Buying your first home in NSW involves significant upfront costs — but there are government schemes that can help. Understanding what you are eligible for, and applying correctly, can save you thousands of dollars. Here is a current guide to the main assistance available to first home buyers in NSW.
First Home Owner Grant (FHOG)
The First Home Owner Grant is a one-off payment of $10,000 for first home buyers who purchase or build a new home in NSW. To be eligible:
- At least one applicant must be an Australian citizen or permanent resident
- All applicants must be individuals (not a company or trust)
- You or your spouse must not have previously owned a home in Australia
- You must move into the property as your principal place of residence within 12 months and live there for a continuous period of at least 6 months
- The property must be a new home — either newly built, substantially renovated, or purchased off the plan
- The purchase price must not exceed $600,000 (or $750,000 for a home plus land package)
The FHOG does not apply to established (existing) homes. If you are buying an existing property, you will not be eligible for this grant — but you may still be eligible for stamp duty relief (see below).
Stamp Duty Exemptions and Concessions
Transfer duty (stamp duty) is one of the largest upfront costs when buying a home. NSW provides significant relief for first home buyers:
- Full exemption: No stamp duty is payable on homes valued up to $800,000 for first home buyers.
- Partial concession: A discounted rate applies to homes valued between $800,000 and $1,000,000.
- No relief above $1,000,000: Standard rates apply to properties valued above $1,000,000.
These thresholds apply to both new and existing homes, provided the property will be used as your principal place of residence.
First Home Buyer Choice (Property Tax Option)
First home buyers purchasing a property up to $1,500,000 may have the option to pay an annual property tax instead of stamp duty upfront. This can significantly reduce the amount of cash needed at settlement. The annual property tax is calculated as a percentage of the land value. Whether this is better than paying stamp duty upfront depends on how long you intend to hold the property — your solicitor or financial advisor can help you model the scenarios.
Federal Government Schemes
The Federal Government also operates several schemes that can benefit first home buyers:
- First Home Guarantee: Allows eligible buyers to purchase with as little as 5% deposit without paying lenders mortgage insurance (LMI), with the government guaranteeing up to 15% of the loan.
- First Home Super Saver Scheme: Allows eligible individuals to withdraw voluntary superannuation contributions (up to $50,000) to put towards a first home deposit.
- Regional First Home Buyer Guarantee: Similar to the First Home Guarantee but specifically for buyers in regional areas.
Important Things to Know
- You must apply for the FHOG through your lender or solicitor at the time of settlement — it is not automatically paid.
- Stamp duty exemptions are claimed through your conveyancer as part of the settlement process.
- Eligibility criteria change — always confirm current thresholds and conditions at the time of your purchase.
- Using any of these schemes while not being genuinely eligible is a serious legal matter — if you are unsure, seek advice.
At James Papas Solicitors, we guide first home buyers through the entire conveyancing process including applying for all eligible grants and concessions. Your first consultation is free. Call us on (02) 9633 3122 or contact us online.
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