First Home Owner Grant New South Wales 2024
What is the First Home Owner (New Homes) Grant?
The First Home Owner Grant (FHOG) is a $10,000 payment or grant that is provided by Revenue NSW for eligible first home buyers when buying their first new home.
NSW first home buyers can use this grant to purchase a house, townhouse, apartment, unit that is newly built, purchased off the plan or a property that is substantially renovated.
This grant has been around for a long time to help you buy your first home as an initiative of the NSW government.
What is the eligiblity criteria?
Purchaser Eligibility
- Each purchaser or applicant must be at least 18 years old
- You must purchase the property in your personal names and not under a company or trust
- At least one purchaser or applicant must be a permanent resident or Australian citizen
- You or your spouse, partner or co-purchaser must not have previously owned a home before 1 July 2000
Am I still eligible if I currently own or have owned an investment property?
You may still be eligible for the grant if you have never lived in this property for a continuous period of 6 months and the purpose of the property is solely used for investment.
Requirement to live in the property
- For purchase contracts signed on or after 1 July 2023:
- You must live in the property within 12 months of settlement or completed construction of the property
- You must live in the property for a minimum continuous period of 12 months
- For purchase contracts signed before 1 July 2023:
- You must live in the property within 12 months of settlement or completed construction of the property
- You must live in the property for a minimum continuous period of 6 months
Purchase price limits
- Purchasing a new home – the purchase price must not exceed $600,000
- Building a new home – the value of the property (house and land) must not exceed $750,000. Please note, this is not the same as the purchase price of the land and the cost of the build. This condition is determined via a valuation which may be higher than your total cost of land and construction
- This limit also applies to owner builders
How to apply for the first home owner (new homes) grant?
You can either apply directly with the Revenue NSW office or you can lodge your application with the approved agent. Approved agents are banks that are approved by the Revenue NSW office to accept applications on behalf of their customers.
The best way to apply is via your mortgage broker or your bank lender directly via the bank. This will ensure that the grant is available and paid to you at settlement.
If you apply directly with Revenue NSW, the grant will be paid to you after settlement and will require a lot more supporting documents compared to applying through your bank via your mortgage broker or lender.
The application process requires you to lodge an application form with supporting documents. The form can be found here.
Can I use this grant in conjunction with other first home buyer grants or schemes?
Absolutely! Subject to eligibility, you can use this grant with the following first home home benefits:
First home buyer assistance scheme NSW – this scheme helps can help a first-time buyer waive or save on transfer duty, also commonly known as stamp duty when buying an eligible home. Buyers in NSW can use this scheme to buy an existing home or new home.
First home guarantee scheme – this scheme helps first-time buyers avoid lenders mortgage insurance on their home loan and helps first home buyers purchase their first home with as little as 5% deposit in Australia. A lower deposit requirement can help you get ready to buy your first home sooner.
Regional first home guarantee – this scheme is the same as the first home guarantee scheme but specifically for regional Australia. There are different price caps and available spots.
Family home guarantee scheme – this scheme allows single parent or single legal guardians of at least one dependent to purchase a property with a minimum deposit of 2%. Price caps and limited spots apply.
First Home Super Saver Scheme – this scheme helps save up your deposit faster by using your superannuation tax benefits.
What happens if I move out of my home in the first 12 months?
Eligible home buyers must meet all the eligibility conditions so if you do not meet the requirement to live in the property, you will be required to pay back the grant you received.
Please be mindful that there are different time frames depending on when you purchase the property.
Purchase before 1 July 2023 – live in the property for continuous 6 months
Purchase after 1 July 2023 – live in the property for continuous 12 months
I inherited a property. Can I claim the First Home Owner Grant for this?
The short answer is no. To take advantage of the first home owner grant first-time buyers in NSW must purchase a brand new home or be building a brand new home.
Do I have to pay income tax on the grant?
No, the grant is not considered assessable income for tax purposes. This means you are not required to pay any tax when receiving the grant.
Is this grant avaialable to temporary residents?
The First Home Owners Grant in NSW is not available to temporary residents. Additionally, this cannot be backdated to when permanent residency is obtained. You must be a permanent resident or Australia citizen to be eligible for the first home owners grant.
What if I cannot move into the property within 12 months of settlement?
In some cases, the property you are purchasing may be tenanted and it’s not possible for you to move into the property within 12 months of settlement. In this case, you need to contact Revenue NSW immediately to repay NSW first home owner grant or you can discuss any possible exceptions with them.
Does Revenue NSW check for false claims?
They certainly do. The department will regularly check for false claims or those not entitled to the first home buyer benefits by comparing data they obtain from other government agencies. If you are found to have provided false or misleading information when you apply for the grant, you will be required to repay the grant with interest.
What supporting documents do I need to provide during the application process for the NSW First Home Owners Grant?
If you are applying for the first home owner’s grant via an approved agent (bank), you will need to provide the following:
Proof of Identity – Evidence of Australian citizenship or permanent residency
If born in Australia – Australian birth certificated issued by the registry of births, deaths and marriages
If born overseas
- Foreign passport and current Australia Visa issued for entry into Australia
- Foreign passport and Australian citizenship Certificate
- New Zealand passport
- Australian passport
Transaction type
Purchase a new home or an off the plan new home
- Contract of sale of land dated and signed by the vendor (seller)
- Statement from the vendor/vendor’s legal representative or other evidence confirming this is the first sale of the home and that the home has never been previously occupied since construction completed
Building a new home
- Copy of building contract, dated and signed by all parties
- Final statement from the builder including all variations
- Copy of current valuation by a suitably qualified valuer (bank valuations are acceptable)
- copy of a current stamped contract or transfer for the purchase of land
Where can I find out additional information or if I have a question?
Visit: https://www.revenue.nsw.gov.au/grants-schemes/first-home-buyer/first-home-owner-new-homes-grant
Call: 1300 130 624 or 02 7808 6913
Email: [email protected]