From 1 October 2025, major changes to the First Home Guarantee will make it easier for first home buyers in NSW to get into their first home.
Buy with Just a 5% Deposit and Avoid LMI in NSW
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You’ll need to save a minimum 5% deposit, and the Government will guarantee part of your loan. This means you won’t have to pay Lenders Mortgage Insurance (LMI), which often costs thousands of dollars. For many first home buyers, this can represent a significant saving.
No Income Caps for First Home Buyers
From 1 October, income caps are removed. This means that regardless of how much you earn, as long as you meet the first home buyer eligibility requirements, you can apply for the scheme.
Higher Property Price Caps in NSW
More properties now qualify under the scheme. In NSW capital cities and regional centres, the property price cap has increased to $1,500,000 (up from $900,000). In other NSW areas, the cap has risen to $800,000 (up from $750,000). This opens up more choice for buyers in higher-priced suburbs.
Simpler Access for Regional First Home Buyers Whether you’re buying in the city or regional areas, the First Home Guarantee applies to both metropolitan and regional areas across NSW. Previously there were limitations and a separate scheme for regional areas.
Other Schemes Available to First Home Buyers in NSW
First Home Buyers Assistance Scheme (FHBAS) — Stamp Duty Relief
Eligible first home buyers can receive a full exemption from transfer duty on homes valued up to $800,000. For homes priced between $800,000 and $1,000,000, a concessional (reduced) rate applies. If you’re buying vacant land to build on, you can claim a full exemption for land valued up to $350,000, with concessional rates for land valued between $350,000 and $450,000.
First Home Owner Grant (FHOG) — $10,000 for New Homes
A one-off $10,000 grant is available to first home buyers purchasing a newly built or substantially renovated home. The property must meet certain price limits, which differ depending on whether it’s a house-and-land package or a separate build. Residency and other eligibility requirements also apply, so it’s important to check the details with your lender or conveyancer.
Common Questions About the First Home Guarantee
Is there a cap on how many First Home Guarantees are issued?
No. From 1 October there will be no limit on the number of places available, so eligible buyers won’t miss out simply because allocations run out.
What types of property can I use the First Home Guarantee for?
You can use it for a broad range of residential property types, including houses, townhouses, apartments, house-and-land packages, off-the-plan units, or buying land and entering a building contract (subject to conditions). However, the property must be residential and owner-occupied (not an investment), and there are other eligibility requirements that must be met such as property value, contract details, builder requirements, timing rules and more. Speak to your conveyancer to learn more.
Can I apply for multiple schemes?
Yes. You can combine the First Home Guarantee (a federal scheme) with NSW state-based incentives such as the First Home Buyers Assistance Scheme for stamp duty relief and the First Home Owner Grant for new homes. Each program has its own eligibility requirements, but if you qualify, the benefits can be used together.
Disclaimer
All information provided in this blog is to be used as a guide only. Please consult your conveyancer for more detailed information and to confirm your eligibility.
Sources
Housing Australia – Home Guarantee Scheme · Housing Australia – Media Release · NSW Revenue – First Home Buyers Assistance Scheme · NSW Revenue – First Home Owner Grant
