Whether you're stepping into the housing market for the first time or looking to purchase a second property, you could qualify for various grants, tax breaks, or financial incentives.
Grab your copy of our comprehensive First Home Buyers Guide to arm yourself with all the essential knowledge you'll need to successfully acquire your dream home!
STAMP DUTY EXEMPTION
Stamp Duty Changes for First Home Buyers in NSW
The NSW Government has recently updated the thresholds for transfer (also known as stamp) duty, providing significant financial relief for first-time homebuyers.
What's New?
The stamp duty threshold for new homes has been raised from $650,000 to $800,000. Concessions will reduce on a sliding scale for properties valued up to $1 million.
The stamp duty threshold for vacant land will also increase, going from $350,000 to $400,000 and phasing out at $500,000.
This new policy will be effective for 12 months, starting from July 1, 2023.
Why These Changes?
This initiative is a part of the NSW Government's Recovery Plan, aimed at supporting the property and construction sectors. These industries are vital for job creation and investment in the state.
Who's Eligible?
To qualify for a full or partial exemption from the stamp duty:
You must be a first-time homebuyer.
You should be purchasing either a new home or a vacant plot of land with the intent of building a home.
For full exemptions, the value of the new home must not exceed $800,000, and for vacant land, the value must be under $350,000. Concessional rates will apply to properties valued between $800,000 and $1 million, and vacant lands valued between $350,000 and $450,000.
How to Apply?
Submit your application for the First Homeowner Grant (FHOG) via your financial institution when arranging your mortgage.
Required Documents:
Proof of identity
Signed and dated contract by the seller
Proof that it's the first sale of the home and it has never been occupied.
If building, provide council approvals, building contracts, and evidence of land value.
Residence Requirements
You must move into your new home within 12 months of the purchase.
You are required to reside there for at least six continuous months.
If your circumstances change and you no longer meet these criteria, you will need to repay the grant, potentially facing penalties up to $11,000.
FIRST HOME OWNERS GRANT SCHEME
Your Pathway to Saving for your first Home!
You can apply for the First Homeowner Grant (New Homes) scheme (FHOG) through your bank or financial institution when you arrange finance to buy your home.
Supporting documents
When you apply, you’ll be asked to provide some documents to support your claim. These include:
Proof of identity
A copy of the contract, dated and signed by the seller
Proof that this is the first time the home has been sold and that it has never been occupied – usually a statement from the seller or their legal representative.
If you’re building a new home, you must provide documents such as council approvals, building contracts or occupation certificates, and evidence of the land value.
Residence requirements
You or one of the other first home buyers must
Move into the new home within 12 months after buying the property, and
Live in Australia for at least six continuous months.
If you’re buying land and building a new home, you must move in within 12 months after construction is complete.
If you’re a member of the Australian Defence Force may you may be exempt from the six month residence requirement, providing all buyers are on the New South Wales electoral roll.
Changes in living arrangements
If your circumstance change after you’ve received the grant and you no longer meet the eligibility requirements, you’ll need to pay back the grant. If you don’t, you may be taken to court and you could pay a penalty of up to $11,000.
If you won’t be able to move into the house within 12 months or you can’t live there for six continuous months, you must let revenue NSW know straight away and pay back the grant.
FIRST HOME BUYER ASSISTANCE SCHEME
Unlock Your Pathway to Homeownership!
Eager to step into your first home? The First Homeowner Grant (New Homes) Scheme (FHOG) is here to support you! Apply directly through your bank or financial institution when you're arranging your home financing.
Required Documents
During the application process, you'll need to furnish several supporting documents, including:
Valid identification proof
A signed and dated contract from the seller
Evidence confirming this is the property's first sale and that it has never been occupied—usually a statement from the seller or their legal counsel.
For new builds, you'll need to provide council approvals, construction contracts, occupation certificates, and documentation on land value.
Occupancy Guidelines
To qualify, either you or another first-time buyer on the deed must:
Move into the newly purchased home within one year of purchase
Reside in the property for a minimum of twelve consecutive months.
If you're purchasing land and building a home, the same 12-month move-in rule applies post-construction.
Australian Defence Force members may be exempt from the six-month or twelve-month residency requirement, as long as all property owners are registered on the New South Wales electoral roll.
Changes in Living Situations
Life is unpredictable. If your circumstances shift after receiving the grant, making you ineligible, you will be required to repay the grant amount. Failure to do so may lead to legal action and penalties up to $11,000.
If you foresee that you won't be able to move in within the 12-month window or can't fulfill the twelve-month occupancy requirement, it's crucial to notify Revenue NSW immediately and arrange for the grant's repayment.
Take your first confident step into homeownership today!
FAMILY HOME GUARANTEE
Your Family Pathway to Homeownership!
The Family Home Guarantee program is designed to empower eligible single parents with at least one dependent child to buy a home. Whether you're purchasing your first home or getting back into homeownership, this program has you covered.
Availability and Timeline
The FHG aims to support eligible single parents or eligible single legal guardians of at least one dependent to buy a home, whether that single parent or single legal guardian is a first home buyer or a previous homeowner. From 1 July 2023 – 30 June 2024, 5,000 FHG places are available.
Mortgage Insurance
Under the FHG, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to purchase a home with as little as 2% deposit without paying Lenders Mortgage Insurance.
Guarantee Limitations
It's important to note that this guarantee covers up to a maximum of 18% of your property's assessed value. This is not a direct cash grant or an additional deposit.
Additional Benefits
Being a part of this scheme also opens the door to other government incentives such as the First Home Super Saver Scheme, Home Builder Grant, and First Homeowner Grant, among other state and territory-based concessions. Please note that each of these programs has its own eligibility criteria and conditions.
Eligibility Requirements
To qualify, you must:
Be a single parent. You're considered single if you're not married and don't have a de facto partner.
Have at least one dependent child. You must be the natural or adoptive parent and the child must be considered "dependent" as per the Social Security Act 1991, or between the ages of 16 and 22 and receiving a disability support pension.
You'll also need to prove you're legally responsible for the day-to-day care, welfare, and development of the dependent child, who must be in your care.
Past Homeownership
You can still apply even if you've owned a home before, as long as you don't currently have:
An existing house, townhouse or apartment
A house and land package
Land and a separate contract to build a home
An off-the-plan apartment or townhouse.
Take the first step towards owning your dream home today!
