Buying your first home in NSW? The government might just give you $10,000 to help make it happen. But there's a catch – it has to be a new home. Let's break down exactly how the First Home Owner Grant (FHOG) works and how to claim it.
What is the NSW first home owner grant?
The First Home Owner Grant provides $10,000 to eligible first home buyers purchasing a newly built or substantially renovated property in NSW.
The key point: this grant is only available for new homes – not established properties. This could be:
- A newly built house, townhouse or apartment
- A property bought off the plan
- A substantially renovated property (where most of the home was removed or replaced)
For substantially renovated properties to qualify:
- Most of the home must have been removed or replaced
- The seller, builder or tenant must not have lived in the home before, during or after renovations
- It must be the first time the home has been sold since completing renovations
This means that if the person who built or renovated the property lived in it, leased it out, or used it for short-term accommodation, it won't qualify as a new home for the First Home Owner Grant.
How much can you spend on your first home?
The NSW government has set clear price caps on properties eligible for the grant:
- For newly built homes: Maximum purchase price of $600,000
- For vacant land plus building contract: Combined total must not exceed $750,000
These thresholds help target the grant toward entry-level properties and first home buyers who need it most.
Are you eligible for the first home owner grant?
To qualify for the $10,000 grant, you need to meet these criteria:
- Be at least 18 years old
- Apply as an individual (not as a company or trust)
- At least one applicant must be an Australian citizen or permanent resident
- You or your partner must not have previously owned a home in Australia before 1 July 2000
- For contracts signed before 1 July 2023: Move into the home within 12 months and live there continuously for at least 6 months
- For contracts signed on or after 1 July 2023: Move into the home within 12 months and live there continuously for at least 12 months
Previous property ownership may disqualify you if:
- You've received a First Home Owner Grant anywhere in Australia
- You owned residential property in Australia before 1 July 2000
- You lived for six continuous months or more in a home you owned (wholly or partially) on or after 1 July 2000
Identity documentation requirements
When applying, you'll need to provide documents from four different categories:
- Category 1: Primary identity document
- Australian Birth Certificate or foreign passport and visa
- Note: If you were born overseas, you must supply your foreign passport, even if you have an Australian passport
- Category 2: Photo ID and signature
- NSW driver's licence or similar photo identification
- Category 3: Proof of community operation
- Medicare card or similar document showing your participation in Australian society
- Category 4: Proof of current address
- Recent utility bill or other document showing your current residential address
What about investment properties?
Here's an interesting point: if you've owned an investment property since 1 July 2000 but never lived in it for more than six months, you might still be eligible for the grant on a new home. This exception can be a game-changer for some first home buyers.
How to apply for the first home owner grant
You have two main options for applying:
Option 1: Apply through your lender (recommended)
If you need the grant for settlement or your first drawdown payment, apply through your mortgage broker or lender. We can help make this process seamless by:
- Ensuring you complete the correct application form
- Gathering all required documentation
- Submitting your application at the optimal time
When applying through an approved agent (like your bank or mortgage broker), you'll need to complete the appropriate application form:
- For contracts exchanged before 1 July 2023: Use form OFH 001
- For contracts exchanged on or after 1 July 2023: Use form OFH 002
Your agent will lodge the application on your behalf after you've completed, signed and dated the form.
Option 2: Apply directly after purchase/construction
If you've already completed the purchase or construction, you can apply directly through the FHOG customer portal. Remember that applications must be lodged within 12 months of settlement or construction completion.
Applications submitted after 12 months will require additional documentation to support your claim.
What happens if your circumstances change?
Life happens. If your situation changes after receiving the grant and you can't satisfy the residence requirement:
- You must contact Revenue NSW immediately to arrange repayment
- Failure to do so could result in fines up to $11,000
Required documentation for your application
The documents you'll need depend on your situation:
Required documentation for your application
The documents you'll need depend on your purchase type. Here's a breakdown of what's required for each scenario:
Contract for the purchase of a new home
Price limit: Maximum $600,000
Required documentation:
- Copy of contract for sale, dated and signed by vendor
- Title search showing applicant(s) as owners of the property
- Statement from the vendor or their legal representative confirming this is the first sale of the home and that the home has never been previously occupied since completion of construction
- List of renovations (if substantially renovated)
Where there is no contract, or sale between family members or related parties, also include:
- Copy of the transfer, dated and signed by all parties
- Evidence that consideration has been paid
- Evidence of total value of property (house and land)
Comprehensive home building contract
Price limit: Property Value (house and land) must not exceed $750,000
Required documentation:
- Copy of the front page, signature page and Schedules 1-5 of the comprehensive home building contract, dated and signed by all parties
- Title search showing applicant(s) as owners of the property
- Copy of the interim or final occupation certificate
- Recent evidence of the land value
- Final statement from builder including all variations
Owner-builder
Price limit: Property Value (house and land) must not exceed $750,000
Required documentation:
- Title search showing applicant(s) as owners of the property
- Copy of the initial inspection report or approval from council for the laying of foundations
- Copy of the final inspection report or occupation certificate
- Copy of receipts for the home totalling more than the grant amount
- Evidence of the total value of property (house and land)
In addition to these specific requirements, all applicants must provide identity documentation from the four categories mentioned above.
Special circumstances for Defence Force members
If you're a member of the Australian Defence Force, you may be exempt from the six or twelve-month residence requirement, provided all buyers are on the New South Wales electoral roll.
Common questions about the first home owner grant
Is the grant means-tested or taxable?
No. Your income doesn't affect eligibility, and the grant amount isn't taxed.
Can temporary residents apply?
No. At least one applicant must be an Australian citizen or permanent resident.
Do both partners receive separate grants?
No. Only one grant is payable per property transaction, not per person.
What if I own property outside Australia?
You can still be eligible provided you haven't owned property in Australia before.
Can I claim the grant for an inherited property?
No. You must be a buyer or builder of the property.
What happens if I move out before completing the residency requirement?
If you move out before completing the required residence period (6 months for pre-July 2023 contracts, 12 months for contracts on or after July 2023), you'll need to repay the grant.
Alternatives to the first home owner grant
The $10,000 First Home Owner Grant is valuable, but it's not the only assistance available to NSW first home buyers. Here are other options to consider, which can potentially be used alongside the FHOG:
First home buyer stamp duty concessions
If you're buying your first home in NSW, you may be eligible for stamp duty exemptions or concessions:
- First Home Buyer Assistance Scheme: Full exemption from stamp duty for homes valued up to $650,000, with concessions available for homes between $650,000 and $800,000
- First Home Vacant Land concession: No stamp duty on vacant land valued up to $400,000, with concessions for land between $400,000 and $500,000
These concessions can save you tens of thousands of dollars and are available for both new and established homes, unlike the FHOG.
Other government programs
How a mortgage broker can help
Navigating the First Home Owner Grant process while simultaneously applying for your first mortgage can be overwhelming. That's where we come in. As experienced mortgage brokers, we can:
- Confirm your eligibility for the grant and other first home buyer incentives
- Help you complete all necessary paperwork correctly
- Submit your application through our lender channels
- Structure your loan to maximise the benefit of the grant
- Find the most competitive interest rates and loan features
Ready to claim your $10,000 grant and get into your first home? Get in touch with our team today to get started on your homeownership journey.
