Buying your first home can feel overwhelming. Between rising property prices, saving for a deposit and understanding what support is available, it’s easy to feel unsure where to start. The good news? You’re not doing this alone. Both the Australian and NSW governments offer schemes designed specifically to help first home buyers take that important first step towards owning a home.
At The Hills of Carmel, we see many first home buyers begin their journey with us and succeed by combining smart planning with the right government support. This guide walks you through the key schemes available in NSW and how they can assist you make your dream of owning a home more achievable.
STEP ONE
Understand the Support Available to You
Before you begin house hunting, it’s important to know what financial assistance you may be eligible for.
These schemes are designed to tackle three major challenges:
Reducing upfront costs
Lowering how much you need to borrow
Helping you save for a deposit faster
Understanding how they work gives you confidence when planning your budget and speaking with lenders.
SCHEME ONE
First Home Buyer Scheme (NSW Government)
The NSW First Home Buyer Scheme is focused on reducing one of the biggest upfront costs: stamp duty.
Stamp duty can add tens of thousands of dollars to the price of a home, which often slows down first home buyers.
Under this scheme, eligible buyers may receive:
A full stamp duty exemption, OR
A reduced rate of stamp duty
This applies to both new and existing homes, as long as:
The property is under the price threshold set by the NSW Government Price;
Threshold set by the NSW Government is $800,000 in NSW capital City and regional areas;
Homes valued over $800,000 and less than $1,000,000 may qualify for a concessional rate;
You are a first home buyer;
You plan to live in the property as your principal place of residence.
Who This Scheme Is For:
For many buyers, this scheme frees up savings that can instead be used for a larger deposit, legal fees or moving costs. It can make the first step into the market feel far more achievable.
SCHEME TWO
Help to Buy Scheme
The Help to Buy Scheme is a shared equity program designed to reduce how much you need to borrow from a bank.
Under this scheme, the government contributes a percentage of the property’s purchase price. This means you take out a smaller home loan and have lower financial pressure from the start.
This can lead to:
Lower monthly repayments
Reduced interest over time
A smaller deposit requirement
Potentially avoiding lender’s mortgage insurance
Importantly, you don’t pay interest on the government’s share. Repayment of that portion usually occurs when you sell the property, refinance, or choose to buy out the government’s share over time.
To qualify for Help to Buy, applicants must:
Be at least 18 years old and an Australian citizen
Contribute a minimum 2% deposit
Earn $100,000 or less (individuals) or $160,000 or less (single parents and joint applicants), based on their most recent ATO Notice of Assessment
This applies to both new and existing homes, as long as the property is under the price threshold of $1,300,000 set by the NSW Government.
Who Is This Scheme For?
This scheme is particularly helpful for buyers who can afford regular repayments but struggle to save a large deposit.
SCHEME THREE
First Home Super Saver (FHSS) Scheme
Saving for a deposit can take years, but the First Home Super Saver Scheme offers a tax-effective way to build your savings faster. Under this scheme, first home buyers can make voluntary contributions into their superannuation and later withdraw those contributions (up to a set limit) to use toward purchasing their first home. Because super contributions are often taxed at a lower rate than normal income, this method can help your savings grow more efficiently over time.
The Australian Taxation Office provides guidance on:
Eligibility requirements
How to request a release of funds
Tax return implications
Special circumstances such as financial hardship
To access FHSS you must:
Be 18 years or older when requesting the ATO determination;
Never have owned property in Australia (including investment properties, vacant land, etc);
Plan to use the funds to buy or build a residential property to live in;
Have made eligible voluntary contributions into your super that qualify under FHSS rules;
Not have already had a FHSS release request approved for you earlier.
Eligibility is assessed individually, meaning couples or friends buying together can each use their own FHSS savings even if one person doesn’t qualify.
Voluntary Contributions Only
You can only use voluntary super contributions not compulsory employer payments or contributions made by others.
Eligible voluntary contributions include:
Salary sacrifice contributions (before tax);
Personal after-tax contributions;
Personal contributions you claim a tax deduction for
Ineligible amounts include:
Employer super guarantee contributions;
Spouse contributions;
Government co-contributions;
Certain transfers.
Contribution Caps
You can make up to $15,000 in eligible voluntary contributions per financial year for FHSS purposes.
You can accumulate up to $50,000 total of eligible contributions (from 1 July 2017 onwards) that count toward FHSS withdrawal.
What can you withdraw
When you request release to use for a home deposit, the ATO calculates your maximum releasable amount based on eligible contributions and earnings:
100% of non-concessional (after-tax) contributions
85% of concessional contributions (salary sacrifice or deductible personal contributions)
STEP THREE
Set Your Budget with Confidence
Once you understand which schemes you may be eligible for, you can start building a clearer financial picture.
Consider:
How much deposit you can save;
How much stamp duty relief you may receive;
Whether shared equity could reduce your loan;
Ongoing costs such as repayments, council rates and utilities.
Helpful Tip:
Speaking with a mortgage broker or financial adviser can help you understand your borrowing capacity and choose a loan that suits your lifestyle.
STEP FOUR
Apply for Schemes and Finalise Your Purchase
Each scheme has its own application process, and your lender or conveyancer can often help guide you through this.
It’s important to:
Confirm your eligibility early;
Gather documents such as proof of income and identification;
Apply before settlement deadlines;
Keep records of approvals.
First Home Buyer Checklist:
Being organised at this stage can prevent delays and ensure you receive the benefits you’re entitled to.
Use this simple checklist to help guide your journey:
✔️ Research NSW and Federal first home buyer schemes
✔️ Calculate your budget and borrowing capacity
✔️ Speak with a mortgage broker or lender
✔️ Start saving or using FHSS for your deposit
✔️ Choose a location and community that suits your lifestyle
✔️ Inspect homes and compare options
✔️ Apply for eligible grants and exemptions
✔️ Finalise contracts with your solicitor or conveyancer
✔️ Prepare for settlement and moving day
Ready to Take the First Step at The Hills of Carmel?
Your first home is more than just a purchase – it’s the beginning of a new chapter. With the right guidance, government support and a welcoming community, that chapter can start sooner than you think.
At The Hills of Carmel, we’re proud to support first home buyers with thoughtfully designed homes, connected neighbourhood spaces and a community built for long-term living.
Visit our Sales Centre or get in touch with our team today to explore available homes and learn how your first home journey can begin at The Hills of Carmel.