First Home Buyer's Guide to Buying in NSW
schedule6 min read
Buying your first home in New South Wales is exciting — but the deposit, grants and approval process can feel overwhelming. This guide breaks down what you need to know to move forward with confidence.
How much deposit do you need?
Most lenders look for a deposit of at least 5% of the property price, but a larger deposit usually means better terms.
- 20% deposit: you avoid Lenders Mortgage Insurance (LMI), which can save thousands.
- 5–19% deposit: possible, but you'll usually pay LMI on top.
- Lenders also like to see 'genuine savings' — money you've saved over time.
Grants and schemes you may qualify for
As a first home buyer in NSW, several government incentives can reduce your upfront costs.
- First Home Owner Grant — a lump sum for eligible buyers of new homes.
- Stamp duty exemptions or concessions for eligible first home buyers below price thresholds.
- First Home Guarantee — buy with a smaller deposit without paying LMI (places are limited).
Getting approved — what lenders look at
Approval comes down to showing the lender you can comfortably repay the loan.
- Stable income and employment history.
- Your deposit and genuine savings.
- Your living expenses and any other debts (credit cards, car loans, BNPL).
- A clean credit history.
lightbulbKey Takeaways
- check_circleAim for 20% to avoid LMI, but 5% can still work.
- check_circleCheck your eligibility for the grant and stamp duty concessions early.
- check_circleReduce other debts before applying to boost your borrowing power.
This article is general information only and does not take into account your personal circumstances. Speak with a qualified mortgage broker for advice specific to you.
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