Who this is for
- First home buyers planning to build on land they own or are buying
- Buyers considering a house-and-land package in a Sydney growth area
- Couples using a deposit gift or guarantor to build their first home
- First home buyers unsure which grants and duty concessions apply to a build
Three schemes, three sets of rules
Building a first home in NSW can involve a cash grant, a transfer duty concession on the land and a low-deposit government guarantee. They are run by different bodies, have different price caps and each has its own eligibility tests. Missing one requirement can mean missing the benefit.
The lender has its own rules on top of that. Construction loans release funds in stages, so your first home buyer plan needs to be matched to a lender that suits both the scheme and the build.
The First Home Owner (New Home) Grant and your FHOG construction loan
According to the NSW Government (page updated 18 August 2026), eligible first home buyers who build a new home or buy a newly built or substantially renovated one may receive a $10,000 grant. It is not means tested and is not taxed.
The page lists price limits of $750,000 for a home and land package (covering land, building contract and construction changes) and $600,000 for a newly built residence. Buyers must be 18 or over, an Australian citizen or permanent resident, buying their first home and intending to live in it for 12 months. You generally apply through your bank or financial institution when arranging finance. Confirm current eligibility with Revenue NSW before you rely on it.
Stamp duty when you buy vacant land to build on
The First Home Buyers Assistance Scheme lists no transfer duty on vacant land valued at $350,000 or less and a reduced rate for land up to $450,000, for transactions from 1 July 2026 to 30 June 2027 (page updated 19 August 2026). To be eligible you must move in within 12 months of the completion date of a newly built home and then live in it for at least 12 months.
The 5% Deposit Scheme and a new build first home loan NSW
Housing Australia's First Home Guarantee lets eligible first home buyers buy with a deposit as low as 5% without paying lenders mortgage insurance. Its official first home buyers website says buyers can buy an existing or new build. Eligibility criteria, price caps and the list of participating lenders are published by Housing Australia and change over time. The official list of participating lenders on the first home buyers website includes many banks, credit unions and other lenders, but participation changes, so confirm the current list and whether your chosen lender accepts construction under the scheme.
First home buyer construction loan NSW: bringing it together
A first home buyer construction loan NSW borrowers apply for is drawn in stages, like any construction loan, but the government support that applies to building differs from support for established homes. The FHOG construction loan question comes up often: the grant applies to eligible new homes and is administered by Revenue NSW, so check the current conditions on the official site. A new build first home loan NSW lenders assess will also look closely at your contract, plans and deposit.
A construction loan pays your builder in stages as work is completed. Lenders generally want a fixed-price contract, approved plans and insurance evidence. If a family member is helping with security, see guarantor home loans, and use our borrowing calculators to test the numbers.
How Mortgagefy helps
Construction lending policy varies from lender to lender, and your broker matches you to a suitable lender once your plans and numbers are clear. We explain the structure, the costs and the timing in plain English before you commit to anything.
Model your repayments with our Sydney home loan calculators and read how construction loans work and progress payments in NSW to see how funds are released. Our construction home loans hub covers the wider picture.
How it works: 4 simple steps
Check your eligibility
We walk through the grant, duty and deposit scheme criteria and point you to the official checkers.
Match a lender
We shortlist lenders that accept your deposit approach and lend on construction.
Contract and approvals
We check the building contract, price against scheme caps and your plans before you sign.
Apply and draw down
We lodge the finance, arrange the grant application through your lender and support you through progress payments.
Get your personalised answer in 2 minutes
Free, no obligation. We'll match you with the right lender for your situation.
Frequently asked questions
How much is the First Home Owner Grant for a new build in NSW?
What is the price cap for a house and land package?
Do I pay stamp duty on land I build on?
Can I use the 5% Deposit Scheme with a first home buyer construction loan NSW?
Can my parents help me build my first home?
Information checked on 1 October 2026. Policies, government schemes and lender participation may change. Government figures on this page come from NSW Government and Revenue NSW pages (updated 18-19 August 2026) and Housing Australia's first home buyers website, checked on 1 October 2026.
Confirm current requirements and lender participation directly with your chosen provider before applying.
This information is general in nature. Policies vary by lender and change frequently. Confirm current requirements with your chosen provider and seek professional advice.
Get your free first home buyer construction assessment
We check the grant, duty and deposit options against your build so you know what to confirm and what to budget.