Buying your first home in New South Wales is a huge step toward financial security and independence. But with rising property prices and a high cost of living, it can be difficult to pull together a deposit. Fortunately, there are government programs designed to support first home buyers in NSW, as well as smarter strategies to help you save faster. This guide explores how you can take advantage of these opportunities to achieve home ownership sooner.

There are several major schemes that make it easier for first-time buyers to get into the property market:

This NSW-based scheme offers a full exemption from transfer duty (commonly known as stamp duty) on homes up to $800,000, and a concessional rate for homes valued between $800,000 and $1,000,000.

Example: Emma and Tom, a young couple purchasing a $780,000 new apartment in Parramatta, received a full exemption from stamp duty, saving them over $30,000. This dramatically reduced the cash they needed up front.

If you’re buying or building a new home under $600,000 (or a house and land package under $750,000), you may be eligible for a $10,000 one-off grant. This applies to brand-new homes that have never been lived in.

• First Home Guarantee (FHBG): Allows eligible first home buyers to purchase with just a 5% deposit and no Lenders Mortgage Insurance (LMI).
• Family Home Guarantee: Designed for single parents with dependants, allowing them to buy with a 2% deposit and no LMI.

Example: Lucas, a 29-year-old teacher, purchased a $650,000 townhouse in Campbelltown with only $32,500 as deposit by using the FHBG. He avoided an estimated $18,000 in LMI charges.

• Must be an Australian citizen or permanent resident aged 18 or older
• Individual income must be under $125,000, or $200,000 combined for joint applicants
• Applicants must be first home buyers or not have owned property in the last 10 years
• The purchased home must be intended as a principal place of residence
• A minimum 5% deposit is required
• Loan must be principal and interest with a term of 30 years or less

The FHSSS lets you make voluntary contributions to your super fund to build your deposit faster. Here’s how it works:

• You can contribute up to $15,000 per financial year, and a total of $50,000 overall.
• These contributions are taxed at just 15% (instead of your marginal tax rate).
• You can withdraw these savings later to use as a deposit on your first home.

Example: Jay, a registered nurse, earns $75,000 annually. By salary sacrificing $10,000 per year into super for 2 years, he accumulated over $17,000 in usable deposit (after tax and earnings). Compared to saving post-tax, he saved around $2,000 more thanks to the lower tax rate and compound growth.

Set up voluntary contributions (either salary sacrifice or after-tax).

Apply to the ATO via your MyGov account to determine your maximum releasable amount.

Use the funds toward your home deposit within 12 months of release.

• Automate Savings: Use tools like Up Bank’s auto-save or Raiz micro-investing to round up every purchase and send savings automatically to a separate account.
• Budget Smart: Eliminate unused subscriptions, cook more meals at home, and cap spending on non-essentials. Every dollar helps.
• Side Hustles: Many buyers boost their savings through freelancing, tutoring, selling handmade items online, or driving for rideshare services.

Example: Anita, a marketing assistant, made an extra $500/month tutoring high school students online. Over a year, she saved $6,000 — equivalent to 1% deposit on a $600,000 home.

You can often combine these government supports. For example:

• Use FHSSS to build your deposit.
• Apply for the FHOG if buying a new home.
• Apply for FHBG to buy with a 5% deposit.
• Claim stamp duty exemption via FHBAS.

Case Study: Ahmed, a 33-year-old IT consultant, used $25,000 in FHSSS savings, accessed the $10,000 FHOG, and used the First Home Guarantee to buy a $700,000 unit in Westmead. His total out-of-pocket deposit was under $40,000 and he avoided paying $27,000 in stamp duty.

Buying your first home may seem out of reach, but with the right knowledge and strategy, it’s more achievable than you think. By tapping into the available grants, using superannuation wisely, and budgeting smartly, you can enter the market faster and with more financial security.

If you’re feeling overwhelmed or unsure where to begin, you’re not alone—and you don’t have to do it alone either. Our team is here to guide and support you at every step of your home buying journey. From understanding your eligibility to securing pre-approval and finding the right lender, we’re by your side to make your first home dream a reality.

Reach out today for a friendly chat and let’s get started together.

Check NSW First Home Buyer Assistance Scheme https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer/assistance-scheme

First Home Super Saver Scheme (ATO) https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/first-home-super-saver-scheme

Stay tuned for Blog 2: “Low Deposit? No Problem – What to Do If You Can’t Save 20%”