First Home Buyers Sydney: Guide to Government Grants & Schemes in 2025

In Sydney, Home ownership can feel out of reach. With some of the highest house prices in the world, having a property of your own in the Harbour City is very difficult for many residents.

The good news is there is help available. There are a wide range of grants and schemes in place to bring this dream back in reach for you.

In this complete guide, we’ll break down the schemes that are in place for first home buyers in Sydney. Find out which schemes and grants you’re eligible for, and how you can put them to use.

Compare Every Government Scheme for First-Home Buyers (NSW)

Here’s a quick overview of every major scheme in place for first-home buyers in NSW.

Government Grants & Schemes Explained

First Home Buyers Assistance Scheme (FHBAS) – Stamp Duty Exemption or Concession

What it is

The FHBAS provides exemptions or reduced rates on transfer duty, also known as stamp duty. This scheme is operated by the NSW government.

Key benefits

Under FHBAS, home buyers can get a full exemption from paying stamp duty for homes valued up to $800,000. For non-first home buyers, stamp duty on a property worth $800,000 costs can add up to $30,529. This is a significant saving for first home buyers.

For properties valued between $800,001 and $1 million, a concessional rate on stamp duty is available.

For vacant land on which you intend to build a home, stamp duty exemptions are available for land valued up to $350,000. This can save you $10,419.

Properties valued between $350,001 and $450,000 are eligible for concessional rates on stamp duty.

Eligibility

Key eligibility criteria for FHBAS include:

• The purchase must be for a new or existing home, or vacant land in NSW.
• The property value must be within threshold amounts.
• Generally, you must be an individual, not a company or trust.
• Generally, you must be over 18.
• You and your spouse or partner must never have owned or co-owned residential property in Australia.
• You and your spouse or partner must never have previously received an exemption or concession under the scheme.
• At least one of the first home buyers must be an Australian citizen.
• For new and existing homes, you must move into the home within 12 months after settlement, or live in the property as your principal place of residence for at least 12 continuous months.

Important considerations and limitations

It’s important to keep in mind that this scheme doesn’t involve any money being provided to you by the government. It simply exempts you from paying stamp duty, or allows you to pay it at a reduced rate.

First Home Owner Grant (FHOG) – $10K Toward New Builds

What it is

The FHOG is a $10,000 grant offered by the NSW government. It’s available if you are buying or building your first new home.

Key benefits

The FHOG is one of the simpler schemes available for first home buyers in Sydney. Provided you meet the eligibility criteria, the NSW government provides the money to help cover the costs of buying or building a new home.

Eligibility

Key eligibility criteria for FHOG includes:

• For new houses, purchase prices must not exceed $600,000.
• For a comprehensive home building contract or owner builders, the property value (house and land) must not exceed $750,000.
• Each applicant must be over 18 years old.
• You must be a first home buyer as a person, not a company or trust.
• At least one applicant must be a permanent resident or Australian citizen.
• Generally, you must not have lived for six continuous months or more in a home located in Australia that you owned.
• You must occupy your first home as your principal place of residence within 12 months of the construction or purchase of your home. The minimum period of occupancy is 12 months for contracts signed after 1 July 2023.

Important considerations and limitations

This grant applies to the property transaction itself, rather than individuals. If you and your partner or spouse apply for the grant, you will not be eligible to receive it twice.

First Home Guarantee (FHBG) – Buy with 5% Deposit, No LMI

What it is

The FHBG is an Australian Government initiative administered by Housing Australia. Under the scheme, up to 15% of a home loan from a Participating Lender is guaranteed by Housing Australia.

In the 2024/25 Financial Year, there were 35,000 places available as part of FHBG.

Key benefits

When up to 15% of your home loan is guaranteed by Housing Australia, you can purchase a home with as little as 5% deposit without getting Lenders Mortgage Insurance (LMI).

LMI is usually required when purchasing a home with a 5% deposit, but since your loan is guaranteed by Housing Australia, you won’t need to pay for it.

LMI can cost approximately 1-5% of a loan amount. If you require a loan for $500,000, LMI could cost as much as $25,000.

FHBG allows you to get into the market with a lower deposit while saving money on LMI.

Eligibility

To be eligible for FHBG, the following criteria apply:

• In Sydney, the price cap for a property to be eligible for FHBG is $900,000.
• Home buyers must be Australian citizens or permanent residents at the time they enter the loan.
• Home buyers must be at least 18 years of age.
• Home buyers cannot be earning more than $125,000 (for individuals) or $200,000 (for joint applicants).
• Home buyers must intend to be owners-occupiers of the purchased property.
• You can qualify if you are a first home buyer, or if you haven’t owned or had an interest in a real property in Australia – including owning land only – in the past 10 years.

Important considerations and limitations

The minimum deposit required for FHGB is 5%. Participating Lenders may require a higher deposit based on your individual financial circumstances.

Regional First Home Buyer Guarantee (RFHBG) – Support for Regional Buyers

What it is

The RFHBG is equivalent to the FHGB, but only applies in regional areas. If you are purchasing property within Sydney, you will not be eligible for the RFHBG.

Key benefits

The RFHBG operates in a very similar way to the FHGB. With Housing Australia guaranteeing up to 15% of home loans, regional buyers can purchase property with lower deposits and without LMI.

Eligibility

Eligibility criteria for the RFHBG is very similar to the FHGB. The difference is that it applies to regional areas rather than major cities. In addition to Sydney, Newcastle, Lake Macquarie and Illawarra fall under the FHGB rather than the RFHBG.

The RFHBG also has a lower property value price cap of $750,000 compared to $900,000 for the FHGB.

Important considerations and limitations

In the 2024/25 Financial Year, 10,000 places were available as part of this scheme, compared to 35,000 for the FHBG.

Family Home Guarantee (FHG) – 2% Deposit for Single Parents

What it is

Like the FHBG, the FHG is a guarantor scheme administered by Housing Australia. It supports eligible single parents and single legal guardians seeking to purchase homes. Under this scheme, Housing Australia can guarantee up to 18% of a home loan deposit.

In the 2024/25 Financial Year, there were 5,000 places available as part of FHG. The same property price caps apply for the FHG as other Housing Australia guarantor schemes depending on if the property is in Sydney or a regional area.

Key benefits

With Housing Australia guaranteeing up to 18% of a deposit, eligible buyers are able to purchase homes with just 2% of the total value of the property as a deposit. Like other guarantor schemes, this eliminates the need for LMI.

Unlike other schemes and grants, the FHG doesn’t just apply to first home owners. You can be eligible for the FHG as long as you don’t currently own a property, or are not intending to own a property upon settlement of the guaranteed property.

Eligibility

To be eligible for the FHG, buyers must:

• Apply as individuals.
• Be single parents or single legal guardians of at least one dependant.
• Be an Australian citizen or permanent resident at the time they enter the loan.
• Be at least 18 years of age.
• Earning no more than $125,000 a year.
• Intending to be the owner-occupier of the purchased property.
• Not currently own property, or not intend to own a separate property upon settlement of the guaranteed property they’re buying.

Important considerations and limitations

To be eligible for this scheme, you must be a single parent or legal guardian. You can see the full definitions of these terms on the Housing Australia website.

First Home Super Saver Scheme (FHSS) – Use Super to Help Save for a Deposit

What it is

The FHSS scheme allows you to make personal voluntary contributions into your super fund to help you save for your first home. Under the scheme, you can contribute up to a maximum of $15,000 in any one financial year. Across all years, you can contribute up to a maximum of $50,000.

Key benefits

The FHSS scheme offers tax benefits. Concessional contributions are taxed at only 15%. For many Australians, that’s significantly lower than your marginal tax rate. In addition, assessable FHSS amounts benefit from a 30% FHSS tax offset.

When you’re ready to buy a property, you can withdraw money you’ve contributed to super. Under the scheme, you can withdraw:

• 100% of your eligible personal voluntary contributions you haven’t claimed a tax deduction for (non-concessional contributions).
• 85% of your eligible salary sacrifice contributions (concessional contributions).
• 85% of eligible personal voluntary super contributions you have claimed a tax deduction for (concessional contributions).

These withdrawals are also limited by super rules.

Eligibility

The following eligibility criteria apply for the FHSS scheme:

• You must be 18 years old or older when requesting a FHSS determination.
• Generally, you must be a first home buyer, having never owned property in Australia.
• Your name must be on the title of the property you buy.
• You don’t have a completed release request in relation to a FHSS determination made in relation to you.
• You must genuinely intend to occupy the property as a home as soon as practicable after purchase. You must do so for at least 6 of the first 12 months from when it is practicable to occupy it.

Important considerations and limitations

The FHSS scheme cannot be used to purchase vacant land. However, it can be used for the construction of a home on vacant land, provided ownership of the vacant land has not transferred to you before applying for a FHSS determination.

The scheme also has significant tax implications. It’s important to get financial advice from a home loan expert before determining if the scheme is right for you.

Help to Buy – Shared Equity Scheme

What it is

The Help to Buy scheme is an Australian Government initiative designed to assist low to middle-income earners to purchase a home by acting as an equity partner. The government helps you buy by contributing a portion of the purchase price. They will contribute up to 40% for a newly built home and up to 30% for an existing home. This shared ownership stake must be repaid later.

The scheme is funded by the Australian Government and will be administered by Housing Australia. The enabling legislation has been passed by the NSW Parliament. The program is expected to open for applications later in 2025.

A total of 10,000 places will be allocated around Australia each year, with approximately one-third (an estimated 3,000 places) available to buyers in NSW annually.

Example: If you buy a $700,000 new home with 40% government equity, you’d only need a $420,000 mortgage. But when you sell, you’ll need to repay 40% of the property’s future value—so if the home later sells for $900,000, $360,000 would go back to the government.

Key benefits

Help to Buy makes home ownership significantly more achievable for eligible NSW residents.

Low Deposit: You only need a minimum deposit of 2%.

No LMI: Because the government holds significant equity, eligible buyers avoid the cost of Lenders Mortgage Insurance (LMI). Avoiding LMI can save between $10,000 and $40,000.

Not Limited to First Home Buyers: The scheme is available even if you have owned property in the past, unlike many other grants.

Eligibility

The scheme is designed for low to middle income earners. To be eligible for the Help to Buy scheme, applicants must meet the following criteria:

• Income (Individuals): Must not earn more than $100,000 annually.
• Income (Couples/Single Parents): Must not earn more than $160,000 annually.
• Property Cap (Sydney and Regional Centres): The purchased property value must not exceed $1.3 million.
• Property Cap (Regional Areas): The purchased property value must not exceed $800,000 in the rest of the state.
• Occupancy: The home purchased is required to be the applicant’s principal place of residence.

Important considerations and limitations

The Help to Buy scheme presents a valuable opportunity for eligible NSW residents to enter the property market sooner. However, it’s important to understand the financial implications—particularly the shared equity structure—and how it fits into your long-term goals. Seeking professional financial advice before applying is strongly recommended.

1. Shared Equity Repayment: Under the scheme, the government will own a share of your property (up to 40% for new homes or 30% for existing homes). This share must eventually be repaid, so it’s essential to factor the equity payback into your financial planning.

2. Repayment Details Still Unconfirmed: The government has not yet released full details on how and when the equity must be repaid, creating some uncertainty around future obligations.

3. Mandatory Occupancy: The property must be used as your principal place of residence. It cannot be rented out or used as an investment property while under the scheme.

4. Deposit and Lender Requirements: While the scheme allows eligible buyers to purchase with as little as a 2% deposit, lenders may still require a higher deposit depending on your financial position—similar to other low-deposit programs managed by Housing Australia.

Beyond Government: Bank Perks & Low-Interest Programs

Of course, government schemes aren’t the only tools you can use to assist with buying your first home. There are a range of non-government offerings to help out:

• LMI waivers: Some lenders offer waivers for LMI for low-deposit loans. These generally apply for certain professions like lawyers, doctors and financial professionals.
• Low-interest loans: Finding a low-interest loan can make a big difference to purchasing your home. You should compare loans from various lenders to find a competitive interest rate.
• Low-fee loans: Another important consideration when looking for loans is low-fee loans. Over the course of paying off a home loan, annual fees can add up substantially. Finding a loan with lower fees can be of significant assistance.
• Cashback offers: Many banks and lenders offer cashback incentives for new home loan customers. These offers typically involve receiving a lump sum of money directly into your account after your loan settles. While they can be useful, it’s important to consider the overall loan features and interest rate. A higher interest rate might outweigh the benefit of the cashback in the long run.
• Offset account: An offset account is a transaction account linked to your home loan. The balance in this account “offsets” the principal amount of your loan that interest is calculated on. For example, if you have a $500,000 home loan and $50,000 in your offset account, you’ll only pay interest on a loan balance of $450,000. This means you pay less interest over the life of the loan, helping you pay it off faster. Plus, you still have access to your funds in the offset account for day-to-day expenses.

Working with an experienced home loan expert will enable you to find a loan that works for you. Australian Financial and Mortgage Services is here to offer the expertise you need on your home-buying journey, with fee-free service.

How to Maximise First Home Buyer Grants & Schemes in NSW

Here are a few methods to get the most out of first home buyer grants and schemes in NSW:

• Use multiple schemes: In many cases, you’re able to access multiple schemes for the same purchase. For example, you could use the FHSS to assist with saving for a deposit, FHOG for $10,000 in grant money, FHBAS to minimise stamp duty payments. This can put you in a much better position to buy a home.
• Approval: Aim to get approval for a given grant or scheme as quickly as you can. That way, you’ll know what support you’re entitled to as you go through the purchase or post-purchase process.
• Understand price caps: Different schemes have different price caps for property values. As you look for properties, make sure you understand the price caps of any scheme you are interested in and how it will affect your entitlements under the scheme.

How Participating Lenders Help You Access Government Schemes

Certain schemes like the FHBG, FHG and RFHBG require you to apply through Participating Lenders. Participating Lenders help you access schemes in a number of different ways, including:

• Eligibility: A Participating Lender will help to verify your eligibility for a given scheme, including some of the more complicated criteria. This helps you fully understand what you’re able to access.
• Documentation: Some of the documentation you need to access government schemes can be complicated. Participating Lenders can provide guidance on the documentation you need to access a scheme, and use documentation like a Notice of Income Assessment to verify your eligibility.
• Advice: Participating Lenders can also provide the advice you need around which schemes are right for you, how to use multiple schemes and much more. This ensures you get the most out of the schemes you access and gives you the best chance of finding the right property for you.

In need of some assistance for getting into your dream home? Get in touch with the Australian Financial and Mortgage Solutions team today to start your home ownership journey.

Step-by-Step: How to Apply for First Home Buyer Schemes in Sydney

Applying for first home buyer schemes can look different from one scheme to the next. Here’s a general overview of how you can go about it:

1. Assess your eligibility: First, it’s crucial to find out which schemes and grants you are eligible for. You can use tools like the NSW Home Buying Assistance Finder to check the help that you’re able to receive.
2. Gather your documents: Whatever scheme you apply for, you’ll require certain documents. For some schemes, you will already need to have exchanged contracts on a purchase. You’ll also need personal identification documents like your driver’s licence or passport.
3. Place your application: Some schemes require you to apply through Participating Lenders. Other schemes will enable you to place an application yourself. Either way, make sure you have all the necessary information and advice to apply correctly.

First Home Buyer Schemes in Sydney: Frequently Asked Questions

What are the price caps for the First Home Buyer Assistance Scheme (FHBAS) in Sydney?

Under the FHBAS, stamp duty exemptions are available for properties valued up to $800,000. Reduced rates on stamp duty are available for properties valued between $800,001 and $1 million.

Do I need a 20% deposit to buy my first home?

No, a 20% deposit is not a strict requirement for buying a home. For deposits lower than 20%, you will often need to pay Lenders Mortgage Insurance. However, through schemes like the FHBG, you can avoid needing to pay LMI, as part of your loan is guaranteed by Housing Australia.

Can I combine multiple government schemes when buying my first home?

Yes, it’s absolutely possible to take advantage of multiple government grants and schemes when buying your first home. Make sure you get the proper professional advice to maximise the opportunities of government grants and schemes.

Can I still access a scheme if I’ve owned property before?

Not all government grants and schemes are exclusively for first home buyers. You can access the Family Home Guarantee if you’ve owned property in the past or even if you currently own property, as long as you don’t intend to own the property upon settlement of your home loan.

The FHBG and the RFHBG can be accessed if you have owned property prior to the last 10 years. The Help to Buy scheme hasn’t fully rolled out yet, but it does not currently disqualify applicants who have owned property in the past.

What documents do I need to apply for first home buyer assistance?

First home buyer assistance schemes can require a significant amount of documentation. Schemes and grants may require the following:

• Personal identification documents like driver’s licences.
• Documentation relating to your property purchase.
• A Notice of Income Assessment for means-tested schemes.

Unsure Which First Home Buyer Grants or Schemes Apply to You? Let’s Work It Out Together

With a number of different schemes and grants available for Sydney residents, it’s not easy to know exactly how they apply to you. That’s where Australian Financial and Mortgage Solutions can help.

Our dedicated team has the experience and expertise to help you achieve your real estate goals. We’re here to help you get into your dream home as affordably as possible.

Not sure where to start? Our Sydney-based mortgage experts can guide you through your options—at no cost to you. Contact AFMS today and take the first step toward owning your home.