NSW has multiple schemes running in 2026 that can significantly reduce the cost of buying your first home. Stacked correctly, a first home buyer purchasing a new property below $600,000 could access a cash grant, zero stamp duty, and no lenders mortgage insurance — saving tens of thousands of dollars in upfront costs. But eligibility rules are specific, thresholds matter, and the wrong purchase price can cost you thousands unexpectedly.
Here is what is currently available in NSW and what the rules actually say.
1. First Home Owner Grant (FHOG) — $10,000 cash
The FHOG provides a $10,000 cash grant for first home buyers purchasing or building a new home. As of 2026, the key rules are:
- The property must be newly built or substantially renovated — the FHOG does not apply to established (existing) homes
- The purchase price (or value of the home and land combined) must not exceed $600,000 for a new home; for a house and land package, the combined contract value must not exceed $750,000
- You must move in as your principal place of residence within 12 months of settlement and live there for a continuous period of at least 12 months
- At least one buyer must be an Australian citizen or permanent resident
- You must not have previously owned residential property in Australia or received the FHOG elsewhere in Australia
The $600,000 cap on new homes is a practical constraint in Sydney — most new apartments within the metro area now exceed this threshold. However, new builds in western Sydney, regional areas, and on the Gold Coast frequently fall within the limit.
2. First Home Buyers Assistance Scheme (FHBAS) — stamp duty exemption
The FHBAS is the most widely used scheme for NSW first home buyers, because it applies to both new and established properties — unlike the FHOG. It provides:
- Full stamp duty exemption (zero transfer duty) on properties purchased at $800,000 or below
- Concessional (phased reduction in) stamp duty on properties between $800,001 and $1,000,000
- Full standard duty applies on properties above $1,000,000
For vacant land: full exemption up to $350,000, concessional rate to $450,000, and full duty above $450,000. These thresholds were significantly expanded in July 2023 and remain in place in 2026.
To put the saving in real terms: stamp duty on an $800,000 home in NSW would normally run to tens of thousands of dollars for a standard buyer. Under the FHBAS, an eligible first home buyer pays nothing. Revenue NSW confirms that FHBAS applies to both new and established homes — making it the more broadly applicable scheme.
Critical detail: If you go even $1 over the $800,000 threshold, you move into the concessional bracket and will owe several thousand dollars in transfer duty. Know your purchase price ceiling before auction day.
3. First Home Guarantee — 5% deposit with no LMI
The First Home Guarantee (previously the First Home Loan Deposit Scheme) is a federal government program administered by Housing Australia. It allows eligible first home buyers to purchase with a 5% deposit, with the government guaranteeing the remaining 15% to the lender — eliminating the need for LMI.
Key points:
- Places are limited — released in rounds each financial year
- Income caps apply: $125,000 for singles, $200,000 for couples (combined)
- Property price caps apply and vary by state and region
- The buyer must intend to live in the property as their principal place of residence
- The guarantee is administered through participating lenders only — not all lenders participate
For full current details including current price caps and participating lenders, check: housingaustralia.gov.au/support-buy-home/first-home-guarantee
Can you stack multiple schemes?
Yes — but only in certain combinations. The FHOG and FHBAS can be used together on a new home under $600,000 (the FHOG cap). The First Home Guarantee can also apply at the same time, meaning a buyer could have a 5% deposit, zero stamp duty, no LMI, and a $10,000 cash grant — all on the one purchase.
However: established homes cannot access the FHOG (cash grant), but can access the FHBAS (stamp duty exemption) and the First Home Guarantee (no LMI with 5% deposit) simultaneously.
What disqualifies you
The most common eligibility traps:
- You or your partner have previously owned residential property anywhere in Australia — including investment properties inherited, gifted, or purchased overseas in some circumstances
- The property is above the relevant price threshold
- You do not intend to live in the property as your principal place of residence (purchasing as an investment first does not qualify)
- You have previously received a first home owner grant in any Australian state or territory
A mortgage broker can help you confirm eligibility across all schemes, calculate your exact saving for a specific purchase price, and structure the loan to ensure you’re claiming everything you’re entitled to.
Learn more: tigermortgage.com.au/clients/residential-borrowers/
Disclaimer: This article is general information only and does not constitute financial advice. Speak to a licensed mortgage broker about your specific situation.
