Do first home buyers pay stamp duty in NSW?

Many do not. Under the First Home Buyers Assistance Scheme, eligible buyers pay no transfer duty (stamp duty) on a new or existing home worth up to $800,000, with a reduced rate up to $1 million, for contracts from 1 July 2023. You must meet the residence and ownership rules.

Who can get the $10,000 First Home Owner Grant in NSW?

The $10,000 grant is for eligible first home buyers purchasing or building a new or substantially renovated home. The home must not exceed $600,000, or $750,000 combined for land plus a building contract. It is not means-tested and not available for established homes.

Can I buy my first home in NSW with a 5% deposit?

Yes, if you qualify for the Australian Government 5% Deposit Scheme. It allows a minimum 5% deposit with no lenders mortgage insurance and no income cap. You must be an owner-occupier, stay under the price cap and have pre-approval from a participating lender.

What is the price cap for the 5% Deposit Scheme in NSW?

The cap is $1,500,000 in the capital city and regional centres, including Central Coast, Illawarra, Newcastle and Lake Macquarie, and $800,000 in other NSW areas. Both the purchase price and the lender's valuation must stay at or below the cap.

Is First Home Buyer Choice still available in NSW?

No. First Home Buyer Choice, the option to pay an annual property tax instead of upfront duty, closed to new applications on 1 July 2023. Older guides that still mention it are out of date. Check Revenue NSW for the schemes that apply now.

First Home Buyer NSW Guide: From Deposit to Settlement

A first home buyer in NSW can often buy with a 5% deposit under the Australian Government scheme, skip transfer duty on homes up to $800,000 and claim a $10,000 grant on some new homes. Confirm eligibility on the official pages, then budget for the deposit, buying costs and a buffer.

By Scott Levoune, founder of Wealth Through Property · Published 21 Jul 2026 · Updated 30 Oct 2026

Key Takeaway

First home buyers in NSW may be eligible for transfer-duty assistance, a grant for certain new homes or an Australian Government deposit initiative. Each program has its own eligibility, property-value and residence requirements. Confirm the current rules before relying on any benefit, then assess the property against your household budget, buying brief and due-diligence findings.

Before You Search

Prepare the financial and professional support around the purchase before attending serious inspections. In NSW that means knowing your deposit, your borrowing limit, the duty and legal costs on top, and who will act for you before you bid on anything.

1 Confirm the funds: Separate the deposit from transfer duty, reports, legal costs, moving expenses and your post-settlement buffer.

2 Check assistance: Review the current eligibility rules for NSW and Australian Government first-home-buyer programs.

3 Build the team: Identify your lender or broker, solicitor or conveyancer and relevant property professionals.

Your First-Home Decision Check

Before making an offer, confirm that the property works financially, practically and legally—not just emotionally. Run the numbers at current rates, check daily-life fit, and have the contract and reports reviewed so surprises appear before you are committed. Do this for every property, not just your favourite.

1 Can you own it comfortably? Include repayments, rates, insurance, strata where relevant, maintenance and a financial buffer.

2 Does it suit daily life? Recheck travel, layout, parking, storage, services and the compromises you would be accepting.

3 Are the risks understood? Review the contract, professional reports, comparable sales and any unresolved questions before committing.

Before You Make an Offer

Complete the final checks while you can still change the price, conditions or decision to proceed. In NSW, cooling-off is five business days after exchange and costs the buyer 0.25% of the price if used, so finish your checking before you sign. There is no cooling-off at auction.

1 Confirm the finance position: Check that the pre-approval is current, the required funds remain available and the property appears acceptable under lender policy.

2 Review the contract: Ask your solicitor or conveyancer to explain the title, inclusions, settlement terms and any conditions or risks.

3 Set the walk-away price: Base the limit on comparable sales, required work, buying costs and the amount your household can comfortably manage.

What help can a first home buyer get in NSW in 2026?

NSW first home buyers can claim three main forms of help: a full transfer duty exemption on homes up to $800,000 (a reduced rate up to $1 million), a $10,000 grant on some new homes, and the Australian Government 5% Deposit Scheme. Each has its own eligibility rules, so check the official pages before relying on one.

Help	What you get	Main limits
First Home Buyers Assistance Scheme	Full transfer duty exemption on a new or existing home worth up to $800,000, and a reduced rate from $800,000 to under $1 million. Vacant land is exempt up to $350,000 and reduced to under $450,000.	For contracts from 1 July 2023 you must move in within 12 months of settlement and live there for at least 12 continuous months. At least one buyer must be an Australian citizen or permanent resident, and buyers must not have owned residential property in Australia.
First Home Owner (New Homes) Grant	$10,000 for a newly built or substantially renovated home. It is not means-tested.	The home must not exceed $600,000, or $750,000 combined for land plus a building contract. Not available for established homes. Same 12-month move-in and 12-month residence rule for contracts from 1 July 2023.
Australian Government 5% Deposit Scheme	Buy with a minimum 5% deposit and no lenders mortgage insurance. There is no income cap and no waiting list.	For owner-occupiers, with a principal and interest loan up to 30 years. The price cap is $1,500,000 in the capital city and regional centres (Central Coast, Coffs Harbour-Grafton, Illawarra, Mid North Coast, Richmond-Tweed, Newcastle and Lake Macquarie) and $800,000 in other NSW areas.

The NSW First Home Buyer Choice option, which let buyers pay an annual property tax instead of upfront duty, closed to new applications on 1 July 2023. Ignore older guides that still list it. The First Home Super Saver Scheme can also help you save a deposit through super; check the ATO page for the current limits before you rely on it.

How much deposit does a first home buyer need in NSW?

The Australian Government scheme lets eligible first home buyers buy with a minimum 5% deposit and no lenders mortgage insurance, while many lenders usually ask for 20% to avoid that insurance on a standard loan. On an $800,000 purchase, 5% is $40,000 before duty, legal and other buying costs.

A smaller deposit means a bigger loan, higher repayments and less room if rates rise. Ask a lender or mortgage broker to show repayments at your target price and at a higher rate before you commit to a low-deposit purchase.

1Pre-approval is not final approval: The lender still values the property you choose, and a low valuation can leave you short. See our guide to bank valuations and over-offering.

2Keep the 90-day window in mind: Under the 5% scheme you have 90 days after pre-approval to find a home and sign a contract of sale, so line up your solicitor or conveyancer first.

3Keep a buffer after settlement: Repairs, rates, insurance and moving costs arrive straight after you get the keys.

What does buying a first home in NSW cost on top of the deposit?

Budget for more than the deposit. Typical extra costs include transfer duty (which may be exempt), legal or conveyancing fees, building and pest and other reports, lender and valuation fees, insurance, moving costs and a cash buffer. Get written quotes for each item so your total cash need is a real number, not a guess.

1Transfer duty: Check whether you qualify for the full exemption or the reduced rate using the Revenue NSW calculator before you set your price limit.

2Contract and reports: Pay for a solicitor or conveyancer to review the contract, and order a building and pest inspection. Read why an independent building and pest inspection matters.

3Ongoing ownership costs: Council and water rates, insurance, strata levies for units, maintenance and repayments all continue after settlement.

4Interest rate risk: The RBA cash rate target is 4.60% from 30 September 2026. Lenders also test whether you could still afford repayments at a rate 3 percentage points above the loan rate, and APRA kept that buffer in its 28 May 2026 release.

What are the steps from deposit to settlement for a first home buyer in NSW?

The usual order is: set a budget and get pre-approval, check which help you qualify for, find and inspect properties, have the contract reviewed, make an offer, exchange contracts, pay the deposit, allow for cooling-off, then settle and collect the keys. Settlement is when ownership and the loan complete.

Set your budget and get pre-approval. Work back from what repayments you can carry, not just the maximum loan.
Confirm the help you qualify for. Use the table above and the official pages.
Search and inspect. Compare recent sales, see several properties and read how many inspections to do before buying.
Get the contract reviewed. Your solicitor or conveyancer should explain the title, inclusions, special conditions and settlement terms before you sign.
Make your offer. Set a walk-away price first. Our guide on what to expect when making an offer and whether an agent can withhold offers covers the negotiation.
Exchange contracts and pay the deposit. In NSW, cooling-off is five business days after exchange and costs the buyer 0.25% of the price if used. There is no cooling-off at auction.
Do a pre-settlement inspection. Check the property is in the agreed condition before settlement day.
Settle. Your lender and conveyancer complete the transfer and you collect the keys.

Should a first home buyer in NSW use a buyers agent?

A buyers agent can help if you are short on time, new to negotiating or buying outside your home area, because they search, inspect, negotiate and coordinate contract checks on your behalf. You still need a solicitor or conveyancer and a lender. Compare fees and scope before you sign.

A buyers agent works for you rather than the seller. They suit buyers who find the process stressful or competitive. If you want to do much of the work yourself, a mentor or a well-run checklist may be enough. Our Home Buyers Agent page sets out how that service works and what it costs, and our Property Mentoring page covers the guided do-it-yourself route.

Facts checked on 28 October 2026

Each figure below was read from the official source on 28 October 2026. Rules change, so confirm them again before you sign a contract.

Revenue NSW (page dated 15 September 2026): As checked on 28 Oct 2026, the full transfer duty exemption is up to $800,000 and a reduced rate below $1 million for contracts from 1 July 2023.
Revenue NSW (page dated 30 January 2026): $10,000 First Home Owner Grant, with price caps of $600,000 or $750,000 combined for land plus build.
firsthomebuyers.gov.au (2026): minimum 5% deposit, no income cap, $1,500,000 price cap in the capital city and regional centres and $800,000 elsewhere in NSW.
Reserve Bank of Australia: As checked on 28 Oct 2026, the RBA cash rate target is 4.60% (from 30 September 2026).
APRA (media release, 28 May 2026): As checked on 28 Oct 2026, the mortgage serviceability buffer stays at 3 percentage points, and banks can lend up to 20% of new loans at a debt-to-income ratio of six or more.
NSW Government: cooling-off is five business days after exchange at 0.25% of the price, and there is none at auction.

This is general information, not financial, legal or tax advice. Speak to a licensed professional about your situation.