First Home Buyer Guide Sydney (2026): How to Buy Your First Property Sooner

Introduction

Buying your first home in Sydney can feel out of reach for many people. With property prices often exceeding $800,000, saving a large deposit while paying rent can be challenging.

However, many first home buyers are successfully entering the market using government schemes, smart deposit strategies, and the right loan structure.

Understanding your borrowing power and available options is the first step.

How Much Deposit Do First Home Buyers Need in Sydney?

Traditionally, lenders prefer a 20% deposit. However, many first home buyers can purchase with as little as 5% using government schemes.

Example deposit requirements:

• $600,000 property = $30,000 deposit (5%)

• $700,000 property = $35,000 deposit (5%)

• $800,000 property = $40,000 deposit (5%)

A larger deposit improves borrowing power and reduces repayments, but it is not always required.

First Home Buyer Government Schemes Australia (2026)

Government schemes help first home buyers enter the property market sooner.

First Home Guarantee Scheme (5% deposit, no LMI)

This scheme allows eligible first home buyers to purchase property with only a 5% deposit without paying Lenders Mortgage Insurance.

Benefits include:

• Lower upfront costs

• Faster entry into the property market

• Reduced savings requirements

This can save first home buyers tens of thousands of dollars.

First Home Owner Grant and Stamp Duty Benefits (NSW)

Eligible first home buyers in NSW may receive:

• $10,000 First Home Owner Grant (for new homes)

• Stamp duty exemptions or reductions

This significantly reduces upfront costs.

How Much Can First Home Buyers Borrow?

Borrowing power depends on:

• Income

• Employment type

• Existing debts

• Living expenses

• Interest rates

• Lender policy

Different lenders can offer very different borrowing capacities.

This is why working with a mortgage broker is important.

First Home Buyer Strategies That Work in Sydney

Due to high property prices, many buyers are using alternative strategies.

Strategy 1: Buying an Apartment First

Apartments have lower entry prices compared to houses.

Benefits include:

• Lower deposit required

• Easier loan approval

• Ability to build equity

Many first home buyers upgrade later using equity.

Strategy 2: Rentvesting

Rentvesting means renting where you want to live and buying where you can afford.

Benefits include:

• Entering the market sooner

• Rental income helping repayments

• Long-term property growth

This strategy is becoming increasingly popular in Sydney.

Strategy 3: Using Government Schemes to Buy Sooner

Government schemes allow buyers to purchase years earlier than expected.

Entering the market sooner allows buyers to benefit from property growth earlier.

Additional Costs First Home Buyers Should Consider

In addition to the deposit, buyers should consider:

• Stamp duty (may be reduced or waived)

• Conveyancing and legal fees

• Loan setup costs

• Inspections

• Moving costs

Planning for these costs ensures a smoother process.

Step-by-Step First Home Buyer Process

The process typically involves:

1. Understanding borrowing power

2. Confirming deposit and eligibility for schemes

3. Obtaining loan pre-approval

4. Finding a suitable property

5. Submitting the loan application

6. Settlement

A mortgage broker helps manage this entire process.

Why Work with a Mortgage Broker as a First Home Buyer?

A mortgage broker helps you:

• Understand borrowing power

• Access government schemes

• Compare multiple lenders

• Structure your loan correctly

• Secure competitive interest rates

This improves approval chances and reduces long-term costs.

How Zahr Financial Helps First Home Buyers in Sydney

Zahr Financial specialises in helping first home buyers enter the property market with confidence.

We help you:

• Understand your borrowing power

• Access government schemes

• Structure your loan correctly

• Compare lenders

• Enter the property market sooner

Every situation is different, and the right advice makes a significant difference.

Speak with a First Home Buyer Mortgage Broker Sydney

If you are considering buying your first home, the first step is understanding your borrowing power and options.

Zahr Financial can guide you through the process and help you secure the right loan.

Book a consultation to explore your options.