First Home Buyer Grants & Schemes in NSW Explained

The Starting Point for First-Home Buyers

For many first-home buyers, the hardest part isn't finding a property — it's knowing where to start. Between rising prices, stamp duty, and an endless array of acronyms, the process can feel overwhelming.

The good news? NSW offers a range of grants and government schemes designed to help you buy sooner. From the First Home Owner Grant to stamp duty relief and low-deposit guarantees, these programs can save tens of thousands of dollars when used strategically.

At The Shoreline Agency, we help first-home buyers across the Illawarra — from Wollongong to Shellharbour — understand which programs they qualify for and how to use them effectively.

Let's unpack what's available in 2025, and how locals are taking advantage of each option.

The First Home Owner Grant (FHOG)

The First Home Owner Grant is a one-off payment that supports buyers purchasing or building their first new home.

How it works

• Grant amount: $10,000 (as of 2025)

• Eligibility: Buying or building a new home valued up to $750,000

• Residency requirement: You must move in within 12 months of completion and live there for at least six months

This grant can make a real difference for buyers targeting new developments across the Illawarra — particularly in Shell Cove, Tullimbar, Calderwood, and Albion Park.

Local insight

Many first-home buyers in these growth suburbs are using the FHOG to offset part of their deposit or fund building costs. A $10,000 grant might not sound huge, but combined with stamp duty savings, it can cover legal fees, inspections, or that final stretch of the deposit.

In northern Illawarra suburbs, such as Thirroul or Austinmer, where prices often exceed the $750,000 cap, the FHOG is less common; however, alternative assistance options still apply.

Stamp Duty Concessions and Exemptions

Stamp duty — technically called transfer duty — remains one of the most significant barriers for first-home buyers. Fortunately, NSW provides generous discounts and exemptions for eligible applicants.

Current thresholds (as of 2025):

• Full exemption: For homes valued up to $800,000

• Partial concession: For homes valued between $800,000 and $1 million

• Vacant land: Concessions up to $450,000

These thresholds apply to both new and existing homes.

How this plays out locally

• A buyer purchasing a $780,000 townhouse in Figtree pays no stamp duty — a saving of around $30,000.

• A buyer purchasing a $920,000 home in Woonona may still save thousands through a partial concession.

For many Illawarra buyers, those savings make the difference between continuing to rent and owning their first home.

Local insight: We've seen many clients combine stamp duty relief with the FHOG, reducing their upfront costs by more than $40,000 — often enough to cover the deposit gap or the first few mortgage repayments.

Shared Equity and Low-Deposit Schemes

Beyond grants and stamp duty help, several shared-equity and low-deposit programs have opened the door to first-home ownership for moderate-income buyers.

1. NSW Shared Equity Home Buyer Helper

• The NSW Government contributes up to 40% of the price for new homes (or 30% for existing).

• No interest or repayments on the government's share while you live there.

• Available to single parents, teachers, nurses, and first-home buyers under specific income thresholds.

2. The First Home Guarantee (5% Deposit Scheme)

This is the program making the most significant difference right now.

The First Home Guarantee allows eligible buyers to purchase with just a 5% deposit, while the Federal Government guarantees up to 15% of the loan. This removes the need for Lenders Mortgage Insurance (LMI) — a fee that can otherwise cost between $10,000 and $30,000.

To qualify, buyers must:

• Be an Australian citizen or permanent resident

• Have not owned property in Australia before

• Earn under $125,000 (single) or $200,000 (couple) per year

• Live in the home as their primary residence

The program applies to both new and established homes, with regional price caps — in the Illawarra, this typically ranges from around $900,000.

Local insight

In suburbs like Albion Park, Calderwood, and Kiama Downs, the 5% deposit scheme is allowing renters to buy sooner. Instead of waiting years to save a 20% deposit, they're purchasing quality homes with minimal upfront cost.

Example: A young couple from Wollongong recently purchased a $780,000 townhouse in Albion Park using the 5% deposit scheme. By combining it with the First Home Owner Grant and a stamp duty exemption, they saved roughly $48,000 in upfront costs and avoided paying LMI. Instead of waiting another two years, they're now settled in a growing, family-friendly community.

3. Regional First Home Buyer Guarantee

This program mirrors the 5% deposit scheme but focuses exclusively on regional buyers purchasing within their local area. The government guarantees up to 15% of the loan, providing the same low-deposit benefit while supporting regional growth areas, such as the Illawarra.

How to Combine Schemes Strategically

The key is knowing how these programs fit together. With the right advice, buyers can often layer multiple benefits:

• $10,000 First Home Owner Grant

• Up to $30,000 stamp duty exemption

• 5% deposit through the First Home Guarantee (no LMI)

That combination can cut tens of thousands off your upfront cost and make a home purchase achievable much sooner than most buyers expect.

Local example: A first-home buyer in Tullimbar combined all three benefits to secure a new townhouse valued at $820,000. Their total savings topped $55,000, and they entered the Market with a deposit of under $45,000.

At The Shoreline Agency, we work alongside trusted mortgage brokers to help clients identify exactly which schemes they qualify for — and how to make the numbers work for them.

Choosing the Right Suburb for First-Home Buyers

While northern Illawarra suburbs like Austinmer and Thirroul remain premium markets, suburbs slightly further south are experiencing strong demand from first-home buyers seeking lifestyle and value.

Top Illawarra suburbs for first-home buyers:

• Albion Park & Calderwood: new homes, FHOG-eligible, growing infrastructure

• Dapto & Horsley: affordable, strong transport links

• Shell Cove: new coastal developments within scheme thresholds

• Figtree & Mount Kembla: proximity to Wollongong CBD with family appeal

These areas strike a balance between affordability and long-term growth potential — meaning your first home can also be your first investment in the region's future.

Local insight: We're seeing many Sydney buyers relocating south, taking advantage of these schemes to purchase larger homes near the coast while working hybrid roles. The Illawarra continues to deliver the lifestyle balance they're after — space, community, and connection.

The Shoreline Approach

Buying your first home isn't just a financial decision — it's a lifestyle one.

At The Shoreline Agency, we help you:

• Understand which grants and schemes apply to your situation

• Identify off-market opportunities that qualify for assistance

• Negotiate confidently with selling agents

• Secure a home that fits both your budget and long-term goals

We're buyer advocates first — representing your interests from search to settlement.

Ready to Take the First Step?

If you're thinking about buying your first home in Wollongong, Shellharbour, or anywhere along the Illawarra coastline, we can help you navigate every option available — calmly, clearly, and confidently.

📞 Contact The Shoreline Agency today to explore your first-home buyer strategy and discover what's truly possible with the proper guidance.

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See you on the Shoreline.