Between stamp duty exemptions, a $10,000 grant and a 5% deposit scheme, first home buyer grants in NSW can be worth $40,000 or more on a single purchase. They can also be confusing, because each one has its own rules, caps and paperwork. This guide explains the three schemes Sydney first home buyers use most, how they combine, and what stamp duty actually costs at different prices in 2026.
1. First Home Buyers Assistance Scheme (stamp duty)
This NSW scheme reduces or removes transfer duty (stamp duty) on your first home.
- No duty on a new or existing home up to $800,000.
- Reduced duty on homes between $800,000 and $1,000,000, on a sliding scale.
- Vacant land: no duty up to $350,000 and reduced duty to $450,000 if you are building.
To qualify you (and anyone buying with you) must be 18 or over, an Australian citizen or permanent resident, never have owned residential property in Australia, and move into the home within 12 months of settlement and live there for at least 12 continuous months. The exemption is applied when your conveyancer lodges the transfer, so you never pay and claim back.
2. First Home Owner (New Home) Grant: $10,000
A $10,000 grant from the NSW Government when you buy or build a brand-new home: a newly built house, townhouse or apartment that has not been lived in, or a house-and-land package or build. Price caps apply: up to $600,000 for a new home, or $750,000 for the combined value of land and build. It does not apply to established homes, which is why most Sydney first home buyers rely on the stamp duty scheme rather than the grant. The same residence requirement applies.
3. The 5% Deposit Scheme (First Home Guarantee)
An Australian Government scheme, administered by Housing Australia through participating lenders. Eligible first home buyers can buy with a 5% deposit and no lenders mortgage insurance, because the government guarantees the lender for up to 15% of the value. Following its expansion there are no income caps and the property price cap for Sydney is $1.5 million. You must be an owner-occupier and a citizen or permanent resident. Your broker reserves a place for you when your loan is submitted.
How the schemes combine
They are designed to stack. Two typical Sydney examples:
- $780,000 existing townhouse: no stamp duty (saving about $29,000 compared with a standard buyer) and a 5% deposit of $39,000 with no LMI.
- $650,000 brand-new apartment: no stamp duty, a 5% deposit of $32,500 with no LMI, plus the $10,000 grant, which can go towards your costs.
Above $1,000,000 the duty concession ends, but the 5% scheme still applies up to $1.5 million, which is where many family homes in the Hills, the North Shore and Western Sydney sit.
What stamp duty costs in NSW in 2026
Estimated transfer duty at the 2026-27 standard rates, rounded, compared with what an eligible first home buyer pays:
| Purchase price | Standard duty (approx.) | Eligible first home buyer |
|---|---|---|
| $700,000 | $25,700 | $0 |
| $800,000 | $30,200 | $0 |
| $900,000 | $34,700 | About $19,600 (concession) |
| $1,000,000 | $39,200 | $39,200 (no concession from $1M) |
| $1,200,000 | $48,200 | $48,200 |
| $1,500,000 | $63,800 | $63,800 |
Notice the jump between $800,000 and $1,000,000: a home at $800,000 costs a first home buyer nothing in duty, while one at $1,000,000 costs about $39,000. If your budget sits near those lines, it is worth knowing exactly where a property will land before you fall in love with it. Our chat assistant on this site can estimate the duty on any price in seconds.
Common mistakes with grants and schemes
- Assuming you are eligible. Owning a share of a property overseas or through an inheritance can affect eligibility. Check with Revenue NSW or your broker first.
- Buying “off the plan” expecting the grant without checking the cap. The $10,000 grant has price caps that many new Sydney apartments exceed.
- Forgetting the residence rule. Renting the home out too early can mean repaying the concession.
- Leaving the 5% scheme place too late. Your broker reserves it when the loan application goes in; talk to them before you bid.
Frequently asked questions
Can I get the $10,000 grant on an established house?
No. The First Home Owner (New Home) Grant is only for new homes or builds within the price caps. For an established home, the stamp duty scheme is the one that saves you money.
Do the NSW schemes apply if I buy with my partner who has owned before?
Generally no for the stamp duty scheme: every purchaser must meet the first home buyer conditions. There are limited exceptions, so ask Revenue NSW or your conveyancer about your situation.
Can I use the 5% scheme for an investment property?
No. It is for owner-occupiers who will live in the home.
Want someone to check which schemes fit you? On our free 15-minute chat we go through your budget, the schemes and the suburbs that fit, with no obligation. Book a time or read more on our first home buyers page.
General information only, current at November 2026 and checked against the NSW Government and Housing Australia pages at that time. Thresholds change each July; duty figures are estimates. Confirm your eligibility with Revenue NSW, Housing Australia or your broker.