The three schemes at a glance
Each scheme tackles a different upfront cost. One lowers the deposit, one removes a tax, and one puts cash in your pocket.
The 5% Deposit Scheme
Normally, borrowing more than 80% of a property's value means paying lenders mortgage insurance (LMI), which can run into tens of thousands of dollars. Under the 5% Deposit Scheme (previously the First Home Guarantee), the government guarantees part of your loan, so you can buy with a 5% deposit and skip LMI.
Since 1 October 2025 there's no income test and no limit on places. The price cap is $1.5 million in Greater Sydney and NSW regional centres, and $800,000 elsewhere in the state.
You'd still need savings for legal costs and moving. Your borrowing power also needs to cover the larger loan.
Stamp duty: the biggest saving
Under the NSW First Home Buyers Assistance Scheme, eligible buyers pay no stamp duty on a new or established home valued up to $800,000. Between $800,000 and $1 million you pay a reduced amount, and from $1 million full duty applies.
Vacant land you plan to build on is also duty-free up to $350,000, with a concession up to $450,000.
"The $800,000 line matters more than most buyers realise. Going a little over it can cost you thousands in duty, so I always check where a purchase price lands before you make an offer."
Anthony Nocon, Financeo
The First Home Owner Grant
The NSW First Home Owner Grant is a $10,000 payment towards a brand-new home. It's the scheme buyers most often misread: it only applies to new homes valued up to $600,000, or up to $750,000 for land plus a build. Established homes don't qualify.
Because of those caps, most Sydney first home buyers end up using the stamp duty exemption and the 5% Deposit Scheme, and never get near the grant.
How the schemes stack together
Here's how it can add up on a $740,000 new build in Western Sydney, for a buyer who qualifies for all three.
Quick eligibility check
Tick what applies to you. It's a rough guide, not an assessment.
Common mistakes to avoid
Frequently asked questions
This article is general information only and doesn't take your circumstances into account. Scheme rules, caps and thresholds change, so check current details with Revenue NSW and Housing Australia, or speak with us before acting.
Founder and Director of Financeo. More than a decade in lending, including commercial, business, property and private banking roles at Commonwealth Bank.
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