NSW first home buyer grants and assistance schemes

25 October 2024

Buying your first home is an exciting milestone, but it can also be a daunting financial commitment. Fortunately, if you’re a first home buyer in New South Wales (NSW), there are several concessions and grants available to help ease the financial burden. Here’s a simple guide to understanding these benefits and how they can help you get into your first home. 

1. First Home Buyers Assistance Scheme

The First Home Buyers Assistance Scheme is designed to reduce the amount of stamp duty you need to pay when purchasing your first home. Here’s how it works: 

• Full Exemption: If you’re buying a new or existing home valued up to $800,000, you may be eligible for a full exemption from stamp duty. This means you won’t have to pay any stamp duty at all. 
• Concessions: For homes valued between $800,000 and less than $1,000,000, you can receive a concessional rate of stamp duty, which is a reduced amount compared to what you would normally pay. 
• Vacant Land: If you’re purchasing vacant land to build your first home, you can also benefit from this scheme. There’s a full exemption for land valued up to $350,000 and a concessional rate for land valued between $350,000 and less than $450,000.
• Eligibility Criteria:
  • All applicants (which include any spouses or partners) must be over the age of 18*
  • All applicants must never have owned or co-owned residential property in Australia
  • All applicants must never have previously received an exemption or concession under the scheme
  • At least one of the applicants must be an Australian citizen or permanent resident
  • For new or existing homes, the applicants must move into the property within 12 months and live in the property continuously for at least 12 months
  • For vacant land, the applicants must intend to build a new home and move into the property within 12 months of the completion of construction and live in the property continuously for at least 12 months.

*These requirements may be waived upon application.

2. First Home Owner Grant (New Homes) 

The First Home Owner Grant is a one-off payment to help first home buyers purchase or build a new home. Here’s what you need to know: 

• Grant Amount: You can receive a $10,000 grant if you’re buying or building a new home valued at $600,000 or less. If you’re building a new home on vacant land, the total value of the land and home must not exceed $750,000. 
• Eligibility Criteria:
  • All applicants (including any spouses or partners) must be individuals (not a company or trust*)
  • All applicants must be at least 18 years old*
  • At least one of the applicants must be an Australian citizen or permanent resident
  • All applicants must not have previously owned a home in Australia
  • All applicants must not have received the grant before
  • The applicants must move into the property within 12 months and live in the property continuously for at least 12 months. 

*These requirements may be waived upon application.

3. Shared Equity Home Buyer Helper 

This initiative is designed to help eligible first home buyers purchase a home with a smaller deposit. The government provides a shared equity contribution, reducing the amount you need to borrow.

Under the Shared Equity program, the NSW Government can contribute up to 40% of the purchase price for a brand-new home or 30% for an existing dwelling. This help participants secure a mortgage, by reducing the deposit required – potentially down to as little as 2% of the purchase price.

The government contributes its percentage up front and while it receives an equity share in the property, the mortgage – and the home – is yours.

You won’t have to make repayments towards the government’s equity share, and you won’t be charged rent or interest on it, either. If you do have capacity, you can make voluntary payments over time.

There’s no expensive lenders insurance to pay and the government’s equity share reduces your mortgage repayments.

• Eligibility Criteria:
  • You must contribute a minimum 2% of the purchase price towards the deposit
  • You must live in the property you purchase
  • You must not own any other land or property
  • You need to be 18 years of age or over
  • You need to be an Australian or New Zealand citizen (or permanent Australian resident)
  • You must fall into one of the following groups:
    • Single parents with a dependent child or children
    • Older singles aged 50 years or above
    • First home buyer key workers employed as early childhood educators, teachers, nurses, midwives, paramedics or police officers
    • Victim-survivors who have experienced a domestic and family violence incident (PDF 98.78KB) within the last 5 years

Final Thoughts 

These concessions and grants can significantly reduce the financial burden of buying your first home in NSW. By understanding and utilising these benefits, you can make your dream of home ownership a reality. Remember, it’s important to ensure you meet all the eligibility criteria and provide the necessary documentation and information when applying (see Grants and schemes | Revenue NSW for current information and eligibility criteria).

Helpfully, the NSW Governmment has prepared an online tool that:

• gives an indication of whether you’re eligible for one or more of the NSW Government first home buyer support programs; and
• provides instructions on how to apply.

Get in touch with us

If you have any questions about the support programs that are available to you or if you think you may need some assistance with the application process, then you have come to the right place.

Please get in touch with us using one of the below buttons or alternatively, visit our Buying a Property Information Centre to get more information on our services or to simply get an instant quote.

We’re here to help you every step of the way!