Everything Caddens Buyers Need to Know About Home Loan Help

If you are buying in Caddens, two government policies could change how much you need to save and how much you borrow. They are the Australian Government 5% Deposit Scheme and the NSW First Home Buyers Assistance Scheme.

We have sat across the table from plenty of Penrith-area families working through these choices. The questions are usually the same: what can I claim, what does it cost me, and what is the catch? This guide answers those for Caddens buyers.

What Government Help Can You Use With a Home Loan in NSW?

Eligible NSW buyers can draw on a federal low-deposit scheme, a state transfer duty (stamp duty) exemption or concession, and a state grant for new homes. Each has its own rules, so qualifying for one does not mean you qualify for the others.

The federal scheme lets first home buyers with a minimum 5% deposit, or single parents and legal guardians with a minimum 2% deposit, buy sooner. The state scheme is run by Revenue NSW. The state also offers a $10,000 grant for purchasers buying or building their first new home. Our first home buyers page covers how these fit together.

How the 5% Deposit Scheme Works With Your Home Loan

The 5% Deposit Scheme lets eligible first home buyers borrow up to 95% of a property's value without paying Lenders Mortgage Insurance (LMI). The government provides your lender with a guarantee for up to 15% of the sale amount.

The trade-off is a larger loan. You are still responsible for all costs and repayments. The guarantee protects the lender, not you.

The scheme was formerly called the Home Guarantee Scheme. From 1 October 2025, it has had no income caps, no waitlists and no LMI. You can't apply directly to Housing Australia. You apply through a participating lender as part of a home loan application. That is one reason a broker helps. We can compare participating lenders for you rather than you approaching them one by one.

Does Buying Land in Caddens Qualify for Transfer Duty Relief?

It can, if you are an eligible first home buyer and the value is within the NSW thresholds. The scheme covers vacant land you intend to build on, as well as new and existing homes.

For vacant land, the exemption applies at $350,000 or less, with a concessional rate above $350,000 and below $450,000. For a new or existing home, the full exemption applies at $800,000 or less, with a concession above that and below $1,000,000.

Caddens is a masterplanned suburb in the Penrith City Council area, so many buyers here look at newer homes or land with a build. If that is you, the land and the home are assessed differently, so ask your conveyancer how the scheme applies to your contract. Our team can line the loan up with that timing through construction loans when you are building.

What a 5% Deposit Does to Your Repayments: A Worked Example

A smaller deposit means a larger loan and higher repayments. The numbers below are illustrative only and use an example rate of 6.75% p.a.

Consider a couple in Caddens who have saved a 5% deposit and qualify for the scheme. They choose a principal and interest loan of $600,000 over 30 years. At 6.75% p.a., the repayment is about $3,890 a month.

We then ask them to test a rise. At 7.75% p.a. on the same loan, the repayment is about $4,300 a month, which is roughly $410 more. If that stretches their budget, they have options. They can look at a lower-priced home so the loan is smaller, or save a larger deposit first.

In this scenario, they run the figures through our mortgage repayment calculator before making an offer. They decide a $600,000 loan suits their budget with a buffer left over, and they go ahead knowing the numbers hold up if rates rise. Actual rates vary by lender and by deposit size.

Why Your "First Home Buyer" Status Can Differ Between Schemes

The federal and state schemes test first home buyer status differently, so you can qualify for one and not the other. This catches out buyers who owned property years ago.

For the federal scheme, you must be a first home buyer or someone who has not owned property in Australia in the last 10 years. For the NSW duty scheme, you and any spouse or partner must never have owned or co-owned residential property in Australia, and must not have previously received the exemption or concession.

A buyer who owned a unit more than a decade ago might pass the federal test but not the NSW one. Raising it early lets us plan the deposit and upfront costs around what you can actually claim. Your borrowing capacity also depends on your income, debts and living expenses, regardless of which schemes you use.

Moving In and Staying Put: The Conditions Attached

Both schemes expect you to live in the home. For the federal scheme, you need to move in within six months of purchase and keep living there for as long as the guarantee applies. The NSW scheme has its own residence requirements, set out in the Duties Act 1997, which depend on your contract date.

This matters if you are thinking of renting the home out soon after buying. These schemes are built for owner occupiers, so speak with us before you commit if your plans might change. If you are weighing other loan types, our home loans page outlines the options.

If you would like someone local to go through your situation, our Caddens mortgage broker page explains how we work with buyers in the area. Government rules change, so we check the current position with you at the time you apply.

Call one of our team or book an appointment at a time that works for you, and we will work out which schemes suit your plans.

Frequently Asked Questions