First home buyers who opt for a brand new home could be eligible for a helping hand worth up to $15,000.
It's easy to be unsure about what you are entitled to as a first home buyer in NSW. The rules around the First Home Owner Grant (FHOG) differ between states and territories, and just to add to the confusion, there have been significant changes to the FHOG in NSW in recent years. So let's take a look at what you could be eligible for.
The First Home Owner Grant (New Homes) Scheme is a NSW Government initiative to help eligible first home buyers build or purchase a new home in NSW. You will need to meet certain criteria to be eligible (more on this shortly) but if you tick all the boxes, the FHOG in NSW can be worth $15,000 paid as a one-off grant. This figure will drop to $10,000 from 1 January 2016.
Back to those FHOG eligibility criteria. First up, the value of your new home must be below $750,000, and it is only available if you buy or build a new home. This includes off the plan properties.
The home you are planning to build or buy must be the first residential property you – or your co-buyer – have ever owned, and you will need to live in the place for at least six months within 12 months of either settlement or completion of construction.
How to apply
There are a few different ways to apply for the First Home Owner Grant in NSW. Your Mortgage Choice broker can submit a First Home Owner Grant application along with your home loan application to your lender. Or the form can be delivered straight to the NSW Office of State Revenue.
The NSW First Home Owner Grant is generally paid in a lump sum after settlement of an existing home or at the first progress payment during construction of your new home if you apply at the same time you submit your loan application.
What to consider
We all love to get something for nothing, however as the First Home Owner Grant in NSW only applies to newly built properties, you need to be sure this is the right choice for your needs.
Your Mortgage Choice home loan expert is a great source of up to date information for first home buyers. We can guide you through the entire buying process as well as assisting with your FHOG application. Download our fact sheet on the NSW First Home Owner Grant to find out more.