First Home Buyer Assistance Schemes NSW

Are you confused about what grant(s) you can receive as a first home buyer in New South Wales? 

Here is a summary of the current schemes offered by the NSW Government.

You may be eligible to apply for an exemption or reduction of transfer duty charges if you are a first home buyer.

This assistance scheme applies to first home buyers:

• buying an existing home
• buying a new home
• buying vacant land on which you intend to build a home.

SCHEME 1: First Home Owner (New Homes) Grant

What is the First Home Owner Grant?

A $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home.

Your first new home can be a house, townhouse, apartment, unit or similar that is newly built, purchased off the plan or substantially renovated.

The grant is not available for established homes.

How much can I spend?

If you purchase a newly built house, townhouse, apartment, unit or similar the purchase price must not exceed $600,000.

If you purchase vacant land and sign a building contract with a builder then we add the value of the vacant land plus the value of the comprehensive home building contract plus the cost of any building variations done together. The total combined cost must not exceed $750,000.

If you purchase a home which was substantially renovated by the seller, the purchase price must not exceed $600,000.

You may be eligible for the grant if:

• most of the home was removed or replaced
• the seller, builder or a tenant has not lived in the home prior to, during or after renovations
• it is the first time the home has been sold since completion of renovations.

This means the first sale of a property will not be a new home if the person who built it lived in it, leased it out or used it for short-term accommodation.

The First Home Owner Grant may be paid in addition to other exemptions or concessions for eligible homebuyers.

Who’s eligible?

All Dwellings:

• Each applicant must be at least 18 years old.
• You must be a first home buyer as a person, not as a company or trust
• At least one applicant must be a permanent resident or Australian citizen.
• You or your spouse, partner or co-purchaser must not have previously owned a home before 1 July 2000.
• For contracts signed before 1 July 2023, 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 6 continuous months.

For contracts signed on or after 1 July 2023, 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 12 continuous months.

Contract for the purchase of a new home:

The purchase price must not exceed $600,000

Comprehensive home building contract:

Property Value (house and land) must not exceed $750,000

Owner builder

Property Value (house and land) must not exceed $750,000

You will not be eligible for the First Home Owner Grant scheme if you or your spouse have previously:

• received a First Home Owner Grant in Australia.
• owned a home or other residential property in Australia, either jointly or separately, before 1 July 2000
• lived for six continuous months or more in a home located in Australia that you owned (wholly or partially) on or after 1 July 2000.

However, you or your spouse may still be eligible for the First Home Owner Grant if:

• you purchased a residential property after 1 July 2000 and didn’t live in it for more than six continuous months.

If you’re a member of the Australian Defence Force, you may be exempt from the six or twelve month residence requirement, providing all buyers are on the New South Wales electoral roll.

How to apply

If you require the grant for settlement or first drawn down/progress payment, you must lodge your application with the approved agent who is providing you finance.

If you’ve already completed the purchase or construction process, you can lodge your application via the FHOG customer portal.

Please note you need to lodge your application forms and proof of identity documents.

Applying through NSW Government

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.

Applying through an Agent (bank or financial institution)

If you’re applying through an approved agent, you’ll need to complete the First Home Owner Grant (New Homes) Application form below:

For contracts exchanged before 1 July 2023, use:
First Home Owner Grant (New Homes) Application form  OFH 001 (PDF, 1131.29 KB)

For contracts exchanged on or after 1 July 2023, use:
First Home Owner Grant (New Homes) Application form OFH 002 (PDF, 1075.87 KB)

Your agent will lodge your application form on your behalf after you have ticked the declaration box, printed your name clearly and dated the form.

You can apply for the First Home Owner Grant (New Homes) scheme through your bank or financial institution when you’re arranging finance.

Changes in living arrangements

For contracts signed before 1 July 2023 and your circumstances have changed since receiving the grant and you can’t move into the home within 12 months from the settlement date and stay living there for six continuous months, you must contact us immediately to repay the grant. If you don’t you may be fined up to $11,000.

For contracts signed on or after 1 July 2023 and your circumstances have changed since receiving the grant and you can’t move into the home within 12 months from the settlement date and stay living there for twelve continuous months, you must contact us immediately to repay the grant. If you don’t you may be fined up to $11,000.

Making False Claims

We regularly check First Home Owners Grant (New Homes) scheme applications for inaccuracies and compare your information to data from other government agencies and businesses. If you provide false or misleading information you may face a substantial penalty.

Objections

If you’re dissatisfied with an assessment or decision made, then you can lodge an objection or request a reassessment within 60 days.

Click here for more information: https://www.nsw.gov.au/housing-and-construction/first-home-buyer-grants-and-assistance

SCHEME 2: Shared Equity Home Buyer Helper

This initiative helps eligible home buyers purchase their own home with as little as a 2% deposit.

The NSW Government will contribute a proportion of the purchase price of a property in exchange for an equivalent interest in the property.

Shared Equity Home Buyer Helper is open to:

• single parents of a dependent child or children
• single people 50 years of age or above, or
• first home buyer key workers who are nurses, midwives, paramedics, teachers, early childhood educators or police officers.

How it works

The NSW Government will contribute a proportion of the purchase price of a property in exchange for an equivalent interest in the property.

The contribution is a percentage of the purchase price and the maximum amount is determined by whether it is a new or existing home.

New home: Up to 40%

Existing home: Up to 30%

As long as a participant remains eligible for the program, no repayments are required, and no rent or interest will be charged. Participants can also make voluntary payments to progressively increase their ownership share in the property.

Who can apply

The initiative is open to:

• single parents of a dependent child or children
• single people 50 years of age or above, or \
• first home buyer key workers who are nurses, midwives, paramedics, teachers, early childhood educators or police officers.

To be eligible to join Shared Equity Home Buyer Helper, you must:

• require the shared equity contribution from the government to be able to buy your home
• be able to secure approval for a home loan from a participating lender with the government shared equity initiative
• only be able to service a mortgage with the government contribution.

Income limits

The gross income of the participants must be no more than:

$93,200 for singles

$124,200 for couples

Property price limits

Participants must buy a home in NSW with the maximum property price determined by the home’s location.

Sydney and major regional centres (Newcastle & Lake Macquarie, Illawarra, Central Coast and North Coast of NSW): $950,000

Other regional areas of NSW: $600,000

The Australian Bureau of Statistics’ Greater Capital City Statistical Area is used to define Sydney (which includes the Central Coast). 

Purchase costs

All purchasing costs (including transfer duty) are the responsibility of the participant.

Those entering the program as first home buyers may also be eligible for a transfer duty exemption/concession or a new home grant.

Other requirements

Participants must:

• be 18 years or over
• be an Australian or New Zealand citizen, or a permanent Australian resident
• have a minimum deposit of 2% of the purchase price
• occupy the property as their principal place of residence
• not currently own any land or property
• be able to service the mortgage with a participating lender with the government contribution.

Am I eligible?

To quickly see if you may be eligible for Shared Equity Home Buyer Helper take the eligibility assessment.

Check eligibility: https://www.nsw.gov.au/housing-and-construction/shared-equity/eligibility-assessment

How to apply

You must apply with one of our lending partners: Bendigo Bank or Unity Bank.

As well as proof of identity, you will need to lodge supporting documents with your application.

Apply here: https://www.nsw.gov.au/housing-and-construction/shared-equity/how-to-apply

Ongoing obligations

To maintain eligibility, participants’ ongoing obligations include:

• paying for property costs
• maintaining the property
• complying with a periodic review of ongoing eligibility.

A participant may be required to begin repayment of the government’s share in the property in certain situations, including where they no longer meet certain ongoing eligibility criteria. Revenue NSW will work with participants in meeting this obligation.

Examples

Single parent in Sydney

For an eligible single parent in Sydney buying a new home at the maximum price of $950,000, the 40% government contribution would be a maximum of $380,000. This government contribution would lower monthly mortgage repayments by around $2200 (assuming an interest rate of 6% over a 30-year term).

First home buyer teacher in Wagga Wagga

For an eligible first home buyer who is a teacher in Wagga Wagga buying an existing home at the maximum price of $600,000, the 30% government contribution would be a maximum of $180,000. The government contribution would lower monthly mortgage repayments by around $1080 (assuming an interest rate of 6% over a 30-year term).

Click here for more information: https://www.nsw.gov.au/housing-and-construction/shared-equity