Purchasing your first house in Sydney is a significant milestone that can feel bittersweet while you figure out Australian property rules. Understanding the legal framework helps you make informed choices and move into homeownership smoothly. This quick guide highlights the main NSW schemes and grants that support first-home buyers in Sydney.
The First Home Owner Grant is a nationwide program administered in NSW that offers financial support to eligible first-home buyers. In NSW, the grant is $10,000 for a new home up to $600,000, or for building a new home where the total of land plus construction is up to $750,000. This can ease the upfront burden when purchasing your first house.
First-home buyers may also receive transfer duty concessions under the NSW First Home Buyers Assistance Scheme, with full or partial relief depending on the contract date and property value. Use the official Revenue NSW duty calculator to check current thresholds for your situation.
The former “First Home Loan Deposit Scheme” is now part of Housing Australia’s Home Guarantee Scheme. Under the First Home Guarantee, eligible buyers can purchase with a 5% deposit without paying LMI through participating lenders. See program details and eligibility.
Property Search and House Hunting
When you’re ready to buy, NSW Government guidance on buying residential property is a useful starting point. The contract of sale sets out price, deposit, settlement date and any special conditions. After exchange on a private-treaty purchase, NSW gives buyers a 5 business day cooling-off period by default. If you rescind, you normally forfeit 0.25% of the purchase price; the period can be varied by agreement and does not apply at auction. See NSW Fair Trading and a plain-English overview from CommBank.
Engage a licensed conveyancer or solicitor early. We can review your contract, order property searches, and manage title registration and settlement. If you’re weighing finance options, check ASIC Moneysmart’s home-loan guide and talk to your lender about pre-approval and HGS eligibility.
Building and pest inspection
Before you commit, arrange independent building and pest inspections to identify structural issues or infestations. For strata purchases, order a strata report covering levies, insurance and by-laws so you understand your obligations. Consider practicalities like home and contents insurance from settlement.
On settlement day, funds are transferred and documents lodged digitally via platforms such as PEXA. After settlement, keep on top of council and water rates, and if you’re in a strata scheme, follow your building’s by-laws.
Home Loans
As a first-home buyer, aim for a deposit that suits your budget and lender criteria. Many buyers target 20% to avoid LMI, though with the First Home Guarantee you can purchase with 5% if eligible. See Moneysmart on deposits and LMI and discuss options with your lender.
FAQs for first-home buyers
How much do most first-time buyers put down?
Commonly between 5% and 20%, depending on loan type, lender policy and whether LMI applies. Check Moneysmart and talk to your bank or broker.
Can I buy with a $10,000 deposit?
It depends on price, fees and lender policy. A small deposit may work in limited scenarios with HGS support and lower price points. Use your bank’s borrowing calculator and the duty calculator to test scenarios.
Do I have to pay a 10% deposit on exchange?
Not always. In NSW, a 10% deposit is common at exchange, but 5% is often negotiated. Confirm terms in your contract and with your lender.
How much is the First Home Owner Grant?
In NSW it is $10,000 for eligible new homes up to $600,000, or for building a new home where land plus construction does not exceed $750,000. Check latest criteria with Revenue NSW.
If you want tailored help with contracts, inspections, finance timing or settlement, call (02) 8806 0866 or reach us via Jameson Law contact. We’ll guide you from offer to keys in hand.
Useful links: FHOG NSW | First Home Buyers Assistance | Transfer duty calculator | Home Guarantee Scheme | Buying in NSW | Fair Trading – buying | Moneysmart home loans | NSW Land Registry Services | Strata reports | Strata by-laws | PEXA settlement | CHOICE home insurance | Cooling-off explained
