First Home Buyers Grant NSW Eligibility

Introduction

If you’re a first-time home buyer, understanding your eligibility for the First Home Owner (New Home) Grant is essential. With average house prices in Newcastle hitting approximately $920,000 in 2024 (a 4.5% increase from 2023), every bit of financial assistance can make a difference in achieving your home ownership dream.

This article provides easy-to-understand information about the First Home Owner (New Home) Grant in NSW, as well as other options like the First Home Buyer Assistance Scheme and the First Home Guarantee.

I’ll break down who’s eligible, what the grants and schemes offer, and how to apply, so you can approach this exciting milestone with confidence.

What is the First Home Owner (New Home) Grant in NSW?

The First Home Owner (New Home) Grant in NSW is a $10,000 government incentive to help eligible first-time buyers purchase or build a new home. To qualify, the property must be newly built, meaning it hasn’t previously been occupied or sold as a residence such as a house, townhouse, or apartment and valued up to $600,000. If buying vacant land and signing a home building contract, the total value cannot exceed $750,000.

This initiative aims to support Australians entering the housing market. In the 2023-2024 financial year, over 33,000 first-home buyers in NSW benefited from exemptions and concessions, collectively saving more than $683 million.

First Home Owner (New Home) Grant eligibility

All applicants must be at least 18 years old (though this requirement can be waived in certain cases by Revenue NSW) and apply as individuals, not companies or trusts (with exceptions for legal guardians). Applicants must not have previously owned a home after 1 July 2000, but you may still be eligible if you owned property after this date but didn’t live in it for more than six continuous months. For single applicants, you must be an Australian citizen or permanent resident. For joint applicants, at least one of you must meet this requirement.

The property must be a newly built home (house, townhouse, apartment, or similar) with a maximum value of $600,000. If you’re purchasing vacant land and signing a home building contract, the total value (land and home) must not exceed $750,000.

You’ll also need to live in the home for at least 12 continuous months, starting within 12 months of buying or building it.

You can check your eligibility on the NSW Revenue website.

How to apply for the First Home Owner (New Home) Grant in NSW

Applying for the grant is a straightforward process that involves confirming your eligibility, preparing your documents, and submitting an application through your lender or directly with Revenue NSW.

Once you’ve confirmed you meet the requirements, gather your documents. This includes proof of identity, such as passports or driver’s licences, a signed contract of sale if you’re buying a property, or a building contract if you’re constructing a new home. You’ll also need evidence showing the property’s value is within the grant limits. For applicants applying under special circumstances, like trustees or legal guardians, additional documentation may be needed.

Next, submit your application. If you’re obtaining a home loan, most lenders can assist with the grant application as part of their process. If you’re applying after you buy the property or after construction, you’ll need to lodge your application online through the NSW Government.

Once your application is approved, the $10,000 grant will either be paid directly to your lender or to you, if applying independently.

Other government grants for home buyers

If you’re not eligible for the First Home Owner (New Home) Grant or are exploring additional support, there are other government grants and schemes designed to help home buyers in NSW.

The First Home Buyer Assistance Scheme (FHBAS) offers transfer duty (previously known as stamp duty) exemptions or concessions for first-time buyers purchasing new or existing homes, with full exemptions available for properties up to $800,000.

For those with a small deposit, the First Home Guarantee allows eligible buyers to secure a home loan with as little as a 5% deposit without paying lenders mortgage insurance.

These initiatives provide valuable options for making homeownership more affordable.

First Home Buyer Assistance Scheme

To qualify for the First Home Buyer Assistance Scheme (FHBAS), you must purchase the entire property as partial purchases or shared ownership do not qualify. The property must be a new or existing home or vacant land in NSW, within the specified value thresholds.

• For homes valued at $800,000 or less, you are eligible for a full exemption from transfer duty.
• If the property is valued above $800,000 but less than $1 million, a concessional transfer duty rate applies.
• For vacant land, a full exemption is available for land valued at $350,000 or less, while land valued above $350,000 but less than $450,000 qualifies for a concessional rate.

Applicants must be individuals, not companies or trusts, although exceptions may apply in special circumstances. All applicants must be over 18, unless this requirement is waived by Revenue NSW. Neither you nor your spouse or partner can have previously owned or co-owned residential property in Australia or received an exemption or concession under this scheme.

At least one applicant must be an Australian citizen or permanent resident. For new or existing homes, you must also live in the property as your principal place of residence within 12 months of settlement and for at least six continuous months.

First Home Guarantee

The First Home Guarantee helps first-home buyers purchase a home with as little as a 5% deposit without paying lenders mortgage insurance (LMI). To qualify, you must be an Australian citizen purchasing your first home, with a taxable income of $125,000 or less for singles, or $200,000 or less for joint applicants.

The property must be your principal place of residence and fall within price caps, which in NSW are $900,000 for cities and $750,000 for other areas. Eligible properties include new or existing homes, house and land packages, or off-the-plan purchases. Not all lenders participate in this initiative, so check with your bank. Apply early as places are limited.

Closing

Buying your first home can be both exciting and overwhelming, but understanding the support available can make the journey smoother. These programs offer valuable financial relief, whether through grants, transfer duty concessions, or deposit assistance.

At Turnbull Hill Lawyers, we’re here to guide you through the process. Whether you need help reviewing contracts, understanding grant eligibility, or finalising your property purchase, our experienced team can ensure everything is handled with care and expertise. Your first home is a big step, so let us help you take it with confidence. Contact Turnbull Hill Lawyers today to get started.