First Home Owner Grant (FHOG) NSW

The FHOG in NSW is worth $10,000 however conditions apply. To be eligible, your first home must have a total value below $600,000, and be either newly constructed or ‘substantially renovated’. A home is substantially renovated when most or all of the original house was removed or replaced, and it’s the first time the place has been sold, and lived in, after the renovations were completed.

If you plan to build a new home from scratch, you can still be eligible for the FHOG in NSW as long as your land plus the home you build have a combined value of less than $750,000.

There are a few rules to be eligible for the First Home Owner Grant in NSW, these conditions are:

• You must be an individual, not a company or trust
• You must be aged over 18
• You, or at least one person you’re buying with, must be an Australian citizen or permanent resident
• You and your spouse must not previously have owned a home in Australia or received an Australian first home owner grant.
• You’ll need to live in your first home for at least six months within 12 months of buying or completion of construction

You may still be eligible for the FHOG in NSW if you’ve previously owned a residential property but you haven’t lived in it for more than six months.

Applying for the First Home Owner Grant is easy, and your Mortgage Choice broker can guide you through the paperwork. Simply fill out the form below and a local expert will be in contact with you shortly. 

Great news for first home buyers in NSW. Under the First Home Buyer Assistance scheme, savings on stamp duty are available to first home owners no matter whether you buy a new or established home.

From 1 August 2020, the NSW government has announced that stamp duty will not be applicable to first home buyers for new properties valued up to $800,000 and vacant land valued up to $400,000. Additionally, a concessional rate of duty will apply to homes valued more than $800,000 but less than $1,000,000 and vacant blocks of land valued more than $400,000 and less than $500,000. This stamp duty exemption will be in place for 12 months to 31 July 2021.

From 1 August 2021 the stamp duty exemptions will revert back to $650,000 for homes and $350,000 for land.

You can still be entitled to savings on stamp duty even if you pay between $650,000 and $800,000 for your first home. The cost of duty rises on a sliding scale. For example, if you pay $700,000, you’ll pay stamp duty of $10,402.33 – a saving of $16,304.67. If your first home costs $795,000, the stamp duty cost will be $30,166.77, providing a saving of $815.23.

Stamp duty savings for first home owners from 1 August 2021

Source: Revenue NSW

June 2021 Update

Introduced in the 2020-21 Budget, the NSW Government announced a proposal to change the way the current tax system is set up when purchasing properties. This proposal involves giving property buyers the choice to pay stamp duty (and any existing land tax, where applicable) as per the current process, or alternatively elect to pay a smaller annual property tax. 

​Read more about the NSW Government’s plan to scrap stamp duty and replace it with land tax.

Yes, you can use your First Home Buyers Grant for your deposit but it will not cover the full amount needed. You can speak to your local mortgage choice broker to find out more but usually, you will still need between 5% and 10%. 

If you are wanting to avoid paying a deposit altogether then you should consider finding a guarantor. They can help provide security for your loan.  

There are many different ways you can go about buying your first home. The best way is to get in touch with a Mortgage Broker, who can show you the State Grants that you're eligible for and can help with your home loan application. Check out our Steps to Buying your First Home for more information on how to buy your first home.