First Home Buyer Schemes and Incentives: Your 2026 Guide

The short answer

There are numerous government incentives you can take advantage of as a first home buyer. Used well, and sometimes together, they can save you tens of thousands of dollars and get you into your first home years sooner.

Below is a breakdown of the main schemes, focused on NSW. Actual results will depend on your individual circumstances and eligibility.

Last reviewed: November 2026. Scheme rules, thresholds and price caps change regularly, so always check the latest details.

NSW First Home Buyers Assistance Scheme (stamp duty)

This scheme removes or reduces stamp duty on first home purchases up to a certain value.

• $0 stamp duty: for first home purchases up to and including $800,000.
• A sliding concession: for purchases above $800,000 and below $1,000,000. The closer you get to $1,000,000, the smaller the concession and the more stamp duty you pay. At $1,000,000 or more, full stamp duty applies.
• Vacant land: separate, lower thresholds apply if you’re buying land to build on.

Key eligibility:

• You must be 18 or over, and an Australian citizen or permanent resident.
• You and your partner must never have owned residential property in Australia.
• You must move in within 12 months of settlement, or of completion for a new build, and live there for at least 12 continuous months.

More information: revenue.nsw.gov.au

Australian Government 5% Deposit Scheme

Formerly known as the First Home Guarantee, this scheme lets the Government guarantee the lender up to 15% of the property value on top of the standard 80%. That means you can borrow up to 95% without paying lenders mortgage insurance (LMI).

Key facts and eligibility:

• Small deposit, no LMI: borrow up to 95% with a 5% deposit. Single parents or legal guardians can buy with a 2% deposit.
• No limits: there are no income caps, no waitlists and no limits on places.
• Participating lenders only: you can only apply through a lender on the Government’s approved list.
• Who can apply: Australian citizens or permanent residents aged 18 or over, who are first home buyers or haven’t owned property in Australia in the last 10 years.
• Owner-occupied only: not for investment. You must move in within 6 months of settlement, and keep living there while the guarantee is in place.
• 90 days to buy: after pre-approval, you have 90 days to find a property and sign a contract.
• Price caps: the purchase price must be within the cap for the location.

NSW price caps:

Location	Price cap
Sydney and NSW regional centres	$1,500,000
Rest of NSW	$800,000

Check the exact cap for your postcode at firsthomebuyers.gov.au.

Using both together

With the right property, you can take advantage of both schemes at once.

Example: if you buy a property in NSW for $800,000 or less:

• No stamp duty: the price is within the $800,000 exemption threshold.
• No LMI: borrow up to 95% under the 5% Deposit Scheme.
• Only a 5% deposit: that’s $40,000 on an $800,000 purchase, plus legal and other purchase costs.

NSW First Home Owner Grant (New Homes)

If you’re buying or building a brand-new home in NSW, you may also be eligible for a $10,000 grant towards the purchase, on top of any stamp duty savings.

• New homes only: it applies to newly built or substantially renovated homes, not existing ones.
• Value limits apply: the home, or the land plus the build, must be within the grant’s value caps.
• Live-in rule: you must move in within 12 months and live there for at least 12 continuous months.

More information: revenue.nsw.gov.au

Help to Buy (shared equity)

Help to Buy is a shared equity scheme. The Government contributes part of the purchase price, so you borrow less.

• A 2% deposit: you need a minimum 2% deposit, with no LMI.
• The Government’s share: up to 30% of the price for an existing home, or up to 40% for a new home.
• Shared gains and losses: the Government shares in any change in value, and its share is repaid when you sell, or when you buy it back over time.
• Income caps apply: currently $103,000 for individuals, or $165,000 for single parents and joint applicants. Places are limited to 10,000 a year, and applicants must be Australian citizens.
• Can’t combine with the 5% Deposit Scheme: but it can be used alongside stamp duty concessions and grants.

Shared equity reduces your loan and repayments, but you give up part of your future capital growth. It’s worth weighing up carefully.

First Home Super Saver Scheme

The First Home Super Saver Scheme lets you save for a deposit inside your super, taking advantage of its lower tax rates.

• How it works: you make voluntary contributions to your super, either through salary sacrifice or as personal contributions.
• Limits: up to $15,000 per financial year, and $50,000 in total, plus associated earnings.
• Couples and friends: each person can use their own savings towards the same property.
• Timing matters: you must request your release from the ATO before the property is transferred to you.

More information: ato.gov.au

Not sure which schemes you qualify for?

With access to over 40 lenders, including participating lenders for the government schemes, our team of lending specialists can work out which incentives you’re eligible for, how to combine them, and what that means for your deposit and costs.

Book a chat · Next lesson: Borrowing 95% or more

All Masterclass lessons

General information only. This article does not consider your objectives, financial situation or needs and is not credit, financial, legal or tax advice. Scheme details are based on information from firsthomebuyers.gov.au, Revenue NSW and the ATO as at November 2026, and may change. Eligibility criteria and price caps apply. Seek advice from a licensed credit adviser before acting. Insight Property Finance.