The First Home Buyer Guide to Buying in Sydney (2026)

Buying your first home feels exciting, and a little overwhelming too. Fortunately, this first home buyer guide turns that big goal into simple, clear steps. Moreover, it focuses on where new homes keep arriving — Sydney’s north west and south west corridors.

Right now, buyers enjoy the strongest support in years. Notably, the federal government expanded its schemes in October 2025. As a result, income caps disappeared and price caps rose sharply.

Ultimately, this first home buyer guide brings every grant, scheme and step together. Therefore, you can plan with confidence and buy sooner.

Why now is a smart time to buy your first home

Currently, first home buyers in New South Wales have never had more help. Firstly, a $10,000 grant supports new-home purchases. Secondly, generous stamp duty relief slashes upfront costs.

Meanwhile, three federal schemes lower your deposit hurdle. Together, these programs can save you tens of thousands of dollars. Consequently, your path to ownership gets shorter.

Additionally, Sydney’s growth corridors keep delivering fresh homes. For example, suburbs such as Box Hill, Schofields, Tallawong and Edmondson Park offer new houses and apartments. Above all, most new-build options unlock the grant.

Step 1: Work out what you can afford

Before you inspect a single home, set a clear budget. Firstly, list your income, savings and monthly expenses. Secondly, subtract your regular costs to find your true borrowing power.

Generally, lenders assess your income, debts and living costs closely. Therefore, clearing small debts early can lift your borrowing capacity. Moreover, a steady savings record strengthens your application.

For a quick start, use the free MoneySmart budget planner from ASIC. Additionally, ask a mortgage broker about realistic price ranges. Together, these steps keep your search focused and calm.

Step 2: Save your deposit (you need less than you think)

Traditionally, a full deposit means twenty per cent of the purchase price. However, many first home buyers now enter with far less. In fact, some schemes allow just a two or five per cent deposit.

Meanwhile, a larger deposit still brings real advantages. For example, it lowers your loan size and monthly repayments. Additionally, it can help you avoid Lenders Mortgage Insurance.

Importantly, you can put your grant towards your deposit. As a result, the $10,000 grant directly reduces the cash you need upfront.

Step 3: Claim the $10,000 First Home Owner Grant

In New South Wales, eligible buyers receive a $10,000 First Home Owner Grant. Notably, this grant applies only to brand-new homes. Therefore, established homes do not qualify.

Specifically, a new house, apartment or townhouse must cost $600,000 or less. Meanwhile, a house and land package must stay under $750,000 combined. Importantly, the home must never have been lived in before.

Best of all, the grant is not means-tested. Furthermore, you pay no tax on it. Usually, your lender or conveyancer lodges the application at settlement.

Step 4: Save thousands on stamp duty

Next, consider stamp duty, one of the largest upfront costs. Fortunately, the First Home Buyers Assistance Scheme cuts this cost dramatically. As a result, eligible buyers can pay nothing at all.

Currently, you pay zero stamp duty on homes valued up to $800,000. Meanwhile, homes between $800,000 and $1,000,000 receive a sliding concession. For example, a buyer saves roughly $31,000 on an $800,000 home.

Additionally, vacant land brings its own relief. Specifically, land under $350,000 attracts no duty. Moreover, land valued between $350,000 and $450,000 receives a concession.

Step 5: Stack the federal schemes

Beyond state support, three federal schemes help first home buyers enter sooner. Together, they can save you tens of thousands of dollars. However, each carries its own rules and trade-offs.

The 5% Deposit Scheme (First Home Guarantee)

Firstly, this scheme lets you buy with just a five per cent deposit. Crucially, the government guarantees part of your loan. Therefore, you avoid Lenders Mortgage Insurance entirely.

Since October 2025, the scheme has no income caps and no place limits. Moreover, the Sydney price cap now sits at $1,500,000. As a result, far more homes qualify.

Help to Buy shared equity

Secondly, the Help to Buy scheme launched in December 2025. Under this scheme, the government co-buys up to 40 per cent of a new home. Consequently, you need only a two per cent deposit.

However, income caps apply here. Specifically, individuals must earn under $103,000 and couples under $165,000. Additionally, the NSW price cap sits at $1,300,000.

First Home Super Saver Scheme

Thirdly, this scheme uses your super to build a deposit. Essentially, you make extra contributions and withdraw them later. Because super is taxed at a lower rate, disciplined savers often build more.

Step 6: Get your finance pre-approved

Once your budget is set, seek home loan pre-approval. Basically, pre-approval shows how much a lender will offer you. Therefore, you can shop and bid with real confidence.

Meanwhile, a mortgage broker compares many lenders on your behalf. As a result, you often secure a sharper rate and the right scheme. Additionally, brokers handle much of the paperwork for you.

Remember, pre-approval usually lasts around ninety days. So, line it up before you start serious inspections.

Step 7: Choose new, off-the-plan or house and land

Now, decide which type of new home suits you best. Broadly, first home buyers choose between three new-build paths. Each path carries clear benefits.

Firstly, a completed new home lets you move in straight away. Secondly, an off-the-plan apartment often needs only a small deposit upfront. Meanwhile, you pay the balance at completion.

Thirdly, a house and land package suits growing families. Notably, these dominate Sydney’s north west and south west corridors.

Step 8: Find the right suburb

Next, research suburbs that match your budget and lifestyle. Ideally, look for transport, schools, shops and future infrastructure. Together, these features protect your long-term value.

For example, the north west offers Tallawong, Rouse Hill, Box Hill and Schofields. Meanwhile, the south west delivers Edmondson Park and nearby growth areas. Additionally, you can explore live projects on the Shah & Patel Properties website.

Importantly, study recent sales data before you commit. So, request a local market report from your agent.

Step 9: Inspect before you buy

Before you sign anything, inspect the property thoroughly. Firstly, check the layout, finishes, natural light and storage. Secondly, note any defects or unfinished work.

For new builds, review the inclusions and warranties carefully. Additionally, arrange a pre-settlement inspection close to handover. Consequently, you can flag issues before the final payment.

Meanwhile, apartment buyers should read the strata report. Notably, it reveals the building’s finances and any planned works.

Step 10: Understand the contract of sale

Next, ask your solicitor or conveyancer to review the contract. Typically, the contract of sale contains vital details. For example, it lists zoning, title, inclusions and any cooling-off period.

Importantly, off-the-plan contracts deserve extra care. Specifically, check the finishes, sunset clause and completion timeline. Therefore, you know exactly what you will receive.

Above all, never sign without professional advice. As a result, you avoid costly surprises later.

Step 11: Make your offer or bid at auction

Now, you can make your move with confidence. For a private treaty sale, submit your offer in writing. Then, the agent presents it to the seller.

Meanwhile, auctions follow stricter rules. Firstly, you must register to bid beforehand. Secondly, a winning bid becomes binding immediately, with no cooling-off period.

Therefore, sort your finance and contract review before auction day. Ultimately, preparation gives you a real edge.

Step 12: Settle and move in

Finally, the sale moves to settlement, the last legal step. Usually, settlement occurs about six weeks after exchange. Meanwhile, your conveyancer coordinates the funds and paperwork.

On settlement day, the property officially becomes yours. Then, you collect the keys and celebrate. Additionally, your grant and stamp duty benefits apply at this stage.

After that, you can arrange your move and utilities. Congratulations — you have just bought your first home.

Your first home buyer guide: quick checklist

Before you begin, run through this simple checklist. Basically, it keeps every step in order. So, tick each item as you go.

1. Set a clear budget and check your borrowing power.
2. Build your deposit and choose the right scheme mix.
3. Confirm your grant and stamp duty eligibility.
4. Secure home loan pre-approval through a broker.
5. Choose new, off-the-plan or house and land.
6. Research suburbs and study recent sales data.
7. Inspect thoroughly and review the strata report.
8. Have your conveyancer check the contract of sale.
9. Make your offer or bid with confidence.
10. Settle, collect your keys and move in.

First home buyer FAQs

Q: How much deposit do I really need?

A: Generally, you can buy with as little as two to five per cent. However, a larger deposit lowers your loan and repayments.

Q: Can I get the grant for an existing home?

A: Unfortunately, no. The $10,000 grant applies only to new homes. However, stamp duty relief can still apply to existing homes.

Q: Can I combine several schemes?

A: Often, yes. For example, you can pair the grant, stamp duty relief and one federal scheme. However, Help to Buy and the 5% Deposit Scheme cannot be combined.

Q: Do I need a broker or conveyancer?

A: Ideally, yes to both. Firstly, a broker finds the right loan and scheme. Secondly, a conveyancer protects you through the contract and settlement.

Ready to buy your first home?

Finally, take the first step with confidence. At Shah & Patel Properties, we help first home buyers across Sydney’s north west and south west corridors. So, explore new homes and house and land options with our team at spproperties.com.au.

 

Disclaimer: This first home buyer guide is general information only and is current as at July 2026. It does not replace independent legal, financial or taxation advice, which we strongly recommend. Grant amounts, thresholds and scheme rules change, so always confirm current details with Revenue NSW, Housing Australia and a licensed professional. Any images are for illustrative purposes only. Prepared by Shah & Patel Properties.