The First Home Owner Grant is a grant of up to $10,000 provided to NSW-based property buyers. The idea is to offer a better deal for first-home buyers in the state and help them get their foot on the property ladder in a meaningful way.
If this sounds interesting to you, you’re probably wondering what’s next. Take a look at our guide to the NSW government’s FHOG program and find out more.
Are You Eligible for the First Home Owner Grant?
Many first-home buyers are currently asking themselves the same question: Am I eligible for the First Home Owner Grant? Under the scheme, only buyers who meet a certain set of criteria are eligible. Successful applicants will…
- Be aged 18 years old or above: Both you and your co-purchaser, if you have one, must meet be 18 or older.
- Be a first-time home buyer: This means you have not owned a home or another residential property in Australia before July 1st 2000 or lived for six continuous months or longer in a property you owned after July 1st 2000. Jointly and individually owned homes, as well as full and partial ownership, all count here. This also applies to your partner, spouse, or another co-purchaser.
- Be a first-time recipient of FHOG: If you or your co-purchaser have received the FHOG before, you are no longer eligible.
- Be buying a new home: The property is either a new build or has no previous occupants.
- Be buying the home as a person: No company or trust-based purchases are permitted.
- Be a permanent Australian resident or citizen: If you purchase as a couple, at least one applicant must meet this criterion.
- Be ready to move into the property: You must become the main residents within 12 months of the purchase or the completion of construction.
- Be able to spend at least six continuous months within the property: This is the minimum period for a property to be classed as a primary residence in New South Wales.
There are also some requirements relating to the price of the property and the cost of the purchase:
- If you’re using the grant to help you buy a property, the purchase price cannot be more than $600,000.
- If you’re using the grant to fund a comprehensive home-building contract or purchase land as an owner-builder, the total property value must not be more than $750,000, including the cost of land
Proving Your Eligibility for NSW’s FHOG
You’ll need documentation to prove your First Home Owner Grant eligibility. These are detailed below.
For All Applicants
You’ll need:
- An identity document like an Australian Birth Certificate.
- A photo and signature ID, like a New South Wales driving license.
- A community participation ID, like a Medicare card.
- A proof of your place of residence, like a utility bill.
Just for New Home Buyers
You’ll need:
- The contract of the sale, dated and signed by all appropriate parties.
- A completed title search to confirm that you are the owners of the property.
- Proof that the property is a new home — this is typically a statement from the seller declaring that the home has not been sold or occupied before.
- A comprehensive of list of renovations in some cases — for instance, if substantial changes have been made to the property since completion.
You may be able to provide alternative documentation if you do not have any of the above — this particularly applies to the sale contract.
Just for Comprehensive Home Building Contract Applicants
You’ll need:
- A signed and dated copy of the contract.
- A copy of the occupation certificate — this may be either an interim or a final certificate.
- A completed title search to confirm that you are the owners of the property.
- Proof of the value of the land component.
- A signed statement from the builder.
Just for Owner-Builder Applicants
You’ll need:
- A completed title search to confirm that you are the owners of the property.
- A copy of the council’s inspection report after the completion of the property foundation.
- Comprehensive receipts from the building and material acquisition process — the total value must be more than the amount received in the grant.
- Proof of the total value of the property — the house and land components together.
Find the Mortgage You Need
Here at Sydney Brokers, we know how tricky it can be as a first home buyer. This is why we provide our industry-leading broker services to help you find your perfect first home. Reach out to our team today, and let’s chat about your options — your first step on the property ladder begins here.
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