There have been a few changes to the First Home Buyers Grant NSW and it could save you money by knowing what those are. So, we thought we’d help you out and provide you with everything you need to know about the First Home Buyers Grant NSW.
So just a quick definition for the uninitiated. The First Home Buyers Grant NSW is a one-off $10,000 payment to help first home buyers actually get into the property market. You can only receive it though if you are buying or building a new home that you will actually live in.
In order to be eligible, the property you are looking to purchase must have a total value of below $600,000 and it has to be either newly constructed or substantially renovated. What they mean by substantially renovated is when all or most of the original house has been removed or replaced. It also has to be the first time the place has been sold or lived in for it to be eligible as well.
Things are slightly different when you’re building a home from scratch as the entire value of the land and the house you mean to build must have a combined value of less than $750,000.
The First Home Buyer Grant NSW is also able to be used as a deposit but, unfortunately, it is not going cover the full amount needed for a deposit. Speak to a mortgage broker to find out what kind of deposit you might need. Usually for first home buyers, the deposit tends to be either 5% or 10%. There are also ways to purchase without a deposit using a guarantor.
The First Home Buyers Grant NSW has a few rules and conditions which are:
– You have to be 18 or over
– You and your spouse can’t have owned a property beforehand in Australia or received the grant previously
– You have to be an individual so no companies and no trusts
– You need to live in the home for at least six months within the first 12 months of purchase or completion
– You, or the person you’re buying with, has to be an Australian citizen.
Stamp Duty Exemptions
There are stamp duty exemptions for any first home buyer, whether they buy a new home or an established one, guaranteed by the First Home Buyer Assistance Scheme.
From August 2021, stamp duty exemptions have returned for homes up to $650,000 and $350,000 for land. However, you may still be able to receive an exemption even if you pay between $650,000 and $800,000 for your first home.
This helpful table from Mortgage Choice should help make things clearer.
If you have any questions about the First Home Buyers Grant NSW get into contact with one of our brokers at It’s Simple Finance. For more general information check out our free First Home Buyer’s Guide.