The Support Available to You Comes in Five Layers
Most first home buyers know about one or two schemes. In reality there are five separate forms of government support, and they are run by two different levels of government. They are:
- First Home Owner Grant (FHOG): a $10,000 cash grant from the NSW Government for new homes.
- First Home Buyers Assistance Scheme (FHBAS): a NSW stamp duty exemption or concession on new and existing homes.
- First Home Guarantee: a federal scheme that lets you buy with a 5 per cent deposit and no LMI.
- Help to Buy: a federal shared equity scheme where the government takes a stake to reduce your loan.
- First Home Super Saver Scheme (FHSS): a federal scheme that lets you save part of your deposit inside super at a lower tax rate.
Let us take each one in turn, then look at how they stack.
1. First Home Owner Grant: $10,000 for a new home
The First Home Owner Grant is a one-off, tax-free payment of $10,000 from the NSW Government. The catch is that it only applies to new homes, not established ones. That is the single most misunderstood point about this grant, and it catches a lot of buyers out.
You may be eligible if you are buying or building a brand-new home that has never been lived in. This includes a newly built house, townhouse, apartment or unit, an off-the-plan purchase, or a substantially renovated home. It does not apply to a standard established home.
Property value limits:
- A newly built home must not exceed $600,000.
- A house and land package (combined land value plus building contract) must not exceed $750,000.
There is no income test for the FHOG. The grant is usually paid at settlement for a completed home, or at the first progress payment if you are building. Because much of the new stock in Newcastle and the Hunter sits under the $600,000 threshold, particularly townhouses, units and house and land packages in the growth corridors, this grant is genuinely within reach for local buyers going the new-build route.
2. Stamp duty exemption: often your biggest saving
The First Home Buyers Assistance Scheme is where most first home buyers in Newcastle get their largest single saving, and unlike the FHOG it applies to both new and existing homes.
Here is how it works:
- Homes valued up to $800,000: full exemption, meaning $0 stamp duty.
- Homes valued between $800,000 and $1,000,000: a reduced rate on a sliding scale. The closer to $800,000, the bigger the discount.
- Vacant land up to $350,000: full exemption. Land between $350,000 and $450,000: a reduced rate.
To put that in real money, stamp duty on an $800,000 home would normally be over $30,000. For an eligible first home buyer buying under that threshold, it is nothing. That is money that stays in your pocket and can go straight towards your deposit or your other upfront costs.
What the stamp duty saving looks like
Figures are indicative and rounded. Your conveyancer or broker can confirm the exact amount for your purchase.
3. First Home Guarantee: a 5 per cent deposit with no LMI
The First Home Guarantee is a federal scheme that lets eligible first home buyers purchase with a deposit as low as 5 per cent, with no Lenders Mortgage Insurance. Normally, borrowing more than 80 per cent of a property’s value means paying LMI, which can add $15,000 to $40,000 to your costs. Under this scheme the government guarantees the gap, so the lender treats your loan as though you had a larger deposit and no LMI is charged.
From 1 October 2025 the scheme was expanded significantly. There are now no income caps and no limit on the number of places, which means far more first home buyers qualify than in previous years.
A related scheme, the Family Home Guarantee, allows eligible single parents or single legal guardians with a dependent child to buy with as little as a 2 per cent deposit.
4. Help to Buy: shared equity, launched December 2025
Help to Buy is a federal shared equity scheme that launched on 5 December 2025. The government contributes part of the purchase price and takes an ownership share in your home, which reduces the size of your loan and your repayments. You can buy out the government’s share over time.
It can be a genuine help for buyers who are stretched, but there is an important trade-off: because the government owns a share, if your home rises in value you will need to repay more to buy that share back. You also cannot use Help to Buy and the First Home Guarantee at the same time, so this is a case of choosing the option that suits your situation rather than stacking both. This is exactly the kind of decision worth talking through before you commit.
5. First Home Super Saver Scheme: save your deposit inside super
The First Home Super Saver Scheme lets you make voluntary contributions into your superannuation and later withdraw them, plus associated earnings, to put towards your first home deposit. Because contributions are generally taxed at a lower rate inside super than your normal income, it can be a tax-effective way to build part of your deposit faster. It works alongside the other schemes rather than instead of them.
Can you stack these grants together?
In many cases, yes, and this is where the real value is. A common combination for an eligible first home buyer in NSW is the First Home Guarantee (for the low deposit and no LMI) alongside the FHBAS stamp duty exemption, and the FHOG as well if the home is new and under $600,000. The First Home Super Saver Scheme can sit alongside all of these.
Worked example: an eligible buyer purchasing a $600,000 new home
$10,000 First Home Owner Grant (new home under $600,000)
$0 stamp duty under the FHBAS (under the $800,000 threshold)
5 per cent deposit of around $30,000 with no LMI through the First Home Guarantee
That is well over $30,000 in combined support, plus a far smaller deposit than the traditional 20 per cent.
The important caution is that not every combination stacks, and each scheme has its own eligibility rules. Help to Buy and the First Home Guarantee cannot be used together, for instance. Getting the structure right matters, because one wrong assumption about a price cap or a partner’s property history can cost you access to thousands of dollars.
Common mistakes that cost people their grants
- The partner rule. If your spouse or partner has ever owned property in Australia, even if they are not on the title, it can make you both ineligible for the FHOG and the stamp duty exemption. Eligibility is assessed as a couple.
- Assuming the FHOG covers existing homes. It does not. The $10,000 grant is strictly for new or substantially renovated homes.
- Missing the residency requirement. For most schemes you must move in within 12 months and live there for at least 12 continuous months. Failing this can mean repaying the grant.
- Going a dollar over a price cap. Exceeding a threshold by even a small amount can move you out of an exemption or out of a scheme entirely. Check the caps before you sign.
- Assuming everything stacks. Some schemes cannot be combined. Confirm which ones work together for your situation.
Frequently asked questions
There is more first home buyer support available in NSW than most people realise, and the 2025 changes made several of these schemes more generous and more accessible. The hard part is not the existence of the grants. It is knowing which ones you qualify for, which combine, and what your specific numbers look like once they are stacked.
That is what we do every day for first home buyers across Newcastle, Maitland and the Hunter. If you would like a clear, no-pressure picture of exactly what you can claim and how it fits your situation, book a free strategy session with our team and we will map it out with you.
