Congratulations on taking the first step towards owning your own home! Buying your first property can feel overwhelming, but it’s also a fulfilling journey when you know the financial assistance options for first home buyers. In New South Wales (NSW), the government provides various incentives like grants and schemes to help you enter the property market. Let’s dive in and explore the grants and schemes for first home buyers in NSW.
5 Exciting Grants and Schemes for
First Home Buyers in NSW!
Stamp Duty Exemption or Reduction
First Home Loan Deposit Scheme (FHLDS)
First Home Owner Grant (FHOG)
Shared Equity Home Buyer Helper
Regional First Home Buyer Grant
Stamp Duty Exemption or Reduction
Stamp duty can be a significant cost for homebuyers in NSW. However, as a first home buyer, you may be eligible for a stamp duty exemption or a reduction. The NSW government offers a full stamp duty exemption on properties valued below $800,000 and a stamp duty reduction for properties priced between $800,001 to $1,000,000. Stamp duty exemption or reduction is an excellent incentive for first home buyers, and it can save you thousands of dollars.
First Home Loan Deposit Scheme (FHLDS):
Launched in January 2020, the FHLDS aims to help first home buyers enter the property market with a deposit as low as 5% without incurring lenders mortgage insurance (LMI). The Australian government established the FHLDS to help first home buyers who can’t access the 20% deposit required by most lenders. Eligible applicants must be first home buyers, have saved at least 5% of the property value, and have a taxable income of up to $125,000 for singles or $200,000 for couples. The FHLDS is a fantastic scheme that can save you substantial amounts in LMI costs.
First Home Owner Grant (FHOG):
The FHOG scheme is specifically for first home buyers purchasing or building a newly constructed home in NSW. The grant is valued at $10,000 and is only available to individuals who meet the criteria. The criteria include being a first home buyer and the purchase price of the property being less than $600,000. If you’re an eligible first home buyer, the FHOG can be an excellent start towards your home ownership journey.
Shared Equity Home Buyer Helper:
The NSW Shared Equity program helps eligible single parents, individuals over 50, and key workers buy a home. The government pays up to 40% of the property’s cost and keeps the equity as long as you’re eligible or until you sell. You don’t have to make payments or rent on the government’s equity while you’re eligible.
Regional First Home Buyer Grant:
The RFHBG is part of the HGS, helping eligible regional buyers purchase a home sooner. NHFIC administers it for the government. There will be 10,000 opportunities from 1st July 2023 to 30th June 2024. Under RFHBG, NHFIC guarantees a portion of the home loan, allowing buyers to acquire a home with as little as a 5% deposit. The Guarantee can be up to 15% of the property’s value. Eligibility requirements apply.
To be eligible for the First Home Buyers Assistance Scheme:
- the purchase must be for a new or existing home, or vacant land in NSW
- the property value must be within the threshold amounts
- the transfer must be for the whole property
- you must be an individual, (not a company or trust*)
- you must be over 18*
- you and your spouse or partner, must never have owned or co-owned residential property in Australia
- you and your spouse or partner, must never have previously received an exemption or concession under the scheme
- at least one of the first home buyers must be an Australian citizen or permanent resident
- for new or existing homes, you must meet the requirements for living in the property.
*This requirement may be waived upon application. Contact Revenue NSW for more information.
NSW offers many government incentives to assist first home buyers in getting into the property market. These incentives, including grants and schemes, can be a great starting point for your journey towards owning a home. As a first home buyer, it’s crucial to understand the criteria and eligibility requirements for each incentive to fully take advantage of these opportunities. If you’re a young adult looking to buy your first property, make the most of these incentives and turn your dream of homeownership into a reality!