New South Whales First Home Buyer Grants and Incentives

Before you build your first home, it's worth exploring the government grants and incentives you may be eligible for, which could save you thousands of dollars.

A Guide to Building Your First Home 

From the NSW First Home Owner Grant to Australian Government grants and schemes that can help reduce your deposit or lower the amount you need to borrow, there are several ways to make building your first home more affordable than you might think.

If you're building with Burbank, our team can help explain the grants and schemes that may apply to your circumstances and, together with our finance partner Livi Lending, help you explore your finance options.

Who is considered a First Home Buyer?

While each grant and scheme has its own eligibility requirements, generally a first home buyer is someone who hasn't previously owned and lived in a residential property in Australia.

Some schemes also consider your spouse or partner's property history, along with whether you've previously received first home buyer assistance. Because the eligibility requirements vary, it's worth understanding which grants and schemes may apply to your circumstances. Some buyers may even qualify for more than one type of assistance.

First Home Owner Grant 

The NSW Government's First Home Owner Grant provides a one-off $10,000 payment to eligible first home buyers building a new home. The grant is designed to help reduce the upfront cost of building your first home and, unlike a loan, it doesn't need to be repaid.

If you're building on vacant land, the combined value of the land, building contract must not exceed $750,000.

Like all government assistance, there are eligibility requirements. Generally, you'll need to be at least 18 years old, with at least one applicant an Australian citizen or permanent resident.

To receive the grant, you'll need to move into your completed home within 12 months and live there as your principal place of residence for at least 12 continuous months.

5% Deposit Scheme

Saving a 20% deposit can take years, but the Australian Government 5% Deposit Scheme helps eligible first home buyers build a new home with as little as a 5% deposit.

Rather than waiting until you've saved a 20% deposit, the Australian Government guarantees part of your home loan. This allows participating lenders to offer eligible buyers a home loan without the added cost of Lenders Mortgage Insurance (LMI), potentially saving thousands of dollars.

The scheme is available to Australian citizens and permanent residents who are at least 18 years old and are building a home to live in, rather than an investment property. There are no income limits, but the total value of the home you're building can’t exceed $1.5 million in Sydney, the Central Coast, Newcastle and Lake Macquarie, Illawarra, the Mid North Coast, Coffs Harbour–Grafton and the Richmond–Tweed region, or $800,000 elsewhere in New South Wales.

The scheme can be used whether you're building through a house and land package or buying vacant land and signing a building contract with your chosen builder.

Help to Buy Scheme

If saving a deposit is one of the biggest barriers to building your first home, the Australian Government Help to Buy Scheme could be another option.

Designed to help eligible buyers with low to moderate incomes, the scheme reduces both the deposit you need and the amount you borrow. Eligible buyers may only need a 2% deposit, while the Australian Government contributes up to 40% of the cost of a new home in exchange for an equity share. This reduces the amount you need to borrow and can lower your mortgage repayments. 

To qualify, you generally need to be an Australian citizen, at least 18 years old, earn no more than $103,000 a year as an individual or $165,000 as joint applicants or a single parent, and build a home within the NSW property price cap of $1.3 million in Sydney, the Central Coast, Newcastle and Lake Macquarie, Illawarra, the Mid North Coast, Coffs Harbour–Grafton and the Richmond–Tweed region, or $800,000 elsewhere in the state.  

The scheme is also limited to 10,000 places nationally each financial year. 

Because the Australian Government contributes towards the cost of your home, it takes an equity share in the property. You can buy back that share over time or repay it when you sell your home. 

Save on Stamp Duty 

If you're buying vacant land to build your first home, you may also be eligible for a transfer duty exemption or concession (commonly known as stamp duty). 

In New South Wales, eligible first home buyers pay no transfer duty on vacant land valued up to $350,000, while a reduced amount applies to land valued between $350,000 and $450,000. Because the duty is based on the value of the land you buy, rather than the cost of building your home, it can significantly reduce your upfront costs before construction even begins. 

Combining Frants and Schemes

Some buyers may even qualify for more than one type of assistance, combining the NSW First Home Owner Grant and stamp duty savings with an Australian Government scheme, such as the 5% Deposit Scheme or Help to Buy.

Understanding how these grants and schemes work together could help reduce your upfront costs and make building your first home more affordable. Burbank and our finance partner Livi Lending can help explain which options may be available based on your circumstances.

Ready to build your first home? 

Building your first home may be more achievable than you think. With a range of NSW and Australian Government grants and schemes available, understanding what support you may be eligible for is a great place to start.

At Burbank, we're here to help you navigate the home building journey with confidence. Together with our finance partner Livi Lending, we can help you understand the grants and schemes that may apply to your circumstances and connect you with a lending specialist to explore the finance options available to you.

Discover what's possible. Speak to a New Home Consultant today or explore our website to learn more.