Buying your first home in NSW is one of the biggest financial decisions you’ll make — and the good news is there’s meaningful government support available in 2026 to help you get there faster. Between the First Home Owner Grant, stamp duty exemptions, and the federal First Home Guarantee scheme, eligible buyers can save tens of thousands of dollars and get into the market with a smaller deposit than they might think.

This guide covers every scheme available to NSW first home buyers in 2026, who qualifies, how much you can save, and how to apply.

1. NSW First Home Owner Grant (FHOG)

The NSW First Home Owner Grant is a one-off payment of $10,000 for eligible first home buyers purchasing or building a new home.

Who qualifies?

• You must be an Australian citizen or permanent resident
• You (and any co-purchasers) must be a first home buyer — you must not have previously owned a residential property in Australia
• You must be at least 18 years old
• You must intend to live in the property as your principal place of residence for at least 12 continuous months
• The property must be a new home — either newly built, purchased off-the-plan, or substantially renovated

Property value cap

The grant applies to properties valued at $600,000 or less if purchasing a completed new home, or $750,000 or less if purchasing land and building a new home.

How to apply

Apply through your lender (your broker can do this on your behalf as part of your loan application) or directly through Revenue NSW. Applications must be submitted within 12 months of settlement or construction completion.

2. NSW Stamp Duty Exemptions and Concessions

Stamp duty (transfer duty) is one of the biggest upfront costs for property buyers — and NSW offers substantial relief for first home buyers.

Full exemption

First home buyers pay no stamp duty on properties valued up to $800,000 (for new and existing homes).

Concessional stamp duty

A sliding scale concession applies for properties valued between $800,000 and $1,000,000. Above $1,000,000, standard stamp duty rates apply with no first home buyer concession.

How much can you save?

On a $750,000 property, a standard buyer would pay approximately $29,000 in stamp duty. A first home buyer pays zero — a direct saving of $29,000 that can be redirected to your deposit.

Land Tax vs Stamp Duty option (First Home Buyer Choice)

NSW introduced an option for first home buyers to pay an annual property tax instead of upfront stamp duty on properties up to $1.5 million. This can improve initial cashflow for buyers who plan to sell within 5–7 years, but is not always the better long-term option. We recommend modelling both scenarios for your specific situation before deciding.

3. Federal First Home Guarantee (FHBG)

The First Home Guarantee (formerly the First Home Loan Deposit Scheme) allows eligible first home buyers to purchase a property with as little as a 5% deposit, with the federal government guaranteeing up to 15% of the loan — meaning you avoid Lenders Mortgage Insurance (LMI) entirely.

Who qualifies?

• Australian citizens and permanent residents aged 18+
• Individuals earning up to $125,000 per year, or couples earning up to $200,000 combined
• First home buyers only (or those who haven’t owned property in the past 10 years)
• The property must be your principal place of residence

Property price caps for Sydney (2025–26)

The price cap for Sydney and major regional centres is $900,000.

How much does LMI cost without the guarantee?

On a $700,000 purchase with a 5% deposit ($35,000), LMI would typically cost $20,000–$28,000 — added to your loan balance. The First Home Guarantee eliminates this entirely, saving you that cost and reducing your loan repayments from day one.

Places are limited

The federal government allocates a set number of guarantee places per financial year. Places are issued on a first-come, first-served basis through participating lenders. Your mortgage broker can access the scheme directly through their lender panel and check availability at the time of your application.

4. Regional First Home Buyer Guarantee

A separate 10,000-place scheme is available for buyers purchasing in regional areas of Australia. The same income and eligibility criteria apply as the standard FHBG, but with a focus on regional locations. If you’re purchasing outside Sydney’s major urban area, this scheme may apply.

5. First Home Super Saver Scheme (FHSS)

The First Home Super Saver Scheme allows first home buyers to withdraw voluntary super contributions to use as a home deposit, up to a maximum of $50,000 per individual (or $100,000 for a couple).

How it works

You make voluntary concessional (before-tax) or non-concessional (after-tax) contributions into your super fund, then apply to withdraw those contributions (plus associated earnings) to put towards your deposit. Concessional contributions are taxed at 15% inside super rather than your marginal tax rate — so high-income earners can save tax while building their deposit.

Key limits

• Maximum $15,000 in voluntary contributions per financial year
• Maximum $50,000 total withdrawable per person
• Contributions must be voluntary — compulsory employer contributions don’t count
• You must not have previously owned a home in Australia

How These Schemes Stack Up in Practice

Here’s an example of how a first home buyer in Sydney might combine multiple schemes on a $750,000 purchase:

Note: Not all schemes can be used simultaneously on every purchase. FHOG and stamp duty exemption apply to new homes only; FHSS is a deposit savings mechanism. Always confirm eligibility with your broker and a qualified accountant.

Common Mistakes First Home Buyers Make

Not checking eligibility before starting

Many buyers assume they don’t qualify — or assume they do — without checking. Income thresholds, property price caps and previous property ownership rules all need to be verified before you start looking at properties.

Buying an existing property to get the FHOG

The NSW First Home Owner Grant only applies to new homes. Buyers who purchase an established property can still access stamp duty exemptions and the First Home Guarantee, but won’t receive the $10,000 grant.

Accessing FHSS funds without a property lined up

Once you request a FHSS determination from the ATO, you have 14 days to sign a contract. If you receive the funds but don’t buy, you’ll pay a significant tax penalty. Only trigger the FHSS withdrawal once you’re ready to exchange.

Not speaking to a broker before talking to a bank

Your existing bank can only offer their own products and may not participate in all government schemes. A broker has access to the full lender panel and can confirm scheme availability, eligibility and the best loan product simultaneously.

Next Steps

If you’re a first home buyer in NSW and want to understand exactly which schemes you qualify for, book a free strategy session with KP Mortgage. We’ll assess your eligibility for every available scheme, model the deposit and stamp duty figures for your target price range, and identify the lenders and products that give you the best path to ownership.

📞 Call Kevin: 02 8974 1452
📍 Based in Barangaroo, Sydney CBD — servicing all of NSW

This article is general information only and does not constitute financial, legal or tax advice. Government schemes and thresholds are subject to change. Always confirm current eligibility criteria with Revenue NSW, the Australian Tax Office, Housing Australia and a qualified adviser.