First Home Owner Grant NSW: A Complete Guide for First Home Buyers

Buying your first home is exciting, but it can also feel overwhelming. That’s where the First Home Owner Grant NSW (FHOG) comes in—it’s a government initiative designed to make homeownership more affordable by providing financial assistance to eligible first-time buyers.

With property prices on the rise in Newcastle and across NSW, the FHOG can be a game changer in covering upfront costs like deposits and fees.

At Mortgage Brokers Newcastle, our experienced brokers make the process easier by ensuring you meet the eligibility criteria and access other government incentives you may qualify for. With expert guidance, you can avoid common pitfalls and find the best loan options for your situation.

Let’s take a closer look at everything you need to know about the First Home Owner Grant NSW.

What Is the First Home Owner Grant NSW?

The First Home Owner Grant NSW (FHOG) is a one-time government grant designed to assist first-time buyers purchasing a brand-new home. Introduced under the First Home Owner Grant (New Homes) Act 2000 (NSW), this scheme aims to make homeownership more accessible by providing financial assistance.

Administered by Revenue NSW, the grant is currently $10,000 and applies to homes that meet the eligibility criteria. It is available for:

• Newly built homes
• Off-the-plan purchases
• Home and land packages where construction is completed under a comprehensive home building contract

To qualify, the property must be valued at $750,000 or less for a house or $600,000 or less for a unit, and buyers must live in the home for at least 12 continuous months. Meeting these requirements not only makes you eligible for the grant but also opens the door to several financial benefits that can make buying your first home more affordable.

Benefits of First Home Owner Grant to First-Time Buyers

The First Home Owner Grant NSW can significantly ease the financial burden of buying a brand-new home. Here’s how it benefits first-time buyers:

• Reduces Upfront Costs – The $10,000 grant can help cover part of the deposit, loan fees, or Lenders Mortgage Insurance (LMI).

• Helps Offset Stamp Duty – When combined with the First Home Buyers Assistance Scheme, eligible buyers can receive stamp duty exemptions or discounts on properties up to $800,000.

• Makes Home Loans More Accessible – Lenders may view the grant as part of your deposit, improving your borrowing power and loan approval chances.

• Encourages Homeownership – With rising property prices, the grant makes it easier for buyers to enter the property market sooner.

• Supports Regional Buyers – In areas like Newcastle and Lake Macquarie, the grant can be combined with federal government initiatives, such as the First Home Guarantee Scheme, to purchase a home with as little as 5% deposit.

These benefits make the First Home Owner Grant NSW a valuable resource for those looking to purchase their first home.

Who Is Eligible for the First Home Owner Grant NSW?

Before applying for the FHOG, it’s important to understand the eligibility requirements to ensure you meet the criteria.

To qualify, you must meet the following conditions:

• First-Time Buyer Requirement – You (and any co-applicant) must be a first-time buyer who has never owned or co-owned a residential property in Australia.

• Citizenship or Residency – At least one applicant must be an Australian citizen or permanent resident at the time of application. Temporary residents are not eligible.

• Property Type – The grant applies only to:
• Newly built homes that have never been lived in
• Off-the-plan purchases
• House and land packages with a comprehensive home building contract
• Vacant land where you will construct a home within 12 months of settlement

• Property Value Threshold – The total purchase price must be:
• $750,000 or less for a house
• $600,000 or less for an apartment or townhouse

• Residency Requirement – You must move into the home within 12 months of settlement and live there for a continuous period of at least 12 months.

• Application Timing – Applications must be lodged within 12 months of buying the property or completion of construction.

How Much Is the First Home Owner Grant in NSW?

As of 2025, the First Home Owner Grant NSW provides $10,000 to eligible buyers purchasing a brand-new home.

Factors That Affect the Grant

• Property type – Must be a newly built home
• Purchase price – The property value threshold is $750,000 for houses and $600,000 for apartments
• Location – Grants and exemptions may vary in regional centres like Lake Macquarie

How to Apply for the First Home Owner Grant NSW

Applying for the First Home Owner Grant NSW may seem like a lot of paperwork, but the process is actually straightforward if you know what to expect. To avoid delays, it’s important to follow each step carefully and have all your documents ready.

Step 1: Check Your Eligibility

Before starting your application, confirm that you meet the eligibility criteria, including citizenship, property type, and residency requirements. You can use the Revenue NSW eligibility tool or consult a mortgage broker for expert guidance.

💡 Tip: If you’re unsure about your eligibility, seek advice early to avoid applying for a grant you don’t qualify for.

Step 2: Gather Required Documents

You’ll need to provide proof of identity, a contract of sale, and supporting documents such as a title search and building contract (if constructing a home). Lenders or Revenue NSW may request additional paperwork depending on your circumstances.

💡 Tip: Double-check all documents before submission to prevent delays or rejections.

Step 3: Submit Your Application

You can apply through an approved financial institution (like a bank or lender) when applying for a home loan or directly through Revenue NSW if you’re purchasing without a mortgage. Your lender will process the application on your behalf if you apply through them.

💡 Tip: Applying through a lender can speed up approval, as they handle much of the paperwork.

Step 4: Wait for Approval

Once submitted, your application will be assessed, and if successful, you will receive a notification of approval. Processing times usually take 4–6 weeks, depending on your lender and Revenue NSW processing times.

💡 Tip: Keep track of your application status and respond quickly to any additional requests for information.

Step 5: Receive the Payment

The First Home Owner Grant NSW is not paid directly to the applicant. Instead:

• If you are buying a home, the grant is paid at settlement and credited towards your home loan or purchase costs.
• If you are building, the grant is paid to your lender in instalments as part of the progress payments during construction or after completion of construction if applying through Revenue NSW.

💡 Tip: Talk to your lender or mortgage broker to ensure the grant is correctly applied to your property purchase or construction costs.

By following these steps, you can ensure a smooth application process and receive the First Home Owner Grant NSW without unnecessary delays.

Additional First Home Buyer Benefits & Schemes in NSW

The First Home Owner Grant isn’t the only government initiative available in New South Wales. Here are other programs that eligible home buyers can access:

First Home Buyers Assistance Scheme

• Stamp duty concessions for homes up to $800,000
• Exemption from stamp duty for homes under $650,000

First Home Guarantee Scheme

• Buy with only a 5% deposit (no LMI)
• Available through major banks and mortgage brokers

Shared Equity Home Buyer Helper

• The NSW Government co-buys the property with you
• Great for single parents or low-income buyers

Frequently Asked Questions (FAQs)

What grants are available for first home buyers in NSW?

First home buyers in NSW can access the First Home Owner Grant (FHOG), which provides $10,000 for purchasing or building a brand-new home. They may also qualify for the First Home Buyers Assistance Scheme, which offers stamp duty exemptions or concessions on eligible properties.

What is the first home buyer rebate in NSW?

The first home buyer rebate refers to stamp duty exemptions and concessions available through the First Home Buyers Assistance Scheme. Eligible buyers can receive a full exemption on stamp duty for homes under $650,000 or a discounted rate for homes up to $800,000.

Is the first home owners grant doubled?

No, the First Home Owner Grant NSW remains at $10,000 for eligible buyers. Some states have temporary increases or additional incentives, but NSW has not announced any changes to the grant amount in 2025.

How much is stamp duty in NSW for first home buyers?

Stamp duty costs depend on the purchase price of the property. First home buyers can use the Revenue NSW stamp duty calculator to check exact amounts. If eligible, they may receive a full exemption for homes under $650,000 or a discount on homes up to $800,000.

What types of home loans are available for first home buyers in NSW?

First home buyers in NSW can apply for fixed-rate, variable-rate, interest-only, or split home loans. Many lenders also offer first home buyer packages with lower deposit requirements and access to government incentives like the First Home Guarantee Scheme.

Can I get the First Home Owner Grant if I buy an established home?

No, the First Home Owner Grant NSW only applies to brand-new homes, off-the-plan properties, or newly built homes that have never been lived in. However, you may still qualify for stamp duty exemptions on an established home through the First Home Buyers Assistance Scheme.

Can I combine the First Home Owner Grant with other schemes?

Yes, eligible buyers can combine the First Home Owner Grant with the First Home Buyers Assistance Scheme and First Home Guarantee Scheme. This can help reduce stamp duty costs, lower deposit requirements, and make homeownership more affordable.

Final Thoughts

Buying your first home is a big milestone, and the First Home Owner Grant NSW can make it easier by reducing the upfront costs. With property prices continuing to rise in 2025, taking advantage of available grants and incentives can help you step into homeownership sooner. 

If you’re unsure where to start or want to explore your loan options, the team at Mortgage Brokers Newcastle is here to help. We offer a free consultation to guide you through the process, check your eligibility, and find the best home loan for your situation. Give us a call at 02 4920 6468 or visit mortgagebrokersnewcastle.com.au to get started today!