The first home buyer grant NSW buyers may be eligible for provides $10,000 towards purchasing or building a qualifying new home. Formally known as the First Home Owner Grant (New Homes), it is one form of government assistance that can help eligible first home buyers manage some of the costs of purchasing their first property.
However, the first home buyer grant should not be confused with other government support available to NSW buyers. Separate first home buyer schemes may provide benefits such as transfer duty exemptions or concessions. Federal programs may also help eligible buyers overcome the deposit hurdle.
Knowing how the grant differs from these schemes can help you understand which forms of assistance may apply to your purchase. This guide explains how the $10,000 first home buyers grant works before looking at other schemes that eligible NSW buyers may be able to access.
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How Does the $10,000 First Home Owner Grant Work?
The NSW First Home Owner Grant (New Homes) provides eligible first home buyers with $10,000 when buying or building their first new home. Unlike other first home buyer schemes, this assistance is a grant specifically tied to eligible new properties.
The first home buyer grant NSW buyers can access is not generally available for established homes. Both the buyer and the property must meet the relevant eligibility requirements before the grant can be approved. This makes it important to check the property you are considering before factoring the $10,000 into your buying budget.
First Home Buyer Grant NSW: Which Properties Can Qualify?
According to the NSW Government, your first new home can include a newly built property, an off-the-plan purchase or an eligible substantially renovated home.
- a newly built house
- a new townhouse
- a new apartment or unit
- a home purchased off the plan
- a substantially renovated home
- a new home built under an eligible building contract
For the First Home Owner Grant NSW, a new home generally must not have been previously occupied or sold as a place of residence. Special conditions apply to substantially renovated homes. Most of the property must have been removed or replaced and the home cannot have been lived in by the seller, builder or a tenant before, during or after the renovations. It must also be the first sale of the property since the renovations were completed.
What Are the Property Value Limits for the Grant
The property must fall within certain value limits to qualify for the $10,000 grant. According to Service NSW, the thresholds depend on whether you are buying or building your new home.
- Buying a new home: The property value must be less than $600,000.
- Building a new home: The combined value of the land and the dwelling must be less than $750,000.
- Buying a substantially renovated home: Revenue NSW states that the purchase price must not exceed $600,000. The property must also satisfy specific requirements to be considered substantially renovated.
An established home generally does not qualify for the first home buyer grant, even if it is the first property you have purchased. However, buying an established home may still make you eligible for other first home buyer schemes.
Who Is Eligible for the First Home Owner Grant NSW?
Eligibility is not determined by the property alone. The first home buyer grant NSW buyers can receive also has requirements relating to the applicants and their previous property ownership.
According to Revenue NSW, key eligibility requirements include:
- Each applicant must generally be at least 18 years old.
- At least one applicant must be an Australian citizen or permanent resident.
- You must apply as an individual rather than through a company or trust.
- You or your spouse must not have previously received a First Home Owner Grant in Australia.
- Previous ownership of residential property in Australia may affect your eligibility.
- For contracts signed on or after 1 July 2023, you must generally move into the property within 12 months of the purchase or completion of construction.
- The home must generally remain your principal place of residence for at least 12 continuous months.
Previous property ownership does not always automatically rule you out. For example, Revenue NSW states that someone who purchased residential property after 1 July 2000 but did not live in it for six continuous months may still be eligible, subject to the other requirements.
Because individual circumstances can affect eligibility for the First Home Owner Grant NSW, check the latest Revenue NSW requirements before relying on the $10,000 grant as part of your buying budget.
Does the $10,000 Grant Apply to Established Homes?
Generally, no. The $10,000 first home buyers grant is intended for eligible buyers purchasing or building a new home. An established property does not qualify simply because it is the buyer’s first home.
However, choosing an established home does not necessarily mean missing out on government assistance. The key is understanding the difference between the grant and other first home buyer schemes.
The grant
- The First Home Owner Grant (New Homes) provides $10,000 to eligible buyers purchasing or building a qualifying new home.
Other first home buyer schemes
- The NSW First Home Buyers Assistance Scheme may provide eligible buyers with an exemption or concession on transfer duty, including when purchasing an established home.
- Australian Government home buyer programs may provide other forms of support to eligible buyers, subject to their individual requirements.
This distinction is important when researching the first home buyer grant NSW buyers can access. Not every government benefit for first home buyers is a grant. Some schemes instead reduce particular upfront costs or help eligible buyers purchase with a smaller deposit.
What Other First Home Buyer Schemes Are Available in NSW?
The $10,000 grant is not the only form of government support that may be available when buying your first home. There are separate NSW and Australian Government schemes that can help eligible buyers reduce certain upfront costs or purchase with a smaller deposit.
These benefits are not additional first home buyers grants. Each scheme works differently and has its own eligibility requirements.
First Home Buyers Assistance Scheme
The NSW First Home Buyers Assistance Scheme (FHBAS) provides eligible first home buyers with an exemption or concession on transfer duty. According to the NSW Government, the current thresholds for new and existing homes are:
- $800,000 or less: A full transfer duty exemption may apply.
- More than $800,000 but less than $1 million: A concessional transfer duty rate may apply.
- $1 million or more: The FHBAS exemption or concession does not apply.
Different thresholds apply if you are buying vacant land on which you intend to build your first home:
- $350,000 or less: A full transfer duty exemption may apply.
- More than $350,000 but less than $450,000: A concessional transfer duty rate may apply.
- $450,000 or more: The FHBAS exemption or concession does not apply.
Transfer duty can be a significant upfront expense, so an exemption or concession may reduce the amount of money an eligible buyer needs to set aside for their purchase. This assistance is separate from the first home buyer grant NSW buyers may receive when purchasing or building a qualifying new home.
Australian Government 5% Deposit Scheme
Federal assistance may also help eligible first home buyers overcome the deposit hurdle. Under the Australian Government 5% Deposit Scheme, eligible first home buyers can purchase a home with a minimum 5% deposit. Housing Australia provides a guarantee to the participating lender, which allows eligible buyers to borrow up to 95% of the property’s value without paying Lenders Mortgage Insurance.
This support is not another cash grant. Buyers remain responsible for their home loan, repayments and other purchasing costs. Property price caps also apply and buyers must meet the Scheme’s eligibility requirements.
Importantly, qualifying for the Scheme does not guarantee home loan approval. Buyers must still satisfy the credit policy and lending requirements of a participating lender.
Can You Receive the Grant and Use Another First Home Buyer Scheme?
In some cases, yes. An eligible buyer purchasing a qualifying new home may be able to receive the $10,000 grant while also qualifying for transfer duty relief through the First Home Buyers Assistance Scheme.
However, eligibility for one form of assistance does not automatically make you eligible for another. Each program has its own requirements and property thresholds. The type and value of the home, your previous property ownership and residence requirements can all affect which benefits you can access.
This means a property that qualifies for the First Home Buyer Grant NSW buyers can receive may not necessarily meet the requirements of another scheme. Check each program separately when calculating the assistance that could apply to your purchase.
What Should You Check Before Relying on First Home Buyer Assistance?
Before including government assistance in your buying budget, check the requirements that apply to both you and the property.
- Confirm whether the property is new or established: The $10,000 first home buyer grant generally applies to qualifying new homes rather than established properties.
- Check the purchase price: Each program has its own property value limits. A home above the relevant threshold may receive reduced assistance or become ineligible.
- Review your previous property ownership: Owning residential property in the past can affect eligibility, even if you do not currently own a home.
- Understand the residence requirements: Check when you need to move into the property and how long you are required to occupy it as your principal place of residence.
- Calculate your upfront costs: Allow for your deposit as well as conveyancing, inspections, moving expenses and any transfer duty that applies.
- Check your borrowing capacity: Government assistance does not guarantee finance. A lender will still assess factors such as your income, expenses, debts and ability to repay the proposed loan.
- Verify the latest rules: Grant and scheme requirements can change. Check current NSW and Australian Government guidance before relying on a particular benefit when planning your purchase.
Preparing to Buy Your First Home in NSW
The First Home Buyer Grant NSW buyers may be eligible for provides $10,000 towards a qualifying new home. Transfer duty assistance and Australian Government home buyer programs are separate schemes, each with their own requirements.
Government support is only one part of preparing to buy. Your deposit, borrowing capacity, potential repayments and other purchasing costs can all influence what you can comfortably afford.
At ZEP Finance, our mortgage brokers can help you understand your borrowing capacity and compare suitable home loan options for your circumstances. Ready to take the next step towards your first home? Book an appointment with ZEP Finance today.
FAQs About First Home Buyer Grants NSW
When is the $10,000 grant usually paid?
The timing depends on how you purchase your new home. According to the NSW Government, payment can vary for completed new homes, building contracts and owner-builders. If you apply through an approved agent such as a bank or financial institution, payment timing may also depend on the agent’s processes. This is worth confirming early if you intend to factor the payment into your settlement or construction plans.
Can I apply for the grant after buying my new home?
You may be able to apply after completing an eligible transaction. Revenue NSW generally allows applications to be lodged within 12 months of completing the eligible transaction. What counts as the completion date can differ depending on whether you purchased a completed home, entered into a building contract or built as an owner-builder. If more than 12 months have passed, Revenue NSW advises contacting them to discuss your circumstances.
Does my spouse's property history affect my eligibility?
Potentially. Eligibility can take into account the property ownership and grant history of an applicant’s spouse or partner, even when that person is not purchasing the property with them. This makes it important to check both people’s circumstances rather than assessing eligibility based solely on the person named as the primary buyer.
Can temporary residents receive the NSW grant?
The citizenship and residency requirements apply to the applicants collectively. At least one applicant must generally be an Australian citizen or permanent resident. This means the residency status of everyone involved in the purchase should be checked carefully before an application is made.
What happens if I receive the grant but cannot meet the occupancy requirements?
If your circumstances change and you cannot satisfy the required residence period, you should contact Revenue NSW. Failing to meet the conditions can affect your entitlement and may result in the grant having to be repaid. Revenue NSW may consider certain circumstances, so buyers should seek guidance rather than assuming their eligibility remains unchanged.
Do I need to apply for the grant directly through Revenue NSW?
Not always. Applications can be made through an approved agent, such as a participating bank or financial institution, or directly through Revenue NSW in certain circumstances. The appropriate application pathway can depend on the transaction and how your home purchase or construction is being financed.
After studying business and finance at university, Zain initially expected to pursue a career in finance. However, his passion for property and the experience of buying his own home led him to mortgage broking. He began his mortgage brokering career in 2009 and founded ZEP Finance in 2010.
