How to stack the NSW stamp duty exemption with the federal 5% Deposit Scheme, and what your exact required deposit and monthly repayments look like in 2026.
NSW first home buyers pay $0 stamp duty on homes up to $800,000, with a sliding-scale concession up to $1,000,000. The federal 5% Deposit Scheme allows eligible buyers to purchase with just a 5% deposit and no Lenders Mortgage Insurance (LMI), featuring a $1.5 million price cap across Sydney and key regional hubs.
You can stack both initiatives simultaneously to save up to $31,335 in NSW transfer duty while avoiding tens of thousands in LMI.
The Owly Upfront Savings Breakdown: $800,000 Home
Save Over $151,000 UpfrontComparing traditional borrowing requirements versus stacking the NSW Stamp Duty Exemption with the Australian Government 5% Deposit Scheme:
Standard 20% Deposit Purchase
With Scheme Stacking via Owly
- The NSW First Home Buyers Assistance Scheme (FHBAS)
- The Australian Government 5% Deposit Scheme
- What a 5% Deposit and Monthly Repayments Look Like
- Stacking State & Federal Support for Maximum Savings
- Step-by-Step Action Plan for NSW Buyers
- Buyer Eligibility Checklist
- Frequently Asked Questions (FAQ)
The NSW First Home Buyers Assistance Scheme (FHBAS)
Under the First Home Buyers Assistance Scheme (FHBAS) administered by Revenue NSW, eligible first-time purchasers pay zero transfer duty on new or established homes priced up to $800,000.
For properties valued between $800,000 and $1,000,000, a concessional rate applies on a sliding scale. Once a purchase price crosses the $1,000,000 mark, standard NSW transfer duty rates apply in full. To explore concessions and rules across other Australian states, consult our in-depth State-by-State Stamp Duty Concessions Guide.
Minimum 5% Deposit Required by Purchase Price
The Australian Government 5% Deposit Scheme
Administered by Housing Australia (formerly the First Home Guarantee), the 5% Deposit Scheme allows qualified buyers to enter the market with a 5% deposit without having to pay Lenders Mortgage Insurance (LMI). The federal government underwrites up to 15% of the property value on behalf of participating lenders.
Places are open to eligible Australian citizens and permanent residents, with no personal income caps restricting entry. For metropolitan Sydney and major regional centres including Newcastle, Lake Macquarie, Central Coast, and Wollongong/Illawarra, the eligible property price ceiling is $1,500,000. In other regional NSW postcodes, the price ceiling is $800,000.
Calculate Your Exact Repayments
Model your prospective purchase price, 5% deposit, and estimated weekly or monthly repayments with competitive Australian bank rates.
What a 5% Deposit and Monthly Repayments Look Like
The table below illustrates the minimum required 5% deposit, the resulting loan size, estimated monthly principal-and-interest repayments based on current competitive variable rates (5.89% p.a. over a 30-year term), and applicable NSW transfer duty:
| Purchase Price | 5% Deposit | Loan Amount | Monthly Repayment (5.89%, 30 Yrs) | NSW Transfer Duty |
|---|---|---|---|---|
| $600,000 | $30,000 | $570,000 | $3,377 / mo | $0 (Exempt) |
| $750,000 | $37,500 | $712,500 | $4,222 / mo | $0 (Exempt) |
| $800,000 | $40,000 | $760,000 | $4,503 / mo | $0 (Exempt) |
| $1,000,000 | $50,000 | $950,000 | $5,629 / mo | $9,495 (Concession) |
*Repayment figures are illustrative based on a 30-year principal and interest loan at 5.89% comparison rate. Excludes statutory mortgage registration and conveyancing outlays. Use our Stamp Duty Calculator to compute your specific numbers.
Stacking State & Federal Support for Maximum Savings
First home buyers in New South Wales can combine several concurrent programs to drastically lower their cash requirements:
- First Home Super Saver Scheme (FHSSS): Withdraw up to $50,000 across voluntary personal super contributions (plus deemed earnings) taxed concessionally at 15% to assemble your initial deposit faster.
- First Home Owner Grant (FHOG): A $10,000 cash grant applies to eligible newly built homes, off-the-plan properties, or substantial renovations valued up to $600,000 (or $750,000 for house and land packages).
- FHBAS + 5% Scheme Stacking: On an established home bought for $800,000, you save $31,335 in NSW stamp duty while eliminating approximately $28,000 to $34,000 in Lenders Mortgage Insurance fees.
Quick Eligibility Checklist (NSW FHBAS & 5% Scheme)
2026 CriteriaStep-by-Step Action Plan for NSW Buyers
- Assess True Borrowing Power: Understand your maximum borrowing limit and debt-to-income buffer with an accredited mortgage specialist.
- Verify Suburb Price Caps: Check whether your preferred postcode falls under the Sydney $1.5M cap or the $800,000 regional tier.
- Obtain Scheme Pre-Approval: Reserve a guarantee place through a participating lender on Housing Australia's panel before making property offers.
- Liaise with Your Conveyancer: Ensure the FHBAS exemption or concession application is lodged accurately prior to settlement.
Frequently Asked Questions
More Guides & Market Insights
Data Notice: Grant eligibility thresholds, government guarantee guidelines, and interest rate benchmarks are synthesized from publicly available Australian Commonwealth and NSW statutory releases as of October 2026. Criteria and statutory caps are subject to periodic review by Revenue NSW and Housing Australia.
Credit Representative Number 87837 under Australian Credit Licence (ACL) 384704. Information provided in this guide is general in nature and does not constitute financial, taxation, or credit advice. It has been prepared without taking into account your individual objectives, financial situation, or needs.
Interest rates, government grant limits, and fees change frequently and are subject to lender credit assessment criteria. Refinancing or borrowing may incur fees and charges. Owly™ is a registered trading name. Contact 1300 311 547 or review our Credit Guide.
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