The NSW and Federal governments offer a stack of financial assistance to help first home buyers get into the market. When you add them all up, you could be saving $30,000 to over $66,000 on your purchase. Here's the complete guide for 2026.
$10,000
FHOG Grant
$31,335
Max stamp duty saving
5%
Min deposit (FHBG)
$66K+
Total potential saving
1. First Home Owner Grant NSW (FHOG)
The First Home Owner Grant (FHOG) is a one-off payment from the NSW Government to eligible first home buyers. In NSW, the grant is worth $10,000, but it only applies to the purchase or construction of a new home.
FHOG Eligibility Criteria
- You are buying or building a brand-new home (not an established property)
- The property value does not exceed $600,000 for a new dwelling, or $750,000 for vacant land where you'll build
- At least one applicant must be an Australian citizen or permanent resident
- All applicants must be 18 years of age or older
- You have never previously owned residential property in Australia
- You must occupy the home as your principal place of residence for a continuous period of at least 6 months, beginning within 12 months of completion
Important Note
The FHOG only applies to new homes. If you're buying an established property under $800,000 in NSW, you won't receive the $10,000 grant — but you may still be eligible for stamp duty exemption, which is worth significantly more.
2. Stamp Duty Exemption and Concessions NSW
This is where the real money is. NSW offers a tiered stamp duty concession for first home buyers that can save you up to $31,335 on an established property.
Full Stamp Duty Exemption — Under $800,000
If your first home is an established property valued at under $800,000, you pay zero stamp duty. On an $800,000 property, this represents a saving of $31,335 — money that stays in your pocket and reduces the cash you need upfront.
Partial Stamp Duty Exemption — $800,000 to $1,000,000
If your property is valued between $800,000 and $1,000,000, you receive a partial concession, with the discount reducing progressively until it phases out entirely at $1,000,000. The exact saving depends on the purchase price — your broker or solicitor can calculate the specific figure.
No Concession — Above $1,000,000
Properties valued above $1,000,000 are not eligible for any first home buyer stamp duty concession. You'll pay the standard NSW transfer duty rate.
| Property Price | Type | Stamp Duty |
|---|---|---|
| Under $800,000 | New or established | $0 — Full exemption |
| $800K – $1M | New or established | Partial concession |
| Above $1,000,000 | Any | Full stamp duty applies |
3. First Home Guarantee (Federal Scheme)
The First Home Guarantee (formerly the First Home Loan Deposit Scheme) is a Federal Government program that allows eligible first home buyers to purchase a property with as little as a 5% deposit — without paying Lenders Mortgage Insurance (LMI).
Normally, a deposit below 20% triggers LMI, which can cost anywhere from $8,000 to $30,000+ depending on the loan size. The First Home Guarantee essentially has the government act as guarantor for the difference between your deposit and the 20% threshold.
Key Details for 2026
- 35,000 places available nationally per financial year (first in, first served)
- Property price cap in Sydney: $900,000
- Income threshold: $125,000 for singles, $200,000 for couples (combined)
- Property must be your principal place of residence
- Applied for through one of the participating lenders — your broker can lodge this on your behalf
LMI Saving on a $720,000 Home with 5% Deposit
Without the guarantee, a 5% deposit on a $720,000 property would attract LMI of approximately $22,000–$25,000. With the First Home Guarantee, you pay $0 LMI — a saving that goes straight toward your financial position.
4. Regional First Home Buyer Guarantee
A separate scheme — the Regional First Home Buyer Guarantee — offers the same 5% deposit / no LMI benefit for buyers purchasing in regional areas. It's designed for buyers who have lived in a regional area for 12 months or more.
- 10,000 places per year nationally
- Lower property price caps apply (generally $600,000–$750,000 in most NSW regional areas)
- Must have lived or worked in the regional area for at least 12 months prior to purchase
5. NSW Shared Equity Scheme
The NSW Government's Shared Equity Home Buyer Helper is a more targeted scheme aimed at key workers, single parents, and older singles. Under this scheme, the government co-purchases a portion of the property (up to 40% for new builds, up to 30% for established homes), meaning you only need to finance the remainder.
Who Is Eligible?
- NSW key workers: nurses, teachers, police officers, paramedics, and midwives
- Single parents with at least one dependent child
- Single adults aged 50 or over
- Income limits: $90,000 for singles, $120,000 for couples/single parents
- Must have a minimum 2% deposit
Over time, you can buy out the government's share as your financial position improves. The scheme significantly reduces your monthly repayments, but there are conditions around selling and making property improvements while the government holds a stake.
Step-by-Step: How to Apply for First Home Buyer Assistance in NSW
- Check your eligibility — Review each scheme's criteria carefully. Your Mortgagefy broker can confirm what you qualify for based on your income, deposit, and property type.
- Get pre-approval first — Before making an offer, obtain formal pre-approval from your lender so you know your exact budget and can act quickly when you find the right property.
- Apply for the First Home Guarantee through your lender — If using the FHBG or Regional guarantee, your broker will lodge the application through your chosen participating lender as part of the home loan application.
- Apply for the FHOG with your conveyancer — Your solicitor or conveyancer will typically handle the FHOG application as part of the settlement process, often collecting the grant on your behalf.
- Stamp duty exemption is automatic — The stamp duty concession is applied by your conveyancer when lodging the transfer documents with NSW Revenue. You don't need to apply separately.
- Settle and move in — Once settlement occurs, ensure you meet the residency requirement (moving in within 12 months and living there continuously for 6 months) to avoid having to repay the FHOG.
Case Study: Sarah Bought Her First Home in Parramatta for $720,000
Sarah, 29 — Registered Nurse
Parramatta, Sydney · Single · First Home Buyer
Sarah had been renting in Parramatta for four years and had managed to save $46,000 (just under 6.5% of her target purchase price of $720,000). She came to Mortgagefy unsure whether she had enough to buy, worried about LMI costs, and unaware of all the schemes available to her.
Through Mortgagefy, Sarah was guided through the following:
- First Home Guarantee: As a nurse earning $89,000, she qualified for the FHBG, allowing her to purchase with her 6.4% deposit and pay no LMI (saving ~$22,000)
- Stamp duty exemption: On her $720,000 established property, Sarah paid zero stamp duty (saving $27,735)
- No FHOG: As she bought an established property, the $10,000 grant didn't apply
$720K
Purchase price
$49K+
Total savings (LMI + stamp duty)
6.4%
Deposit used
How a Broker Can Help You Maximise Your First Home Benefits
The various government schemes have different application pathways, time limits, and eligibility nuances. A mistake in the application process — or simply not knowing about a scheme you qualify for — can cost you tens of thousands of dollars.
At Mortgagefy, our brokers help first home buyers in Sydney navigate every available assistance program, identify the right lender for your scheme, and structure your application to give you the best chance of approval. Our service is completely free to you — we're paid by the lender after settlement.
Use our stamp duty calculator to estimate your potential savings, or book a free call today to discuss your specific situation.
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