Why Should Prestons First Home Buyers Use a Broker?

Your purchase price decides which first home buyer schemes you can use in New South Wales. Check it against the thresholds before you start inspecting homes.

At KM Financial Service, we are a mortgage broking team and we work with Prestons locals every week. Prestons (2170) sits in the Liverpool LGA, and buyers here often compare several schemes at once. Each scheme has its own price limit, so the order you check them in matters.

What First Home Buyer Stamp Duty Concessions Apply in NSW?

In NSW, a first home buyer pays no transfer duty on a home valued at $800,000 or less, and pays a reduced amount on homes valued above $800,000 and below $1,000,000. No concession applies at $1,000,000 or more. This applies to contracts exchanged on or after 1 July 2023 and covers new and existing homes.

The NSW Government publishes the reduced amounts for transactions from 1 July 2026 to 30 June 2027. At an $850,000 value, the reduced duty is $9,796.75, compared with $32,437 in general duty. That is a saving of $22,640.25. The concession shrinks as value rises, and at $990,000 the published duty is $37,227.65.

To qualify, you must be 18 or over, and neither you nor your spouse or partner can have owned residential property in Australia. At least one buyer must be an Australian citizen or permanent resident. You must move in within 12 months of settlement and live there for at least 12 continuous months.

Is There a First Home Owner Grant in NSW?

The NSW first home owner grant is $10,000, and it applies only to newly built, off-the-plan or substantially renovated homes. It is not available for established homes.

The purchase price of a new home must be $600,000 or less. For vacant land with a building contract, the total must be $750,000 or less. If you are looking at a land and build package, our construction loans page explains how staged payments work.

How Does the 5% Deposit Scheme Work for First Home Buyers?

The Australian Government 5% Deposit Scheme lets eligible first home buyers buy with a 5% deposit and pay no LMI. Housing Australia backs the lender for the part of the loan between your deposit and 20% of the property value. There is no income cap and no limit on places.

You must be an Australian citizen or permanent resident aged 18 or over, and you must live in the home as an owner-occupier. The home needs to be at or below the price cap for its location, and in NSW the cap for capital city and regional centre areas is $1,500,000. Check the exact cap for your suburb in Housing Australia's postcode search tool.

The trade-off is that the backing protects the lender, not you. You still pay all loan costs and repayments, plus stamp duty and legal fees. You must also move in within six months of settlement and keep living there while the backing is active, or the lender may ask you to pay LMI. You apply only through a participating lender, and a broker can help you line up the right one.

Help to Buy or the 5% Deposit Scheme: Which Suits You?

Help to Buy suits buyers whose income is under the threshold and who need a bigger boost than a 5% deposit gives. The 5% Deposit Scheme suits buyers who can save a small deposit but earn above the Help to Buy limits.

Under Help to Buy, the Government contributes between 5% and 30% of the price of an existing home, and up to 40% for a new one, in return for an equity share. For 1 July 2026 to 30 June 2027, the income limits are $103,000 for a single applicant and $165,000 for joint applicants. The NSW price cap for capital city and regional centre areas is $1,300,000, which is lower than the 5% Deposit Scheme cap.

Consider a couple with a combined taxable income of $180,000 and a modest deposit. Help to Buy is out because they exceed $165,000 for joint applicants. The 5% Deposit Scheme has no income cap, so they apply through a participating lender with a 5% deposit and avoid LMI. If the home is valued at $800,000 or less, they also claim the NSW duty exemption through their solicitor or conveyancer. The result is a lower upfront cost and a smaller deposit hurdle, though they carry the full loan.

The trade-off with Help to Buy is that the Government's share rises and falls with your home's value. You may have to buy it back if your income stays above the threshold. You also cannot combine Help to Buy with other shared equity or loan backing schemes. Grants and stamp duty concessions can still be used alongside it.

Can the First Home Super Saver Scheme Boost Your Deposit?

The First Home Super Saver scheme lets you release eligible voluntary super contributions towards a first home deposit. You can count up to $15,000 of voluntary contributions per financial year and $50,000 in total.

You must request a determination from the ATO before you own any property, so do this before you sign on a home. The ATO withholds tax on the released amount, and the money is locked in super until you release it. Tax rules are specific to your situation, so speak with your accountant before making contributions.

Why Pre-Approval Comes Before the Inspections

Pre-approval shows you what a lender may let you borrow before you commit to a home, so you can shop within a realistic range. Our borrowing capacity page explains what lenders look at.

With Help to Buy, this step is essential. Housing Australia states that you should not put down a deposit or bid at auction without conditional approval. That approval reserves a place for up to 90 days. Your home loan application goes through a participating lender, and we can liaise with them for you.

If you want to see how these schemes fit together for you, start with our first home buyers page or our Prestons home loans page.

Call one of our team or book an appointment at a time that works for you, and we will map out which schemes you can use before you make an offer. You can also book an appointment online.

Frequently Asked Questions