First Home Buyer Assistance in NSW: Grants, Schemes And Expert Tips
First Home Buyer Assistance in NSW: Grants, Schemes And Expert Tips
Buying a home in NSW is one of the most significant milestones in life, but it can also feel overwhelming – especially if you’re doing it for the first time. Thankfully, there’s a strong support system in place for first home buyer NSW hopefuls. With the right combination of government incentives for first home buyers, financial planning and expert support from the BFP Property Group team, getting your foot on the property ladder is well within reach.
In this guide, we break down the key NSW first home buyer grants, government-backed schemes and offer some seasoned and practical advice — giving you the tools to move from curious to confident in your property journey.
Government support: The major schemes and grants you need to know about
- First Home Buyer Assistance Scheme (stamp duty concessions)
The First Home Buyers Assistance Scheme provides full or partial exemptions from transfer duty for eligible first home buyers in NSW. If you’re purchasing an existing property valued at $800,000 or less, no transfer duty is payable. For properties priced between $800,000 and $1 million, a concessional rate applies, with the amount determined by the property’s value.
To qualify, buyers must move into the home within 12 months of settlement and live there continuously for at least 12 months. This scheme helps reduce upfront costs, making it easier for first-time buyers to get onto the property ladder.
Applicants must be at least 18 years old, an Australian citizen or permanent resident, and must not have previously owned or co-owned property in Australia — either individually or with a spouse or partner.
Learn more here.
- First Home Owner Grant (FHOG)
The First Home Owner Grant in NSW offers $10,000 towards the purchase price of your first home, on top of benefits available through the First Home Buyers Assistance Scheme. To qualify, you need to be buying or building a brand-new home that has never been lived in.
If you’re buying a newly built house, townhouse, apartment or unit, the purchase price must not exceed $600,000. If you’re buying vacant land and signing a building contract, the total value must stay under $750,000. This includes the cost of the land, the full building contract, and any variations made as part of that contract.
You’ll also need to move into the property within 12 months of settlement and live in it continuously for at least 12 months.
Eligible applicants must be at least 18 years old, an Australian citizen or permanent resident, and be purchasing their first home (either individually or with a spouse or partner who has also never owned property in Australia).
Learn more here.
- First Home Guarantee (FHG)
Offered under the federal government’s Home Guarantee Scheme, the First Home Guarantee helps eligible buyers purchase a home with just a 5% deposit — without paying lenders’ mortgage insurance.
Lenders Mortgage Insurance (LMI) is a one-off insurance premium paid by borrowers with a deposit of less than 20% – protecting the lender, not the borrower – if the borrower defaults on the loan. The federal government guarantees up to 15% of the loan amount (as assessed by the lender), making it easier and more affordable to get started.
Applicants must be Australian citizens or permanent residents aged 18 or older, earning up to $125,000 (individual) or $200,000 (joint) and planning to live in the property. You must also not have owned property in the past 10 years.
Learn more here.
More pathways to home ownership
Low-deposit home loans: Even outside of government guarantees, many lenders now offer home loans to borrowers with smaller deposits. However, if your deposit is under 20% of the property’s value, you’ll usually need to pay LMI.
The cost can range from a few thousand dollars to tens of thousands, depending on the size of your deposit, the loan amount and the lender’s policy. For example, if you’re buying a $700,000 property with a 5% deposit, your LMI could run into the tens of thousands. It’s usually added to your loan amount, which means you’ll pay interest on it too.
While LMI adds to your upfront costs, it can be a worthwhile trade-off if it helps you get into the market sooner – particularly if property prices are rising faster than your ability to save a 20% deposit. In some cases, paying LMI now could mean avoiding a higher purchase price down the track.
Shared equity schemes: NSW is trialling shared equity programs that allow eligible buyers (including single parents, older singles and key workers) to co-purchase a property with the government. The buyer pays a reduced deposit and mortgage share while the state holds an equity stake. Learn more here.
Expert tips for first home buyers
Saving for your deposit: Explore our buyer services and start with a clear savings plan. Consider setting up a dedicated high-interest account or using the First Home Super Saver Scheme (FHSSS) to benefit from tax advantages when saving for your deposit. Regular, consistent saving is key.
Choosing the right property: It’s tempting to go big on your first home — but buying in an area you can grow into, such as the Hills District, might be a smarter move. Location, infrastructure plans and access to transport or schools can all impact long-term value.
Working with a mortgage broker and buyer’s agent: The right team can make all the difference. A mortgage broker will help you access loan products that fit your goals, while a property buying agent can provide insider knowledge on local prices, negotiate on your behalf and uncover off-market properties.
Navigating the NSW first home buyer grants and first home buyer schemes NSW offers can be daunting — but it doesn’t have to be. At BFP Property Group, our agents understand that first home buyer NSW clients want strong value, expert advice and a stress-free experience. From home loan assistance NSW to stamp duty concessions NSW, there’s a range of support designed to help you get started.
Meet our team to learn more about how we work and who you’ll be working with. Ready to turn research into results? Let’s make your first home more than just a dream — book a free strategy call with the BFP Property Group today and let us help make your dreams of owning your own home a reality.
