This article first appeared on awesomelendingsolutions.com.au.
Sydney is one of the most expensive places in the world to buy a home. That makes help for first home buyers in NSW especially valuable. The right mix of schemes can save you tens of thousands of dollars and get you into a home years sooner.
Here is a simple guide to every main type of help available to first home buyers in NSW in 2026.
1. First Home Buyers Assistance Scheme (stamp duty)
Stamp duty (also called transfer duty) is a tax you pay when you buy property. In NSW, it is often the biggest upfront cost after your deposit.
Under the First Home Buyers Assistance Scheme:
- Homes up to $800,000 – no stamp duty at all
- Homes over $800,000 and under $1 million – reduced stamp duty
- Vacant land up to $350,000 – no stamp duty
- Vacant land over $350,000 and under $450,000 – reduced duty
The scheme covers both new and existing homes. To qualify, you must be at least 18, an Australian citizen or permanent resident, buying your first home and planning to live in it for at least 12 months.
On an $800,000 home, the saving is around $30,000.
2. NSW First Home Owner Grant
The NSW First Home Owner Grant is a $10,000 payment for eligible:
- New homes, off-the-plan homes or substantially renovated homes up to $600,000
- House-and-land builds with a total value up to $750,000
The grant is not available for existing homes.
3. The 5% Deposit Scheme (federal)
This scheme lets eligible first home buyers buy with a 5% deposit and no Lenders Mortgage Insurance. Since October 2025, there are no income caps and no limit on places.
In NSW, the price caps are:
- $1.5 million in Sydney and regional centres
- $800,000 in other areas
4. Help to Buy (federal)
Help to Buy is a shared equity scheme. The government can own up to 40% of a new home or 30% of an existing home with you. You need just a 2% deposit, and your loan is smaller.
In NSW, the price caps are $1.3 million in Sydney and regional centres and $800,000 elsewhere. There are income caps, which are indexed each July. The old NSW Shared Equity Home Buyer Helper closed to new applicants in June 2024, so Help to Buy is now the main shared equity option.
5. Family Home Guarantee (federal)
Eligible single parents and single legal guardians can buy with a 2% deposit and no LMI. You don't need to be a first home buyer, but you can't currently own property.
6. First Home Super Saver Scheme
You can save up to $50,000 of your deposit inside super through voluntary contributions, which may help you save faster because of lower tax.
Putting it together: two examples
Example 1: Jack buys an existing $780,000 unit in Parramatta
- 5% Deposit Scheme: needs $39,000 deposit, no LMI
- Stamp duty: $0 (under $800,000)
- First Home Owner Grant: not eligible (existing home)
Jack saves around $30,000 in stamp duty and avoids LMI.
Example 2: Priya and Sam build a house-and-land package in Western Sydney for $740,000
- First Home Owner Grant: $10,000
- Stamp duty on the land: likely $0 if the land is under $350,000
- 5% Deposit Scheme: buy with 5%, no LMI
Rules that catch people out
- Price caps are strict. Going even slightly over a cap can cost you thousands.
- Both partners count. If your partner has owned property before, it may affect your eligibility for some schemes.
- You must live in the home. Most schemes require you to move in within 12 months and stay at least 6 to 12 months.
- Timing matters. Some schemes must be applied for before settlement.
The market in 2026
Sydney home values have fallen in 2026, and by the end of September they were around 8.6% below their February peak. Rates have also risen. For some first home buyers, softer prices create opportunity. For others, rising repayments make budgeting more important than ever. Either way, make sure your repayments are comfortable now and if rates rise further.
How a broker can help
Working out which schemes you qualify for, and how to combine them, can be tricky. A mortgage broker can check your eligibility, compare participating lenders and make sure you get every dollar of help you are entitled to.
Frequently asked questions
Can I get stamp duty relief and the 5% Deposit Scheme together?
Yes, as long as you meet the rules for both.
Is there an income limit for NSW stamp duty relief?
No. The First Home Buyers Assistance Scheme does not have an income cap.
What if I'm buying with someone who has owned a home before?
You may not be able to get some first home buyer benefits. Speak to a broker or conveyancer before you sign.
Talk to Awesome Lending Solutions
Every situation is different, and the right loan depends on your goals, income and timing. At Awesome Lending Solutions, we compare a wide panel of lenders and explain your options in plain English, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.
This article is general information only. It does not consider your objectives, financial situation or needs, and it is not financial, tax or legal advice. Scheme rules, interest rates and laws were current as at October 2026 and can change. Speak with a licensed professional before making any decision. Albert Waldron is a Credit Representative (CR 407514) of AFG's Australian Credit Licence 389087.
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