Complete Guide for First Home Buyer Benefits

Purchasing your first home is a major life achievement—but in today’s competitive market, it can seem daunting. With the Labor Party’s victory in the 2025 federal and NSW state elections, new and enhanced policies have been introduced to make homeownership more attainable for first-time buyers. These initiatives aim to reduce financial barriers and improve access to housing across New South Wales.

Whether you're planning to buy an existing property or build a new one, here’s a breakdown of the latest benefits and schemes available to first home buyers in NSW.

Federal Government Plan (Details to be released later this year)

1. Help to Buy Scheme (Shared Equity Program)

This initiative allows eligible buyers to purchase a home alongside the federal government, reducing the required mortgage amount.

Government contribution:

Up to 40% for new homes

Up to 30% for existing homes

Minimum deposit: Just 2%

Income limits:

$100,000 for individuals

$160,000 for couples or single parents

Key benefits:

No Lenders Mortgage Insurance (LMI) required

Updated regional price caps (e.g., $1.3 million for Sydney)

Buyers can gradually repay the government’s equity stake or settle it when selling the property.

2. First Home Guarantee Scheme (Expanded in 2025)

This scheme has been significantly broadened to help more Australians enter the market.

Buy with just a 5% deposit

No LMI required

No income or property price limits under the new model

Expanded eligibility, including friends and family purchasing together

This change is particularly beneficial in high-cost areas like Sydney, where previous price caps excluded many buyers.

3. 100,000 New Affordable Homes for First Home Buyers

The federal government is investing $10 billion to construct 100,000 homes exclusively for first home buyers by 2033.

Key features:

Focus on growth areas to reduce investor competition

Aims to boost housing supply and curb price inflation

Provides a pipeline of affordable homes for future buyers

NSW State Government Initiatives

1. First Home Buyers Assistance Scheme (FHBAS)

This program offers substantial stamp duty savings for eligible buyers.

No stamp duty on homes up to $800,000

Concessional rates for homes between $800,000–$1 million

Savings of up to $30,529 per buyer

Over 50,000 buyers have already benefited under the current NSW Labor government.

2. First Home Owner Grant (New Homes Only)

If you're buying or building a brand-new home, this grant provides financial support.

$10,000 grant for eligible purchases

Eligibility criteria:

New homes valued up to $600,000

House and land packages up to $750,000

Must live in the home as your primary residence for at least 12 months

This initiative supports both first home buyers and the construction industry.

Final Thoughts

With a combination of federal and state support, 2025 offers some of the best opportunities for first home buyers in NSW in years. From shared equity schemes and low-deposit loans to stamp duty relief and new home grants, there are multiple pathways to homeownership.

If you're considering buying your first home, now is the time to:

Check your eligibility for available schemes

Consult a mortgage broker

Compare benefits to maximise savings

Take advantage of these programs and make your dream of homeownership a reality!