First home buyer guide — New South Wales

1. Your NSW grants and concessions

2. Every scheme available to you in NSW

• First Home Buyers Assistance Scheme

  Full duty exemption to $800,000 and a tapering concession to $1,000,000 on your first home.

• First Home Owner Grant (New Homes)

  $10,000 for new builds, off-the-plan purchases and homes you build yourself, within value caps.

• First Home Guarantee (federal)

  5% deposit with no LMI, price caps of $1.5m in Sydney and $800,000 across the rest of NSW.

Administered by Revenue NSW. Amounts, thresholds and contract-date rules change regularly — we confirm your eligibility before you sign.

3. Worked example — buying at $850,000 in NSW

Indicative figures for an eligible NSW first home buyer using a 5% deposit under the First Home Guarantee.

Without the concession and the guarantee, the same purchase would need around $106,748 upfront — roughly $53,082 more than using your NSW entitlements. Estimates only; your figures will differ.

4. The full process, step by step

1. 1. Work out your real budget

   Start with borrowing power (what a lender will approve) and affordability (what you're comfortable repaying). Lenders assess your repayments at around 3% above the actual rate, so your genuine budget is usually lower than the headline number.

2. 2. Add up the cash you actually need

   Deposit is only part of it. You also need stamp duty (or the concession-adjusted amount), conveyancing, building and pest inspections, loan fees, and moving costs. Work backwards from your total savings to your real purchase price.

3. 3. Confirm your grants and concessions

   Grants, duty concessions and the 5% deposit scheme are assessed against your state's rules, property type and contract date. Getting this confirmed before you sign is the single biggest money-saver in the process.

4. 4. Get pre-approval

   A broker matches you to the lender whose policy fits your income type, deposit source and credit history, then arranges pre-approval — usually valid for 3 months. It's free and it tells you exactly what you can offer.

5. 5. Search, inspect and negotiate

   Check the property against your scheme price caps before you offer. At auction your deposit and finance must be ready — there's no cooling-off period. For private sale, negotiate a finance clause.

6. 6. Sign, then unconditional approval

   Once you have a signed contract, the lender orders a valuation and issues formal (unconditional) approval. Your broker manages the lender, and your conveyancer manages the contract.

7. 7. Settlement and keys

   Settlement is typically 30–60 days after contract. Your grant is usually paid at settlement through your lender or conveyancer, and duty is paid by your conveyancer. Then you move in — most schemes require you to live there for 6–12 months.

5. NSW-specific traps to avoid

• The $10,000 grant is new-homes-only — most Sydney buyers purchasing established stock will use the duty concession instead.
• You must move in within 12 months of settlement and live there for at least 6 continuous months.
• Sydney's $1.5m 5% deposit cap is the highest in the country, but you still need to prove you can service the loan.

6. Your NSW readiness checklist

• 3 months of payslips and bank statements
• Evidence of genuine savings (or gift letter)
• ID and proof you've never owned property in Australia
• Deposit at least 5% of the purchase price
• Clean recent credit conduct (no missed payments)
• Purchase price inside your scheme price cap
• Conveyancer engaged before you sign
• Pre-approval in place before you offer

NSW first home buyer questions

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