The NSW and Federal governments offer a stack of financial assistance to help first home buyers get into the market. When you add them all up, you could save thousands on duty and lenders mortgage insurance. Here's the complete guide for 2026.
$10,000
FHOG Grant
$31,335
Max stamp duty saving
5%
Min deposit (FHBG)
$1M
Duty concession ceiling
1. First Home Owner Grant NSW (FHOG)
The First Home Owner Grant (FHOG) is a one-off payment from the NSW Government to eligible first home buyers. In NSW, the grant is worth $10,000, but it only applies to the purchase or construction of a new home.
FHOG Eligibility Criteria
- You are buying or building a brand-new home (not an established property)
- The property value does not exceed $600,000 for a new dwelling, or $750,000 for vacant land where you'll build
- At least one applicant must be an Australian citizen or permanent resident
- All applicants must be 18 years of age or older
- You have never previously owned residential property in Australia
- You must occupy the home as your principal place of residence for a continuous period of at least 6 months, beginning within 12 months of completion
Important Note
The FHOG only applies to new homes. If you're buying an established property under $800,000 in NSW, you won't receive the $10,000 grant — but you may still be eligible for stamp duty exemption, which is worth significantly more.
2. Stamp Duty Exemption and Concessions NSW
This is where the real money is. NSW offers a tiered stamp duty concession for first home buyers that can save you up to $31,335 on an established property.
Full Stamp Duty Exemption — Under $800,000
If your first home is an established property valued at under $800,000, you pay zero stamp duty. On an $800,000 property, this represents a saving of $31,335 — money that stays in your pocket and reduces the cash you need upfront.
Partial Stamp Duty Exemption — $800,000 to $1,000,000
If your property is valued between $800,000 and $1,000,000, you receive a partial concession, with the discount reducing progressively until it phases out entirely at $1,000,000. The exact saving depends on the purchase price — your broker or solicitor can calculate the specific figure.
No Concession — Above $1,000,000
Properties valued above $1,000,000 are not eligible for any first home buyer stamp duty concession. You'll pay the standard NSW transfer duty rate.
| Property Price | Type | Stamp Duty |
|---|---|---|
| Under $800,000 | New or established | $0 — Full exemption |
| $800K – $1M | New or established | Partial concession |
| Above $1,000,000 | Any | Full stamp duty applies |
3. Australian Government 5% Deposit Scheme (formerly the First Home Guarantee)
The Australian Government 5% Deposit Scheme, formerly the Home Guarantee Scheme, lets eligible first home buyers buy with a deposit of as little as 5% without paying Lenders Mortgage Insurance (LMI). Single parents and legal guardians can use a minimum 2% deposit. It is a government guarantee to your lender, not a cash grant.
Key Details (checked 25 October 2026)
- No income caps and no limit on places since 1 October 2025. Older articles that quote 35,000 places or $125,000 / $200,000 income limits describe the old rules.
- Price cap in NSW: $1.5 million for the capital city and listed regional centres (Central Coast, Coffs Harbour-Grafton, Illawarra, Mid North Coast, Richmond-Tweed, and Newcastle and Lake Macquarie), and $800,000 for other areas. Both the purchase price and your lender's valuation must be at or below the cap.
- You must live in the property as your home (owner-occupier)
- You apply only through a participating lender as part of a home loan application, and your broker can arrange this
For the full rules, price caps and process, see our guide to the 5% Deposit Scheme in NSW.
4. First Home Super Saver Scheme
The First Home Super Saver Scheme lets you save up to $50,000 plus earnings towards a first home through voluntary super contributions, with lower tax rates helping your savings grow faster. It can be used alongside other government home buying schemes. Check the ATO's rules before you contribute.
5. Help to Buy (shared equity)
The Australian Government Help to Buy scheme is a shared-equity program for people who have saved but are still short of buying a home that meets their needs. It allows a minimum 2% deposit, with the government contributing up to 30% (existing homes) or 40% (new homes). It has 10,000 places a year, all applicants must be Australian citizens, and taxable income must be at or below $103,000 for individuals or $165,000 for single parents and joint applicants (indexed each year). You cannot own property in Australia or overseas. See our Help to Buy guide for details, and confirm with a participating lender.
Information checked on 25 October 2026 against Revenue NSW and firsthomebuyers.gov.au. Rules and thresholds change, so confirm current requirements with the relevant authority and your chosen lender. This is general information, not financial advice.
Step-by-Step: How to Apply for First Home Buyer Assistance in NSW
- Check your eligibility — Review each scheme's criteria carefully. Your Mortgagefy broker can confirm what you qualify for based on your income, deposit, and property type.
- Get pre-approval first — Before making an offer, obtain formal pre-approval from your lender so you know your exact budget and can act quickly when you find the right property.
- Apply for the First Home Guarantee through your lender — If using the 5% Deposit Scheme (First Home Guarantee), your broker will lodge the application through your chosen participating lender as part of the home loan application.
- Apply for the FHOG with your conveyancer — Your solicitor or conveyancer will typically handle the FHOG application as part of the settlement process, often collecting the grant on your behalf.
- Stamp duty exemption is automatic — The stamp duty concession is applied by your conveyancer when lodging the transfer documents with NSW Revenue. You don't need to apply separately.
- Settle and move in — Once settlement occurs, ensure you meet the residency requirement (moving in within 12 months and living there continuously for 6 months) to avoid having to repay the FHOG.
Case Study: Sarah Bought Her First Home in Parramatta for $720,000
Sarah, 29 — Registered Nurse
Parramatta, Sydney · Single · First Home Buyer
Sarah had been renting in Parramatta for four years and had managed to save $46,000 (just under 6.5% of her target purchase price of $720,000). She came to Mortgagefy unsure whether she had enough to buy, worried about LMI costs, and unaware of all the schemes available to her.
Through Mortgagefy, Sarah was guided through the following:
- First Home Guarantee: As a nurse earning $89,000, she qualified for the FHBG, allowing her to purchase with her 6.4% deposit and pay no LMI (saving ~$22,000)
- Stamp duty exemption: On her $720,000 established property, Sarah paid zero stamp duty (saving $27,735)
- No FHOG: As she bought an established property, the $10,000 grant didn't apply
$720K
Purchase price
$49K+
Total savings (LMI + stamp duty)
6.4%
Deposit used
How a Broker Can Help You Maximise Your First Home Benefits
The various government schemes have different application pathways, time limits, and eligibility nuances. A mistake in the application process — or simply not knowing about a scheme you qualify for — can cost you tens of thousands of dollars.
At Mortgagefy, our brokers help first home buyers in Sydney navigate every available assistance program, identify the right lender for your scheme, and structure your application to give you the best chance of approval. Our service is completely free to you — we're paid by the lender after settlement.
Use our stamp duty calculator to estimate your potential savings, or book a free call today to discuss your specific situation.
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