First Home Buyer Schemes in NSW: What You Actually Qualify For

The deposit problem and the 5% Deposit Scheme

The biggest hurdle is rarely the repayments. It's the deposit, because anything under 20% normally triggers Lenders Mortgage Insurance (LMI), which can cost tens of thousands. The Australian Government 5% Deposit Scheme, formerly the Home Guarantee Scheme, lets eligible first home buyers purchase with as little as a 5% deposit, or 2% for eligible single parents, while the government guarantees the difference, so there's no LMI. Since 1 October 2025 there are no income caps and no limit on places. In NSW the property price cap is $1.5 million in Sydney and the regional centres, which include Newcastle, the Illawarra and the Central Coast, and $800,000 elsewhere in the state. You apply through a participating lender, and you need to live in the home.

Stamp duty help

NSW gives first home buyers stamp duty relief through the First Home Buyers Assistance Scheme. There's a full exemption from transfer duty on a new or existing home valued up to $800,000, and a concession on homes valued between $800,000 and $1 million. If you're buying vacant land to build on, the exemption applies up to $350,000 and the concession up to $450,000. On an $800,000 home the exemption is worth around $31,000, which materially changes what price range you can afford. Thresholds can change with state budgets, so we confirm the current figures before you rely on them.

Help to Buy: shared equity

Help to Buy is the federal shared equity scheme, which opened to applications in December 2025. The government contributes up to 40% of the price of a new home, or up to 30% of an existing one, in exchange for a share of the property, and you can buy with as little as a 2% deposit. You don't pay rent on the government's share. You can buy it back over time, and it's repaid when you sell. Income and property price caps apply, and the trade-off is that the government shares in the property's growth. It suits some buyers well and others not at all, so it's worth comparing with the 5% Deposit Scheme for your situation.

The super saver route

The First Home Super Saver Scheme lets you make voluntary super contributions, up to $50,000 in total, and later withdraw them (plus deemed earnings) for a first home deposit, taxed favourably. It rewards planning ahead: the earlier you start contributing, the more it's worth. It also stacks with the schemes above.

Family help: gifts and guarantors

Not a government scheme, but often the difference-maker. A gifted deposit boosts your savings directly; a guarantor arrangement uses a family member's equity as extra security so you can borrow with a smaller deposit and no LMI. Lenders treat both very differently from each other and from lender to lender, which is exactly the comparison work a broker does.

How they stack together

The schemes aren't either-or. A first home buyer might use the super saver scheme to build the deposit, the 5% Deposit Scheme to avoid LMI and the stamp duty exemption to cut transaction costs, all on the same purchase. The right combination depends on your income, your price range and your timeline. That's a conversation, and it's free: no cost, no obligation.

Questions, answered

Talk it through

General information only, so the next step is applying it to your numbers. Book a chat, email ugur@demir.loans or call 0495 000 228. Free, no obligation.