First Home Owner Grant (FHOG) NSW
- How to apply for the $10,000 First Home Owner Grant in New South Wales
- Our analysis shows the grant could save a homeowner a further $11,584 in interest if it’s put towards their home loan
In our NSW first-home buyer grant guide:
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What is the First Home Owner Grant in NSW?
The First Home Owner Grant (FHOG) is a one-off, tax-free grant available to eligible first-home buyers in New South Wales. It can help first-time homeowners to cover some of the costs associated with buying property in New South Wales, but strict limits and eligibility criteria apply.
How much is the First Home Owner Grant in NSW?
The First Home Owner Grant in New South Wales is $10,000 for eligible first-home buyers to buy or build a new home. It’s on the lower scale of grants available in Australia, despite NSW being the most expensive state to buy property, according to Domain.com.au.
To be eligible under the program, new homes must be valued below $600,000 or below $750,000 for a new house and land package. Eligible properties include:
- A new house, townhouse, apartment or unit
- Vacant land (to build on)
- Substantially renovated homes
NSW First Home Owner Grant eligibility criteria
To be eligible for the NSW FHOG, you must meet the following criteria:
NSW FHOG eligibility criteria | Applicants must be 18+ years of age |
|---|---|
| Property requirements | You must be buying or building a new home in New South Wales |
NSW FHOG eligibility criteria | You must be an Australian citizen or permanent resident (or applying with someone who is) |
| Property requirements | For contracts signed on or after 1 July 2023, you must move into your new property within a year of buying and live there for at least 12 months (Australian Defence Force personnel are exempt from this residency requirement) |
NSW FHOG eligibility criteria | You must be a first-home buyer who has not owned a property to live in or received the grant previously |
| Property requirements | The grant is not available on investment properties, or properties purchased through a trust or company |
| NSW FHOG eligibility criteria | Property requirements |
|---|---|
Applicants must be 18+ years of age | You must be buying or building a new home in New South Wales |
You must be an Australian citizen or permanent resident (or applying with someone who is) | For contracts signed on or after 1 July 2023, you must move into your new property within a year of buying and live there for at least 12 months (Australian Defence Force personnel are exempt from this residency requirement) |
You must be a first-home buyer who has not owned a property to live in or received the grant previously | The grant is not available on investment properties, or properties purchased through a trust or company |
Is the NSW First Home Owner Grant available if you’ve previously owned an investment property?
If you've owned or partly owned an investment property since 1 July 2000 (when the FHOG was introduced), you may still be eligible for the NSW FHOG to buy another property you intend to live in. You’ll need to prove that you have not lived in the investment property while you owned it. You may be asked to provide supporting documentation, including:
- tenancy or lease agreements
- electricity or phone accounts
- tax return details declaring the rental property.
NSW FHOG savings analysis on a $600,000 home loan
Here’s an example showing how much a first-home buyer using the $10,000 NSW FHOG could save in repayments and interest on a $600,000 home loan over a 30-year term. The FHOG reduces the home loan balance.
Loan amount | |
|---|---|
| With $10,000 NSW FHOG | $600,000 (reduced to $590,000) |
| Without NSW FHOG | $600,000 |
Interest rate | |
| With $10,000 NSW FHOG | 6.00% p.a. |
| Without NSW FHOG | 6.00% p.a. |
Monthly repayments | |
| With $10,000 NSW FHOG | $3,537.35 (save $59.95) |
| Without NSW FHOG | $3,597.30 |
Total to repay | |
| With $10,000 NSW FHOG | $1,273,445 (save $21,584) |
| Without NSW FHOG | $1,295,029 |
Total interest payable | |
| With $10,000 NSW FHOG | $683,445 (save $11,584) |
| Without NSW FHOG | $695,029 |
| With $10,000 NSW FHOG | Without NSW FHOG | |
|---|---|---|
Loan amount | $600,000 (reduced to $590,000) | $600,000 |
Interest rate | 6.00% p.a. | 6.00% p.a. |
Monthly repayments | $3,537.35 (save $59.95) | $3,597.30 |
Total to repay | $1,273,445 (save $21,584) | $1,295,029 |
Total interest payable | $683,445 (save $11,584) | $695,029 |
Does your state or territory have a First Home Owner Grant?
See First Home Owner Grants in each state & territory
Do you need to show genuine savings when using a grant?
“Government grants can help first-home buyers buy property sooner, but lenders still require a minimum of 5% of the loan amount in genuine savings. In some cases, rental payments may be considered genuine savings if you can provide a rental ledger. Remember, your home loan isn’t the only expense you’ll need to consider. You’ll also need to budget for extra costs such as home insurance, council rates, maintenance, etc.”
Mansour Soltani, Money.com.au's home loan expert
How to apply for the NSW First Home Owner Grant
You can apply for the First Home Owner Grant through your lender (who will handle the paperwork) or directly with Revenue NSW.
If you apply via your lender
Complete the First Home Owner Grant application form and submit it to your lender with the supporting documents of the property purchase. You’ll also be asked to provide 100 points of Australian or state-issued documents that the lender can use for your home loan application. The lender will lodge your FHOG application on your behalf.
If you’re approved for the FHOG, you’ll usually receive the payment at settlement if you’re buying a home or at the first drawdown of funds from a construction loan for building contracts.
If you apply via Revenue NSW
You can lodge your grant application online and upload your supporting documents via the Revenue NSW FHOG Online Application Portal. If you’re approved for the FHOG, you’ll usually receive payment within 15 working days of submitting your completed application and supporting documents.
How to fill out the NSW First Home Owner Grant application form
1. Complete the eligibility checklist
Verify your eligibility for the First Home Owner Grant. Tick the relevant box for questions 1 to 7.
2. Enter your personal details
Each applicant must fill out their personal information, including name, date of birth, address, contact details, etc. If you’re applying with a spouse, they must enter their details in the ‘Applicant 2’ section. There’s a separate section for spouses not party to the grant application.
3. Provide your property and transaction details
Enter the details of the property you’re buying, including the street address or a lot number if a street number is not allocated (e.g. new housing estates or developments). You’ll also be asked to provide transaction details, such as if you have a contract to buy an established home, off-the-plan, build a new home, or buy a substantially renovated home.
4. Provide your bank account details
If applying with Revenue NSW, you must nominate the bank account you’d like the grant paid into. If you’re applying through your lender, the grant will be paid to them in accordance with your agreement.
5. Sign the declaration
Each applicant must agree to and sign the declaration to confirm that all information provided is true and correct, and that they’ve read and understood all the details completed on the application form.
Other support for first-home buyers in NSW
First Home Guarantee
The First Home Guarantee (FHBG) is a nationwide program that helps eligible first-home buyers purchase a property with a deposit as low as 5%, including in regional areas under the Regional First Home Buyer Guarantee (RFHBG). Housing Australia guarantees up to 15% of the value of a first home, meaning you’d avoid lender’s mortgage insurance (LMI).
In New South Wales, the FHBG price cap is $900,000 for homes in capital cities and regional centres and $750,000 for the rest of the state.
There’s also the Family Home Guarantee (FHG) to help eligible single parents or guardians buy a property with a deposit as low as 2%, with Housing Australia guaranteeing up to 18% of the property’s value.
Can you combine the NSW first-home buyer grant and First Home Guarantee?
Yes, it’s possible to use both the $10,000 NSW first-home buyer grant and FHBG if you qualify, according to Housing Australia. However, the FHOG is typically available only at settlement (i.e. after the completion of your property transaction), so it can’t directly be put towards the minimum 5% deposit for the FHBG.
Can you use the NSW First Home Owner Grant as part of your home loan deposit?
Mortgage brokers we spoke to said in certain situations lenders might consider including your FHOG as part of your deposit, most commonly with off-the-plan property transactions.
Even if a lender does not accept FHOG funds as part of your deposit, being eligible for it may still help you when applying for a loan. For example, lenders may factor in the one-time payment when assessing your borrowing capacity, pending grant approval, according to ANZ.
First-home buyer NSW stamp duty exemption
Under the First Home Buyers Assistance Scheme (FHBAS), first-home buyers may be eligible for an exemption on stamp duty in NSW for properties valued under $800,000 or vacant land under $350,000. That’s a potential saving of up to $30,735. A reduced transfer duty rate applies to homes under $1,000,000 and vacant land under $450,000.
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Written by
Senior Finance Writer
Megan Birot
Reviewed by
Home Loans Expert
Mansour Soltani
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