Buying your first home is a significant milestone. It is also often the first time buyers encounter the full range of government schemes, grants and legal requirements that apply to residential property purchases.
The good news is that substantial assistance is available. From federal schemes that allow you to buy with a smaller deposit or enter into shared equity arrangements with the government, to NSW concessions that reduce or remove transfer duty, the right combination can materially improve affordability.
At Chidiac Legal, we work with first-home buyers across NSW and South West Sydney regularly. Our role is to:
- Help you identify the assistance you may be eligible for; and
- Ensure your contracts and legal documentation are prepared correctly so that you do not inadvertently miss out on benefits.
The overview below summarises the main federal and NSW support measures relevant to first home buyers, and explains how conveyancing advice ties these elements together.
IMPORTANT NOTE: Government schemes and eligibility criteria change over time. The information below is general in nature and current as of 1 December 2025. Schemes constantly change over time. You should obtain advice as to the schemes applicable at the time of your proposed purchase and specific to your circumstances before entering into any contract.
Federal Support – Reducing Deposit and Loan Requirements
1. Australian Government 5% Deposit Scheme
The Australian Government 5% Deposit Scheme (previously known as the Home Guarantee Scheme) is designed to address one of the main barriers to homeownership: saving a 20% deposit.
Under this scheme:
- Eligible first home buyers may be able to purchase a home with a deposit as low as 5%.
- Eligible single parents or guardians may be able to buy with a deposit as low as 2%, and
- the Government provides a guarantee over part of the loan, meaning borrowers can avoid paying Lenders Mortgage Insurance (LMI).
Key changes (as at 1 October 2025) include uncapped places, the removal of income caps for first home buyers and increased property price caps, significantly broadening access to the scheme.
In practical terms, this can allow buyers to enter the market earlier than if they were required to save a full 20% deposit.
2. Help to Buy Scheme (Shared Equity)
The Help to Buy Scheme is a national shared equity program intended to reduce the debt burden on eligible buyers further.
Under this scheme:
- The Government contributes a percentage of the purchase price of your home.
- for new homes, the contribution can be up to 40% of the price.
- for existing homes, the contribution can be up to 30%; and
- In return, the Government takes a corresponding equity stake in the property.
You generally need to contribute a minimum 2% deposit. Because the Government is funding part of the price, the amount you need to borrow from a lender – and therefore your monthly mortgage repayments – is reduced. The Government’s equity share can usually be repaid over time or upon sale, subject to the scheme rules.
3. First Home Super Saver (FHSS) Scheme
The First Home Super Saver Scheme allows first home buyers to use the concessional tax treatment of superannuation to save for a deposit more efficiently.
In summary:
- You can make voluntary contributions to your superannuation fund (either before-tax or after-tax);
- You can later apply to withdraw those contributions, together with associated earnings, to use towards the purchase of your first home; and
- There are caps on the amounts that can be contributed and released under the scheme.
Because eligible pre-tax contributions to super are typically taxed at 15%, which is often lower than an individual’s marginal income tax rate, using the FHSS Scheme can accelerate deposit savings compared with ordinary after-tax savings.
NSW Stamp Duty Relief and Grants
New South Wales provides additional assistance that operates alongside the federal measures. These mainly address upfront costs such as transfer duty (stamp duty) and support for new homes.
1. First Home Buyers Assistance Scheme – Transfer Duty (Stamp Duty)
Transfer duty is usually the highest upfront cost after the deposit.
Under the First Home Buyers Assistance Scheme (FHBAS) in NSW, eligible first home buyers may:
- receive a full exemption from transfer duty on new or existing homes up to a value (currently $800,000); and
- access concessional transfer duty rates for homes with a value between $800,000 and $1,000,000.
Separate thresholds apply to vacant land intended for the construction of a first home. For many first home buyers, this relief represents a substantial saving that can be redirected towards the purchase price or other transaction costs..
2. First Home Owner Grant (New Homes)
The First Home Owner Grant (FHOG) in NSW is a one-off payment intended to encourage the purchase or construction of new homes.
At the time of writing:
- The grant is $10,000 for eligible first-home buyers.
- It generally applies to new homes valued up to $600,000; and
- For house-and-land packages or construction, it generally applies where the total value of the land and completed home does not exceed $750,000.
The grant is intended for new or substantially renovated properties. It is not available for established/older homes that have not undergone substantial renovation. This distinction is essential, and we clarify it with clients early in the process.
The Role of Conveyancing: Why Legal Advice Matters
While these schemes and grants appear straightforward on paper, accessing them ultimately involves legal and procedural steps.
Errors such as missing a residency requirement, using an incorrect purchasing structure, lodging the wrong form or missing a deadline can result in:
- the loss of grants or concessions; and
- potential liability for backdated transfer duty and penalties from Revenue NSW.
Chidiac Legal’s conveyancing team assists first home buyers by:
1. Assessing Eligibility and Structure
We review your circumstances and intended purchase structure to ensure that:
- The proposed ownership (for example, whether you are buying in your personal name) is compatible with the relevant schemes; and
- Your intended use of the property (such as occupying it as your principal place of residence) aligns with residency and occupancy requirements of the government schemes.
2. Aligning Contracts and Documentation
We carefully review the contract for sale and associated documentation to ensure that they support your applications for federal and state assistance. Where necessary, we seek amendments or additional clauses so the documentation is consistent with scheme requirements.
3. Managing Timing and Compliance
Each scheme has its own timing and compliance obligations.
We coordinate with:
- your lender or mortgage broker; and
- the vendor’s legal representative,
To help ensure that applications, forms and declarations are lodged appropriately, and that conditions relating to settlement, occupancy and ongoing compliance are understood and met.
How Chidiac Legal Can Assist
If you are considering purchasing your first home in South West Sydney – whether an apartment, townhouse or new build – carefully combining available grants and schemes can significantly impact what you can afford and your long-term position.
Clear legal advice at the outset can reduce the risk of costly mistakes and give you confidence that you are making full use of the assistance available.
While Chidiac Legal provides legal advice and conveyancing services, we recognise that obtaining appropriate finance is a critical part of the first home buying process. Our sister company, Citywide Bankstown LPI, part of the Chidiac Venture Group, assists clients with home loan and mortgage solutions. If you require support with the lending aspect of your purchase, you can find further information about their home loan services here.
To discuss your proposed purchase and the schemes that may apply to you, contact Chidiac Legal. You can also read more about our services on our Conveyancing page here.
