First Home Owner Grant

Government financial assistance to NSW first home buyers

Buying and owning a home is a goal most Australians aspire to, though it can be financially challenging.

First Home Owner Grant
To make home ownership easier, the First Home Owner Grant (FHOG) currently provides a $7,000 lump sum benefit to first home buyers, to help with their property purchase. This money can be put towards building a deposit or paying for relevant expenses such as pest and building reports.

The $7,000 grant is payable to all first home buyers where the home being purchased or built has a total value less than $750,000. The grant applies to residential dwellings only and does not apply to vacant land.

In NSW the FHOG is funded by the state government and administered by the Office of State Revenue. It is not subject to income or asset tests, however proof of identity and place of residence conditions are required.

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Stamp (or ‘transfer’) duty exemptions also apply to NSW first home buyers:

First Home Plus Scheme
The NSW First Home Plus Scheme (FHPS) provides exemptions or concessions on transfer duty for eligible first home buyers. This includes vacant land on which you intend to build your first home.
The FHPS provides eligible purchasers with exemptions on transfer duty on homes valued up to $500,000 and concessions on duty for homes valued between $500,000 and $600,000.
Eligible purchasers buying a vacant block of residential land to build their home on will pay no duty on vacant land valued up to $300,000, and will receive concessions on duty for vacant land valued between $300,000 and $450,000.
The FHPS offers stamp duty exemptions of up to $17,900, depending on the value of the property.
To read more about the FHPS, please visit the NSW Office of State Revenue website at:

Home Builders Bonus
Applying from the 1st July 2010, and designed to stimulate the construction of new homes in NSW, the NSW Home Builders Bonus (HBB) provides further concessions on transfer (stamp) duty. Its benefits compliment and extend the stamp duty concessions provided by the First Home Plus Scheme (see above).

The HBB provides the following benefits:

  • Stamp duty will no longer apply on purchases of new homes for less than $600,000 that are bought ‘off the plan’.
  • Stamp duty will be cut by 25% on homes worth up to $600,000 that are bought during construction or at completion, which equates to a saving of $5,623.
  • Stamp duty will be exempt for people over 65 who buy a newly constructed home worth up to $600,000. This exemption will only apply to people intending to use their new home as their principal place of residence.

NSW home buyers will be able to save up to a maximum of $22,490 under the Home Builders Bonus. These concessions initially apply until 2012.

Detailed information on the program can be found by visiting the NSW Office of State Revenue website at:

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It is important to keep up to date with the schemes offered, as their terms and conditions can vary from time to time. Furthermore, new schemes might be added, or dropped, at any time. So, for the latest information, it makes sense to regularly visit the website of the NSW Office of State Revenue which is the government department responsible for administering the schemes in this state.

For NSW, eligibility criteria and detailed information can be found by visiting the NSW Office of State Revenue website at:

Your mortgage consultant can give you more information about government financial assistance, help explain the fine print and eligibility criteria to you, and assist you in applying for the grants and concessions.