For most NSW first-home buyers, the hard part is not the monthly repayment. It is the cash you need before settlement: the deposit, the transfer duty and lenders mortgage insurance. Get those three right and you can hold onto tens of thousands of dollars.
This guide walks through the levers available in 2026: NSW stamp duty relief, the $10,000 First Home Owner Grant, and the federal low-deposit and shared-equity schemes. You will see how each one works, how they stack, and how to plan around the thresholds.
Why upfront costs are the real hurdle in NSW
Deposit size, transfer duty and lenders mortgage insurance sit between you and the keys. In NSW, duty is often the single largest of the three. A typical Sydney house buyer faced about $68,000 in stamp duty in 2026, on a median house price around $1.565 million. That is roughly 13 times the duty a 1990 buyer paid on a median-priced home.
The relief on offer in 2026 can remove tens of thousands of that figure at settlement, if you qualify. The rest of this guide shows you where to aim.
The NSW stamp duty exemption and concessional rate
The First Home Buyers Assistance Scheme gives first-home buyers a full transfer duty exemption on new or existing homes up to $800,000. Between $800,000 and $1,000,000, a concessional rate applies instead of the full duty. Vacant land has its own bands: a full exemption up to $350,000 and a concessional rate from $350,000 to $450,000.
To qualify you need to be 18 or over, an Australian citizen or permanent resident, buying your first home, and planning to live in it for 12 months.
The 2026-27 concessional duty is easy to price. On a home worth $850,000 you would pay $9,796.75. At $900,000 it is $19,593.50, at $950,000 it is $29,390.25, and at $990,000 it is $37,227.65.
The full exemption is where the larger saving sits. You save about $20,530 at $700,000, $25,530 at $750,000 and $30,529 at $800,000.
Here is the practical point. Duty shifts from a full exemption at or below $800,000 to a concessional rate just above it, so two similar homes on either side of the threshold can carry very different upfront bills. At $800,000 the duty is zero, while at $850,000 the concessional duty is $9,796.75. Align your purchase price with the bands and you keep that money in your deposit buffer and your post-settlement flexibility intact.
The $10,000 First Home Owner Grant for new homes
The First Home Owner Grant (New Homes) pays $10,000 when you buy or build a new or substantially renovated home.
The caps matter. A new home purchase must come in at $600,000 or less, while a house-and-land package can run to $750,000 combined. The grant is not means-tested, so your income does not change your eligibility.
You can receive the grant on top of your stamp duty exemption or concession. The residency rule is simple: move in within 12 months and live there for 12 continuous months. Apply through Revenue NSW or an approved lender, and the grant is usually paid to the lender at settlement.
Low-deposit pathways: the 5% Deposit Scheme and Help to Buy
The federal 5% Deposit Scheme changed in October 2025. From 1 October 2025 it is open to all first-home buyers with a 5% deposit, uncapped places, no income caps and higher price caps.
In NSW the caps are $1,500,000 in capital-city and regional-centre areas, including the Central Coast, Coffs Harbour and Grafton, Illawarra, Mid North Coast, Richmond-Tweed, and Newcastle and Lake Macquarie, and $800,000 in other NSW areas.
The government guarantees the loan to 95% of the property’s value, which removes lenders mortgage insurance. Applicants typically save more than $15,000 on the median home. More than 320,000 homeowners have used the scheme since 2020, with more than $2.5 billion saved in LMI by late July 2026.
Help to Buy works differently. It is a shared-equity scheme where you need a 2% deposit and the government contributes up to 30% of the price for an existing home, or up to 40% for a new home, across 10,000 places a year.
From 1 July 2026 the income limits are $103,000 for singles and $165,000 for joint and single-parent applicants. Take-up has been quick: more than 7,200 applications and 4,800 already settled or matched to a home, with a median deposit of $30,000 and 86% first-home buyers. Participating lenders include Commonwealth Bank, Bank Australia and Teachers Mutual Bank.
You own the home, and you can buy back the government’s equity share over time. The amount is based on the property’s value at the time you make the payment.
Stacking the benefits and building the deposit
The best part is that these benefits stack. You can combine the NSW stamp duty exemption or concession with the $10,000 grant and a federal low-deposit or shared-equity scheme. Help to Buy specifically lets you keep stamp duty concessions, grants and other exemptions.
Add the First Home Super Saver Scheme as a deposit tool. You can contribute up to $15,000 per financial year, to a $50,000 total cap per person, and withdraw it with earnings toward a first home.
Budget the remaining costs too. Conveyancing and legal fees typically run $1,200 to $2,500.
The sensible order is straightforward. Check your eligibility through the official tools, secure conditional approval where a scheme needs it, then align the purchase price with the thresholds and caps that suit you.
Conclusion
Upfront costs do not have to be the thing that stops you. When the stamp duty exemption, the $10,000 grant and a low-deposit or shared-equity scheme are used together, the cash you need at settlement can fall sharply: up to $30,529 in duty saved on an $800,000 home, a $10,000 grant on a new home, and more than $15,000 in LMI avoided through a low-deposit scheme.
Check the stamp duty thresholds before you settle on a price. Layer the grant where a new home fits. And weigh a low-deposit or shared-equity scheme to shrink the deposit itself. Then confirm your own position with the official eligibility tools and a lender or conveyancer.
Frequently Asked Questions
How much stamp duty do first home buyers pay in NSW in 2026?
Under the First Home Buyers Assistance Scheme, first-home buyers pay no transfer duty on new or existing homes up to $800,000. From $800,000 to $1,000,000 a concessional rate applies, ranging from $9,796.75 at $850,000 up to $37,227.65 at $990,000. Outside the scheme, a typical Sydney house buyer faces about $68,000 in duty.
What is the NSW First Home Buyers Assistance Scheme threshold for 2026?
Full exemption applies up to $800,000 for homes and $350,000 for vacant land. Concessional rates run to $1,000,000 for homes and $450,000 for land. Eligibility requires being 18 or over, an Australian citizen or permanent resident, a first-home purchaser and planning to live in the home for 12 months.
Is the $10,000 First Home Owner Grant means tested?
No. The NSW First Home Owner Grant (New Homes) has no income test, so your earnings do not change your eligibility. The grant pays $10,000 when you buy or build a new or substantially renovated home, with purchase caps of $600,000 for a new home and $750,000 combined for a house-and-land package. You must move in within 12 months and live there for 12 continuous months. It can be paid in addition to your stamp duty exemption or concession, usually to your lender at settlement.
Can I get both the stamp duty exemption and the First Home Owner Grant?
Yes. The $10,000 First Home Owner Grant (New Homes) is paid in addition to the stamp duty exemption or concession, so a qualifying buyer of a new home under $600,000 can receive the full duty exemption and the grant at settlement. The same stacking applies to house-and-land packages up to $750,000 combined. You still need to meet each scheme’s own rules, including being a first-home buyer and planning to live in the home for 12 months.
How much deposit do I need for the 5% Deposit Scheme in NSW?
From 1 October 2025, the federal scheme lets all first-home buyers purchase with a 5% deposit, with uncapped places, income caps removed and the government guaranteeing the loan to 95% LVR so lenders mortgage insurance is waived. Applicants typically save more than $15,000 in LMI on the median home.
What is Help to Buy and how does it work for NSW buyers?
Help to Buy is a federal shared-equity scheme with a 2% minimum deposit. The government contributes up to 30% of the price for existing homes and up to 40% for new homes. You own the home and can buy back the government’s equity share over time, based on the property’s value at the time of payment.
What are the Help to Buy income limits in 2026?
From 1 July 2026 the taxable income limits are $103,000 for single applicants and $165,000 for joint and single-parent applicants, based on the previous financial year’s notice of assessment. The scheme offers 10,000 places each year nationally. Take-up since the December 2025 launch has been strong, with more than 7,200 applications and 4,800 already settled or matched to a home, and a median deposit of $30,000.
What are the 5% Deposit Scheme price caps in NSW?
NSW caps are $1,500,000 in capital-city and regional-centre areas, including the Central Coast, Coffs Harbour and Grafton, Illawarra, Mid North Coast, Richmond-Tweed, and Newcastle and Lake Macquarie, and $800,000 in other NSW areas. From 1 October 2025 the scheme is open to all first-home buyers with a 5% deposit, with uncapped places and no income caps. The government guarantees the loan to 95% LVR, which removes lenders mortgage insurance.
Can I use the First Home Super Saver Scheme with the First Home Owner Grant?
Yes. The First Home Super Saver Scheme lets you withdraw voluntary super contributions of up to $15,000 per financial year, to a $50,000 total cap per person, with earnings, toward a first home. It is a separate deposit-saving tool, so it can be used alongside the $10,000 First Home Owner Grant and your NSW stamp duty relief. Using all three together can meaningfully reduce the cash you need to bring to settlement.
How do I apply for the NSW first home buyer stamp duty exemption?
Apply through Revenue NSW with proof of identity and your property purchase documents, either directly or through your conveyancer or an approved lender, around the time of purchase. Before signing, the official Home Buyer Assistance Finder can guide you through a series of questions about your situation and the home you want to buy, then provide an indication of your eligibility and instructions on how to apply. It covers both the stamp duty exemption and the $10,000 grant.
Do shared equity schemes affect how much home I can buy?
Yes. Help to Buy can increase your buying power by bridging the gap between your deposit, what you can borrow and the price of a home that suits you, while removing lenders mortgage insurance. With a 2% minimum deposit and the government contributing up to 30% of the price for an existing home, or 40% for a new home, buyers with solid incomes but limited savings can buy sooner than they otherwise could.