First Home Buyer Benefits NSW | FHBA: Everything You Need to Know

 Buying your first home in New South Wales (NSW) can feel overwhelming, especially with rising property prices. But the good news is that there are several government grants, schemes, and benefits designed to help first home buyers enter the market sooner. From the First Home Owner Grant to stamp duty concessions and government-backed loan schemes, NSW offers multiple incentives to ease the financial burden of buying a home.

In this guide, we’ll explore the key first home buyer benefits in NSW, eligibility criteria, and how to make the most of these opportunities.

1. First Home Owner Grant (FHOG) NSW – Get $10,000

The First Home Owner Grant (FHOG) NSW is a one-off $10,000 grant provided by the NSW government to help first-time buyers purchase or build a new home.

Who is eligible?

You must be a first-time buyer who has never owned property in Australia.
The home must be newly built, purchased off the plan, or significantly renovated.
The home’s value must be $750,000 or less.
You must move into the property within 12 months and live there for at least six continuous months.
At least one applicant must be an Australian citizen or permanent resident.

How to apply for the FHOG?

You can apply for the First Home Owner Grant NSW through your lender when applying for a home loan or directly via Revenue NSW.

2. First Home Buyer Stamp Duty Exemptions & Concessions (First Home Buyers Assistance Scheme – FHBAS)

Stamp duty (transfer duty) is one of the biggest upfront costs when buying a home. Fortunately, first home buyers in NSW can access full or partial exemptions under the First Home Buyers Assistance Scheme (FHBAS).

How much can you save?

• Full stamp duty exemption for homes valued up to $800,000 (save up to $31,090).
  
  

• Discounted stamp duty for homes valued between $800,000 and $1,000,000.
  
  

Example: If you buy a home for $850,000, you’ll only pay a reduced stamp duty instead of the full amount.

Who qualifies for stamp duty benefits?

You must be a first-time homebuyer.
The property must be your primary place of residence (not an investment).
The property must be valued at $1,000,000 or less.

Tip: Unlike the FHOG, stamp duty concessions apply to both new and existing homes, giving buyers more flexibility.

3. First Home Buyer Choice – Pay Stamp Duty OR Annual Land Tax

The First Home Buyer Choice scheme (introduced in 2023) allows first home buyers in NSW to choose between:

✔ Paying stamp duty upfront (one-time cost)
✔ Paying an annual land tax instead of stamp duty

Who is eligible?

• You must be a first-time buyer.
  
  

• The property must be valued at $1.5 million or less.
  
  

• You must live in the property as your principal place of residence for at least 6 months.
  
  

Example: If you buy a $1 million home, you would normally pay $40,000+ in stamp duty. Under this scheme, you can opt for an annual land tax payment instead, making homeownership more affordable in the short term.

4. First Home Guarantee (FHG) – Buy with Just 5% Deposit

Saving for a 20% deposit is one of the biggest challenges for first home buyers. The First Home Guarantee (FHG) helps eligible buyers purchase a home with just a 5% deposit, without paying Lenders Mortgage Insurance (LMI).

How does it work?

• The federal government guarantees up to 15% of the loan, reducing the need for LMI.
  
  

• You can buy new or existing homes (unlike the FHOG, which only applies to new homes).
  
  

• Property price caps apply based on location ($900,000 in Sydney, $750,000 in regional NSW).
  
  

Who is eligible?

First home buyers with a minimum 5% deposit.
Income limits: $125,000 for singles, $200,000 for couples.
Australian citizens or permanent residents.

Tip: This scheme is limited to 35,000 places per year, so applying early increases your chances of approval.

5. Regional First Home Buyer Support Scheme – Buy with 5% Deposit in Regional NSW

If you’re looking to buy in regional NSW, you may also be eligible for the Regional First Home Buyer Support Scheme, which allows first home buyers to purchase a property with just a 5% deposit.

Key benefits:

No Lenders Mortgage Insurance (LMI) required.
Applies to new and existing homes in regional NSW.
Income limits apply ($125,000 for singles, $200,000 for couples).

6. Shared Equity Home Buyer Helper – Buy with Just a 2% Deposit

The NSW Shared Equity Home Buyer Helper is a new scheme designed to help eligible buyers purchase a home with as little as a 2% deposit. The NSW government covers up to 40% of the home’s price, reducing loan repayments.

Who is eligible?

Single parents, key workers (nurses, teachers, police), and older singles (50+).
Must earn $90,000 or less (singles) or $120,000 or less (couples).
The property must be a new or existing home valued at $950,000 or less in Sydney, $600,000 in regional NSW.

How to Maximise First Home Buyer Benefits in NSW

Here are some expert tips to make the most of these incentives:

Combine multiple schemes – Many first home buyers use the FHOG, stamp duty exemptions, and low-deposit schemes together for maximum savings.
Check income and price caps – Each scheme has different limits, so ensure you qualify.
Apply early – Some schemes, like the First Home Guarantee, have limited places each year.
Get professional advice – A mortgage broker can help find the best loans and guide you through applications.

Final Thoughts: First Home Buyer Benefits NSW – Is Now the Right Time to Buy?

With multiple grants, stamp duty exemptions, and low-deposit schemes, buying a home in NSW has never been more accessible for first home buyers. Whether you’re purchasing in Sydney or regional NSW, these benefits can significantly reduce upfront costs and make homeownership a reality sooner than you think.

If you're serious about buying your first home, start by checking your eligibility and exploring which government incentives can work for you. A little planning now can save you thousands in the long run!