Every first-home buyer always wants to know how much they can save. What new government assistance has arrived, and will they get any relief in today’s rising mortgage market?
In New South Wales, the government works with varied options to support first-home buyers in managing their buying costs. A first-home owner grant NSW is one of the major government initiatives among them. Under this, the NSW government offers a certain grant that helps first-homebuyers to access their first home without incurring high costs.
Also, the government works with other schemes like the First Home Buyers Assistance Scheme (FHBAS) and the First Home Guarantee. But how much grant will first-home buyers get under the First-Home Owner Grant in NSW? What will be the eligibility criteria? How to apply for it? Are there any considerations/risks?
First Home Owner Grant NSW
Since the housing market is rising, first-home buyers need extensive support from the government. Recognising this problem, the government uses its unique measure, the first-home buyer grant. The first home buyers under this can get a one-off grant of up to $10,000 on
- First-home purchase
- Newly built home
- Townhouse
- Apartment
- Unit
- Substantially renovated home
However, the purchase value must not exceed $600k. You can only claim the grant if the home costs less than this limit. The grant is also available for vacant land purchases, provided that the combined value of the vacant land and home building contracts does not exceed $750k.
So, when will you be eligible for it?
Eligibility Criteria for First Home Owner Grant NSW
To qualify for the first homeowner grant, you must fulfill the following criteria:
- If your age is 18 or older, then you can apply.
- You must be an Australian citizen or must have Australian citizenship.
- The purchased property must be your first home.
- You must have purchased it as an individual and not as a company or trust.
- There should not be previously owned or co-owned property in your or your spouse’s name if owned collectively.
- The home purchase value must be equal to or less than $600k.
- For a comprehensive home building contract, the value must be equal to or less than $750k.
- Your home must be your primary residence for at least 12 months.
- After the purchase contract, you must start residing in your home within 12 months and continue living there for at least 6 months.
- The purchase contract must be signed on or after 1st July 2023.
Reasons for Getting Disqualified for the First Home Owner Grant
But if you do any of the following, you may not qualify for the first homeowner grant:
- If you buy a home or land beyond the given purchase value criteria
- You purchased an established home.
- Your main purpose of buying a new home isn’t a primary residence.
- Previously received any grant under the First Home Owner Grant or any other first home buyer schemes.
- You lived in another home you owned (wholly or partially) for 6 months or more on or after July 1, 2023.
- If you haven’t lived in your purchased home for at least 6 months, you won’t be eligible for the grant.
That means if you do the above things, you will not receive any grant under the given government scheme.
How to Apply for the First Home Owner Grant NSW?
Now that you understand what the dos and don’ts are while applying for FHOG, the following is the process to apply for it:
Check Your Eligibility: Primarily, based on the given criteria, check your eligibility for the FHOG in New South Wales.
Prepare with the required documents: While applying for the grant, you must prepare the following documents:
- Australian Birth Certificate
- Passport/Current Australian Visa
- Driving License
- Contract of sale/building contract
- Evidence of occupancy
Choose Your Application Process: You can apply for the First Home Grant in two ways:
Through a lender: You can find a suitable lender if you are applying for a home loan. He/she will handle your application for FHOG then, and you only need to provide them with the necessary documents.
Directly with the NSW revenue website: if you don’t want a lender, you can directly apply through the official website within 12 months of settlement. In this, you can download the form and submit it after filling it out.
Complete And Submit Your Application: After filling out the form, you can submit your application with the required documents on the NSW website.
Wait for the Confirmation: Once you submit, wait for the confirmation from the government while tracking its status through the NSW website.
Receive Grant: If your application is approved, you’ll receive payment either at settlement or at the first drawdown of funds for a new home.
Other First Home Buyer Schemes With FHOG in NSW
Though under FHOG, you can receive a grant and an early step into your first home, you can take advantage of other schemes too:
First Home Buyers Assistance Scheme (FHBAS)
If you purchase an existing property of up to $800k, under this scheme, you can get full stamp duty exemptions. Additionally, on the purchase of vacant land up to $350k, you can get the benefit of full duty exemptions.
However, if you purchase a property between $800k and $1 million, a reduced duty rate will apply. Likewise, on vacant land purchases between $350k and $450k, you will pay stamp duty at reduced rates.
First Home Guarantee Scheme (FHBG)
To buy your home early, you can apply for the First Home Guarantee Scheme as well. Under this, you can buy your home with as little as a 5% deposit while skipping LMI (Lender Mortgage Insurance).
However, the guarantee of your home loan is limited to a maximum amount of 15% of the property value. More importantly, to gain benefits from it, you must be eligible for it, fulfilling its eligibility criteria.
Regional First Home Buyer Guarantee Scheme (RFHBG)
As a part of the Home Guarantee Scheme, the above initiative also aims to ensure that first-home buyers buy their homes earlier. However, the scheme will only apply if you buy a home in a regional area.
From 1 July 2024 to 30 June 2025, 10,000 spots are available under this scheme. This means that while buying your first home, the government will guarantee a certain part. Moreover, you can buy your home with as little as a 5% deposit without any LMI.
So, what’s that major step you should take towards the First-Home Owner Grant NSW?
Have a Professional Mortgage Consultation
Stepping into your first home is a big decision and must be backed by the right guidance. If you consult a trustworthy mortgage professional, you’ll learn more about FHOG in New South Wales. Additionally, you can prevent yourself from potential risks while gaining higher benefits from the scheme.
Contact us Nfinity Financials or give us a call at 1300 GET LOAN, 0456 456 267.
Frequently Asked Questions
1. How much is the first-home owner grant NSW?
The First H1ome Owner Grant in NSW is $10,000 for eligible new or substantially renovated homes under $600,000.
2. Are there any income restrictions for eligibility for the First Home Owner Grant in NSW?
No income restrictions apply to the First Home Owner Grant in NSW. Eligibility is based on property type, price caps, and residency requirements, not personal income.
3. Does a first-home buyer need to pay stamp duty in NSW?
No, eligible homebuyers don’t need to pay any stamp duty on home purchases up to $800k and land purchases up to $350k. Beyond this limit, concessional rates are applied for properties valued between $800,000 and $1 million and for vacant lands up to $450k.
4. Can a couple get two first-home buyers’ grants?
Whether you apply alone or with your partner, you will only receive a one-time $10,000 grant for your eligible property.
