Awesome Lending Solutions : First Home Buyers

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Thursday, 29 October 2026

First Home Buyer Help in NSW: Grants, Stamp Duty and Schemes for 2026

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.

Saturday, 24 October 2026

First Home Buyer Schemes in Australia: Every Government Incentive Explained

This article first appeared on awesomelendingsolutions.com.au.

There is more help for first home buyers in Australia than ever before. The problem is that it is spread across federal and state governments, and every scheme has its own rules. This guide puts it all in one place, in plain English.

Federal schemes (available Australia-wide)

1. The 5% Deposit Scheme

This is the big one. Eligible first home buyers can buy with a 5% deposit and no Lenders Mortgage Insurance (LMI). Since 1 October 2025, there are no income caps and no limits on places. Property price caps apply depending on location.

Best for: buyers with a steady income who have saved 5% and want to own 100% of their home.

2. The Family Home Guarantee

Eligible single parents and single legal guardians can buy with a 2% deposit and no LMI. You do not have to be a first home buyer, but you must not currently own property.

Best for: single parents who want to buy sooner.

3. Help to Buy

Help to Buy opened on 5 December 2025. It is a shared equity scheme. The government can contribute up to 40% of the price of a new home, or 30% of an existing home, in return for the same share of the property. You need a 2% deposit, and your loan is much smaller.

There are income caps (around $103,000 for singles and $165,000 for couples and single parents in 2026–27, indexed each July) and price caps ($1.3 million in Sydney and regional centres, $800,000 in the rest of NSW). Places are limited, and only a few lenders take part.

Best for: buyers on moderate incomes who can't borrow enough on their own.

4. First Home Super Saver Scheme (FHSS)

You can make extra voluntary contributions to your super and then withdraw them, plus earnings, to help with your deposit. The maximum you can release is $50,000 per person. Because super is taxed at a lower rate, you may save faster than in a normal bank account.

Best for: buyers who are a year or more away from buying and want to save tax.

State schemes

First Home Owner Grant

Each state offers a cash grant, mainly for new homes. In NSW it is $10,000 for new homes up to $600,000, or house-and-land builds up to $750,000. Queensland offers $30,000, and the Northern Territory offers up to $50,000.

Stamp duty concessions

Most states reduce or remove stamp duty for first home buyers. In NSW, the First Home Buyers Assistance Scheme means no stamp duty on homes up to $800,000 and reduced duty up to $1 million. For many buyers, this is worth more than the grant.

Can you combine schemes?

Often, yes. Here is a common NSW combination:

5% Deposit Scheme – to avoid LMI
First Home Buyers Assistance Scheme – to avoid stamp duty
First Home Owner Grant – if buying a new home under the cap
First Home Super Saver Scheme – to help build the deposit

There are some limits. For example, you cannot use Help to Buy and the 5% Deposit Scheme on the same purchase.

Which scheme is right for you?

Ask yourself these questions:

How much have I saved? If you have 5% or more, the 5% Deposit Scheme may suit you. If you only have 2%, look at Help to Buy or, if you are a single parent, the Family Home Guarantee.
How much can I borrow? If your income limits how much you can borrow, Help to Buy can reduce the size of the loan you need.
Do I want to own the whole home? Under Help to Buy, the government shares in any growth in value. Under the 5% Deposit Scheme, all the growth is yours.
Am I buying new or existing? This affects the grant and some price caps.

A word of caution

Schemes make buying easier, but they do not make the loan smaller (except Help to Buy). You still need to be comfortable with your repayments. With the cash rate at 4.60% after four rises in 2026, it is wise to leave room in your budget for further changes.

Getting help

The best scheme depends on your income, savings, the property and where you are buying. A mortgage broker can check which schemes you qualify for, compare participating lenders and make sure you don't miss out on savings.

Frequently asked questions

Do I need to apply for each scheme separately?

Some are applied for through your lender (like the 5% Deposit Scheme and often the grant). Others, like stamp duty concessions, are handled by your conveyancer.

Do schemes change often?

Yes. Price caps are reviewed regularly and income caps for Help to Buy are indexed each July. Always check the latest rules before you sign a contract.

Can I use a scheme to buy an investment property?

No. These schemes are for homes you will live in.

Talk to Awesome Lending Solutions

Monday, 19 October 2026

The 5% Deposit Scheme Explained: Buy Your First Home With 5% and No LMI

This article first appeared on awesomelendingsolutions.com.au.

Saving a 20% deposit can take years. While you save, prices can move and rent eats into your budget. That is why the Australian Government 5% Deposit Scheme has become so popular. It lets eligible first home buyers purchase with just a 5% deposit, without paying Lenders Mortgage Insurance (LMI).

Here is how the scheme works in 2026 and what you need to know before you apply.

What is the 5% Deposit Scheme?

The 5% Deposit Scheme used to be called the First Home Guarantee. Under the scheme, the government guarantees part of your loan to the lender. This guarantee covers up to 15% of the property value.

Because the lender is protected, it does not need you to pay LMI, even though you only have a 5% deposit. LMI can cost tens of thousands of dollars, so this is a big saving.

What changed in October 2025?

From 1 October 2025, the scheme was expanded:

No income caps – your income no longer stops you from using it
No limit on places – you no longer have to wait for a spot to open
Higher property price caps – so you can buy in more areas
Regional scheme merged in – the old Regional First Home Buyer Guarantee was folded into this scheme

These changes made the scheme available to many more buyers. Take-up jumped sharply in the months that followed.

Property price caps

The home you buy must be at or below the price cap for its location. Both the purchase price and the lender's valuation must be under the cap.

Some of the current caps are:

NSW – $1.5 million in Sydney and regional centres; $800,000 in other areas
Victoria – $950,000 in Melbourne and regional centres; $650,000 elsewhere
Queensland – $1 million in Brisbane and regional centres; $700,000 elsewhere

You can check the exact cap for any postcode on the official First Home Buyers website.

Who is eligible?

To use the scheme, you generally need to:

Be an Australian citizen or permanent resident
Be at least 18 years old
Be a first home buyer, or not have owned property in Australia in the past 10 years
Have at least a 5% deposit from genuine savings or other approved sources
Plan to live in the home (it cannot be an investment property)

You can apply as a single person or with a partner, friend or family member.

What types of property can you buy?

You have plenty of choice. The scheme covers:

Existing houses, townhouses and apartments
New homes and house-and-land packages
Off-the-plan purchases
Vacant land with a building contract

An example

Let's say Mia wants to buy a $750,000 unit in Western Sydney.

5% deposit: $37,500
Loan amount: $712,500
LMI under the scheme: $0

Without the scheme, Mia would likely pay well over $20,000 in LMI, or she would need to keep saving for years. Because the unit is under $800,000, she may also pay no stamp duty under the NSW First Home Buyers Assistance Scheme.

Things to think about

The scheme is a great tool, but it is not free money. Keep these points in mind:

You still have to pass serviceability. Lenders must check you can afford repayments at your rate plus a 3% buffer.
A smaller deposit means a bigger loan. You will pay more interest over time.
Prices can fall. With values falling across most capitals in 2026, buying with a small deposit means less buffer if prices drop.
You need to use a participating lender. Not every lender offers the scheme.

How to apply

You cannot apply to the government directly. You apply through a participating lender or a mortgage broker who works with participating lenders. The lender checks your eligibility and reserves your guarantee as part of the loan application.

A broker can compare participating lenders, check if your property fits the cap, and make sure you also get any stamp duty or grant benefits you are entitled to.

Frequently asked questions

Is there still an income cap?

No. Since 1 October 2025, there is no income cap for the 5% Deposit Scheme.

Can single parents get a smaller deposit?

Yes. The Family Home Guarantee allows eligible single parents and guardians to buy with a 2% deposit and no LMI. They do not need to be first home buyers.

Can I use the scheme with Help to Buy?

No. You need to choose one or the other. A broker can help you work out which suits you better.

Talk to Awesome Lending Solutions

Wednesday, 14 October 2026

First Home Owner Grant 2026: How Much You Can Get and Who Qualifies

This article first appeared on awesomelendingsolutions.com.au.

The First Home Owner Grant (often called the FHOG) is one of the best-known forms of help for first home buyers. But it is also one of the most misunderstood. Many people think everyone buying their first home gets a grant. In fact, the grant is mainly for people buying or building a brand-new home.

Here is how the grant works in 2026, what it is worth in each state, and how it fits with other schemes.

What is the First Home Owner Grant?

The First Home Owner Grant is a one-off cash payment from your state or territory government. It is designed to encourage people to buy or build new homes, which adds to housing supply.

Each state runs its own grant, so the amount and rules depend on where you are buying, not where you live.

How much is the grant in each state?

As at 2026, the grant for new homes is roughly:

NSW – $10,000
Victoria – $10,000
Western Australia – $10,000
South Australia – $15,000
Tasmania – $20,000
Queensland – $30,000
Northern Territory – up to $50,000
ACT – no grant, but a separate stamp duty concession is available

Price caps and rules change, so always check your state revenue office website before you sign anything.

The NSW First Home Owner Grant

In NSW, the grant is $10,000. To be eligible, the property must be:

A newly built home, off-the-plan purchase or substantially renovated home with a purchase price of $600,000 or less, or
A home you build yourself (house and land) with a total value of $750,000 or less

The grant is not available for existing homes. If you buy an established apartment or house, you will not receive the FHOG in NSW. However, you may still save a lot through the stamp duty scheme (more on this below).

Who is eligible?

In general, you must:

Be at least 18 years old
Be an Australian citizen or permanent resident (at least one applicant)
Never have owned residential property in Australia before
Never have received a first home owner grant in any state
Live in the home for at least 12 continuous months, usually starting within 12 months of settlement or completion

Your spouse or partner must also meet the "never owned" rule, even if they are not on the loan.

How to apply

There are two main ways to apply:

Through your lender – many approved lenders can lodge the application for you. The grant is then usually paid at settlement and can help with your deposit or costs.
Directly to Revenue NSW – you can apply online, usually after settlement or once your home is built.

If you are building, the grant is often paid at the first progress payment to your builder.

Other first home buyer help that may be worth more

For most NSW buyers, the grant is not the biggest saving. These schemes can be worth far more:

First Home Buyers Assistance Scheme (NSW) – no stamp duty on new or existing homes up to $800,000, and reduced duty up to $1 million. On an $800,000 home, that is a saving of around $30,000.
5% Deposit Scheme (federal) – buy with a 5% deposit and no LMI. There are no income caps. The NSW price cap is $1.5 million in Sydney and regional centres and $800,000 elsewhere.
Help to Buy (federal) – the government can take up to a 40% share of a new home or 30% of an existing one, with a 2% deposit. Income and price caps apply.
First Home Super Saver Scheme – save part of your deposit inside super, with tax benefits.

In many cases, you can combine these. For example, a first home buyer in NSW buying a new $580,000 apartment could get the $10,000 grant, pay no stamp duty and use the 5% Deposit Scheme to avoid LMI.

Common mistakes to avoid

Assuming you will get the grant on an existing home. In NSW, you will not.
Going over the price cap by a small amount. Even $1 over can make you ineligible.
Not checking your partner's history. If your partner owned property before, it can affect your eligibility.
Moving out too early. If you do not meet the live-in rule, you may have to pay the grant back.

Frequently asked questions

Can I get the grant if I buy an existing home in NSW?

No. The NSW grant is only for new or substantially renovated homes. You may still get stamp duty relief, though.

Can I use the grant for my deposit?

If your lender lodges the application, the grant is usually paid at settlement and can count towards your costs. Some lenders count it towards the deposit; others do not. A broker can check this for you.

Do I have to pay the grant back?

Only if you do not meet the rules, such as living in the home for 12 months.

Talk to Awesome Lending Solutions

Thursday, 8 October 2026

How We Help First Home Buyers Get Into Their First Property

Updated October 2026 by Albert Waldron, Awesome Lending Solutions. This article first appeared on awesomelendingsolutions.com.au.

Buying your first home is exciting, but it can also feel overwhelming. There are schemes to understand, lenders to compare and a lot of paperwork. At Awesome Lending Solutions, helping first home buyers is one of our favourite things to do. Here's how we can help, plus some quick tips to get you started.

Quick tips to get started

1. Know your numbers

Find out how much you can realistically borrow. Lenders check you could afford repayments if your rate rose by 3%, so your borrowing power may be less than you expect.

2. Save your deposit

Set up an automatic transfer to savings each payday. Consider the First Home Super Saver Scheme, which lets you save inside super and release up to $50,000 for your deposit.

3. Check what help is available

5% Deposit Scheme: buy with 5% and no Lenders Mortgage Insurance. No income caps since October 2025.
Help to Buy: the government shares the cost of your home, so you may need only 2%.
Family Home Guarantee: single parents can buy with 2% and no LMI.
NSW stamp duty exemption: no stamp duty on homes up to $800,000.
First Home Owner Grant: $10,000 for eligible new homes in NSW.

4. Get your finances in shape

Pay down credit cards, close accounts you don't use and keep spending steady in the months before you apply.

5. Get pre-approved

Pre-approval tells you your budget and shows agents you're a serious buyer.

How we help

A free first chat to understand your goals and situation
Borrowing power worked out across a wide panel of lenders, not just one bank
Scheme eligibility checked so you don't miss out on support
Loan comparison and a clear, plain-English recommendation
Application and paperwork handled for you
Support through to settlement, working with your conveyancer
Ongoing reviews after you've moved in, to keep your rate competitive

For most home loans, our service costs you nothing, because we're paid by the lender. We must act in your best interests under the Best Interests Duty.

Buying in 2026

The cash rate has risen four times this year to 4.60%, and home values have softened in many capitals. That means less competition in some areas, but careful budgeting matters more than ever. We'll help you find a loan that fits your budget now and if rates rise further.

An example

Mia and Sam had $40,000 saved and wanted a $720,000 townhouse in Sydney's west. We confirmed they qualified for the 5% Deposit Scheme and the NSW stamp duty exemption, compared participating lenders and got them pre-approved within a week. They bought with no LMI and no stamp duty, and kept part of their savings as a buffer in an offset account.

Frequently asked questions

When should I talk to a broker?

As early as you can, ideally six to twelve months before you plan to buy.

Do you only help people in Sydney?

We're based in North Strathfield and help buyers across NSW and most other states.

Is there a cost?

For most home loans, no. Any fees would be explained upfront.

Talk to Awesome Lending Solutions

Ready to take the first step? We'd love to help you plan your first home purchase. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

Am I a "Financially Fit" First Home Buyer? A Simple Checklist

Updated October 2026 by Albert Waldron, Awesome Lending Solutions. This article first appeared on awesomelendingsolutions.com.au.

Before you start going to open homes, it's worth asking: am I financially fit to buy? Being "financially fit" doesn't mean being rich. It means your finances are in good enough shape that a lender will say yes, and that you can comfortably manage the loan. Here's a simple checklist.

1. Be clear on what you can afford

Lenders look at your income, expenses and debts, and test whether you could afford repayments if your rate rose by 3%. With the cash rate at 4.60% after four rises in 2026, borrowing power is lower for many buyers than a year ago. Get a realistic figure from a broker before you set your budget.

2. Review your finances

Income: lenders like stable income. Some need you to be past probation in a new job.
Debts: credit cards, car loans, personal loans, HECS-HELP and Buy Now Pay Later all reduce borrowing power. Lenders count your full credit card limit, not just the balance.
Credit history: check your credit report for free and fix any errors.

3. Build a realistic budget

Track your spending for a month. Lenders review your bank statements, so regular saving and sensible spending help. Cancel subscriptions you don't use and cut back on takeaway and impulse buys in the months before you apply.

4. Save your deposit and costs

How much you need depends on the price and any schemes you use:

With the 5% Deposit Scheme, you may only need 5% and pay no LMI. There have been no income caps since October 2025.
With Help to Buy, you may need just 2%. Income caps apply.
In NSW, first home buyers pay no stamp duty on homes up to $800,000.

Don't forget conveyancing, inspections and moving costs.

5. Show genuine savings

Many lenders like to see savings built up over at least three months. Regular deposits into a savings account show good money habits.

6. Keep a buffer

Try to keep some savings aside after you buy, ideally in an offset account, for repairs, rate rises or a change in income.

Your financial fitness checklist

I know my realistic borrowing power
My credit report is clean and accurate
I've reduced or closed debts I don't need
I've tracked my spending and have a budget
I have my deposit and buying costs saved
I'll still have a buffer after I buy

An example

Josh earns $90,000 and wants to buy a $650,000 unit. He reduces his credit card limit from $10,000 to $2,000, closes two Buy Now Pay Later accounts and saves $1,000 a fortnight for six months. His broker confirms he qualifies for the 5% Deposit Scheme and the NSW stamp duty exemption. He buys with a 5% deposit, no LMI and no stamp duty, and keeps a $10,000 buffer in his offset.

Frequently asked questions

How long does it take to get financially fit?

Often three to twelve months, depending on your starting point.

Will a broker check my credit?

Only with your permission, and usually only when you're ready to apply.

Can I buy with a small deposit?

Yes. Government schemes and guarantor loans can help eligible buyers buy with 2% to 5%.

Talk to Awesome Lending Solutions

Want to know how financially fit you are right now? We can review your situation and give you a clear plan, with no pressure. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

Buying Off the Plan as a First Home Buyer: Pros, Cons and Risks

Updated October 2026 by Albert Waldron, Awesome Lending Solutions. This article first appeared on awesomelendingsolutions.com.au.

Buying off the plan means signing a contract to buy a home, usually an apartment or townhouse, before it's built or finished. For first home buyers, it can be appealing. But it comes with risks that are easy to miss. Here's what you need to know.

Why first home buyers like off the plan

Time to save: you usually pay a deposit now and the rest at settlement, which can be a year or more away.
A brand-new home: modern fittings and fewer early repairs.
Government help: new homes can qualify for the NSW First Home Owner Grant of $10,000 (for new homes up to $600,000), and first home buyers pay no NSW stamp duty on homes up to $800,000.
Low-deposit options: the 5% Deposit Scheme can be used for new homes within the price caps.

The risks to understand

1. Your loan isn't approved until close to settlement

Pre-approval usually lasts three to six months. If settlement is 18 months away, the lender will reassess you closer to the date. If rates rise or your situation changes, you might be able to borrow less than you planned. The four rate rises in 2026 are a good example of how quickly this can change.

2. Valuation risk

The lender values the property at settlement, not when you sign. If values have fallen, as they have across many capitals in 2026, the valuation may be lower than the price. You would need to make up the difference.

3. Building delays and sunset clauses

Projects can run late. Contracts include a "sunset date" when either side may be able to cancel. Get legal advice on this clause.

4. What you see isn't always what you get

Finishes, layout and views can change. Read the contract and plans carefully.

5. Lender rules on apartments

Some lenders limit lending on very small apartments or large high-rise developments. Check this before you sign.

Six steps to get ready

Get your finances in order: reduce debts and keep saving.
Get a broker's view early on how much you could borrow and which lenders accept the development.
Research the developer and builder: check past projects and reviews.
Have a solicitor review the contract, especially the sunset clause and deposit terms.
Keep saving after you sign, so you have a buffer if the valuation comes in low.
Avoid big changes to your job or debts before settlement.

An example

Emily signs a contract for a $650,000 off-the-plan apartment in Western Sydney, with settlement due in 15 months. She pays a 5% deposit using a deposit bond. Her broker confirms which lenders accept the building. She keeps saving, and when settlement comes, she uses the 5% Deposit Scheme with no LMI and no stamp duty. Because she kept saving, she has a buffer for a slightly lower valuation.

Frequently asked questions

Can I get pre-approval for off the plan?

You can get an idea of your borrowing power, but formal approval usually happens close to settlement.

Can I use the First Home Owner Grant?

In NSW, the grant is for new homes, including off the plan, if you meet the eligibility rules and price caps.

What happens if the valuation is lower than the price?

You'll usually need to cover the gap with extra savings, or find a lender with a higher valuation.

Talk to Awesome Lending Solutions

Off-the-plan purchases need careful planning from day one. We can check your borrowing power, explain which lenders accept the development and help you stay on track to settlement. Call us on 02 7904 9560 or visit awesomelendingsolutions.com.au to book a chat.

Tuesday, 6 October 2026

First Home Buyer Loans in Australia: A Plain-English Guide for 2026

This article first appeared on awesomelendingsolutions.com.au.

Buying your first home is exciting, but it can also feel confusing. The good news is that a first home loan is simpler than it looks once you break it into parts.

This guide explains how first home buyer loans work in Australia in 2026, what lenders look at, and what help is available, especially if you are buying in Sydney or anywhere in NSW.

What is a first home buyer loan?

A first home buyer loan is simply a home loan for someone who has never owned a home before. Most lenders do not have a special "first home buyer" product. Instead, you get a normal home loan, but you may be able to use government schemes that are only open to first home buyers.

These schemes can help you:

Buy with a smaller deposit
Avoid Lenders Mortgage Insurance (LMI)
Pay less or no stamp duty
Get a cash grant if you buy or build a new home

How a home loan works

When you take out a home loan, the lender pays for most of the property. You pay the rest as your deposit. You then repay the loan over time, usually 30 years, with interest.

Your repayments are made up of two parts:

Principal – the money you borrowed
Interest – what the lender charges you for borrowing it

Most first home buyers choose a principal and interest loan. This means every repayment chips away at the debt, not just the interest.

What lenders look at

Every lender wants to know one thing: can you comfortably repay the loan? To work this out, they look at:

Your income – how much you earn and how stable it is
Your expenses – what you spend each month on living costs
Your debts – car loans, credit cards, HECS-HELP, Buy Now Pay Later
Your deposit – how much you have saved and where it came from
Your credit history – whether you pay bills on time

Lenders must also test whether you could still afford your repayments if rates rose by 3% above your actual rate. This is called the serviceability buffer, and it is set by the banking regulator, APRA. It is one reason the amount a bank will lend you can be lower than you expect.

How much deposit do you need?

Traditionally, lenders wanted a 20% deposit. If you had less, you paid LMI, which can cost thousands of dollars.

In 2026, many first home buyers can buy with a much smaller deposit:

5% Deposit Scheme – Since 1 October 2025, eligible first home buyers can buy with a 5% deposit and no LMI. There are no income caps and no limits on places. In NSW, the price cap is $1.5 million in Sydney and regional centres, and $800,000 in other areas.
Family Home Guarantee – Eligible single parents and guardians may be able to buy with just a 2% deposit.
Help to Buy – A shared equity scheme where the government can own up to 40% of a new home or 30% of an existing home, with a 2% deposit. Income and price caps apply.
Guarantor loans – A parent can use equity in their home to help secure your loan.

Help with stamp duty and grants in NSW

If you are buying in NSW, you may also get:

No stamp duty on new or existing homes up to $800,000 through the First Home Buyers Assistance Scheme, with reduced duty up to $1 million
$10,000 First Home Owner Grant for eligible new homes up to $600,000, or house-and-land builds up to $750,000

Stamp duty savings alone can be worth around $30,000 on an $800,000 home, which makes a big difference to how much you need to save.

Fixed, variable or split?

You will also need to choose your interest rate type:

Variable – your rate can go up or down. You usually get more features, like an offset account and free extra repayments.
Fixed – your rate is locked for a set time, often one to five years. This gives you certainty, but less flexibility.
Split – part fixed, part variable, for a bit of both.

With the cash rate rising to 4.60% in September 2026, many buyers are thinking carefully about this choice. There is no one right answer. It depends on your budget and how much certainty you need.

The steps to getting your first home loan

Check your budget – work out what you can comfortably repay each month.
Get your documents ready – payslips, bank statements, ID and savings history.
Get pre-approval – this tells you how much you can borrow and helps you shop with confidence.
Find your home – make sure it fits your budget and any scheme price caps.
Get formal approval – once you sign a contract, the lender values the property and approves the loan.
Settle – the loan is paid out and you get the keys.

Why talk to a mortgage broker?

Each lender has its own rules. One bank may say no while another says yes. A mortgage broker compares a wide range of lenders, checks which schemes you qualify for, and handles the paperwork for you. For first home buyers, this can save time, stress and money.

Frequently asked questions

Can I get a first home loan on a casual or new job?

Often, yes. Some lenders accept casual income after six to twelve months, and some accept new jobs if you are in the same industry. It depends on the lender.

Do I need a 20% deposit?

No. With the 5% Deposit Scheme, eligible buyers can purchase with 5% and no LMI. Single parents may need just 2% under the Family Home Guarantee.