First home buyer loans Sydney: 2026 grants, 5% deposit and requirements.

It is the Australian Government 5% Deposit Scheme, which lets eligible first home buyers buy with a 5% deposit and no lenders mortgage insurance through a participating lender. Since 1 October 2025 there are no income caps or place limits. NSW price caps are $1.5 million in Sydney and regional centres and $800,000 elsewhere. The lender must still approve the loan.

Usually 5%, or 2% for single parents, under the 5% Deposit Scheme, with no lenders mortgage insurance. Help to Buy also starts at a 2% deposit, but the government takes a share of the home. Outside these schemes, a deposit under 20% usually means paying LMI. You also need money for upfront costs such as conveyancing and inspections.

Only if you buy or build a new home. The NSW First Home Owner Grant is $10,000 for a new home worth up to $600,000, or land plus a building contract up to $750,000, and established homes don't qualify. Every buyer must be at least 18, at least one must be an Australian citizen or permanent resident, none can have owned a home in Australia before, and you must move in within 12 months and live there for 12 continuous months.

You need to be at least 18, an Australian citizen or permanent resident, never have owned property in Australia, and plan to live in the home. Each scheme adds its own rules: the 5% Deposit Scheme has price caps, Help to Buy has income caps, and the First Home Owner Grant is for new homes only. Lenders then check your income, debts, savings and credit file.

Sometimes. Paid defaults or a few late payments don't automatically rule you out, but most banks and scheme lenders want a clean recent history, so you may need a specialist lender, a larger deposit and a higher rate. Get your free credit report first and fix any errors before you apply.

Through the First Home Super Saver scheme. You can release up to $15,000 of voluntary super contributions a year and $50,000 in total, plus associated earnings. You need an ATO determination before you request the release, both through myGov. For determinations made from 15 September 2024, you can request the release up to 90 days after signing a contract, and must sign within 12 months of the release request (the ATO can extend this to 24 months) or recontribute the money.

No, it closed to new applicants when it was folded into the Australian Government 5% Deposit Scheme on 1 October 2025. Regional buyers now apply under the 5% Deposit Scheme with a 5% deposit, or 2% for single parents, with no income caps. NSW price caps are $1.5 million in Sydney and regional centres and $800,000 elsewhere.

The best first home buyer broker checks your eligibility for the 5% Deposit Scheme, Help to Buy and NSW stamp duty concessions before comparing lenders. Mortgage brokers must act in your best interests on home loans, and should explain how they are paid. NewGen helps Sydney first home buyers get pre-approved before they make an offer.

Usually not. A first home buyer loan is normally a standard owner-occupier home loan. What changes is what you may be able to use with it, such as the Australian Government 5% Deposit Scheme, NSW stamp duty concessions, the First Home Owner Grant for eligible new homes, or a family guarantee. We compare lenders that suit your deposit, income and property before you apply.

No. You can apply to a lender directly. A broker can compare how several lenders treat your deposit source, HECS/HELP debt, casual or self-employed income, family gifts and scheme participation before you apply, so you can choose a lender before an application goes on your credit file.

Yes. Pre-approval tells you your real budget and shows sellers you're a serious buyer. It saves time and prevents disappointment.

Yes. We structure joint applications and explain how combined borrowing power works, as well as the legal arrangements you should consider.

With the 5% Deposit Scheme you own the whole home and the government guarantees part of the loan, so you avoid lenders mortgage insurance. Help to Buy is shared equity: the government pays up to 30% of an existing home or 40% of a new one and owns that share. Help to Buy needs a 2% deposit and has income caps of $103,000 single and $165,000 joint for 2026–27.

Usually not on your own. A family guarantee can cover the whole deposit with a parent's property equity. Otherwise the lowest options are a 2% deposit through Help to Buy or the 5% Deposit Scheme for single parents, or 5% under the 5% Deposit Scheme, plus money for upfront costs.

It depends on the scheme. NSW first home buyer duty concessions and the First Home Owner Grant generally require that you've never owned residential property in Australia. Some federal schemes have different rules, so check the current criteria with Revenue NSW and Housing Australia before relying on a concession.

Not on a home up to $800,000. Under the NSW First Home Buyers Assistance Scheme, eligible first home buyers pay no transfer duty up to $800,000 and a reduced amount up to $1 million. For vacant land the limits are $350,000 and $450,000. Check the current rules with Revenue NSW before you exchange.

Get pre-approval before making offers and have payslips, bank statements and ID ready. Explain where your deposit came from, and avoid new debts or job changes during the process. If you're using a government scheme, confirm early that your lender takes part in it.

Work out your budget and borrowing power, check your credit file, confirm which grants or schemes you qualify for, and get pre-approval. Also budget for upfront costs such as conveyancing, inspections and loan fees, so you know your real price range before you start looking.