Buying your first home is exciting, but the jargon, schemes and paperwork can feel overwhelming. Here's how the process works in NSW, and where you might be able to get a helping hand.

1. Work out your budget.

Your budget comes down to three things: how much lenders will let you borrow, how much deposit you have, and the upfront costs of buying. Lenders look at your income, living expenses, existing debts and credit history, then test whether you could still afford repayments if rates rose by about 3%.

Try our borrowing power calculator for a ballpark figure, then talk to us for a lender-specific assessment.

2. Understand your deposit options.

Traditionally, buyers needed a 20% deposit to avoid lenders mortgage insurance (LMI). Today there are several ways to get in sooner:

  • Home Guarantee Scheme: eligible first home buyers may be able to buy with a 5% deposit without paying LMI, with the government guaranteeing part of the loan. Property price caps apply and vary by location.
  • Family Home Guarantee: eligible single parents and single legal guardians may be able to buy with as little as 2% deposit.
  • Family guarantee: a parent can use equity in their own home as extra security, which can help you avoid LMI.
  • Paying LMI: sometimes buying sooner with a smaller deposit and paying LMI makes sense, especially in a rising market.

3. Check your stamp duty savings.

Under the NSW First Home Buyers Assistance Scheme, eligible first home buyers pay no transfer duty on homes valued up to $800,000, and reduced duty on homes up to $1,000,000. For vacant land you intend to build on, the exemption applies up to $350,000, with a concession up to $450,000.

On a $750,000 apartment, that could mean a saving of around $28,000. Use our stamp duty calculator to estimate yours.

4. Look into the First Home Owner Grant.

If you're buying or building a new home, you may be eligible for the $10,000 First Home Owner Grant (New Homes). Value caps apply — currently $600,000 for a new home, or $750,000 combined land and build value when building. The grant doesn't apply to established homes.

Eligibility matters. Each scheme has its own rules around citizenship or residency, age, prior property ownership, living in the home and price caps. We'll check what you qualify for as part of your free consultation.

5. Get pre-approval.

Pre-approval tells you how much a lender is likely to lend, so you can house-hunt with confidence. It usually lasts around 90 days, and is essential if you plan to bid at auction — in NSW, auction sales are unconditional and there's no cooling-off period.

6. Find the property and make an offer.

Before you commit, have a conveyancer or solicitor review the contract, and organise building and pest inspections. For private-treaty sales in NSW, you'll usually have a five-business-day cooling-off period after exchange, but withdrawing during that time costs 0.25% of the purchase price.

7. Exchange, formal approval and settlement.

At exchange you'll pay your deposit (often 10%, though a smaller amount can sometimes be negotiated). Your lender will value the property and issue formal approval. Settlement in NSW is commonly six weeks later — that's when the loan funds, the balance is paid and you get the keys.

How we help first home buyers.

We'll work out what you can borrow, check your eligibility for every scheme, compare lenders, and manage the application from pre-approval to settlement. For most first home buyers, our service costs nothing.

This article is general information only and does not consider your objectives, financial situation or needs. Government schemes, thresholds and eligibility criteria change — confirm current details with Revenue NSW, Housing Australia or a Kingdom Capital broker before making decisions.