First Home Buyer NSW: Financial Support Programs Available in 2025

Being a first home buyer in NSW in 2025 can feel increasingly out of reach as property prices continue to rise. 

With house prices still on the rise, especially in New South Wales regional centres like Newcastle, three key government support programs—the First Home Owner Grant (FHOG), First Home Buyers Assistance Scheme (FHBAS), and Help to Buy shared equity scheme—offer real financial relief. These initiatives ease upfront costs like stamp duty, reduce loan sizes, and also help eligible buyers move in sooner. 

If you're buying in a Newcastle suburb, the team at Mortgage Brokers Newcastle can walk you through these programs step-by-step, making the whole home loan process simpler and even move faster. 

Now, let’s unpack exactly what each of these program offer, and how you can make the most of them.

What Is the First Home Owner Grant (FHOG) in NSW?

The First Home Owner Grant (FHOG) is a one-time government payment designed to help eligible NSW first home buyers purchase or build a brand-new home in New South Wales. Introduced to offset the impact of Goods and Services Tax (GST) on new residential property, the grant is part of a broader effort by the NSW Government to make homeownership more accessible.

As of 2025, the grant offers $10,000 towards the purchase of a new home, which can significantly ease upfront costs like deposits or construction expenses.

The FHOG only applies to brand-new properties that have never been lived in before. It's not available for established homes or investment properties.

What Properties Are Eligible for the FHOG?

Before applying for the grant, it’s essential to check if the property you're interested in meets the criteria. Only specific types of properties qualify for the FHOG in New South Wales.

Here’s a quick breakdown of what’s considered an eligible property under the grant:

• A newly built home that has never been previously sold or lived in.
  
  
• A house-and-land package, where the building contract is signed after 1 July 2000.
  
  
• A vacant block of land where you’ve signed a contract with a builder to construct a new home.
  
  
• A substantially renovated home, meaning most of the original house has been replaced, and no one has lived in it since the renovation.

To qualify, the property must be intended as your primary residence, not as an investment.

Property Value and Income Caps

To ensure support is directed at those who need it most, the FHOG in NSW comes with property value limits. While the grant itself doesn’t have direct income restrictions, the value of the home you're buying or building must fall within certain thresholds:

• For a new home purchase: The total purchase price must not exceed $750,000.
  
  
• For a house-and-land package or new build on vacant land: The combined value of land and construction must also be $750,000 or less.

These caps apply regardless of location, whether you're buying in metro Sydney or in regional areas like Newcastle, Central Coast, or the Mid-North Coast.

Note: If you're applying for other schemes (like Help to Buy or concessional duty), income limits might apply separately, but for the FHOG specifically, there’s no income cap.

Who Qualifies for the FHOG NSW?

Now that you know what types of homes are eligible and the value limits, let’s look at who can actually apply for the First Home Owner Grant in NSW.

To be eligible, applicants must meet all of the following personal and legal criteria:

• At least one applicant must be an Australian citizen or permanent resident
  
  
• All applicants must be 18 years or older
  
  
• You must be a first-time homebuyer—that means you’ve never owned or co-owned a residential property in Australia before, and never claimed an FHOG in any other state or territory
  
  
• The property must be used as your primary residence for at least 12 continuous months within the first 12 months of settlement (or building completion)
  
  
• You must occupy the home within 12 months of settlement or completion
  
  
• Applicants must be applying as individuals, not companies or trusts
  
  
• You must buy or build a home on a separate contract, not as part of a joint ownership with ineligible buyers
  
  

Whether you're a single applicant, a joint applicant, or a legal guardian buying on behalf of a child, your application must reflect your individual circumstances accurately. Importantly, this grant is only available once per transaction and per eligible individual. If you previously co-owned property, you’re generally ineligible—even if you weren’t the primary resident.

How to Apply for NSW First Home Owner Grant

Here's an easy-to-follow guide on how to apply for the First Home Owner Grant in NSW in 2025, including what documents to prepare, timelines, and whether any costs are involved.

Step 1: Confirm You’re Eligible

Before anything else, double-check that you:

• Are an Australian citizen or permanent resident
  
  
• Have never owned a home in Australia before
  
  
• Are buying a new or substantially renovated home, or building a home on vacant land
  
  
• Can live in the home for at least 12 consecutive months within the first 12 months of settlement

Step 2: Gather Your Documents

You’ll need a few things depending on whether you’re buying or building:

For all applicants:

• Proof of identity (e.g. driver’s licence, passport, Medicare card)
  
  
• Evidence of Australian citizenship or permanent residency
  
  
• A signed contract of sale or building contract dated after 1 July 2000
  
  
• Loan approval documents if applying through a bank or mortgage broker
  
  

If you’re building a new home:

• Council-Approved Plans – These are the official building plans stamped by your local council or private certifier. They show what your home will look like, where it will sit on the land, and confirm that your project complies with building regulations.
  
  
• Construction Timeline and Costs – This includes:
  
  
• Estimated start and completion dates of the build
  
  
• A breakdown of costs (often included in your fixed-price building contract or progress payment schedule)

These documents prove to Revenue NSW that you’re building a genuine residential property, within the $750,000 cap, and that it’s a home you intend to live in, not an investment or incomplete project.

Step 3: Choose How You’ll Apply

You have two options:

1. Through Your Mortgage Broker or Lender

This is the easiest and most popular method. Your broker or lender will submit the FHOG application on your behalf during the loan process, usually before settlement.

2. Direct Application via Revenue NSW

If you're not using a lender, apply directly online or by downloading the form:

• 🔗 Apply online or download the form here 

Good news: There are no application fees, whether you go through a broker or submit it yourself. A mortgage broker, such as the team at Mortgage Brokers Newcastle, can help streamline the whole application process for you!

Step 4: Submit at the Right Time

Timing is critical:

• If buying a completed home, apply within 12 months of settlement
  
  
• If building, apply within 12 months of the home being finished
  
  

Lenders usually submit your application before settlement, ensuring the grant is applied to your home loan or deposit in time. Make sure all your documentation is complete and correct—any missing info can delay approval.

Step 5: Processing Time and Grant Payment

Once submitted, here’s what happens:

• Via lender/broker: Payment is processed and applied at settlement to reduce your upfront costs
  
  
• Direct application: Approval typically takes up to 15 business days, and funds are then transferred to your nominated bank account
  
  

If Revenue NSW needs more info, they’ll get in touch. Make sure your contact details are up to date.

Buying in Newcastle?

If you're buying or building in a Newcastle suburb, Mortgage Brokers Newcastle can take care of the whole application process and make sure everything runs smoothly. 

What Is the First Home Buyers Assistance Scheme (FHBAS)?

The First Home Buyers Assistance Scheme (FHBAS) is a stamp duty concession and exemption program offered by the NSW Government. It's specifically designed to reduce the upfront costs of buying a home for eligible first home buyers in NSW.

Unlike the First Home Owner Grant (FHOG), which provides a cash payment, the FHBAS helps by reducing or eliminating stamp duty, a tax usually paid on the transfer of property ownership.

With stamp duty costs often ranging from $20,000 to $35,000 depending on the property purchase price, the FHBAS can be a major cost-saver.

What Does FHBAS Cover?

The FHBAS offers two types of support:

Full Stamp Duty Exemption

If you're buying:

• A new or existing home valued up to $800,000, you'll pay no stamp duty
  
  

Partial Stamp Duty Concession

If you're buying:

• A property between $800,001 and $1,000,000, you’ll receive a discounted rate on stamp duty (calculated on a sliding scale)

For vacant land to build a home on:

• Full exemption applies up to $350,000
  
  
• Concessional rate applies for land valued between $350,001 and $450,000
  
  

💡Use the NSW Stamp Duty Calculator to see your exact savings based on your property value.

Property Price Thresholds for FHBAS

To qualify for the scheme in 2025, your property must fall within the following price caps:

• For new or existing homes:
  
  
• Full exemption applies if the purchase price is up to $800,000
  
  
• A partial concession applies for homes priced between $800,001 and $1,000,000
  
  
• For vacant land:
  
  
• Full exemption applies if the land is valued up to $350,000
  
  
• A partial concession applies for land valued between $350,001 and $450,000
  

These limits apply across all of NSW, including Newcastle, Lake Macquarie, and surrounding regional areas. Unlike some federal schemes, the First Home Buyers Assistance Scheme (FHBAS) does not have income limits, but your property type and purchase price must meet the criteria.

Residency and Occupancy Requirements

To keep the FHBAS benefit, buyers need to meet specific residence requirements:

• The buyer must move into the home within 12 months of the purchase (or construction)
  
  
• They must live in the property for a minimum period of 6 continuous months
  
  
• The home must be used as your primary residence, not an investment property
  
  

Applicants must also be:

• Australian citizens or permanent residents
  
  
• First-time buyers who haven’t owned residential property in Australia before
  
  
• Listed on the contract of sale and loan documents

You’ll also need to provide proof of identity and confirm you’re on the electoral roll.

How to Claim FHBAS at Settlement

To receive your exemption or discount, you don’t claim it after you’ve already paid duty. It’s claimed during the settlement process.

Here’s how it works:

1. When you sign the contract of sale, tell your conveyancer or solicitor you’re eligible for FHBAS
   
   
2. They’ll lodge the relevant form and supporting documents with Revenue NSW as part of your transfer duty paperwork
   
   
3. The stamp duty exemption or reduction is applied before settlement, so you never pay more than you have to
   
   

You can also download the official Application Form for FHBAS here:

🔗 FHBAS Application Form – Revenue NSW

Buying in Newcastle?

Thinking about using the FHBAS in Newcastle or Lake Macquarie? Mortgage Brokers Newcastle can work with your lender and conveyancer to make sure everything’s sorted correctly and on time.

What Is the Help to Buy Scheme for First Home Buyers in NSW?

The Help to Buy scheme is a federal government shared equity initiative that makes buying a home more achievable by letting the government co-purchase a share of your property. This means you need a smaller deposit, take on a smaller mortgage, and avoid Lenders Mortgage Insurance (LMI).

Launched in 2023 and managed by Housing Australia, the scheme is available across all states, including New South Wales. It targets eligible first-home buyers who might otherwise struggle with the upfront costs of homeownership due to high prices or income constraints.

Under Help to Buy in 2025, the government contributes:

• Up to 40% for a new home
  
  
• Up to 30% for an existing home
  
  

In return, the government holds an equity share, which you can buy back over time, or repay when you sell.

What Kind of Homes Are Eligible for Help to Buy?

If you're considering using Help to Buy, it’s important to understand what types of properties qualify under the scheme.

To be eligible, the property must:

• Be a residential home—either new or existing
  
  
• Be used as your primary place of residence
  
  
• Be located in Australia, including all NSW suburbs and regional areas
  
  
• Meet the scheme’s property price caps (see below)
  
  

Help to Buy applies to various property types, including:

• Standalone houses
  
  
• Townhouses
  
  
• Units and apartments
  
  
• House-and-land packages
  
  
• Off-the-plan purchases
  
  
• Vacant land with a building contract (if construction starts within 6 months and finishes within 2 years)

Investment properties, commercial real estate, and properties already owned by another government entity are not eligible.

Deposit Requirements and LMI Exemption

Here’s where Help to Buy really shines:

• You only need a minimum deposit of 2% (compared to 5–20% with standard loans)
  
  
• The government’s contribution reduces your loan amount
  
  
• Lenders Mortgage Insurance (LMI) is waived, which can save you $10,000–$20,000+
  
  

This makes it ideal for single parents, key workers, and first-time homebuyers who have a stable income but not a large deposit saved up.

Keep in mind:

• Your lender must still assess your borrowing capacity, and
  
  
• You’ll need to show genuine savings and meet standard bank loan requirements
  
  

Income and Property Price Limits

To ensure the scheme targets those who need it most, Help to Buy has strict income caps and property price caps based on your location.

Income Limits (Annual taxable income):

• Individuals: Up to $90,000
  
  
• Couples: Up to $120,000
  
  

Income is assessed using your 2023-24 Notice of Assessment (NOA) from the ATO.

Property Price Limits in NSW (as of 2025):

• Sydney Metro – $950,000
  
  
• Newcastle & Lake Macquarie – $700,000
  
  
• Rest of NSW (including Mid-North Coast) – $600,000
  
  

If the contract of sale exceeds the cap for your region, you're not eligible for the Help to Buy scheme—even if you're slightly over the limit.

How First Home Buyers in NSW Can Prepare for Help to Buy

The Help to Buy scheme officially launched in early 2023 and is offering 10,000 places per year Australia-wide in 2025. Spots are filling quickly, so preparation is key.

Here’s how to get ready:

Step 1: Confirm You’re Eligible

Make sure you:

• Are an Australian citizen, 18 years or older
  
  
• Have never owned property before
  
  
• Applying as an individual or couple (not a trust or company)
  
  
• Plan to live in the home as your main residence
  
  
• Can meet the minimum deposit requirement (2%)
  
  
• Fall under the income threshold for your situation

Step 2: Check Property Type and Price

• Ensure your chosen property type is eligible (see above)
  
  
• Stay within your region’s property value cap
  
  
• Make sure it will be your primary residence, not a rental or holiday home

Step 3: Get Pre-Approval from a Participating Lender

Not all banks offer Help to Buy loans. You'll need to apply through a lender partnered with Housing Australia.

Once pre-approved:

• Apply for the scheme through the Help to Buy portal
  
  
• Provide proof of income, identification, and your contract of sale
  
  
• If successful, Housing Australia will issue an equity contribution agreement

Approval timeframes vary, but allow at least 4–6 weeks for full processing, especially during high-demand periods.

Buying in Newcastle or Surrounds?

Help to Buy could be a big win if you're buying in Newcastle, Lake Macquarie or nearby. Mortgage Brokers Newcastle can check if you’re eligible and match you with lenders offering the scheme.

Frequently Asked Questions (FAQs)

What grants are available for first home buyers in NSW?

First-home buyers in NSW can access the First Home Owner Grant (FHOG), the First Home Buyers Assistance Scheme (FHBAS), and the Help to Buy shared equity scheme. Each offers different types of financial support—either as a grant, stamp duty exemption, or a shared ownership option.

What is the first home buyer guarantee scheme in NSW?

This refers to the Home Guarantee Scheme, a federal initiative that allows first-home buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI). It's different from state grants and is available through select lenders.

What is the government assistance for first home buyers in Australia?

Government assistance includes grants, shared equity schemes, and guarantee schemes. Programs vary by state, but nationwide support includes the Help to Buy and Home Guarantee Scheme, while NSW offers its own stamp duty concessions and the FHOG.

Does a first home buyer need to pay stamp duty in NSW?

Not always. With the First Home Buyers Assistance Scheme, you may qualify for a full exemption on properties up to $800,000, or a discounted rate if your home is valued up to $1 million.

What is the $30,000 first home owners grant?

This is not available in NSW. The $30,000 grant exists in Queensland as of 2024–2025, but in NSW, the First Home Owner Grant is $10,000 for eligible new homes or builds.

Can I use more than one scheme at the same time?

Yes. In most cases, eligible buyers can combine FHOG with FHBAS or even use the Help to Buy scheme alongside the stamp duty exemption—if all criteria are met.

What are the available home loans for first-time buyers in Newcastle, NSW?

First-time buyers in Newcastle, NSW, can access a variety of home loans such as low-deposit loans, fixed or variable rate loans, split loans, guarantor loans, and lender-specific first-home loan packages. These products often offer features like reduced fees, cashback offers, or flexible repayment options tailored to new buyers.

Wrapping It All Up

Buying your first home in NSW in 2025 might feel like there’s a lot to keep track of, but with the right support and clear information, it’s absolutely doable!

From government grants to stamp duty savings and low-deposit loan options, there are real opportunities to ease the pressure, especially if you’re looking in the Newcastle area or other parts of regional NSW.

If you’re unsure where to begin or just want a second opinion on your next step, the team at Mortgage Brokers Newcastle offers a free consultation to help you make sense of it all. Give them a call on 02 4920 6468, ask your questions, and get expert guidance tailored to your situation today.