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Home Buyer Grant NSW

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First Home Buyer Grant NSW


So how do you know what you are eligible for, what benefits you can gain and how much you are entitled to?
There are just so many questions, so here's some helpful information.

Where do you go to actually apply for the First Home Buyers Grant in NSW? Is it a conveyancer, solicitor or broker?
Can you still apply if your partner has already bought a property previously?
Do banks change you a higher interest rate if you are a First Home Buyer?
Can you make an offer or bid at auction prior to getting approved for any grants?
Are there different benefits for buying an established home, a new property or building a property?
Do new homes have higher benefits?
Will the agent know if I qualify?
Is transfer duty and stamp duty different fees?
Do I need to apply for a home loan before applying for a grant?
Are the grants different in NSW to other Australian states?
What if I want to buy a property but not live it? Can I still get the benefits of a first home buyer if it's going to be rented out and an investment?

First Home Owner's Grant (New Homes) scheme (FHOG)

This is the go-to resource for all up to date eligibility, requirements and criteria from NSW govt website These details were correct at time of posting, see their website for any new updates;

Buying or building your first home? You may be eligible for a $10,000 grant under the First Home Owner's Grant (FHOG) scheme.

This grant scheme only applies to buying or building a new home.

You can make a claim if:

  • your home is newly constructed and has a total value of less than $600,000
  • the land and the dwelling you intend to build has a combined value of less than $750,000.

Eligibility

To be eligible

  • you must be an individual (not a company or trust) and over 18 years old
  • you, or at least one person you’re buying with, must be an Australian citizen or permanent resident
  • you or your spouse must not have previously:
    • owned or co-owned property in Australia
    • received a first home owner grant in Australia

You can apply for the FHOG when you arrange finance to buy your home. The bank or financial institution providing you with a loan will need to be an approved FHOG agent.

Find an approved agent

Read about first home buyer compliance

HomeBuilder program

If you are building a new home, you could also be able to apply for the Australian Government grant of $25,000. To be eligible you must:

  • sign the contract between 4 June 2020 and 31 December 2020
  • commence within 3 months of the contract date.

HomeBuilder complements the NSW Government’s existing First Home Owner Grant and stamp duty concessions.

Visit the Revenue NSW website to learn more about the HomeBuilder program .

First Home Buyer Assistance Scheme (FHBAS)

The NSW Government recently announced increased thresholds for purchases of new homes and vacant land to build a new home from 1 August 2020. The threshold for existing home purchases remains unchanged. You may be eligible to apply for an exemption or reduction of transfer duty charges under FHBAS. This assistance scheme applies to first home buyers:

  • buying an existing home
  • buying a new home
  • buying vacant land on which you intend to build a home.

For homes or vacant land bought between 1 July 2017 and 31 July 2020 , you can apply for a full exemption if:

  • the value of your new or existing home is less than $650,000, or
  • the value of your block of land is less than $350,000.

You can apply for a concession if:

  • the value of your new or existing home is between $650,000 and $800,000, or
  • the value of your block of land is between $350,000 and $450,000.

If you buy a home or vacant land between 1 August 2020 and 31 July 2021 you can apply for a full exemption if:

  • the value of your new home is less than $800,000, or
  • the value of your existing home is less than $650,000, or
  • the value of your block of land is less than $400,000.

You can apply for a concession if:

  • the value of your new home is between $800,000 and $1 million, or
  • the value of your existing home is between $650,000 and $800,000, or
  • the value of your block of land is between $400,000 and $500,000.

Eligibility

  • you must be an individual (not a company or trust), at least 18 years old
  • you, or at least one person you’re buying with, must be an Australian citizen or permanent resident
  • you or your spouse must not have previously:
    • owned or co-owned property in Australia
    • received an exemption or concession under this scheme.

You must have already exchanged contracts to purchase your first home or vacant land.

You can also talk to your solicitor or conveyancer about your eligibility for the First Home Buyers Assistance scheme.

Apply for the FHBAS here

Answers To Questions:

Where do you go to actually apply for the First Home Buyers Grant in NSW? Is it a conveyancer, solicitor or broker?
yes all of these professional service operators will have the information on the grants available, and there are online resources too (just refer to the links above)


Can you still apply if your partner has already bought a property previously?
No, if one of you has already owned a property, or had a grant, then you won't be able to get it again.


Do banks change you a higher interest rate if you are a First Home Buyer?
Banks or lenders assess you individually on a case basis, however if you don't have 20% deposit or what we term in the industry as 80LVR (loan to value ratio) then anyone who applies, whether it be a first home buyer or second or third, will normally pay a higher interest rate. The FHBAS has been set up for those with lower deposits and not subject to Mortgage Insurance.


Can you make an offer or bid at auction prior to getting approved for any grants?

Yes you can, however we don't recommend it. We recommend clients go to a broker to find out how much they would be able to borrow and obtain a pre-approval or make an application ready to submit to a bank to gain approval. You can always discuss First Home Buyer grants and benefits with your broker. You really need to know you can afford the property, the lender will actually loan you the amount required to be able to settle it (purchase price plus costs), and know the amounts that you are eligible for from govt grants prior to making any offer or bid.


Are there different benefits for buying an established home, a new property or building a property?
yes, as you will see in the table above, the amounts do differ.


Do new homes have higher benefits?

Yes, please see the benefits and requirements in the above table.


Will the agent know if I qualify?

The agent will normally refer you to the govt website, or to a broker to discuss your eligibility.


Is land transfer duty and stamp duty different fees?
Yes they are the same thing. Different names!
You must pay transfer duty based on the property’s sale price or its current market value, whichever is higher.
Here's a link to the Transfer Duty Calculator and further information


Do I need to apply for a home loan before applying for a grant?
Most people do this at the same time. The broker will assist you with the application forms, links to resources where you can apply too.


Are the grants different in NSW to other Australian states?

Yes they are state based, which is actually better for us in NSW - other states average home prices are generally much lower in value, so NSW have their rates based on our prices here.


What if I want to buy a property but not live it? Can I still get the benefits of a first home buyer if it's going to be rented out and an investment?
The first home buyer grants and schemes have been set up for first home buyers who will be living in the property they are purchasing. And don't be mistaken, there are huge fines for buying an investment and claiming it as a first home when you do get caught out!

Have some more questions?
Please feel free to reach out and ask - if I don't know the answer I can ask one of the industry experts I deal with to help!  

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