First Home Owners Grant NSW: What You Get and How to Apply

What the First Home Owner Grant is🔗

The FHOG is a one-off state government grant of $10,000, introduced in 2000 to help first home buyers into the market. In NSW it is administered by Revenue NSW. Every state runs its own version with different amounts and rules, so this covers NSW only: the grant works differently in Victoria, Queensland and WA.

The single most important thing to understand: in NSW the FHOG applies only to new homes. If you are buying an established property, you are not eligible for the grant (though you may still get the stamp duty concession, covered below).

How much it is, and what counts as a new home🔗

The amount is a flat $10,000 regardless of purchase price (within the caps). For a new home purchase it is paid at settlement; for a build contract it is paid at the first drawdown of your construction loan. It is not means-tested and not taxable. What qualifies:

• A newly built home (house, townhouse, apartment) bought from a builder or developer that has never been lived in.
• An off-the-plan apartment or townhouse that has never been occupied.
• A substantially renovated home under Revenue NSW's strict definition, where most of the home was replaced and no one lived in it during or after the reno. A new kitchen and a coat of paint do not count.

What does not qualify: established homes, investment purchases (you must move in), and anything above the price caps:

Who is eligible🔗

Eligibility is a checklist, and every box needs a tick:

• At least one applicant is an Australian citizen or permanent resident (temporary residents are not eligible).
• At least one applicant is 18 or over.
• You and any co-applicants have never owned residential property in Australia on or after 1 July 2000 (owning overseas property does not disqualify you).
• You have never previously received a FHOG in any state or territory.
• You will move in within 12 months and live there as your principal home for at least 12 continuous months (6 months for contracts before 1 July 2023).
• The property is in NSW and meets the new-home and price-cap rules.

Buying with a partner or co-buyer? All applicants must meet the criteria. If your co-buyer has previously owned residential property in Australia, the whole application is disqualified. Australian Defence Force members may be exempt from the residency requirement.

How it stacks with other first home buyer help🔗

The FHOG is just one piece of the puzzle, and the good news is that several schemes can be combined:

On a qualifying new home you could potentially take the FHOG ($10,000 cash), pay zero stamp duty under the First Home Buyers Assistance Scheme, and buy with a 5% deposit via the First Home Guarantee, all at once. You can also boost your deposit through the First Home Super Saver Scheme. Check eligibility for each separately, as they have different rules and administrators.

Worked example🔗

Priya is 27, an Australian citizen, and has never owned property. She buys a brand-new apartment off the plan in Western Sydney for $580,000.

• FHOG: eligible (new home, under the $600k cap). She receives $10,000 at settlement.
• Stamp duty: full exemption under the First Home Buyers Assistance Scheme (under the $800k threshold), saving roughly $21,150.
• First Home Guarantee: she may buy with a 5% deposit ($29,000) and avoid LMI, subject to caps and a participating lender.

Combined, Priya is tens of thousands better off than a buyer who does not access these schemes. The exact figures depend on her lender, loan size and the current rules.

How to apply🔗

Through your lender (most common): for most new home purchases, your bank lodges the FHOG application on your behalf at settlement and applies the grant to your settlement funds. You complete the form and provide supporting documents (proof of identity, the signed contract, evidence of citizenship or residency, and a title search).

Directly through Revenue NSW: if your lender does not lodge for you (for example, owner-builders), you apply through the Revenue NSW customer portal within 12 months of settlement or construction completion.

Common traps to avoid🔗

• Buying an established home and expecting the grant. It does not apply, full stop.
• Exceeding the price cap ($600k new purchase, $750k house-and-land). Going $1 over disqualifies you.
• Not moving in within 12 months of settlement or completion.
• Not meeting the 12-month residency period (contracts on or after 1 July 2023). Moving out early means repaying the grant and possibly a fine.
• A co-buyer who has previously owned property, which disqualifies the whole application.
• Confusing the FHOG with the stamp duty exemption. They are separate schemes with separate applications.
• Assuming NSW rules apply interstate. Amounts, caps and eligible home types differ in every state.

❓ Frequently asked questions🔗

Keep reading🔗

• Stamp duty concessions for first home buyers
• First Home Guarantee: buy with a 5% deposit
• First Home Super Saver Scheme explained
• First Home Owner Grant Queensland

The bottom line🔗

If you are buying a new home in NSW under the caps, the $10,000 grant is close to free money, and stacking it with the stamp duty exemption and First Home Guarantee is where the real saving adds up. Just watch the new-home rule and the residency requirement, and confirm the current figures with Revenue NSW before you sign.