Everything You Need to Know About the First Home Owner Grant NSW, 2024

Aside from the FHOG, there are a few other schemes and grants that you might be able to take advantage of from the NSW government if buying your first residential property. These programmes aim to support individuals in buying their first home by reducing their initial financial burden.

1. First Home Buyers Assistance Scheme:
   This can grant eligible buyers full or partial stamp duty (or transfer duty) exemptions. Buyers of new homes valued up to $800,000 will pay zero, and even those purchasing between the price ranges of $800,000 and $1 million would have only a partial exemption from stamp duty.
2. First Home Guarantee:
   Housing Australia oversees this scheme, and it is intended to let first homeowners buy a home with only a 5 percent deposit while avoiding the cost of lender mortgage insurance (LMI). This allows purchasers to get a home loan more easily and hit the property market sooner.
3. Family Home Guarantee:
   This plan created to help single or separated parents access home ownership with as little as a 2% deposit, is key in supporting more families into housing stability.

    

These government schemes work in tandem with the FHOG to make buying your first home achievable, even in high-demand areas of New South Wales.

Applying for the first home owner grant in NSW

There are some critical steps that buyers looking to apply for the NSW First Home Owner Grant need to follow. The process involves:

1. Choosing an Approved Agent:
   This service can be taken advantage of by mortgage brokers or through an approved agent. These agents fill out the paperwork, making sure you meet all eligibility.
2. Submitting Your Application to Revenue NSW:
   All applications must be lodged with Revenue NSW or through their mortgage lender by the buyer. Make sure to complete the process within 12 months of settlement to ensure you don’t miss out on the benefits.
3. Providing Documentation:
   You will need to show one form of personal identification, proof that you are an American citizen or legal resident, and documents showing how the property was purchased. For those building a home, evidence of construction timelines is required.

    

From these steps, first-time buyers can avoid common pitfalls and streamline the application process for their FHOG in NSW.

How a mortgage broker can help you secure your first home

Working with a mortgage broker offers significant advantages when applying for home loans and grants. A broker can help first-time buyers navigate the complexities of grants and schemes, ensuring you meet the eligibility criteria for the NSW First Home Owner Grant and other assistance programmes.

• Tailored Loan Options: The broker compares your financial position to secure home loan offers that are ideal for you.
• Application Support: They verify your grant eligibility and submit the applications on time or to your preference.
• Access to Multiple Lenders: Brokers are connected to numerous different lenders and can assist you in finding a loan with the best terms available, such as low interest rates.

Having a broker takes it one step further, where not only do you get an increased success rate, but also the hours of hunting and stress are cut short. They will also seek to address instances where first home buyers may be missing out on grants available specifically for a first home owner in NSW.

What types of homes are eligible for the NSW First Home Owner Grant?

The FHOG applies to several property types, provided they meet the grant eligibility conditions:

• New Homes: New homes that have not been sold or occupied before.
• Substantially Renovated Homes: In order to qualify as new, the building must have been substantially renovated, whereby all or substantially all of the previous structure is updated.
• Vacant Land for Construction: Buyers can also receive the grant if they purchase vacant land and complete construction on a new home.

The grant in NSW is designed to lighten the financial load for first-time buyers, whether you are building a new home from scratch or buying an apartment that has recently been completed.

Maximise your savings with stamp duty exemptions

In addition to the FHOG, buyers can also take advantage of the First Home Buyers Assistance Scheme, which offers stamp duty exemptions. These exemptions can reduce the transfer duty payable by eligible buyers.

For example:

• Homes valued up to $800,000 are exempt from stamp duty.
• Homes priced between $800,000 and $1,000,000 receive a discount on stamp duty, providing substantial savings.

If you are purchasing vacant land on which you intend to build a home, you may receive an exemption for land valued up to $350,000 and a concessional rate for land valued over $350,000 and less than $450,000.

By taking advantage of both the First Home Owner Grant and stamp duty exemptions, home buyers in New South Wales can make their dream of homeownership a reality.

Let’s help you achieve your dream home in NSW

There are some amazing opportunities for first home buyers to get into the market in New South Wales with grants and schemes available up until mid 2025. The NSW First Home Owner Grant (FHOG), together with initiatives such as the First Home Buyers Assistance Scheme and the First Home Guarantee, are assisting more first home buyers to enter into their first property in New South Wales.

If you’re planning to purchase your first home, a mortgage broker will be able to make the process easier, so all the required eligibility needs are met and any grants on offer can be obtained. The assistance provided by the NSW government is there to help you reach your ultimate goal of homeownership, whether that’s buying a new home, an existing one, or even building on vacant land.

Begin your journey by taking a look at some of the grants and assistance schemes that focus on first-home buyers. Given the right resources and assistance, you will definitely open up those doors in your dream home. Contact us today to learn more.