3 Apr, 2019
Let’s face it, buying your first home is no walk in the park – especially in the current Australian real estate landscape! Thankfully, the government has measures in place to help give first-time homeowners a fair go: the First Home Owner Grant NSW( FHOG).
This scheme was introduced on 1 July 2000, when the Howard Government introduced the Goods and Services Tax (GST). To help offset some of the impact of GST on homeowners, the First Home Owner Grant was rolled out nationwide. Under this scheme, a one-off grant is available to eligible Australian citizens over the age of 18.
While the First Home Owner Grant is available Australia-wide, each state offers varying amounts of financial assistance and has different eligibility requirements. Read on for our in-depth guide to the First Home Owners Grant in NSW, including what the scheme covers, how to know if you’re eligible, how to apply and more.
The First Home Owner Grant (New Homes) Scheme is a NSW government initiative that assists home buyers with purchasing their first property. The scheme currently includes a lump sum grant of $10,000 for first home owners buying a new home up to the value of $600,000, or building a new property up to the value of $750,000.
First home buyers in NSW are also off the hook for paying insurance duty on lender’s mortgage insurance and depending on their circumstances, stamp duty. First home owners purchasing a new home valued up to $650,000 are exempt from paying stamp duty, while those buying properties from $650,001 to $800,000 receive a stamp duty discount based on a sliding scale. Eligible buyers also pay no stamp duty on purchasing vacant land valued up to $350,000, and receive a discount for properties valued from $350,000 and $450,000.
It’s key to note that the First Home Owner Grant in NSW is different
The FHBAS also applies to vacant land on which you plan to build your home. You won’t pay any transfer duty if your land is valued at less than $350,00 and for land valued between $350,000 and $450,000, you’ll receive a discount.
You can calculate the amount of transfer duty you would pay on your home using this calculator.
Yes, the First Home Owner Grant NSW is available in the state and has been since 2000. However, the legislation has changed considerably over the years and may continue to do so – so always check the NSW Government Revenue site to stay up to date with current guidelines.
There’s a lengthly list of criteria you must fulfil in order to be eligible for the First Home Owner Grant NSW. These include:
Your home is also considered new if it has been renovated significantly before you bought it.
So, what constitutes ‘significantly?’ According to the NSW government: “most or all of the house was removed or replaced. This is the first time the home has been sold after those renovations. It hasn’t been lived in since being renovated, including by the builder or a tenant.”
Now that you’ve determined whether you’re eligible, you may be wondering ‘how do I claim the First Home Owner Grant NSW?’
There are a couple of different routes you can go down. Firstly, you can apply yourself through the State Revenue Office (SRO) by submitting a First Home Owner Grant (New Homes) Application form. If you apply this way, the house must have been completed and you must be registered on the title. It’s also important to ensure you have sent all the necessary supporting documents.
These generally include:
However, if you’re finding the process confusing or just want to ensure it goes off without a hitch, you can also apply through an approved agent, such as a solicitor or conveyancer. This approach is generally recommended if you’re also applying for a loan.
If you’re not buying a home in NSW, then you may be eligible for the First Home Buyer Grant in another state. Just remember that all states have different guidelines, so you need to read the legislation before applying for the FHOG.
If you’re looking to buy your first property in NSW, you may want to consider using one of eChoice’s experienced brokers to assist with your application and make the process as streamlined as possible. Plus, we also have access to hundreds of mortgage products, so we can help you find a competitive deal that best suits your needs.
An eChoice home loan expert will be in touch with you shortly.