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If the building industry is stagnating then it is likely that the state government will introduce or increase their new home grant as this has been a very effective method of boosting the industry. Federal elections are likely to result in changes to the standard first home owners grant, as this is a Federal scheme. In fact the grants were first introduced in 2000 to offset the increase in new home prices due to the introduction of the GST. First home buyers should also use our credit score, borrowing power and LMI calculators. Please refer to your state government website to confirm the full criteria and grant conditions. Find out about assistance available from the NSW Government and Australian Government for eligible first home buyers.
An exciting move, and we’re here for you every step of the way with the latest info and tips. Yes, there’s some lingo to wrap your head around, but before long, you’ll be on top of stamp duty concessions and the FHOG. The final decision on grants and amounts payable ultimately comes down to the Office of State Revenue. If you do not qualify for a full NSW property buyers grant, you will have to pay the stamp duty.
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If you’re buying or building a home for the first time in NSW, you could be eligible for financial help from the state government, bringing your dream of getting into the property market that much closer. The residence will be used and occupied by at least one of the eligible first home buyers as their principal place of residence. The residence must be their principle place of residence for a continuous period of 6 months commencing within 12 months from the date of completion of the transaction. 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 . 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.
The grant is mostly applicable if you are buying or building a brand new home; however, there are exceptions in some states. If you are applying for a home loan with a partner who has previously claimed the grant, you may not be eligible for it again. You need to lodge your applications form and supporting documents with your solicitor or conveyancer. You may be eligible for a $10,000 grant under the First Home Owner Grant scheme. You’ll need to occupy the home as your principal place of residence for 6 months continuously, within 12 months of the agreement.
Residence requirements
If you are an eligible first home buyer in NSW, you now have a choice between paying stamp duty or a smaller annual property tax. The First Home Owners Grant calculator is designed to work out which government benefits, such as grants and stamp duty exemptions, you may be eligible to receive. Choice to pay either the existing up front transfer duty or an annual property tax. The best part is that you can use the scheme together with other grants such as the state governments’ first home owners grant , stamp duty concessions and the First Home Super Saver Scheme.
If you are borrowing money from a bank or through a lender, please check with them that there is enough money available for stamp duty. For accurate and up to date information relating to the current government grants , check the government website. With some of the lowest interest rates on the market for owner occupiers. To be considered, the product and rate must be clearly published on the product provider's web site. If you are buying a property with another person such as your spouse, you both have to be first time buyers in order to be entitled for the FHOG.
Which states have first home grants?
If you’ve already completed the purchase process or construction has started, you can send your application straight to revenue.nsw.gov.au. If you’re buying or building a new home or a substantially renovated one, you could receive a $10,000 grant. You’ll need to download and complete the First Home Buyers Assistance Scheme application form and the Purchaser/Transferee Declaration Form (both available at revenue.nsw.gov.au). Lodge the application forms and supporting documents with your solicitor or conveyancer.
To see if you qualify for grants and schemes, visit our page on the government grants and schemes available for first home buyers. Typically, most lenders require a deposit of at least 5% of the property price. The grant amount on its own might not be sufficient, in which case you will require existing savings for a deposit on your first home. You must have already exchanged contracts to purchase your first home or vacant land.
A first home buyer purchasing vacant land with a value not exceeding $800,000 on which they intend to build a home will also have the choice of either transfer duty or an annual property tax. 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. 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. First Home Buyer Choice now provides first home buyers purchasing properties for up to $1.5 million the ability to choose to pay an annual property tax instead of transfer duty. The property tax will only be payable by first home buyers who choose it, and will not apply to subsequent purchasers of a property.
From home buyer to electric vehicle, we issue and administer a range of grants and schemes. Due to the complexity of the qualification criteria and the differences between the state governments it is not always possible to keep our calculator up to date. If you have not saved enough deposit, a guarantor home loan is the best option. There are other low-deposit and no-deposit home loan options for first home buyers.
Essential tools and tips on everything from buying to investing in property.
If you qualify for a stamp duty concession or exemption, you can download the application form on the NSW Revenue website. Your solicitor or conveyancer will need to submit this prior to settlement. To calculate the stamp duty you may have to pay on your property, have a look at our stamp duty calculator. 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.
Must be an Australian Citizen (or at least one applicant if it's a joint purchase) and both should have not previously owned a home in Australia. Yes you can use the FHOG as part of your deposit but you should also prepare some additional savings as this is usually not enough to cover the deposit amount. The grant could amount from $10,000 to $30,000 depending on your state or territory.
Permanent members of the Australian Defence Force may be exempt from the 6 month residence requirement. The value of your block of land was between $350,000 and $450,000. The information provided on this website is for general education purposes only and is not intended to constitute specialist or personal advice. This website has been prepared without taking into account your objectives, financial situation or needs. The information contained in this article is intended to be of a general nature only.
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