The NSW First Home Owner Grant (New Homes) Scheme - Pearl Financial

The NSW First Home Owner Grant (New Homes) Scheme

By Shane | First Home Buyer

Jun 18

The First Home Owner Grant has changed numerous times over the past few years. In 2017, the NSW Government announced the First Home Buyers Assistance Scheme that offers stamp duty exemptions for first home buyers who buy a property worth less than a certain limit. Read this blog post to learn more. Also on offer is a grant for first home buyers who are looking to purchase a new home or build their home. 

Are there limits to the grant?

There are two limits to the grant – one for people buying new homes and one for people building a home. If the purchaser is buying a new home (i.e. it has been built by someone else and they will be the first owner) the property value limit is $600,000. If the purchaser is building a new home, then the total value of the property is capped at $750,000.

How much is the grant?

The grant is currently $10,000, reducing from $15,000 on the 1st January 2016. If you were fortunate enough to purchase a property between 1st October 2012 and 31st December 2015 then you will still be eligible to receive the $15,000 grant (subject to the other eligibility criteria of course).

What are the other qualifying criteria?

To qualify for the grant, the following criteria need to be met:

  • The applicant needs to be a real person. I.e. it cannot be a company or trust.
  • The date of the contract needs to be after 1st January 2016.
  • The home needs to be brand new, it must not have been previously occupied or sold as a residence. This includes a home that has been substantially renovated.
  • The buyer needs to be over 18 years of age.
  • The buyer, or their spouse, must not have owned any residential property in Australia prior to 1st July 2000. There is an exemption for people who have owned a property since then but have never resided in the property for a period longer than 6 months.
  • The buyer must not have received the grant in the past.
  •  The buyer must live in the property for a continuous period of 6 months.
  • At least one of the applicants needs to be an Australian citizen or permanent resident.

The qualifying criteria are quite stringent, and to be eligible to receive the grant, the buyer needs to meet each of the eligibility requirements.

How do you apply for the FHOG?

You can complete this form and either lodge it with the financial institution helping you with your loan, or direct with NSW Revenue (their details are on the form).

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About the Author

Shane specialises in helping Gen Y professionals and business owners make an impact by accumulating more assets, generating more income, and having more time to enjoy life. He has a Master of Applied Finance, an MBA, and a Master of Financial Planning. He is also a terrible golfer.

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