There are a few different incentive schemes and assistance offered to First Home Buyers. Some are offered by the State Government and others at the Federal level. Here we’ll go into more detail about some of the assistance available to first home buyers.
Australian Government 5% Deposit Scheme
Formerly known as the First Home Guarantee Scheme, the Australian Government 5% Deposit Scheme was expanded in October 2025. Under the previous rules, eligibility was dependant on individuals earning no more than $125,000 pa or couples on a combined income of $200,000 pa. There was also a cap on the number of places in the scheme at 35,000. Under the enhanced scheme the cap on income has been removed, and the number of places is now unlimited. There is however a cap on the maximum purchase price which is dependent on your location. In Sydney, the maximum purchase price is $1.5 million.
There are other eligibility criteria, most important among them is you must have saved at least 5% deposit. The idea is that you are able to borrow the remaining 95% from one of the participating lenders and rather than pay mortgage insurance, the Federal Government act as guarantor on the loan. Be careful of people trying to spruik to you that you only need to save 5%. In most instances, your deposit will need to be more than this. The reason is that the biggest upfront cost when purchasing a property is stamp duty. In NSW, the stamp duty on a $1 million property will cost around $40,000. You will need to have saved this in addition to the 5%.
First Home Buyer Assistance Scheme (NSW)
People who qualify under the scheme may be eligible to have the stamp duty reduced or even waived depending on the value of the property they purchase. Participants must be 18 years or older and have never owned property. Stamp duty is waived entirely for new or existing homes purchased for $800,000 or under, or vacant land purchased for $350,000 and below. A discounted rate of stamp duty is paid for purchases between $800,000 and $1 million, or vacant land worth between $350,000 and $450,000. As a mortgage broker located in Sydney, these thresholds do look to be on the low side particularly with the median house price exceeding $1.7 million and $840,000 for units. It could however assist first home buyers who are either currently located, or looking to relocate somewhere on the outskirts or more regionally.
First Home Owner Grant (NSW)
With similar eligibility criteria to the aforementioned stamp duty assistance scheme, the First Home Owner Grant offers $10,000 to participants who buy or build their first new home. If the purchase is a newly built house, townhouse or apartment, the purchase price can not exceed $600,000. If the property was purchased as vacant land, and then subsequently built on, the combined value of the land and the building contract can not exceed $750,000. Similar to the stamp duty scheme, the thresholds appear as though they could do with a review.
Tower Mortgage Broking are a professional Sydney based mortgage broker. For expert home loan advice on how you can get into your first home sooner, contact us today.