Buying your first home in Sydney is one of life's biggest milestones. Here's everything you need to know — from grants and schemes to deposits, loan types, and what to expect on settlement day.
- The First Home Guarantee lets eligible buyers purchase with 5% deposit and no LMI — a significant saving.
- Stamp duty exemptions in NSW can save first home buyers up to $30,735 on properties under $800,000.
- Pre-approval before you search means you can bid at auction with confidence.
- A broker compares 40+ lenders to find the right first home buyer loan — and the process is free.
Buying your first home in Sydney is one of life's biggest financial decisions. The good news: there's more government support available for first home buyers in 2026 than at almost any previous point — and knowing how to access it can meaningfully reduce your upfront costs.
Step 1: Understand What You Can Afford
Before you browse listings, get a realistic picture of your borrowing capacity. Use our borrowing capacity calculator for an estimate, then book a free consultation with Sam to confirm it across real lenders.
Key costs to budget for beyond the purchase price include stamp duty (see our NSW stamp duty guide), conveyancing fees ($1,500-$3,000), building and pest inspection ($400-$800), and moving costs.
Step 2: Know Your Government Schemes
First Home Guarantee (FHBG): The First Home Guarantee allows eligible buyers to purchase with just a 5% deposit, with the government guaranteeing the remaining 15% so you avoid LMI. Property price caps apply — currently $900,000 in NSW. See Housing Australia's official eligibility criteria.
Help to Buy Scheme: The federal Help to Buy shared equity scheme allows eligible buyers to co-purchase with the government contributing up to 40% of the purchase price for new homes.
NSW Stamp Duty Relief: First home buyers in NSW pay no stamp duty on homes up to $800,000 and a concessional rate on properties between $800,000 and $1,000,000. Details at Revenue NSW.
First Home Super Saver Scheme (FHSSS): If you've been making voluntary super contributions, you may be able to withdraw up to $50,000 to use as a home deposit. See the ATO's FHSSS guide for eligibility.
Step 3: Save Your Deposit
For most first home buyers, the minimum deposit is 5-10% of the purchase price, plus costs. A guarantor home loan is another option — if a parent or close family member owns property, they may be able to use their equity to support your purchase. Our deposit guide breaks down exactly what you need for different property prices across NSW.
Step 4: Get Pre-Approval
Before you start seriously searching, get pre-approval from a lender. Pre-approval confirms your borrowing limit and makes you a credible buyer — essential if you're bidding at auction, where there's no cooling-off period. Read our full home loan pre-approval guide for everything you need to know.
Step 5: Find Your Property and Make an Offer
When you've found a property, your solicitor will review the contract before you exchange. For apartments, check the strata report carefully for major upcoming levies or issues.
Step 6: Exchange and Unconditional Approval
When you've had your offer accepted (or won at auction), you exchange contracts. You'll typically pay a 10% deposit at exchange. Your solicitor notifies the lender, who moves to unconditional approval.
Step 7: Settlement
Settlement is typically 4-6 weeks after exchange. On settlement day, the lender releases the funds, your solicitor completes the transfer, and you receive the keys.
Common First Home Buyer Mistakes to Avoid
- Overestimating borrowing capacity without getting pre-approval first
- Not budgeting for all purchase costs beyond the purchase price
- Applying for multiple credit cards or loans in the months before applying
- Underestimating how long the process takes (allow 3-6 months from pre-approval to settlement)
- Skipping building and pest inspections to save money
Working with a First Home Buyer Mortgage Broker
A first home buyer mortgage broker near you does more than just find a loan. Sam at Wiseman Financial Solutions helps you identify which schemes you qualify for, prepares your application to maximise approval chances, and manages the process through to settlement — all at no cost to you.
Book your free first home buyer consultation today and find out exactly what's available for your situation.
Frequently Asked Questions
Do I need a buyer's agent as a first home buyer in Sydney?
Not necessarily, but they can be valuable in competitive auction markets. A buyer's agent represents your interests in the search and negotiation process.
Can I buy with friends or family as a first home buyer?
Yes, co-buying is an option. All parties will be assessed jointly by the lender. It's worth consulting a solicitor about the ownership structure before proceeding.