Welcome to the April 2026 edition of the bfg report
Are you, your child or your grandchild buying a first home? Government support may make it easier than you (and they) think
For many Australians, buying a first home feels harder than ever. Property prices remain high, deposits can take years to save, and upfront costs such as stamp duty can be significant hurdles. The good news is that both the Federal and NSW Governments offer a range of schemes designed to help first home buyers get into the market sooner. In many cases, these incentives may be used together, helping to reduce upfront costs and improve affordability.
For many of our clients, this support can also supplement any assistance being considered from the “bank of mum, dad and grandparents”, reducing the overall amount families may need to contribute or making support go further.
Below is a snapshot of the key support currently available.
Federal government support
First home guarantee (5% deposit)
The First home guarantee allows eligible first home buyers to purchase a home with as little as a 5% deposit, without paying lenders mortgage insurance (LMI). Under the scheme, the Government guarantees part of the loan, which can significantly reduce upfront borrowing costs.
More information is available at: https://firsthomebuyers.gov.au/
Family home guarantee (2% deposit for single parents)
Designed for eligible single parents or guardians with at least one dependent child, this scheme allows the purchase of a home with a deposit as low as 2%, again without paying LMI.
More information is available at: https://firsthomebuyers.gov.au/
First home super saver scheme
The First home super saver scheme allows individuals to save for a first home deposit through voluntary superannuation contributions. Up to $50,000 (plus associated earnings) can be withdrawn to help purchase a first home, often in a more tax‑effective way than saving outside super.
Further details are available from the Australian Taxation Office at:
https://www.ato.gov.au/Individuals/Super/In-detail/First-Home-Super-Saver-scheme/
Help to buy (shared equity scheme)
Under the Help to buy scheme, the Government may contribute up to 40% of the purchase price for a new home, or 30% for an existing home. This reduces the size of the buyer’s mortgage and their ongoing loan repayments.
More information is available at: https://www.housingaustralia.gov.au/help-buy
NSW government support
First home buyers assistance scheme (stamp duty relief)
Eligible first home buyers in NSW may receive a full stamp duty exemption on homes valued up to $800,000, or a concessional (reduced) rate on properties valued up to $1,000,000. For many buyers, this can represent a saving of tens of thousands of dollars.
More information is available at:
https://www.nsw.gov.au/housing-and-construction/buying-and-selling-property/home-buying-assistance/first-home-buyers-assistance-scheme
First home owner grant (new homes only)
The NSW First home owner grant provides a $10,000 grant to eligible buyers purchasing or building a brand‑new home, subject to property value caps. Established homes do not qualify for this grant.
Further details are available at:
https://www.revenue.nsw.gov.au/grants-schemes/first-home-owner-grant-fhog
Similar forms of support are also available in other states, although the type and value of assistance vary depending on where the property is located.
A final word
Government support for first home buyers can be valuable, but it can also be complex. Eligibility rules, income limits and property price caps apply, and the interaction between different schemes is not always straightforward. For families considering helping a child or grandchild into their first home, understanding how government incentives and family assistance may work together can make a meaningful difference. This is an area where early planning and appropriate advice can be particularly important.
Market commentary and outlook – March 2026
Summary
March marked a significant shift in market conditions, with geopolitical developments overwhelming economic fundamentals across most asset classes.
- Australian equities fell sharply, reflecting global market weakness, with financials and technology stocks among the hardest hit.
- Global equities recorded their worst monthly performance since 2022, as market correlations rose and diversification benefits diminished.
- Bond markets provided limited protection, as renewed inflation concerns pushed yields higher for much of the month.
- Energy prices surged following Middle East disruptions, while gold failed to act as a traditional safe haven.
- Markets are now reassessing the outlook for interest rates, with “higher for longer” inflation risks returning.
Global market overview
March 2026 was a decisive “risk‑off” month for global markets. Escalating geopolitical tensions in the Middle East disrupted energy supply routes and drove a sharp rise in oil prices, reigniting inflation concerns at a time when markets had been anticipating potential interest rate cuts later this year.
Equity markets sold off broadly, correlations increased, and government bonds failed to provide their usual defensive characteristics. For Australian investors, the environment was characterised by declining share markets, rising interest rate expectations, a weaker Australian dollar, and stronger relative performance from energy‑exposed assets.
Australia
Australian equities experienced a sharp correction in March, giving back much of the gains recorded earlier in the year.
- The S&P/ASX 200 fell 7.15%, the largest monthly decline since mid‑2022.
- Losses were broad‑based, with banks, consumer cyclicals, technology stocks and REITs all under pressure amid rising bond yields and weaker risk sentiment.
- Energy stocks materially outperformed, supported by surging oil prices, while gold miners were volatile as bullion prices reversed lower.
Small‑cap equities underperformed large‑caps, reflecting their higher sensitivity to risk sentiment, domestic economic conditions and funding costs.
Global equities
Global equity markets experienced a synchronised sell‑off, with geopolitics overshadowing earnings and macro‑economic data. Importantly, diversification across regions and investment styles offered limited protection, as growth, value, small‑cap and equal‑weight indices all declined together.
Energy was the standout sector globally, benefiting from supply‑driven oil price gains.
Fixed income and commodities
Bond yields rose across most major markets during March:
- In Australia, yields increased as investors repriced inflation risks and pushed expectations for RBA easing further into the future.
- In the US and Europe, yields rose sharply before easing slightly late in the month on tentative de‑escalation headlines.
- Japan also saw yields move higher amid expectations of policy normalisation and rising imported inflation.
Oil dominated asset‑class performance, recording one of its largest monthly increases on record. In contrast, gold declined sharply, weighed down by rising real yields and a stronger US dollar.
Outlook and positioning
Market volatility remains elevated as investors await clarity around geopolitical developments. In the absence of clear direction, maintaining diversification and remaining broadly aligned with long‑term strategic asset allocations continues to be an appropriate approach.
Benchmark returns
Period ended: 31 March 2026
| Asset Class | 1 Month (%) | 3 Months (%) | 6 Months (%) | 1 Year (%) | 3 Years (% pa) | 5 Years (% pa) | 10 Years (% pa) |
| Australian Shares | |||||||
| S&P/ASX 100 | -6.84 | -0.87 | -2.10 | 11.34 | 9.53 | 9.04 | 9.66 |
| S&P/ASX 200 | -7.15 | -1.61 | -2.61 | 11.67 | 9.54 | 8.63 | 9.44 |
| S&P/ASX Small Ordinaries | -10.96 | -10.87 | -9.26 | 13.65 | 8.50 | 3.99 | 7.29 |
| International Shares | |||||||
| MSCI ACWI ex‑Australia (AUD) | -3.38 | -5.84 | -3.28 | 9.17 | 15.83 | 11.80 | 12.69 |
| MSCI ACWI ex‑Australia (AUD Hedged) | -6.27 | -2.75 | 0.87 | 19.11 | 16.24 | 9.31 | — |
| Australian Cash & Bonds | |||||||
| Bloomberg AusBond Bank Bill Index | 0.32 | 0.91 | 1.82 | 3.80 | 4.15 | 2.89 | 2.14 |
| Bloomberg AusBond Composite Index | -1.42 | -0.34 | -1.48 | 1.51 | 2.06 | 0.15 | 1.79 |
| International Bonds | |||||||
| Bloomberg Global Aggregate (AUD Hedged) | -1.85 | -0.25 | 0.43 | 2.98 | 3.08 | -0.13 | 1.55 |
| Global Listed Infrastructure | |||||||
| FTSE Developed Core Listed Infrastructure 50/50 (AUD Hedged) | -3.04 | 9.00 | 9.23 | 15.78 | 10.53 | 7.86 | 7.56 |
| Property | |||||||
| S&P/ASX 200 A‑REIT | -11.21 | -16.63 | -17.80 | -2.26 | 8.08 | 5.05 | 5.31 |
| FTSE EPRA Nareit Developed (AUD Hedged) | -8.33 | 0.95 | 0.76 | 7.81 | 6.33 | 1.82 | 2.72 |
Source: Morningstar Direct
High interest savings accounts
| Financial institution | Interest rate p.a.** | Financial institution | Interest rate p.a.** | |
| Rabobank | 5.65% | ING | 5.65% | |
| Ubank | 5.60% | Bankwest | 5.50% | |
| Move Bank | 5.40% | Judo Bank | 5.35% |
** Rates are subject to conditions and change. Rates are correct as at 15 April 2026
