The Illawarra has become one of the most popular places for Sydney first home buyers who want space, beaches and a realistic commute. From Thirroul to Shellharbour and down to Kiama, here's what you need to know about buying your first home in the region.
Why first home buyers look at the Illawarra
- Price: generally more affordable than comparable Sydney suburbs
- Commute: train access to Sydney, and growing local employment in health, education and services
- Lifestyle: escarpment, beaches and a strong local community
Government schemes in the Illawarra
5% Deposit Scheme
Housing Australia treats the Illawarra as a regional centre, so the higher NSW cap of $1,500,000 generally applies, the same as Sydney. Confirm your postcode on firsthomebuyers.gov.au, as caps are set by location.
NSW stamp duty
First home buyers pay no transfer duty on homes up to $800,000, with a concession up to $1,000,000.
First Home Owner Grant
$10,000 for new homes up to $600,000, or land and build up to $750,000. New estates around West Dapto and Calderwood may suit.
Help to Buy
The cap for NSW regional centres is set by Housing Australia. Check the current figure for the Illawarra if your income is within the limits.
Apartments in Wollongong
Wollongong's CBD has seen a lot of apartment development. Before buying:
- Check the size: some lenders limit lending on small apartments
- Get a strata report: look for defects and special levies
- Compare with townhouses: often better land value and fewer lender restrictions
New estates
West Dapto, Calderwood and nearby growth areas offer house-and-land packages that may fit within grant and stamp duty caps. Check:
- The builder's track record
- Fixed-price contracts and inclusions
- Valuations on completion
- Infrastructure timelines
Flood and escarpment considerations
Some parts of the Illawarra are flood-affected, and properties near the escarpment can have landslip or bushfire considerations. Check council mapping and get insurance quotes before exchanging.
Commuting costs
If you'll commute to Sydney, budget for travel costs and time. Lenders don't count your commute, but your budget should.
Example
Maddie and Josh buy a three-bedroom townhouse in Corrimal for $790,000.
- 5% Deposit Scheme: $39,500 deposit, no LMI
- Stamp duty: $0
- Loan: $750,500
At an example rate of 6.49%, repayments are about $4,740 a month over 30 years.
Frequently asked questions
Is Wollongong considered regional for first home buyer schemes?
For the 5% Deposit Scheme, it's classed as a regional centre with the higher cap. Always check by postcode.
Are there grants for building in West Dapto?
The NSW First Home Owner Grant applies to new builds under the caps.
Do lenders treat Wollongong like Sydney?
Most mainstream lenders lend normally in the Illawarra.
Buying your first home in the Illawarra? Call Finfident on 0424 545 654. We're just up the coast, and we know the area well.
This article is general information only and doesn't take into account your objectives, financial situation or needs. Figures, rates and scheme rules are current as at October 2026 and can change. Finfident Finance Brokers (ABN 94 679 280 801) is Credit Representative 569374 of Outsource Financial Pty Ltd (ACN 131 090 705), Australian Credit Licence 384324.