First Home Guarantee in New South Wales
Reviewed by the Commoner Law Editorial Team. Sourced from Commonwealth Acts of Parliament, federal regulations, and official government guidance. State-level information reflects each state's own Acts and court decisions. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
The First Home Guarantee (formerly the First Home Loan Deposit Scheme) allows eligible first-home buyers to purchase a home with as little as a 5% deposit — without paying Lenders Mortgage Insurance (LMI). The Australian Government, through Housing Australia, guarantees up to 15% of the property value to the lender.
To qualify you must be an Australian citizen aged 18 or over, earn no more than $125,000 per year as a single applicant (or $200,000 combined for couples), and have not previously owned property in Australia. The property must be below regional price caps — for example, up to $900,000 in Sydney and $800,000 in Melbourne (caps are reviewed annually).
35,000 places are released each financial year. Places are limited and allocated on a first-come, first-served basis. You apply through a participating lender — not directly through the government.
A related scheme, the Regional First Home Buyer Guarantee, offers an additional 10,000 places per year for buyers in regional areas, with the same 5% deposit requirement.
When does it apply?
- You are buying your first home and have never owned property in Australia.
- Your income is at or below $125,000 (single) or $200,000 (couple) in the previous financial year.
- You have saved at least a 5% deposit (but less than 20%).
- The property is below the price cap for your city or region.
- You intend to be an owner-occupier — investment properties are not eligible.
What to Do If You Are Declined for the Australian First Home Guarantee
- Check your eligibility on the Housing Australia website before house-hunting.
- Apply through a participating lender — the list is on the Housing Australia website and includes major banks and smaller lenders.
- Confirm the price cap for the area where you want to buy; caps differ between capital cities and regional areas.
- Move quickly — places fill up fast each financial year. New places open on 1 July.
- Combine with state first-home-buyer grants if applicable — the federal guarantee does not prevent you from claiming state incentives.
What should you NOT do?
- Don't apply directly to the government — the scheme only works through participating lenders.
- Don't assume the guarantee is a cash grant — the government does not give you money; it guarantees part of your loan to the lender.
- Don't buy an investment property under the scheme — you must live in the home. If you move out within the guarantee period you may need to refinance.
- Don't forget income caps apply to the previous financial year — check your ATO notice of assessment.
How New South Wales differs from federal law
NSW first-home buyers can access both the federal First Home Guarantee and the NSW state-level incentives, which together provide significant support for entering the property market.
- The NSW First Home Buyer Assistance Scheme provides stamp duty concessions: full exemption for properties up to $800,000 and a sliding-scale discount for properties up to $1,000,000 (thresholds for new and existing homes).
- The First Home Owner Grant (New Homes) in NSW provides a $10,000 grant for first-home buyers purchasing or building a new home valued up to $600,000 (or $750,000 for house and land).
- NSW also offers the Shared Equity Home Buyer Helper scheme, where the NSW Government contributes up to 40% of the purchase price of a new home (30% for existing homes) in exchange for a proportional interest in the property — reducing the buyer's deposit and mortgage.
- The federal First Home Guarantee and NSW state schemes can be used together, potentially allowing a buyer to purchase with a very low deposit, no LMI, reduced stamp duty, and the FHOG grant.
Additional Steps in New South Wales
Apply for the NSW stamp duty concession through Revenue NSW (revenue.nsw.gov.au) at or after settlement. The First Home Owner Grant is applied for through your bank or lender. The Shared Equity scheme is administered by NSW Treasury.
Relevant Law: Duties Act 1997 (NSW), Chapter 2A; First Home Owner Grant (New Homes) Act 2000 (NSW); National Housing Finance and Investment Corporation Act 2018 (Cth)
Common Questions
When does first home guarantee apply?
You are buying your first home and have never owned property in Australia.Your income is at or below $125,000 (single) or $200,000 (couple) in the previous financial year.You have saved at least a 5% deposit (but less than 20%).The property is below the price cap for your city or region.You intend to be an owner-occupier — investment properties are not eligible.
What should I do if I am rejected for the First Home Guarantee in Australia?
Check your eligibility on the Housing Australia website before house-hunting.Apply through a participating lender — the list is on the Housing Australia website and includes major banks and smaller lenders.Confirm the price cap for the area where you want to buy; caps differ between capital cities and regional areas.Move quickly — places fill up fast each financial year. New places open on 1 July.Combine with state first-home-buyer grants if applicable — the federal guarantee does not prevent you from claiming state incentives.
What mistakes should I avoid with first home guarantee?
Don't apply directly to the government — the scheme only works through participating lenders.Don't assume the guarantee is a cash grant — the government does not give you money; it guarantees part of your loan to the lender.Don't buy an investment property under the scheme — you must live in the home. If you move out within the guarantee period you may need to refinance.Don't forget income caps apply to the previous financial year — check your ATO notice of assessment.
First Home Guarantee in other states
Same topic, different jurisdiction. Pick the one that applies to you.