First Home Buyers in NSW - Government Assistance Available in 2025

With rising property prices across Australia, it is more important than ever to understand the support available to you as a first home buyer.

14th February 2025 | Luisa Raiti

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Buying your first home is an exciting journey, but it can also feel overwhelming. With rising property prices across Australia, it is more important than ever to understand the support available to you as a first home buyer. Thankfully, both federal and state governments offer a range of concessions to help you get onto the property ladder sooner.
In this article we explore the key concessions available in 2025.

Home Guarantee Scheme (HGS)

The Home Guarantee Scheme is designed to help eligible Australians buy or build their first home with a low deposit and no Lenders Mortgage Insurance (LMI). There are three options available:

First Home Guarantee (FHBG)

This scheme assists eligible home buyers to purchase a property with a deposit as low as 5% and avoid paying LMI.
Eligibility

To be eligible applicants must be:

  • An Australian citizen or permanent resident over the age of aged 18
  • Earning an income below $125,000 (single) or $200,000 (couple)
  • First home buyer or previous home buyer who hasn’t owned a home in the past 10 years
  • Intending to live in the purchased property.

Property Types and Price Caps

Home buyers can purchase a residential property including:

  • an existing house, townhouse or apartment
  • a house & land package
  • land and a separate contract to build a home
  • an off-the-plan apartment or townhouse.

A price cap is applicable and varies between states. In NSW the price cap is $900,000. This means the purchase price must be below this amount to be eligible for the scheme.

Regional First Home Buyer Guarantee (RFHBG)

This scheme supports buyers in regional areas with a 5% deposit to avoid paying LMI.

The eligibility criteria, property types, and price cap in NSW are the same as that of the FHBG scheme.

Family Home Guarantee (FHG)

This scheme supports single parents with at least one dependent buy a property with as little as a 2% deposit, avoiding LMI.
FHG applicants can be either first home buyers or previous homeowners.
Other eligibility criteria, property types and price cap are the same as that of the FHBG scheme.

First Home Buyer Assistance Scheme (FHBAS)

As a first home buyer in NSW, you may be eligible for a full exemption or a reduced rate of transfer duty (also known as stamp duty) under the First Home Buyers Assistance Scheme.

Eligibility

To be eligible the following criteria must be met:

  • the purchase must be for a new or existing home, or vacant land in NSW
  • the property value must be within the threshold amounts
  • you must never have owned or co-owned residential property in Australia
  • you must move into the home within 12 months after settlement and live in the property as your principal place of residence for at least 12 continuous months.

Property Value and Thresholds

The FHBAS thresholds in NSW are:

  • For new and existing properties the threshold is $800,000. If the property is below this value, you can apply for a full exemption from transfer duty. For properties valued above $800,000 and under $1,000,000 you can apply for a concessional transfer duty rate.
  • For vacant land the threshold is $350,000. For properties under this value you can apply for a full exemption from transfer duty. For properties valued above $350,000 and under $450,000 you can apply for a concessional transfer duty rate.

First Home Owner Grant (New Homes)

The First Home Owner Grant provides a one-off payment of $10,000 for the purchase of newly built or substantially renovated homes.

Your first new home can be a house, townhouse, apartment or unit that is newly built, purchased off the plan or substantially renovated.

Eligibility criteria include:

  • At least one applicant must be an Australian citizen or permanent resident
  • Each applicant must be over the age of 18
  • Each applicant must not have previously owned a home before 1 July 2000
  • You must occupy the home as your principal place of residence within 12 months of the construction or purchase and the minimum period of occupancy is 12 continuous months.

The applicable thresholds are:

  • For the purchase of a newly built property the purchase price must not exceed $600,000
  • For the purchase of a vacant land with a build contract, the total value of the land and house must not exceed $750,000
  • For the purchase of a home which has been substantially renovated by the seller, the purchase price must not exceed $600,000.

First home super saver scheme (FHSS)

The First Home Super Saver scheme allows you to make personal voluntary contributions into your super fund to help you save for your first home. The scheme can be used to purchase or build residential property in Australia.

The amount you can access under FHSS is limited to $15,000 of your voluntary contributions from any one financial year, up to a total of $50,000 across multiple years.

To use this scheme, you must satisfy the following conditions:

  • You are over 18 years
  • You are a first home buyer, having never owned property in Australia
  • Your name must be on the title of the property you buy
  • You must live in the property as your first home.

Navigating these options can be complex, but you don’t have to do it alone. At Raiti Finance, we enjoy helping first home buyers find the right home loan and access all the grants and concessions available to them.

If you are thinking about buying your first home in 2025, contact us today. We can guide you through the entire process, ensuring you make the most of every opportunity.


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