First home buyer grants and concessions in NSW

Buying your first home is expensive, and the NSW Government offers help to make it easier. There are two main forms of assistance, and they are often confused. This guide explains the grant and the duty concessions, and who can get them.

Two different kinds of help

First home buyers in NSW can potentially access two separate things. One is the First Home Owner (New Homes) Grant, a cash grant for buying or building a new home. The other is the First Home Buyers Assistance Scheme, which reduces or removes transfer duty. They have different rules and different thresholds, and you may qualify for one, both, or neither.

The point we make to first home buyers is to check both early, because they affect how much cash you actually need and they can change the price range you should be looking in. Work this out before you start bidding, not after.

The First Home Owner (New Homes) Grant

The First Home Owner Grant is a $10,000 grant for eligible first home buyers who buy or build a new home. It is not means tested and is not taxable.

The property value caps are the key limit. For buying a newly built home, such as a house, townhouse, apartment, or unit, including off the plan, the cap is $600,000. For building a home under a house and land package, the cap is $750,000, covering the land and the building work.

The grant is for new homes only. An existing home that someone has lived in does not qualify. You apply through your bank or lender when you arrange your finance.

The First Home Buyers Assistance Scheme: duty concessions

Separately, the First Home Buyers Assistance Scheme reduces or removes transfer duty, which is usually a much larger saving than the grant. The current thresholds are a full exemption from duty for a home valued up to $800,000, and a concessional reduced rate for a home valued between $800,000 and $1,000,000. For vacant land, a full exemption applies up to $350,000, with a concession up to $450,000.

Unlike the grant, the duty concession is not limited to new homes, so it can apply to an existing home within the thresholds. There is a separate article in this series on transfer duty generally.

The basic eligibility

The schemes have their own detailed rules, but the common threads are these. You must be buying your first home and not have owned residential property in Australia before. You must be 18 or over, and generally an Australian citizen or permanent resident. And you must move into the home and live in it for a minimum period.

Eligibility turns on detail, and the schemes change over time, so confirm your position with Revenue NSW or with us before you rely on a saving. A wrong assumption here can change your budget significantly.

How we help

As part of the conveyancing, we help first home buyers work out which assistance they qualify for, make sure any duty concession is correctly applied at settlement, and flag the eligibility traps before they cost you. Knowing what you qualify for early affects how much deposit you need and what you can afford, so it is worth sorting out before you commit to a property.

Frequently asked questions

How much is the First Home Owner Grant in NSW? $10,000 for an eligible new home, within the property value caps.

What is the difference between the grant and the duty concession? The grant is a $10,000 cash grant for new homes. The duty concession reduces or removes transfer duty and can apply to existing homes within the thresholds.

Do first home buyers pay stamp duty in NSW? Not always. A full duty exemption applies for an eligible first home up to $800,000, with a concession up to $1,000,000.

Can I get help for an existing home? The grant is for new homes only, but the duty concession can apply to an existing home within the value thresholds.

Keep reading

• Property and conveyancing
• Transfer duty (stamp duty) in NSW: who pays and how much
• Buying a home in NSW: the conveyancing process explained

This article contains general information only and is not legal advice. For advice about your situation, please contact us. Liability limited by a scheme approved under Professional Standards Legislation.