NSW First Home Buyer Assistance Scheme (FY2025–26)

If this is your first home and you'll live in it for at least 12 continuous months in the first 24 months, you may qualify for NSW FHB stamp duty relief. Properties up to $800,000 receive full exemption (zero stamp duty). Properties between $800,001 and $1,000,000 receive a graduated concession (duty proportional to amount above $800k). Properties above $1,000,000 pay standard duty. For a $1M property, the saving is roughly $40,000 vs standard duty — about a year of mortgage repayments.

Lender's Mortgage Insurance (LMI) — when and how much

LMI is a premium charged when your loan-to-value ratio (LVR) exceeds 80%. The premium scales with LVR: ~1.1% of loan at 85% LVR, ~1.9% at 90% LVR, ~3.4% at 95% LVR, ~4.8% above. For a $900k loan at 90% LVR that's $17,000 added to upfront costs. The First Home Guarantee scheme (federal) lets eligible FHBs buy at 95% LVR without LMI — apply through participating lenders. Subject to eligibility and annual scheme caps.

Serviceability — what banks actually check

Banks underwrite at a stressed rate (typically your application rate + 3 percentage points buffer) and a 30% net-income-to-repayment ceiling. So if rates are 6.2% the bank tests serviceability at ~9.2%. Most banks also apply a debt-to-income ratio cap (DTI) — anything above 6× becomes 'high risk' and above 7× is typically declined unless there are mitigating factors. The calculator below shows both your serviceability ratio and DTI so you can see where you stand before applying.

Upfront cash — what you actually need at settlement

FHBs commonly underestimate upfront cash. Beyond the deposit you need: stamp duty (or concession amount), LMI (if LVR>80%), legals and conveyancing ($2,000–$4,000), building and pest inspection ($600–$1,200), first month of rates and water (if mid-quarter), removalist, and a buffer for the inevitable unbudgeted expense. The calculator computes this in the upfront-cash line. Don't apply for a loan with exactly the deposit + duty in your account — banks like to see a 1–2 month liquidity buffer post-settlement.