First Home Buyers · May 2026
First Home Buyer NSW 2026 — Every Grant & Scheme You Need to Know
Buying your first home in NSW in 2026? Between government grants, stamp duty exemptions, deposit guarantee schemes, and super withdrawal options, the incentives available right now could save you tens of thousands of dollars — but only if you know about them and structure your purchase correctly.
1. First Home Owner Grant (FHOG) — Up to $10,000
The NSW First Home Owner Grant provides $10,000 for eligible first home buyers purchasing or building a new home. To qualify, the property must be a new build (not established) and the purchase price must not exceed $600,000 (or land value not exceeding $750,000 if building). The grant is paid at settlement — Bridge Finance assists with FHOG applications as standard.
2. Stamp Duty Exemption — Save Up to $31,335
First home buyers in NSW pay zero stamp duty on properties up to $800,000. Between $800,000 and $1,000,000, a concessional rate applies. On an $800,000 purchase the full exemption is worth $31,335 — directly improving your LVR and often the difference between needing LMI or not.
Threshold applies to purchase price, not market value
Bidding $810,000 on a property listed at $790,000 moves you into the concessional band. Critical to know when competing near the $800k threshold.
3. First Home Guarantee Scheme — 5% Deposit, No LMI
Major update from 1 October 2025 — income caps removed, places now unlimited
The scheme was significantly expanded in October 2025. The previous $125,000/$200,000 income restrictions and 35,000 place cap are gone. Any eligible first home buyer can now access the scheme.
The First Home Guarantee Scheme allows eligible first home buyers to purchase with as little as 5% deposit, with the government guaranteeing up to 15% of the loan value — eliminating Lenders Mortgage Insurance entirely. On a Sydney purchase, LMI on a 5% deposit can cost $20,000–$35,000.
Key 2026 details: no income limits, unlimited places, and a Sydney property price cap of $1,500,000 for both new and established homes. Must be accessed through NHFIC-approved panel lenders — Bridge Finance works with several on the panel.
4. Help to Buy — New Shared Equity Scheme (Live December 2025)
The federal Help to Buy scheme launched in December 2025 — the most significant new housing initiative in two decades. The government takes an equity stake in your property: up to 40% for new builds and up to 30% for established homes. You only need a 2% deposit. In exchange, the government shares proportionally in capital gains (and losses) when you sell or buy out their share.
Income limits: singles up to $100,000, couples up to $160,000. Sydney price cap: $1,300,000.
Broker note: currently only available through Bank Australia for broker-originated loans
If you access Help to Buy via a broker, your lender choice is effectively Bank Australia only at this stage. Worth a full conversation before committing — book a consultation to understand whether this is the right scheme for your situation.
5. Family Home Guarantee — 2% Deposit for Single Parents
Single parents (or single legal guardians) with at least one dependent child can purchase with just a 2% deposit, with the government backing 18%. Income threshold is $125,000 per year. Importantly, this also applies to previous homeowners — not just first-time buyers — making it one of the most accessible schemes for single-income families.
6. First Home Super Saver Scheme (FHSS) — Release Super for Your Deposit
The FHSS scheme allows first home buyers to make voluntary super contributions and then withdraw them (plus earnings) for a home deposit — up to $50,000 in eligible contributions. Contributions go in at 15% tax and come out at your marginal rate minus a 30% offset, making it significantly more efficient than a savings account.
Important: you must apply for an ATO determination before signing a purchase contract. Set this up 12–24 months before you plan to buy.
Combining Multiple Schemes
Many buyers can access multiple schemes simultaneously. A common high-value combination: FHGS (5% deposit, no LMI) + NSW stamp duty exemption (save up to $31,335) + FHOG ($10,000 for new builds). Total potential benefit: over $60,000 — without exceeding any income threshold. The complexity of running all of these at once, while finding the right loan across 70+ lenders, is exactly where a mortgage broker adds the most value. Bridge Finance identifies every scheme you qualify for at your first consultation. Always completely free to you.
About the Author
William Zhu
Director, Bridge Finance. 8 years of mortgage broking + 5 years in construction. $600M+ settled. Access to 70+ lenders. MFAA member.
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