NSW First Home Owner Grant guide
Are you a first-time home buyer in NSW and want to learn more about the First Home Owner Grant (FHOG)? This comprehensive guide explains everything you need to know about the FHOG, including eligibility requirements, application processes, and how to maximise your benefits when purchasing your first property. The NSW First Home Owner Grant provides $10,000 to eligible first-time home buyers, making homeownership more achievable.
Quick overview: the NSW First Home Owner Grant (FHOG) provides $10,000 to eligible first-time home buyers purchasing or building new properties. The grant is available for newly built homes valued up to $600,000, or land and construction combined up to $750,000. Combined with other first home buyer schemes, the FHOG can significantly reduce your upfront costs when entering the property market.
What is the First Home Owner Grant (FHOG)?
Understanding FHOG: understanding the FHOG structure and benefits helps you determine whether this grant aligns with your home buying strategy and financial position. The First Home Owner Grant (FHOG) is a $10,000 grant provided by the NSW government to assist eligible first-time home buyers in purchasing or building a new home. This initiative aims to ease the financial burden associated with entering the property market.
FHOG is a valuable government grant supporting first home buyers in NSW. The $10,000 payment significantly reduces your upfront deposit requirements and can be combined with other first home buyer deposit options to maximise your purchasing power.
The NSW government offers this valuable support to make homeownership more accessible across regions including Ryde, Parramatta, and Baulkham Hills. Our mortgage broker advisers can help you understand how the FHOG fits into your overall home buying strategy.
Property eligibility requirements
To qualify for the FHOG, the property must meet specific criteria that ensure the grant supports genuine new home construction and purchasing:
- New dwellings only: Eligible properties include newly built houses, townhouses, apartments, units, or similar dwellings that are newly built, purchased off the plan, or substantially renovated. The grant is not available for established homes.
- New home value cap: If purchasing a newly built property, the value must not exceed $600,000.
- Land and construction combined: If purchasing vacant land and entering a building contract, the combined value of the land and dwelling must not exceed $750,000.
- Construction or purchase timeline: The property must be constructed or purchased within a specified timeframe to remain eligible.
Eligibility and application process
Meeting criteria: meeting all eligibility criteria is essential before applying. Understanding each requirement ensures you qualify for the full $10,000 grant and can proceed confidently with your home purchase. FHOG eligibility focuses on first-time homebuyers purchasing or building new properties. Verifying your eligibility before applying saves time and ensures a smooth application process for claiming your $10,000 grant.
To be eligible for the First Home Owner Grant (FHOG) in NSW, several key conditions must be met:
Key eligibility criteria
- Age requirement: Each applicant must be at least 18 years old. This applies to all co-purchasers on the application.
- First home buyer status: You need to be buying your first home as an individual, not as a company or trust. This ensures the grant benefits genuine first-time owner-occupiers.
- Residency requirement: At least one applicant should be a Permanent Resident or Australian Citizen. This requirement applies regardless of where other applicants reside.
- Prior ownership: Neither you, your spouse, partner, or co-purchaser should have previously owned a home before 1 July 2000. This date is crucial for determining first-time buyer status.
- Occupancy criteria: For contracts signed on or after 1 July 2023, the home must be occupied as your principal place of residence within 12 months of construction or purchase, with the minimum period of occupancy being 12 continuous months.
How to apply for the FHOG
Applications for the FHOG can be submitted through approved channels. Understanding the application process helps you prepare documentation and avoid delays. Your mortgage broker can guide you through each step:
- Approved agent application: Submit through an approved agent, such as your bank or financial institution. This option often expedites processing.
- Direct application: You can apply directly to Revenue NSW. Ensure all required documentation is included with your submission.
- Required documentation: Provide proof of age, identity, residency status, and property details. Your conveyancer or solicitor can assist with documentation preparation.
- Processing timeline: The processing time can vary depending on application completeness and current workload at Revenue NSW.
Using FHOG as part of your deposit
Deposit strategy: understanding how the FHOG integrates with your deposit strategy enables better financial planning and helps you maximise available funds when purchasing. FHOG timing is crucial. The grant is paid at settlement or after construction, so plan interim financing or use existing savings to cover your deposit until the grant arrives. Our property deposit calculator helps you plan your strategy.
Yes, the FHOG can be used towards your deposit. However, since the grant is typically paid at settlement or after construction completion, you may need to demonstrate to your lender that you have sufficient funds to cover the deposit until the grant is received.
Deposit strategy with FHOG
Strategic planning ensures you leverage the FHOG effectively within your overall deposit and financing plan:
- Pre-settlement funding: Arrange temporary bridging finance or use existing savings to cover your deposit until the FHOG is received at settlement.
- Lender communication: Inform your lender early that you are receiving the FHOG. Most lenders accommodate this arrangement with proper documentation.
- Timing coordination: Work with your conveyancer and lender to ensure the FHOG is processed and available at or before settlement date.
- Combined schemes: The FHOG can complement other first home buyer assistance programmes, further reducing your upfront costs.
Ready to explore your options?
Discover whether the First Home Owner Grant is right for your situation and learn how to combine it with other first home buyer schemes for maximum benefit.
Combining FHOG with other first home buyer schemes
Layering benefits: multiple government schemes can work together to significantly reduce your upfront costs and improve your overall financial position when purchasing your first home. Layering schemes multiplies your benefits. FHOG combines with stamp duty concessions, home guarantees, and other programmes to create a powerful first home buyer support package that reduces costs dramatically.
To maximise your benefits as a first home buyer in NSW, you can potentially combine the FHOG with several other government schemes. This integrated approach to first home buyer support makes homeownership significantly more attainable.
First Home Buyer Assistance Scheme (FHBAS)
The First Home Buyer Assistance Scheme provides transfer duty (stamp duty) exemptions and concessions for eligible first home buyers:
- Transfer duty exemptions: provides exemptions or concessions on transfer duty (stamp duty)
- Property value exemptions: full exemptions for properties valued up to $800,000
- Property value concessions: concessions for properties valued between $800,000 and $1,000,000
- Land exemptions: full exemptions for land valued up to $350,000
- Combination eligibility: can be used alongside the FHOG for eligible new properties valued at less than $600,000 or land and construction less than $750,000 combined
Home Guarantee Scheme (HGS)
The Home Guarantee Scheme allows first home buyers to purchase with lower deposits:
- Lower deposit requirement: Allows eligible first home buyers to purchase with as little as a 5% deposit
- Government guarantee: Government guarantees up to 15% of the property value, reducing your deposit burden
- Lenders Mortgage Insurance eliminated: Eliminates the need for Lenders Mortgage Insurance (LMI), saving thousands of dollars
- FHOG compatibility: Can be combined with the FHOG for new properties
Shared Equity Scheme
The Shared Equity Scheme offers government equity contributions for eligible buyers:
- Low deposit access: Allows eligible first home buyers to purchase with as little as a 2% deposit
- Government equity contribution: Government pays up to 40% of the property value, reducing your loan size significantly
- FHOG compatibility: Can be used in conjunction with the FHOG for eligible properties
First Home Super Saver Scheme (FHSSS)
The First Home Super Saver Scheme enables tax-advantaged deposit savings:
- Superannuation savings: Allows first home buyers to save for a deposit within their superannuation with tax advantages
- Tax-advantaged savings: Provides tax advantages on savings for a home deposit, growing your funds faster
- Withdrawal limits: Withdraw up to $50,000, plus earnings, of voluntary super contributions towards your deposit
- FHOG combination: Can complement the FHOG when purchasing a new property
Get expert guidance today
Our mortgage brokers specialise in combining multiple first home buyer schemes to maximise your financial position and reduce upfront costs when purchasing your first NSW home across Gladesville, Penrith, and throughout NSW.
First Home Owner Grant in other states
Interstate grants: whilst focusing on NSW, knowing about grants in other states helps if you're considering relocation or investment opportunities across Australia. Each state has its own first home buyer grant rules and limits. If relocating or buying interstate, research the specific grants available in your target state. Understanding your pathways to homeownership ensures you maximise available support.
Whilst focusing on NSW, it is useful to know that similar grants are available in other states. These grants range from $10,000 to $30,000, depending on the state and eligibility criteria.
Each state has its own rules and limits, so it's best to check the details for the state you're interested in. Consider exploring how to buy the right property for your circumstances and local market conditions.
What happens if circumstances change?
Ongoing obligations: knowing your responsibilities after receiving the grant ensures you remain compliant with FHOG requirements and avoid potential repayment obligations. FHOG requires 12-month continuous occupancy as your principal place of residence. If circumstances change, contact Revenue NSW to understand your obligations and potential repayment requirements.
If your living arrangements change and you can no longer meet the residency requirements after receiving the FHOG, it's crucial to notify Revenue NSW immediately.
Failure to comply with the residency criteria may result in the need to repay the grant. Understanding your ongoing obligations protects your financial position long-term. Our mortgage brokers can help you understand your responsibilities when purchasing with FHOG support.
Frequently asked questions
Can I receive the FHOG if I've owned property before 1 July 2000?
No, to be eligible for the FHOG, neither you nor your spouse or partner should have previously owned a home before 1 July 2000. This ensures that the grant benefits genuine first-time homeowners. If you owned property before this date, you would not qualify for the FHOG. Our mortgage brokers can discuss alternative first home buyer pathways if you don't qualify.
How long does it take to receive the FHOG after applying?
The processing time for the FHOG can vary. Applying through an approved agent, such as your lender, may expedite the process. It's advisable to consult with your agent or Revenue NSW for specific timelines regarding your application. Plan your financing accordingly to account for processing delays.
Are established homes eligible for the FHOG?
No, the FHOG is only available for newly built homes, properties purchased off the plan, or substantially renovated properties. Established homes are not eligible for this grant. This targeting ensures support reaches those building new homes or entering the new housing market with first home buyer intentions.
What is the maximum property value for the FHOG?
For newly built properties, the maximum value is $600,000. If you're purchasing vacant land and entering a building contract, the combined value of the land and dwelling must not exceed $750,000. These limits ensure the grant supports first home buyers in the standard residential market. Use our property deposit calculator to check your eligibility.
Can I combine the FHOG with the Home Guarantee Scheme?
Yes, the FHOG can be combined with the Home Guarantee Scheme (HGS) for eligible new properties. This combination allows you to access the $10,000 grant whilst also purchasing with a 5% deposit and no LMI, significantly reducing your upfront costs and monthly repayments.
What documents do I need to apply for the FHOG?
You'll need to provide proof of identity, age verification, residency status documentation, and property purchase or construction details. Your conveyancer, solicitor, or lender can provide a complete checklist of required documents to ensure your application is complete and submitted correctly to Revenue NSW.
Is the FHOG paid before or after settlement?
The FHOG is typically paid at settlement or after construction completion, depending on whether you're purchasing an existing new property or building. Arrange interim financing to cover your deposit if needed until the grant is received. Discuss timing with your lender when planning your purchase.
Can I use the FHOG with the First Home Super Saver Scheme?
Yes, the FHOG can complement the First Home Super Saver Scheme (FHSSS). You can withdraw up to $50,000 from your superannuation under the FHSSS and use the $10,000 FHOG towards your deposit, combining both benefits for maximum support when purchasing your first NSW home.
Do I need to occupy the property immediately after purchase?
For contracts signed on or after 1 July 2023, you must occupy the property as your principal place of residence within 12 months of construction or purchase completion. The minimum occupancy period is 12 continuous months to maintain compliance with FHOG requirements. Plan your moving timeline accordingly.
What if my application for the FHOG is rejected?
If your application is rejected, contact Revenue NSW to understand the specific reason. Common reasons include failing to meet eligibility criteria or property not meeting value limits. An approved agent or mortgage broker can help you understand options and potentially reapply if circumstances change.
Take the next step
Start your journey to homeownership today with FHOG. Our experienced mortgage brokers will help you maximise this valuable grant and guide you through every step of your first home purchase.
📧 Email: hello@buyvest.com.au
Related resources for first home buyers
- First Home Super Saver Scheme guide – use superannuation to grow deposit faster with tax advantages and investment earnings
- Home Guarantee Scheme (5% deposit) – purchase with 5% deposit, government guarantee, and no LMI costs
- Shared Equity Scheme guide for NSW homebuyers – buy with 2% deposit and government equity contribution up to 40%
- Budgeting guide for first home buyers – master budgeting essentials and confidently plan your finances
- Pre-approval to home ownership – navigate from mortgage pre-approval to owning your home step-by-step
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Taking your first step into homeownership? You could get $10,000 to help you.
The First Home Owner Grant in NSW makes buying your first property easier.
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