Buying Your First Home in NSW?

Buying Your First Home in NSW?  Here's Why You'll Want an Expert Conveyancer on Your Side

The excitement of buying your first home is hard to beat — and for many first home buyers across New South Wales, that dream has just become more achievable.

The expanded First Home Buyer Guarantee Scheme, which has rolled out early from 1 October 2025, is a game-changer for many first home buyers across New South Wales. This update means more people can now buy with a smaller deposit and without paying Lenders' Mortgage Insurance, making the dream of homeownership more achievable.

But while the changes open new doors, they also bring new complexities — especially as the price caps mean many eligible properties are units or strata dwellings. And with strata comes a whole new set of rules, responsibilities, and costs that can catch first-home buyers off guard.

Having a specialist conveyancing team on your side is like having a trusted advisor guiding you through the complex process of buying your first home. At Donovan Oates Hannaford, we don't just handle the paperwork; we help first home buyers understand every step of the purchase process, ensuring there are no nasty surprises later on.

What's New Under the First Home Buyer Guarantee Scheme

The early rollout of the expanded Scheme from 1 October 2025 brings several important updates for NSW buyers:

• Only a 5% deposit required — the Federal Government guarantees the remaining 15% so that eligible buyers can avoid Lenders' Mortgage Insurance.
• No income limits — the previous earnings caps have been removed.
• Unlimited places — there's no longer a limit on the number of buyers who can access the Scheme.
• Higher property price caps — in NSW, the cap has increased significantly, with up to $1.5 million in Sydney and adjusted limits across regional areas.

While the higher caps are welcome, they still mean many buyers will find that units, townhouses or other strata dwellings are the most realistic way to enter the market — particularly in Sydney, Newcastle, and along the coast.

Why Buying a Strata Property in NSW Is More Complex

Unlike buying a freestanding house, purchasing a strata title property means you're not just buying your unit — you're also buying into a shared building and community that comes with its own financial and legal obligations.

Here are some of the key differences:

• Ongoing levies: You'll contribute to administrative and capital works funds (formerly known as sinking funds). These cover everything from common area maintenance to major building repairs.
• Bylaws: Every strata scheme has rules — covering things like pets, renovations, parking, and even short-term letting. Breaching them can lead to fines or disputes.
• Special levies: If major works are needed (say, structural or fire safety upgrades), owners may be asked to pay special levies on top of regular contributions.
• Insurance: The Owners Corporation is responsible for building insurance, but you'll still need contents and liability cover for your individual lot.
• Meeting minutes and budgets: These documents reveal the financial health of the building, including any upcoming works or known defects.

Understanding these obligations before you sign is essential. An experienced NSW conveyancer can review the Section 184 Certificate (the official strata records), check the bylaws, and ensure nothing is lurking in the fine print that could cost you down the track.

Common Pitfalls for First Home Buyers in NSW

As you embark on your journey to buy your first home, it's essential to be aware of some common traps that first-home buyers fall into. Here are a few of them, and how expert conveyancing can help you avoid them:

1. Hidden special levies: You settle, only to discover the building has approved a significant repair. We review meeting minutes and budgets to flag potential upcoming costs.
2. Incorrect duty calculations: NSW stamp duty exemptions and concessions under the First Home Buyer Assistance Scheme (FHBAS) can be complex. We ensure you claim the correct concessions to avoid overpaying.
3. Title or easement surprises: Some lots have restrictions, shared driveways, or utility easements that affect how you can use your property. We check all title details before exchange.
4. Contract clauses that disadvantage buyers: Off-the-plan contracts, in particular, can contain terms that allow developers to delay settlement or change finishes. We review and negotiate where possible.
5. Scheme eligibility confusion: You must move into the property within six months and live there for at least a year. We'll ensure your purchase contract aligns with these conditions.

How Donovan Oates Hannaford Supports NSW First Home Buyers

Our conveyancing team assists clients throughout Port Macquarie, the Mid North Coast, and across NSW with clear, practical guidance from contract to keys.

Here's how we help you buy with confidence:

1. Eligibility and Scheme Advice - We'll confirm your eligibility under the Scheme and ensure the property price and conditions comply with NSW requirements.
2. Strata Due Diligence - We order and review strata records, bylaws, and minutes to uncover any financial or legal risks.
3. Contract Review & Negotiation - We explain the terms in plain English and request amendments where necessary to protect your interests.
4. Transparent Costing - You'll receive a detailed breakdown of all costs, including stamp duty, levies, adjustments, and registration fees — so you know exactly what to budget.
5. Settlement Coordination - We manage the process with your lender and the vendor's solicitor to ensure everything goes smoothly on settlement day.

Top Tips for NSW First Home Buyers

• Get legal advice before signing anything. Even if the real estate agent says it's "standard," contracts can vary widely.
• Check your strata reports early. Don't wait until cooling off; understanding the building's condition and finances is crucial.
• Budget beyond the purchase price. Factor in strata levies, insurance, council rates, and maintenance.
• Move quickly but wisely. With the Scheme now open and caps lifted, competition in the spring market will be intense.
• Keep your documents organised. Scheme approvals, finance, insurance, and contract copies will all be needed at settlement.

In Summary

If you are a First Home Buyer, you'll have lots of questions. Our conveyancing team can help answer those questions, guiding you through every step and providing you with an understanding of your rights, responsibilities, and real costs before you commit. Working with the Donovan Oates Hannaford conveyancing team will make you feel more comfortable and supported throughout the complex buying process.  

Ready to take the first step?

Contact our property team today to discuss your eligibility under the Scheme and start your first home journey with confidence.