Grants and schemes for NSW first homebuyers

First time property buyers in NSW might be able to take advantage of one or more schemes and grants offered by the state government. Each of these schemes has different qualification criteria, although all are based on income and aimed at people buying property to live in for the first time. See if you qualify, and let the Mortgage Broker Sydney home loan experts help you into your first home faster.

First Home Buyers Assistance Scheme

Transfer duty – also known as stamp duty – has long been the curse of the property buyer. You slog and save for a deposit only to realise you need tens of thousands more up-front to finalise your purchase.

Enter the First Home Buyers Assistance Scheme, which waives transfer duty for first homebuyers purchasing a property up to the value of $800,000 or vacant land up to $350,000. If your purchase tips over the limit, but is still below $1m, a discounted duty applies.

As you’d expect, there are criteria you need to meet to qualify, including:

• You must be an individual, not a company or trust
• You must be over 18
• You (and your spouse/partner) must never have owned a residential property
• At least one applicant must be an Australian citizen or permanent resident.

First Home Owner Grant (New Homes)

Federal and some state governments offer grants and schemes to help get people into their first home.

In NSW, the FHOG can be a useful bonus for first-time buyers. The First Home Owner Grant (FHOG) helps first-time home buyers cover some of the costs of purchasing a property. Those who qualify receive a one-off grant of $10,000. But not everyone qualifies…

First Home Owner Grant purchase limits

If you’re buying a new property, or substantially renovating one, adding $10,000 to your deposit can boost your buying power by a significant amount.

To receive the grant, the property you purchase must be a new build (never lived in before) valued below $600,000. That usually means an apartment, or a house a bit out of town or in a regional location.

If you’re building on new land, and have a home building contract, the amount increases to a maximum of $750,000. You’re not about to walk into a Rose Bay mansion, but it might be enough to get you out of the rental cycle and into the property market.

To secure a first homebuyer grant you need to tick these boxes:

• At least 18 years old
• Australian citizen or permanent resident (at least one applicant)
• Never owned a property or received a grant before
• Moving in within a year of completion and staying for at least a year after that
• Not an investor or part of a trust of company.

Contact us for more information about qualifying and applying for this grant.

Federal Government Assistance

It’s also worth exploring schemes offered at the federal government level.

First Home Guarantee Scheme

The national government also runs the First Home Guarantee Scheme. For those who qualify, Housing Australia guarantees up to 15% of the value of a first home, meaning you’d avoid Lenders Mortgage Insurance, which is a potential saving on many thousands of dollars. 

Family Home Guarantee

This is another scheme aimed at single parents or guardians. Those who qualify can access a government guarantee of up to 18% on a purchase, meaning you can potentially get into a home of your own with a deposit as low as 2%.

Talk to Our Experts Today

At Mortgage Broker Sydney, we can help you understand the details of these schemes. You might even qualify for more than one grant!

Once you’re ready to buy, we’ll help you find a great loan, get pre-approved, and be all set to finally buy your new first home.

Our service is 100% free for you. If you get a home loan, your new lender will probably charge their usual loan establishment and account fees.

Contact Mortgage Broker Sydney today.

Michael Brown

Michael began his career in the finance industry over 35 years ago.  He progressed through the ranks at the CBA in both retail and corporate lending, culminating in a senior position as a Corporate Relationship Executive. His decision to leave the bank in 2003 to become an independent mortgage broker was driven by his desire to assist everyday customers break through the jargon of the banking world and access the best loan products in the market. His experience is wide-ranging from helping first time buyers to large commercial enterprises. What Michael doesn’t know about home loans, simply isn’t worth knowing!