Unlocking First Home Buyer Support in New South Wales (NSW)
If you're a first home buyer in NSW, you’ve got access to some valuable incentives to help you reduce upfront costs or get into the market sooner. But just because something’s available doesn’t mean it’s the right move for you long term.
In this guide, we’ll break down what support is currently available (as of September 2025), how it works, and where strategy really matters. That includes:
Stamp duty concessions
The $10,000 First Home Owner Grant
The First Home Guarantee Scheme (including October 2025 changes)
This resource supports Episode 13 of the First Home Unlocked Podcast, where Jack walks through each scheme and how it fits into your overall strategy.
Stamp Duty Concessions for First Home Buyers in NSW
Stamp duty (also called transfer duty) is a one-off government tax based on your purchase price. And in NSW, it’s often one of the biggest upfront costs, easily adding tens of thousands to your buying budget.
That’s why the NSW Government offers the First Home Buyer Assistance Scheme (FHBAS), which reduces or removes stamp duty for eligible buyers.
What You Can Save
Existing or new homes:
No stamp duty on purchases up to $800,000
Discounted rates between $800,000 and $1,000,000
Vacant land (to build your first home):
No stamp duty on land up to $350,000
Discounted rates from $350,000 to $450,000 (Fact check exact amount here is it $351?)
The concession gradually phases out, so you're not jumping from zero to full duty overnight.
Eligibility Rules
To qualify for any first home buyer stamp duty concession in NSW, you must:
Be at least 18 years old
Never have owned property in Australia or overseas
Move in within 12 months of settlement (or 2 years for vacant land)
Live in the property as your home for at least 12 months
At least one applicant must be an Australian citizen or permanent resident
There are no income caps, and it applies whether the property is brand new or established.
You can use the Transfer Duty Calculator to estimate what you’ll pay.
Strategy Insight
A lot of buyers cap their search at $800K to avoid stamp duty altogether, but that’s not always the most strategic move.
If you have the borrowing power to buy slightly above that range, paying a bit of stamp duty could mean unlocking better asset quality and stronger long-term growth.
It’s about weighing short-term savings against your bigger picture.
Let’s take a look at some real numbers for NSW first home buyers:
If you buy at $800,000, you’ll pay no stamp duty at all, that’s a huge saving compared to the $30,000 an investor or second home buyer would pay.
At $850,000, your stamp duty is around $10,000, which is still significantly less than the $32,000 others would pay.
At $950,000, it’s closer to $29,000, while others might pay around $37,000.
Once you cross the $1 million mark, you’re paying full duty, which sits around $40,000 for a $1M purchase and around $65,000 at $1.5M, which is the same as any other buyer.
Concessions are helpful, but the best results come when you zoom out and make decisions based on the full picture — your income, deposit, borrowing power, and the kind of life you want to build.
We’re here to help you think through all of that clearly.
NSW First Home Owner Grant (FHOG)
Let’s move on to the next major support available for first home buyers in New South Wales, the First Home Owner Grant (FHOG). If you're buying or building a brand-new home, this grant can give your deposit a boost and help you get into the market sooner.
What Is It?
The FHOG is a $10,000 tax-free grant from the NSW Government to support eligible first home buyers who are purchasing or building a brand new or substantially renovated home. This includes:
House and land packages
Off-the-plan apartments or townhouses
Brand new homes, units or apartments that have never been lived in
Substantially renovated homes where most of the original structure was replaced, and no one has occupied the property since the work was completed
It’s important to note: this grant is not available for established homes that have already been lived in.
Eligibility
To qualify for the $10,000 FHOG in NSW, you must:
Be buying or building a new home valued under $600,000, or
Be buying vacant land and signing a comprehensive build contract (including any variations), with a total value up to $750,000
Be 18 years or older
Be an Australian citizen or permanent resident, or buying with someone who is
Have never owned residential property in Australia before (this includes your spouse or partner)
Move in within 12 months of settlement or completion, and live there for at least 12 continuous months
Apply as one household, meaning you only receive one $10,000 grant per property, not per person
Extra Info to Keep in Mind
You can use this grant alongside NSW’s stamp duty concessions if you’re eligible for both
It can also be combined with the First Home Guarantee Scheme (5% deposit with no LMI), which we’ll cover below
Strategy Tip
A $10,000 boost can be helpful, especially if you’re close to meeting your deposit goals. But as always, don’t let it drive your entire decision. Just because a home is new or off-the-plan doesn’t mean it’s the right one for your future.
Before chasing the grant, ask yourself:
Is this the best long-term home for me and my lifestyle?
Is the location likely to grow in value?
Is there an oversupply of similar properties in the area?
Would an established home, even without the grant, offer better value and livability over time?
Incentives are helpful, but they’re designed to stimulate construction, not guarantee quality.
If you’re not sure how to compare new vs established homes, or what actually makes a good investment, check out Episode 6 – Unlocking Asset Quality. It’ll help you think through land value, location, and long-term growth, not just short-term savings.
You can find all the information about the First Home Owner Grant here
First Home Guarantee (FHGS)
The First Home Guarantee Scheme (FHGS) is one of the most powerful supports available to help first home buyers purchase with a smaller deposit and no Lenders Mortgage Insurance (LMI), all while keeping full ownership of your home.
This is a federal government scheme run by Housing Australia. It allows you to buy with as little as a 5% deposit, and the government acts as guarantor for the remaining 15% of the 20% typically required by lenders.
That means:
You don’t pay LMI (which can often cost tens of thousands of dollars)
You still access competitive interest rates
You keep 100% of the equity and future growth
We break this down in full in Episode 10 of the podcast, including how the scheme works, the pros and cons, and how to eventually remove the guarantee once your equity grows. It’s a must-listen if you’re considering using this option.
NSW Price Caps (2025–26)
To use the FHGS, the property you purchase must be under the price cap for your area. These caps are based on whether you're buying in a capital city, regional centre, or other area and they’re about to increase significantly in NSW.
Here’s what applies in New South Wales:
Sydney, Newcastle, Lake Macquarie, and Illawarra
Now: $900,000
From 1 October 2025: $1,500,000
Rest of NSW
Now: $750,000
From 1 October 2025: $800,000
These higher caps will open the door to far more properties, particularly in Sydney and surrounding areas where the current $900K cap has been a major barrier.
Income Caps (Until October 2025)
To be eligible right now, your income must be:
Under $125,000 per year if you’re buying on your own
Under $200,000 combined if buying as a couple
But from 1 October 2025, these income caps will be removed, which means more first home buyers, including dual-income households and higher earners will qualify.
Strategy Tip
This scheme is one of the most effective ways to get into the market sooner especially with the rising cost of homes and living.
You get to:
Avoid LMI, potentially saving $10K–$30K+
Buy with just a 5% deposit (instead of 20%)
Own 100% of the property and all future equity
And now, with price caps increasing and income limits being scrapped, it’s becoming more accessible than ever particularly in NSW where property prices are higher.
But as always, don’t just focus on getting in fast, make sure the property fits your long-term goals and offers strong value. If you’re not sure where to start, we can help you assess what’s possible and whether this scheme is the right fit.
Final Thoughts: Don’t Just Chase the Incentives
Government grants and concessions in NSW can definitely help reduce your upfront costs, but they’re not a guaranteed path to long-term success.
The best outcomes come from having a clear strategy, buying a quality home, and choosing the right structure for your personal goals.
That’s where we come in.
We’ll help you compare all your options
Find the right lender and structure for your plan
And make sure you’re using what NSW offers without sacrificing long-term growth
Listen to Episode 13 for the full breakdown or Book a Get to Know You Chat to map out your plan.
