first-time home buyer? here's what’s changed in NSW for 2025
- Life Home Loans
- Jan 11
- 3 min read
As of 2025, there have been some important changes to the rules for first-home buyers in New South Wales (NSW), Australia. These updates are aimed at making it easier for first-time buyers to enter the property market. Here are some of the key changes:
1. First Home Buyer Assistance Scheme (FHBAS)
This scheme provides stamp duty exemptions and concessions to eligible first-home buyers:
Exemption from Stamp Duty: First-home buyers can now be exempt from paying stamp duty on properties valued up to $650,000.
Stamp Duty Concessions: If the property is valued between $650,000 and $800,000, first-home buyers are eligible for a concessional rate on stamp duty.
No Stamp Duty for New Homes: For new homes valued up to $800,000, first-home buyers may be eligible for full stamp duty exemptions, provided they meet other eligibility criteria.
2. First Home Loan Deposit Scheme (FHLDS)
The federal government’s First Home Loan Deposit Scheme allows eligible first-home buyers to purchase a property with as little as 5% deposit without needing to pay for Lenders Mortgage Insurance (LMI). The cap on the property price varies by region, but in NSW, the price limit for most areas is $900,000 for established homes and $950,000 for new builds.
3. First Home Super Saver Scheme (FHSSS)
First-home buyers can use their superannuation savings to help with a property deposit. This scheme allows you to save for your first home within your superannuation account, where your contributions are taxed at a lower rate. The maximum amount you can withdraw is up to $50,000.
4. First Home Buyer Grants
Under the First Home Owner Grant (FHOG)Â scheme, eligible first-time buyers purchasing a new home may receive a grant of up to $10,000Â to assist with their purchase. The property value must be under $750,000Â to qualify for this grant in NSW.
5. New Land Tax Cap for First-Home Buyers
NSW has introduced a new land tax option for first-home buyers, which allows them to choose between paying stamp duty upfront or opting for a new annual land tax. This change is designed to make it easier for first-time buyers to enter the property market, as it spreads the cost over time.
6. Help to Buy Scheme
The Help to Buy program allows eligible first-home buyers to purchase a property with as little as 2% deposit. Under this scheme, the government will co-invest up to 40% of the property's value (for new homes) or 30% (for established homes), reducing the amount of the loan needed from the bank and removing the need for LMI. This scheme is being trialled in NSW with specific eligibility criteria.
Eligibility Criteria for First-Home Buyers in NSW:
The buyer must be an Australian citizen or permanent resident.
The buyer must be over the age of 18.
The buyer must not have previously owned a property in Australia.
The buyer must occupy the property as their primary residence for a certain period (usually 6 months within the first year of purchase).
These schemes and benefits are part of a broader effort by the government to help first-home buyers overcome the high costs of entering the housing market in NSW. However, it’s important to always check the most current eligibility criteria and limits, as they may change.
For more information and to understand how these new rules can work for you, talk to us at Life Home Loans. Our team can guide you through the process and help you find the best options for your first home purchase!
Disclaimer:Â This article provides general information only and does not necessarily reflect the views of the publisher or supplier. Always seek professional advice from your financial advisor, broker, or accountant before making any investment decisions. Information is current as of publication date and may change thereafter.