Buying your first home in New South Wales is more achievable in 2026 than it has been in years — not because prices dropped, but because government support expanded dramatically. Since 1 October 2025, every eligible first home buyer in Australia can purchase with a 5% deposit and no Lenders Mortgage Insurance, with no income caps and no limit on places. Stack that with NSW stamp duty exemptions and the $10,000 First Home Owner Grant, and the deposit hurdle shrinks fast.
This guide walks through every scheme available to NSW first home buyers, how they combine, and the step-by-step process from savings account to settlement.
The First Home Guarantee: 5% deposit, no LMI, no income caps
The First Home Guarantee (FHBG) is the single biggest lever for most buyers. The Australian Government guarantees part of your loan so that a lender will accept a 5% deposit without charging Lenders Mortgage Insurance — a saving that's often $15,000 to $30,000 on its own.
The scheme changed fundamentally on 1 October 2025:
- No income caps. The old limits ($125,000 single / $200,000 couple) were abolished.
- Unlimited places. No more ballots or waitlists — every eligible buyer can access it.
- Higher property price caps. In Sydney and NSW major regional centres (Newcastle, Lake Macquarie, Illawarra) the cap is now $1.5 million. Lower caps apply in other regional areas — roughly $750,000 in major regional centres and $650,000 elsewhere, so check your postcode's current cap before you start looking.
- Regional scheme merged in. The separate Regional First Home Buyer Guarantee no longer exists as a separate program — it's all one scheme now.
What this means in practice: on a $700,000 home, the old path required a $140,000 deposit (20%) to avoid LMI. Under the FHBG you need $35,000 — plus purchase costs — and pay no LMI at all.
NSW stamp duty: $0 up to $800,000
Under the NSW First Home Buyers Assistance Scheme, first home buyers pay no transfer (stamp) duty on new or existing homes up to $800,000. Between $800,000 and $1 million, a sliding-scale concession applies. On an $800,000 purchase that's roughly $31,000 you keep.
Buying vacant land to build on? No duty up to $350,000, with a concession from $350,000 to $450,000.
The key condition: you must move into the property within 12 months of settlement (or completion for a new build) and live there for a continuous period. Buy-and-rent-out doesn't qualify.
The $10,000 First Home Owner Grant (new homes only)
The FHOG gives you $10,000 toward a brand-new home — one that's never been lived in or sold as a residence. The caps: $600,000 for a new house, townhouse or apartment, or $750,000 combined for a land-plus-build package. Established homes don't qualify, which is why this grant matters most for buyers considering house-and-land packages or off-the-plan purchases.
First Home Super Saver: your deposit, taxed less
The FHSS scheme lets you make voluntary super contributions — up to $15,000 per financial year — and later withdraw up to $50,000 per person (plus associated earnings) for a first home deposit. Because concessional contributions are taxed at 15% instead of your marginal rate, most people save meaningfully faster inside super than in a bank account. A couple can release up to $100,000 combined.
Stacking the schemes: a worked example
These schemes are designed to combine. An eligible buyer purchasing a $600,000 new home in regional NSW could access:
| Scheme | Benefit |
|---|---|
| First Home Guarantee | Buy with a 5% deposit ($30,000) and pay no LMI (~$15,000+ saved) |
| NSW stamp duty exemption | ~$22,000 duty reduced to $0 |
| First Home Owner Grant | $10,000 cash toward the purchase |
| FHSS | Up to $50,000 released from super toward the deposit |
Not every buyer qualifies for every scheme — eligibility rules differ slightly between them — but most first home buyers qualify for more than they expect.
The buying process, step by step
- Get your borrowing power assessed. Before inspecting anything, know your ceiling. A broker checks your figures against multiple lenders' criteria — each lender assesses income and expenses differently, especially with the 3% serviceability buffer applied on top of current rates.
- Obtain pre-approval. A formal pre-approval (usually valid 90 days) lets you bid and offer with confidence. In 2026's environment, with the cash rate at 4.35% after three rises this year, pre-approval amounts have tightened — get a current one, not one from last year.
- Confirm your scheme eligibility. FHBG reservations, FHOG applications and stamp duty exemptions each have their own paperwork. We handle these alongside the loan application.
- House-hunt within your caps. Stay inside the FHBG price cap for your area and the $800,000 duty-free threshold if those savings matter to your budget.
- Offer, exchange, settle. Your conveyancer and broker run the legal and finance tracks in parallel. From accepted offer to settlement is typically 6 weeks.
Frequently asked questions
Can I use the First Home Guarantee with the NSW stamp duty exemption and the FHOG?
Yes. The federal First Home Guarantee, NSW stamp duty exemption, First Home Owner Grant and FHSS scheme can all be combined on one purchase, provided you meet each scheme's individual eligibility rules.
Is there still an income cap on the First Home Guarantee?
No. Income caps were removed on 1 October 2025. There are no income limits and no cap on the number of places.
How much deposit do I actually need in NSW?
Under the First Home Guarantee, as little as 5% of the purchase price, with no Lenders Mortgage Insurance. You'll also need to cover conveyancing, inspections and moving costs — budget roughly $3,000–$5,000 on top, plus stamp duty only if buying above $800,000.
Does the $10,000 First Home Owner Grant apply to established homes?
No. The NSW FHOG applies only to brand-new homes up to $600,000, or land-and-build packages up to $750,000 combined. Established homes may still qualify for the stamp duty exemption and First Home Guarantee.
This guide is general information only and is current as at July 2026. It does not take into account your objectives, financial situation or needs, and is not credit advice or an offer of credit. Scheme rules, thresholds and price caps change — always confirm current details with Revenue NSW, Housing Australia, or speak with us before acting. Northstar Mortgage Advisory Pty Ltd, Credit Representative No. 579651, authorised under Australian Credit Licence 384324.