By Julian & Renee (Australia) – with writing support from Alberto Aldana (Colombia)
If you’re a first-time homebuyer in New South Wales (NSW), there are two key government programs designed to make entering the property market more affordable. These programs are the First Home Buyers Assistance Scheme (FHBAS) and the Home Guarantee Scheme, both aimed at reducing the upfront costs associated with buying your first home. While these programs address different aspects of the buying process, they can be used together if you meet the eligibility criteria, giving you a better chance of securing your first property.
The First Home Buyers Assistance Scheme offers a full exemption or concessional rates on transfer duty. As of 1 July 2023, if you’re buying a new or existing home valued at up to $800,000, you can access a full exemption from transfer duty. If the value of the home is between $800,000 and $1,000,000, a concessional rate applies. For vacant land, you can qualify for exemption for land valued up to $350,000, or a concessional rate for land valued between $350,000 and $450,000.
To be eligible for the First Home Buyers Assistance Scheme, you must meet the following requirements:
- Be an individual (not a company or trust).
- Never have owned or co-owned a residential property in Australia.
- The buyer must be an Australian citizen or permanent resident.
- The property must be used as your principal place of residence for at least 12 continuous months.
The Home Guarantee Scheme is another valuable program, particularly for those struggling with saving a large deposit. From 1 October 2025, the scheme will provide unlimited government guarantees, allowing first-time buyers to secure their home with as little as a 5% deposit, while avoiding Lenders Mortgage Insurance. The scheme also introduces higher property price caps, making it easier to access the program in areas where property prices have risen. For example, in Sydney, the property price cap will increase from $900,000 to $1,500,000 for capital cities and regional centres. This scheme is available through participating lenders across Australia, providing more flexibility and support for homebuyers.
While these programs offer significant financial relief, the consequences of not meeting the eligibility criteria can be severe. If you fail to satisfy the residency requirements or miss key deadlines, you may be required to pay full transfer duty or be ineligible for the guarantee. Buyers must verify their eligibility and understand the criteria for both schemes. Misunderstanding or missing these requirements can lead to costly penalties or delays in the settlement process.
Flash Conveyancing, led by Julian & Renee, are specialists in property transactions across all NSW. With extensive experience navigating local councils like Blacktown, Hawkesbury, Blue Mountains, The Hills, Hornsby, and Parramatta, we offer personalized advice and guidance throughout your property journey. Whether you’re buying, selling, or reviewing your investment structure, we proactively identify and address any land tax or transfer duty issues early in the transaction, ensuring there are no unexpected costs or delays at settlement. Let us help you navigate the complexities of first-time home buying with confidence.
More information
https://www.revenue.nsw.gov.au/grants-schemes/assistance-scheme
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