breach.

Between contract and settlement. Get building insurance in place from the day the contract is signed (some contracts pass risk to the buyer on signing; others on settlement — check yours). Finalise your loan. Do a pre-settlement inspection in the last 48 hours.

7. Settlement day

Your conveyancer, the vendor's conveyancer and the two banks meet electronically on PEXA. Funds transfer, title transfers, keys are released to the agent. Most settlements now happen without any physical meeting. You'll typically get the keys the same afternoon.

Immediately after: connect utilities, redirect mail, change locks if you want to, and register for council rates in your name.

8. After you move in

• Six-month residency clock — if you claimed the FHOG, you must live in the home as your principal residence for at least six continuous months, starting within 12 months of settlement (or completion, for a new build)
• Keep your paperwork — settlement statement, contract, inspection reports, and any warranties. You'll want them at tax time and when you eventually sell
• Review your insurance annually — building insurance should be for the rebuild cost, not the market value

9. A word on auctions

Auctions are unconditional. If you win, you sign that day, pay the deposit that day, and settle on the vendor's terms. Do every piece of due diligence — finance, building, pest, legal — before the auction. If you can't, don't bid.

10. Established vs new build — the maths has changed

Until 30 June 2026, buying established at or under $750,000 saved a first home buyer around $20,000–$28,000 in duty. That subsidy is gone. In its place, building a new home now attracts a $20,000 grant. Broadly:

• Buying established at $600,000 in July 2026 — full duty payable (~$22,000), no grant
• Building a new home for $600,000 in July 2026 — duty payable on the land component only, plus a $20,000 grant

That doesn't automatically make building the better choice — build timelines, land availability, holding costs and finish quality all matter — but the arithmetic is worth doing carefully. Talk to us if you'd like a plain-English second opinion on any specific comparison.

11. The one-page checklist

• Finance pre-approval in writing, with a known limit
• Conveyancer engaged and briefed
• Confirmed eligibility for the FHOG (new builds) — established homes: budget full duty
• Building and pest inspectors booked (or contract conditional on same)
• Contract reviewed before signing
• Special conditions inserted: finance, building, pest, legal review
• Deposit funds ready
• Building insurance quote lined up
• Pre-settlement inspection scheduled
• Utilities and mail redirection organised for settlement day

Where to get help

• State Revenue Office of Tasmania — grants, duty, thresholds. sro.tas.gov.au
• Consumer, Building and Occupational Services (CBOS) — property law and dispute information. cbos.tas.gov.au
• Your MORE agent — for the market, the suburbs, and a plain-English second opinion before you sign anything

Buying your first home should feel exciting, not overwhelming. If you'd like to talk through any part of the process, we'd be glad to help.