First Home Owners Buyers Grant in NSW

Table of Content

• FAQ about the FHOG
• NSW first home owners tax reform offers 25K grants
• Compare up to 4 providers
• I own an investment property — will I still be able to apply for the scheme?
• What is the first home owner grant?

The bank or financial institution providing you with a loan will need to be an approved agent. Products marked as 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options. As long as you have lived in your home for six continuous months within the first twelve months, you will not be required to repay the grant and the stamp duty discount.

Please note you need to lodge your application forms and proof of identity documents. If you’ve already completed the purchase or construction process you can lodge your application via the FHOG customer portal. You purchased a residential property after 1 July 2000 and didn’t live in it for more than six continuous months. You need to lodge your applications form and supporting documents with your solicitor or conveyancer. This is a general guide to the regulations in NSW as at July 2020 and is subject to change. To find out more about the current details of eligibility criteria, visit the government’s guide on firsthome.gov.au.

FAQ about the FHOG

Allows you to take out a mortgage with just a 2-5% deposit and avoid paying lender’s mortgage insurance . Previously referred to as the First Home Loan Deposit Scheme, the New Home Guarantee offers first-time buyers an opportunity to secure a home loan with a 5% deposit. Accordingly, the Australian Government guarantees the other 15% of the deposit and helps first home buyers avoid LMI. If choosing to construct your home on vacant land, you will need to provide evidence of the total value of the property. The avenue you select will ultimately determine how you fill out your FHOG application form. For example, if you choose to apply directly to Revenue NSW, you will need to include more supporting documents than if you go with an agent.

In the discussion papers, a rate of $400 per property for residential owners and $1,500 for investors is mentioned as an initial "fixed fee", with a percentage rate to be added to this. When announced, the government would clearly state the dates during which the opt-in is available as well as eligibility criteria. Overall, most buyers will be better off as the grant may be eligible to be used as part of your deposit, which is a huge barrier to entry for many first home buyers.

NSW first home owners tax reform offers 25K grants

However, these are more difficult to secure due to strict eligibility requirements. Are an Australian citizen or permanent resident (if co-purchasing, only one person needs to fulfil this). The following table provides a complete breakdown of whether you will receive a full exemption on concession. A statement from the vendor or their legal representative as evidence that the house hasn't been occupied since the completion of construction. Be an Australian citizen or permanent resident (if co-purchasing, only one person needs to fulfil this). Alongside following these purchase terms, you must fulfil an eligibility criteria to qualify for the $10,000 grant.

This includes an exemption from stamp duty for homes valued up to $650,000 and concessions on duty for homes valued between $650,000 and $800,000. And for land valued between $350,000 and $450,000, you’ll receive a concessional rate. First home owners also currently don’t need to pay any stamp duty on vacant land worth up to $400,000, and only pay a concessional rate on vacant land valued between $400,000 and $450,000.

Compare up to 4 providers

Called FHBA New Homes, our new homes search service involves us connecting you with leading property developers, builders and real estate experts to help you find and secure your first home. Meanwhile, your FHBA Coach stay’s by your side every step of the way. For the stamp duty waiver, your solicitor will handle the paperwork for you on settlement day.

Have never owned a home before 1 July 2000 (includes you and your co-purchasing partner). You must sign the contract of purchase on or after 11 November 2022. If you apply yourself, allow at least 2 weeks to receive the funds . Substantially renovated means all, or substantially all, of the building is removed or replaced.

You may be eligible for a $10,000 grant under the First Home Owner Grant scheme. Remember, you need to lodge your application within 12 months of completion or settlement of your new home. To calculate the stamp duty you may have to pay on your property, have a look at our stamp duty calculator.

Unlike the FHOG, you can buy an existing home and still receive a concession of exemption. Interestingly, in the latest round of progress papers in which this grant was announced, the NSW government suggested that stamp-duty reform could actually reduce property prices. The eligibility for the two support programs relies on you being a first-home buyer and the property transaction you are applying with, and not on your income. You can also opt to apply directly through the NSW Revenue Office once you have completed the purchase of your home. Your application must be submitted within 12 months after you have completed the settlement of your property.

What is the first home owner grant?

However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market. In the meantime, check out our tips for first home buyers and compare the latest home loan offers so you can get finance-ready. Each state and territory has its own rules and eligibility criteria for the grant. Alternatively, if you decide to purchase vacant land to build your first property, you can still qualify for FHOG, given that the final land and construction costs do not exceed $750,000. First Home Buyer Choice is making home ownership in NSW easier by providing first home buyers the option between paying a smaller annual property tax, instead of stamp duty.

NSW first home buyers will be eligible for a full stamp duty exemption for the purchase and construction of new homes up to $800,000. Stamp duty exemption to purchase a new or established property in Victoria up to $600,000. A duty concession applies for properties valued between $600,000 and $750,000. A First Home Vacant Land Concession for transfer duty when acquiring vacant land to build your first home, if you meet certain requirements. If you need the grant for your property settlement or first drawn down/progress payment, lodge your application with the approved agent who is providing your finance.

Previously, first home buyers were only exempt from stamp duty on vacant land valued up to $350,000. A concessional rate then applied to vacant land valued between $350,000 and $450,000. For established properties, first home buyers were exempt from paying any stamp duty on homes valued up to $650,000. If the home was valued between $650,000 and $800,000 a concessional rate applied. The First Home Buyers Assistance Scheme also provides a duty exemption on vacant land valued up to $350,000 and concessions for vacant land valued between $350,000 and $450,000. The First Home Buyers Assistance Scheme allows eligible first home buyers in NSW to get an exemption or concession on transfer duty .

First Home Buyer Choice NSW Government

Table of Content

• NSW Government
• First Home Owner (New Homes) Grant
• How to Apply for First Home Buyer Assistance Scheme NSW
• Mortgage Brokers
• The New Home Guarantee
• FAQ about the FHOG

Use the First Home Buyer Choice calculator to help you compare the estimated property tax and stamp duty. Applying for the FHOG and / or various duty concessions can be a little tricky. While you can check eligibility and apply online by yourself, we recommend you apply through the assistance of one of our FHBA Mortgage Brokers. However, if you’re planning on using any of the aforementioned grants or schemes, please have a discussion with your bank or mortgage broker prior to submitting your application. However, when grants are introduced, the demand for a certain range of houses shoots up, and as a result, prices rise as well.

The NSW Government announced increased thresholds for purchases of new homes and vacant land to build a new home from 1 August 2020. First homeowners can apply for the grant through their financial institution or other approved agent, such as a solicitor or conveyancer. Since you’ve owned a property before, unfortunately, doesn’t qualify you for stamp duty exemption and FHOG. Richard Whitten is an editor at Finder, and has been covering home loans and the property market in Australia for the last 4 years. He has written for Yahoo Finance, Money Magazine and Homely, as well as multiple banks and lenders.

NSW Government

We can check your eligibility, apply on your behalf and be with you every step, providing you with peace of mind that you haven’t missed a thing. Most lenders will apply for the grant on your behalf once a formal home loan approval is granted, and you have signed any relevant applications/declaration. You can use our stamp duty calculator to work the duty payable on a SA property purchase. Northern Territory has perhaps the most attractive government schemes and grants for both first home buyers and property owners in general. At least one buyer must live in the home continuously for at least one year, starting within 12 months of settlement or completion of construction. For example, an eligible first-home buyer can technically apply for and qualify for the First Home Owners Grant and the First Home Guarantee, while paying no stamp duty.

However, they would be able to receive a refund of the stamp duty paid upon lodgement of an application to opt-in to the property tax retrospectively. Stamp duty is an upfront payment, paid at the time of buying your home. It is calculated as a percentage of the property’s purchase price or current market value . Existing stamp duty exemptions and concessions for first home buyers will continue to apply for eligible purchases of up to $800,000. There are no grants for NSW first home buyers purchasing an established dwelling. However, you may still be eligible for transfer duty concessions outlined above.

First Home Owner (New Homes) Grant

It’s especially tough for first-time buyers, who might be overwhelmed by the consistent increase in house prices. Not all brokers or advisers offer the products of all lenders or solution providers. Occupy the home as your primary place of residence within 12 months of the purchase date or construction completion. If you're in NSW and looking to buy your first property, this guide is essential to help you understand your eligibility for these grants and how they can help you. As Australia’s premier first home buyer organisation we have access to hundred’s of FHOG eligible homes, from house & land packages through to townhouses, apartments and more.

The grant is set to be offered to home buyers who are settling their first property. You must be a buyer or a builder if you want to apply for the FHOG and the FHBAS. The form outlines all the documentary requirements you will need to submit with your application.

How to Apply for First Home Buyer Assistance Scheme NSW

To learn more about our FHBA Mortgage Broking service and have one of our experts assist you with your application, please visit our FHBA Mortgages home page. Other eligibility requirements are similar to the FHOG requirements outlined above. Your qualified FHBA Mortgage Broker will go through the full eligibility criteria and process with you.

Under the scheme, single parents can buy a home with just a 2% deposit without paying Lenders Mortgage Insurance. So here we list the major announced grants and schemes for first-home buyers, as of June 2022. Lodge the completed form and supporting documents with an approved agent. You must occupy your first home as your principal place of residence within 12 months of the construction or purchase of your home and the minimum period of occupancy is six continuous months. From home buyer to electric vehicle, we issue and administer a range of grants and schemes. You must have already exchanged contracts to purchase your first home or vacant land.

FIRST HOME LOAN

People who purchase during this cross-over period will still be required to pay upfront stamp duty within the normal period (because the legislation hasn't passed yet). But there's no such thing as a free lunch – and in this instance, the $25k grant replaces the stamp-duty concession that buyers would have been eligible for previously. For more insights on first home owner grants and tips on buying your first home, click Yourmortgage's guide.

No, the grant is only available to purchasers of new or substantially renovated homes. A statement from the vendor or their legal representative confirming that this is the first sale of the home and that the home has never been previously occupied since completion of construction. We will pass your details to a Mortgage Choice broker advisor so that they can get in touch with you. Our Privacy Policy explains how we store personal information and how you may access, correct or complain about the handling of your personal information. You can also apply directly through the State Revenue Office by submitting a First Home Owner Grant Application form.

Mortgage Brokers

You can be eligible for the grant provided you have not owned property in Australia before. If you have lived in your home for a continuous period of six months, you may keep the grant, but if you move out before this time, you’ll need to repay the grant. You can apply for the First Home Owner Grant scheme through your bank or financial institution when you’re arranging finance. Applicants must lodge within 12 months of settlement or the completed construction date of your new home. We will ask you to provide additional documents if lodgement is not within 12 months.

The property must be valued at, or below, the First Home Owner Grant cap of $600,000 for buyers purchasing a new home and $750,000 for buyers building a new property. The Regional First Home Buyer Guarantee lets low deposit borrowers buy or build in regional Australia while avoiding LMI costs. You can only claim it on a newly built property or one where you are the first person to live in it. We update our data regularly, but information can change between updates.