First Home Buyer Grants & Schemes in NSW (2026)
Buying your first home in NSW? There are three big schemes that can save you tens of thousands — and you can often use more than one together. Here's what each one gives you in 2026, and who qualifies.
$10,000
First Home Owner Grant (new homes)
$0 duty
Stamp duty exemption up to $800k
5% deposit
Buy with no LMI (federal guarantee)
1. The $10,000 First Home Owner Grant (FHOG)
The NSW First Home Owner Grant is a $10,000 cash payment — but only for brand-new homes: newly built, off-the-plan, or substantially renovated properties. It does not apply to established (existing) homes.
There are hard value caps, and they are lower than most people expect:
- Buying a newly built home — the purchase price must not exceed $600,000.
- Buying land and building — the land value plus the building contract plus any variations must not exceed $750,000 in total.
These caps are the reason a lot of Sydney buyers miss out on the $10,000. A brand-new apartment at $700,000 is over the cap — you would still get the stamp duty exemption below $800,000, but not the grant. The two schemes have completely different thresholds, which is the single most common misunderstanding we see.
2. Stamp duty exemption (First Home Buyers Assistance Scheme)
Under the First Home Buyers Assistance Scheme (FHBAS), eligible first home buyers pay:
- No stamp duty on a new or existing home up to $800,000.
- A reduced (concessional) rate between $800,000 and $1,000,000.
- Vacant land: exempt to $350,000, concessional to $450,000.
On an $800,000 home, that's roughly $30,000 you don't have to pay. Want your exact figure?
3. Buy with a 5% deposit — the federal First Home Guarantee
The federal First Home Guarantee (now often called the Australian Government 5% Deposit Scheme) lets eligible first home buyers purchase with as little as a 5% deposit and pay no Lenders Mortgage Insurance (LMI) — the government guarantees the rest.
Big changes from 1 October 2025:
- Income caps removed — no more $125k single / $200k couple limits.
- Unlimited places — no annual cap on how many buyers can use it.
- NSW property price cap raised to $1,500,000 for Sydney and regional centres (Newcastle, Lake Macquarie and Illawarra). Elsewhere in NSW the cap is $800,000.
For many first home buyers, this is the difference between buying now with 5% and waiting years to save a 20% deposit.
If you do not qualify for the guarantee, a deposit under 20% means paying LMI instead — often tens of thousands of dollars. Estimate what LMI would cost youarrow_forward
verifiedWhich grants do you actually qualify for?
Every scheme has its own rules. Tell us a little about you and a Sydney broker will map out exactly which grants and schemes you can use — free, called back within 12 hours. 我们提供普通话/粤语服务。
Can you use more than one at once?
Often, yes. A first home buyer purchasing a new home could receive the $10,000 grant, pay little or no stamp duty, and buy with a 5% deposit under the federal guarantee — all at once. Each scheme has separate eligibility, so the real question is which combination applies to your situation.
Who is generally eligible?
- You're an individual (not a company or trust), at least 18, and an Australian citizen or permanent resident (rules vary by scheme).
- You (and your partner) have never owned property in Australia before.
- You'll move in and live in the home (usually within 12 months, for at least 12 months).
- The property is within the relevant value / price caps.
Eligibility details differ between the state grants and the federal guarantee. A broker checks all of them for you in one go.
Frequently asked questions
How much is the First Home Owner Grant in NSW?
$10,000 for eligible buyers of a brand-new home (newly built, off-the-plan or substantially renovated). It does not apply to established homes. The purchase price must not exceed $600,000 for a newly built home, or $750,000 in total if you buy land and sign a building contract.
Do first home buyers pay stamp duty in NSW?
No duty on a home up to $800,000, and a reduced rate between $800,000 and $1,000,000. Vacant land is exempt to $350,000. Try our stamp duty calculator for your exact figure.
Can I buy with a 5% deposit?
Yes — under the federal First Home Guarantee, eligible first home buyers can buy with a 5% deposit and no LMI. Since 1 October 2025 there are no income caps or place limits. The NSW price cap is $1,500,000 for Sydney and regional centres, and $800,000 elsewhere in NSW.
Can I speak Mandarin or Cantonese?
Yes. Mortgage Bridge brokers speak Mandarin, Cantonese and Vietnamese, and will guide you through every scheme in your own language.
This page is general information only, is current as at August 2026, and does not account for your personal circumstances. Grant amounts, thresholds and eligibility can change — confirm current details with Revenue NSW, Housing Australia or a licensed broker.
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