First home buyer assistance in NSW
Buying a first home in Sydney can seem like an impossible task. There are however, several NSW Government first home buyer assistance schemes that can help reduce some of the costs for eligible buyers.
The current schemes are listed below:
First Home Buyers Assistance Scheme
NSW first home buyers can apply for full or partial exemption on transfer duty (previously referred to as stamp duty) for properties valued at less than $1,000,000.
For purchases of new and existing homes valued at up to $800,000 buyers can apply for a full transfer duty exemption. For purchases valued between $800,000 to $1,000,000 buyers can apply for a concessional transfer duty rate.
Buyers purchasing vacant land under $350,000 with the intention to build a new home can also apply for a transfer duty exemption. For land valued between $350,000 and $450,000 buyers can apply for a concessional transfer duty rate.
For contracts entered into on or after 1 July 2023, purchasers must move into their home within 12 months of settlement and live in the property for a continuous 12-month period to satisfy the residence requirement. This requirement excludes Australian Defence Force members and their partners.
Additional requirements include that buyers must be over 18, an individual (not a company or a trust), must never previously have owned or co-owned residential property in Australia or have previously received an exemption or concession under the scheme, and at least one of the first home buyers must be an Australian citizen or permanent resident.
Please visit the NSW Government website for further information on the First Home Buyers Assistance Scheme here.
First Home Owners Grant (New Home)
The First Home Owner Grant (New Home) offers $10,000 towards the purchase price when buying or building a new first home. The new home can be a house, townhouse, apartment or unit of similar that is newly built, purchased off the plan or substantially renovated.
For the purchase of a newly built house, townhouse, apartment or unit, the grant is available for purchases not exceeding $600,000 in value.
For purchases of vacant land where a building contract has been signed with a builder, the total cost must not exceed $750,000.
Buyers must move into the property within 12 months from settlement and live there for at least 12 continuous months.
Please visit the NSW Government website for further information on the First Home Owner Grant here.
Shared Equity Home Buyer Helper
The Shared Equity Home Buyer Helper provides support for eligible first home buyer key workers who are employed as nurses, midwifes, paramedics, teachers, early childhood educators or police officers. The support will be expanded to allow victim-survivors of domestic and family violence to apply from December 2023.
The NSW Government will pay up to 40% of the purchase price of an eligible property retaining it as equity. To be eligible, first home buyers must only be able to service a mortgage with the government contribution, meet asset and income thresholds, be able to contribute a minimum of 2% towards a deposit and be ready to occupy the property as principal place of residence from the day of settlement.
Single parents with dependent children and singles aged 50 and over can also apply – even if they are not first homebuyers – as long as they meet the other eligibility criteria.
Please visit the NSW Government website for further information on the Shared Equity Home Buyer Helper here.
First Home Buyer Choice
UPDATE: AS of 1 July, 2023, there is no longer an option to choose between property tax and transfer duty on new purchases. Customers who previously opted in to this Scheme, will continue to pay property tax for as long as they own that property and will remain exempt from transfer duty on that purchase.
First Home Buyer Choice was a NSW Government initiative. It was designed to assist first home buyers buy into the residential property market in NSW by lowering the up front costs.
First Home Buyer Choice allowed first home buyers a choice of whether to pay transfer duty (stamp duty) up front, or an annual property tax.
There are terms and conditions for all the assistance offered for first home buyers. Please make enquiries with your financial advisor, conveyancer/solicitor or Service NSW for information specific for your circumstances.