So you’re ready to buy your first home in New South Wales, but worried about upfront costs? As a first home buyer, you could be eligible for financial support from the NSW Government. One option is the NSW First Home Buyers Grant.
The $10,000 NSW First Home Buyers Grant helps eligible buyers with the purchase or construction of a new home. Combined with stamp duty exemptions also available, there is huge potential saving on your first property.
Below is my expert guide on eligibility, application tips, maximizing benefits and more related to the key schemes available for first-timers within NSW.
Table of Contents
Overview of the NSW First Home Buyers Grant Scheme
The FHOG scheme provides:
- A one-off grant of $10,000 for first home buyers
- Strictly for those building or buying new properties or carrying out substantial renovations
- Not applicable for established homes or investors
The grant helps ease some of the upfront expenses – alongside the stamp duty discounts also available (more below).
Below I’ll cover exactly who qualifies plus steps to receiving your $10,000 first home owners grant from the NSW Government.
Am I Eligible for the First Home Owners Grant in NSW?
As an experienced mortgage broker, these are the key eligibility rules I always double check with first-time buyers.
Here are the official qualifying criteria from Revenue NSW to be eligible:
Strict First Home Buyer Rules
The FHOG is strictly limited to genuine first-time buyers, in line with the following:
- You or your partner have not previously owned residential property in Australia before July 2000
- You have never received a First Home Owner Grant in Australia previously
- Acting as private owner-occupiers, not buying as a company or trust
What about owning a home after July 2000?
Previous property ownership after July 2000 excludes you unless it was for less than 6 continuous months. For example, receiving an inheritance property that was quickly sold.
Property Requirements
- New properties only - includes houses, townhouses, apartments etc under construction and not lived in previously
- If substantially renovated, the home cannot have been occupied since works completed
- Total property value caps: $600,000 for homes, $750,000 for vacant land plus construction costs
The total purchase price is key for finished properties while the combined land plus estimated build expense applies if constructing a home from scratch.
Residency Rules After Purchasing
- As the property owner, you or another first home buyer must move in within 12 months following settlement
- You must then reside in the home for minimum 6 continuous months as your principal place of residence
Temporarily moving out for reasons like work doesn’t impact eligibility. But you must live in the property for at least 6 months as soon as practicable.
What about Australian Defence Force personnel?
If all buyers are registered on the NSW electoral roll, ADF members are exempt from standard residency rules and can rent the home out immediately if needed.
Given the eligibility guidelines are quite strict, I suggest first home buyers in NSW check if they qualify before going too far down the home loan process.
The best way is to talk to an expert for advice aligned to your exact circumstances.
What Types of Properties Qualify for the NSW First Home Owners Grant?
In my experience advising clients on FHOG applications, you should double check that your chosen property meets Government criteria.
Key property requirements under the scheme rules include:
1. Brand New Homes
This covers properties never lived in previously – either newly constructed or still under construction. Common examples for first home buyers:
- House-and-land packages
- Apartments purchased off the plan
- Ownership during the build process
As long as construction is completed within 24 months, brand new homes can access the full $10,000 grant amount.
2. Substantial Renovations
To qualify under substantial renovations, the following guidelines generally apply:
- Most or all of the existing home has been rebuilt or replaced
- The current sale is the first since renovation work finished
- Property has been unoccupied since works completed
This aims to avoid investors or buildersliving in the home then re-selling shortly after minor cosmetic fixes only.
Check with your solicitor or conveyancer that renovation evidence meets state revenue guidelines.
3. Knockdown Rebuild Projects
Demolishing an original dwelling before building new on the same land also qualifies – on the basis it becomes a completely new property.
The same residency and value caps apply for knockdown rebuilds when claiming the $10,000 first home owners grant.
Total Value Caps on Property
And remember, depending on your exact situation, total property prices under the scheme cannot exceed:
- Purchased Homes – $600,000
- Vacant Land + Construction – $750,000 combined
So while you might purchase land for $300,000, your finished home and land value must stay under $750,000 based on final ‘as built’ valuations.
Carefully review price caps before signing contracts to avoid issues later on.
How Does the Application Process for The NSW First Home Buyers Grant Work?
Already found your perfect first home and now worried about paperwork?
Here is an overview of submitting your First Home Owners Grant application with Revenue NSW.
Option 1 - Apply Through Your Broker
Major banks and financial providers can assist directly with forms and documents. Approved agents listed here lodge applications on your behalf.
Key steps usually involve:
- Discussing eligibility for the First Home Owners Grant with your mortgage broker or lender
- Getting pre-approval so they can manage the $10K grant at settlement
- Signing the application form with your lender
- The bank submits the completed application + ID documents to NSW Revenue
Liaising through an established financial provider can really simplify getting approval. But it does mean directing the grant payment towards your home loan balance owed.
Option 2 - Apply Yourself Directly to NSW Revenue
You can also access funds directly by applying online with NSW Revenue once your property becomes legally yours.
Step-by-step this self-managed approach involves:
- Settling on your property purchase and becoming registered owner
- Collating identity and purchase documents
- Creating a MyRevenueNSW account
- Completing the First Home Owners Grant application
- Uploading your supporting documents like contracts of sale and identification
- Receiving grant approval and payment details from Revenue NSW
I suggest lodging forms and paperwork within 12 months of your property settlement date. Applications outside this timeframe may attract extra scrutiny and requests for more documentation.
No matter whether you apply directly or through an agent, providing complete, accurate information is crucial for fast assessment and payment.
What Paperwork and Documents are Required?
Expect to have the following documents ready when seeking approval for NSW’s $10K first home buyers grant:
Proof of Identity
Confirming details like your full legal name, date of birth and residency status using documents such as:
- Australian Birth Certificate / Passport
- Drivers License
- Medicare Card
- Utility bills showing current residential address
Uploading certified copies is recommended to streamline verification checks.
Evidence of Property Purchase
Documents confirming details of your first home contract and transaction like:
- Contract for sale with all signatures
- Title deeds in your name
- Receipts or bank records showing payment of deposit and other costs
For new constructions, you’ll also need paperwork covering contract dates, land value and ‘as built’ property worth from your builder.
Provide as much purchase evidence as possible to help substantiate granting the $10,000 First Home Owners Grant in NSW.
6 Key Tips for Fast Approval on Your First Home Buyers Grant Application
Through assisting thousands of first-timers over my career, I wanted to share some expert tips when applying for the First Home Owners Grant in New South Wales:
1. Double Check Eligibility First
Have all intended property owners confirm they meet criteria before getting too far along with paperwork or deposits.
2. Gather a Complete Paper Trail
Collate purchase contracts, title deeds, pre-approvals, tax invoices and statements showing grants are genuinely needed.
3. Certify Supporting Documents Upfront
Getting copies certified by a JP or professional avoids delays confirming identities down the track.
4. Lodge Forms Within 12 Months of Settlement
Submitting your application soon after the purchase date helps avoid extra requests later for more records.
5. Keep All Related Documents Handy
Having previous correspondence, reference codes and other paperwork close by helps if the agency has queries on your application.
6. Seek Help From Your Lender or Broker
We regularly handle applications, so talk to us for guidance or to manage submissions on your behalf.
And remember, approval for first home owner grants often takes less than 2 weeks once complete forms are lodged. So stay in touch with processing teams if your application exceeds standard timeframes.
Are There Special Conditions After Receiving Your First Home Buyers Grant in NSW?
A key consideration for first home buyers in NSW is usage rules on your new property after move-in.
When it comes to the First Home Owners Grant, you need to occupy the home as your principal place of residence continuously for at least 6 months – beginning within 12 months of settlement.
For example, if you formalized the purchase on January 1 2023, you must have moved in by January 1 2024 and be living there 6 months later on July 1 2024 to satisfy requirements.
This aims to avoid situations where investors falsely claim grants then quickly rent their properties out.
If genuine unexpected reasons arise preventing occupation as intended, notify Revenue NSW immediately to discuss impacts on grant eligibility. Depending on exact circumstances, you may be able to delay moving in or repay funds without further penalties.
But actively avoiding or ignoring residency rules without explanation can attract hefty fines up to $11,000 – so take obligations seriously, even after receiving payment.
Are There Other First Home Buyer Benefits in NSW?
As well seeking the $10,000 First Home Owners Grant in NSW, other related concessions to explore include:
Stamp Duty Discounts
- Duty exemptions or discounts for first home purchases under $800,000
- Worth up to $24,500+ in savings if fully exempt
- Read more: Stamp Duty NSW
Low Deposit Loans
- Government-backed bank mortgages needing as little as 5% deposit
- Avoiding expensive lenders mortgage insurance premiums
- Read more: Can I get a home loan with no deposit?
Shared Equity Schemes
- Government co-owns up to 30-40% to help high priority buyers
- Read more: Help To Buy Scheme: A Comprehensive Guide For First Home Buyers
So speak to an expert about maximising assistance when buying your first property within NSW. Combining multiple incentives can really accelerate entry into the market for eligible home owners.
Next Steps for First Home Buyers in NSW
I hope this guide gave you valuable insights on applying for and receiving the $10,000 First Home Buyers Grant in New South Wales.
My goal was to provide everything you need for stress-free applications based on my 15+ years in mortgage broking for NSW purchasers.
If you require any specific advice, have questions, or need help taking the next steps to buy your dream home – please feel free to get in touch. Give us a call on 1300 088 065 or get a free assessment here.
This article contains general information only – speak to a professional for advice tailored to your circumstances. Check Revenue NSW details for latest program rules. Last updated January 2024.
Further Reading
National Grants and Schemes:
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