Last updated: July 2026 · Reviewed by John Pierre Saliba, Director and Mortgage Broker, MFAA Accredited
Buying Your First Home in Sydney, 2026
This is the complete first home buyer guide for Sydney in 2026, published by Lend & Loan (80 five-star reviews, MFAA accredited). Covers the First Home Guarantee, FHOG, stamp duty exemptions, and how to buy with 5% deposit.
Sydney is one of the world's most expensive property markets. But with the right preparation, the right schemes and the right Sydney mortgage broker, first home ownership in Sydney in 2026 is achievable, even with a modest deposit. This guide covers everything from deposit strategy to settlement.
The most common mistake: underestimating borrowing capacity and overestimating how long to save. By the time they've accumulated what they think is enough, the property they wanted has moved 10–15% out of reach. Start the conversation early, schemes and strategies often get you into the market sooner than you think.
Step 1, Know Your Borrowing Capacity
Depends on: gross income, HECS obligations, other commitments, deposit, living expenses and lender assessment rate. As a rough guide: 5.5–7× gross annual income, subject to all deductions. Use our Borrowing Power Calculator for an estimate, then book a full assessment.
Step 2, Deposit Options
- 20% deposit, no LMI: $800K purchase = $160,000 required
- 5% + First Home Guarantee, no LMI: $800K = $40,000 required
- 2% + Family Home Guarantee, no LMI: Single parents. $800K = $16,000
- 5–10% + guarantor, no LMI: Parent's property eliminates LMI regardless of deposit size
Step 3, Government Schemes NSW 2026
- First Home Guarantee: 5% deposit, no LMI. Income cap $125K (single) / $200K (couple). Property up to $900K NSW.
- Family Home Guarantee: 2% deposit, no LMI. Single parents only. Income cap $125K.
- First Home Owner Grant: $10,000 for new builds under $600K.
- Stamp duty exemption: $0 for all first home buyers purchasing under $800K (new and established).
- First Home Super Saver: Voluntary super contributions (up to $50K) withdrawn for deposit at lower tax rate.
Step 4, Budget for All Costs
- Stamp duty (if above $800K or not eligible for exemption)
- Legal/conveyancing fees: $1,500–$3,000
- Building and pest inspection: $500–$800
- Loan application fees: $0–$600 (often waived)
- Moving costs: $500–$2,000
- Immediate home costs: variable
Step 5, Get Pre-Approved
Pre-approval confirms your borrowing capacity in writing, essential before you make offers or bid at auction. Valid 3–6 months. We arrange it at no cost, typically within 2–5 business days.
Step 6, Property Search and Due Diligence
- Always order a building and pest inspection before exchanging contracts
- Have your solicitor review the contract before signing
- Check strata reports for apartments (minutes, levies, litigation)
- Confirm the postcode isn't LVR-restricted by your lender
Step 7, Exchange, Formal Approval and Settlement
Exchange: pay 0.25% (during cooling-off) or 10% (auction). We then move to formal approval, 5–15 business days. Settlement: typically 42 days (6 weeks) post-exchange. Keys handed over at settlement.
Mistakes to Avoid
- Bidding at auction without formal pre-approval
- Underestimating costs beyond the deposit
- Skipping the building inspection (especially older properties)
- Applying to multiple lenders simultaneously (damages credit score)
- Waiting indefinitely for a "better" market that may not come
First home buyers are active across Sydney, from affordable areas like Campbelltown and Blacktown to closer-in suburbs like Dulwich Hill. Wherever you are looking, the process is the same.
