First Home Buyers – What are we entitled too?

As of 1 October 2025, the Federal Government’s expansion of the Home Guarantee Scheme (HSG) changed how first home buyers purchase property in NSW. While it opened new opportunities, it also added complexity around stamp duty, eligibility, and state laws.

At Equilaw Solicitors Muswellbrook, we will guide you through these changes so you can make confident legal and financial decisions.

What’s Changed?

The expanded HGS allows eligible home buyers to purchase with a 5% deposit (or 2% for single parents) and no Lenders Mortgage Insurance (LMI), potentially savings tens of thousands. Updates include:

• Price caps up to $1.5 million in Sydney and major centers, $800,000 elsewhere
• No income limits
• No caps on places within the scheme

Importantly, the HGS is a loan guarantee – not a cash contribution.

How NSW law still applies

Despite the higher HGS caps, NSW stamp duty rules remain unchanged:

• No duty up to $800,000
• Concessions from $800,000 - $1 million
• Full duty above $1 million

Other programs, like the $10,000 First Homeowner Grant and the Help to Buy shared Equity scheme, operate separately.

This means you could buy a $1.4 million property with a 5% deposit and no LMI – but still pay full stamp duty.

Common misunderstandings

Many buyers are confused about how these schemes work. For example:

• The government does not pay your deposit
• Stamp duty still applies above $1 million
• HGS and Help to Buy are different programs

We break down these details, so you understand your true costs and risks before signing.

Why legal advice matters

Your savings depend on the property price, type, and location. We provide:

• Eligibility checks
• Contract reviews
• Stamp duty calculations
• Full conveyancing support

Plan ahead

If you’re buying in 2026, early legal advice will help you:

• Confirm eligibility and price caps
• Understand upfront costs
• Avoid misleading contract terms

With Equilaw Solicitors, you’ll have clear, practical guidance from offer to settlement – so your first home purchase is smooth, informed, and legally sound. If you’re considering buying your first home, call us on 02 6542 5566 to get clear, practical advice tailored to your personal situation.

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This newsletter is intended to provide general information. You should obtain professional advice before you undertake any course of action.