First Home Owners

The First Home Owner Boost scheme and reduced interest rates during the last global financial crisis (GFC) stimulated the under-$600,000 Sydney metro property market when the rest of the world's markets were down. While the First Home Owner Boost has now been fully been phased out, the First Home Owner Grant and First Home Plus Schemes are still in place and this end of the market remains stable despite continued global gitters.

Read the information below to see if you are eligible for the Government's financial assistance.

First Home Owner Grant Scheme

The First Home Owner Grant Scheme is fully funded by the NSW Government and administered by the NSW Office of State Revenue (OSR). The scheme assists eligible first home owners to purchase a first home by offering a $7,000 grant. The grant applies to residential dwellings only (or land/house packages) and does not apply to vacant land. There are no income or asset tests to qualify for this benefit.

The following eligibility criteria must be met:

• Each applicant is a natural person and not a company or trust.
• At least one applicant is a permanent resident or Australian citizen.
• Each applicant must be at least 18 years of age.
• All applicants and/or their spouse/de facto have not owned a residential property, jointly, separately or with some other person, in any State or Territory of Australia before 1 July 2000.
• All applicants and/or their spouse/de facto have not owned on or after 1 July 2000 a residential property and occupied that property jointly, separately or with some other person in any State or Territory of Australia for a continuous period of at least six months.
• Each applicant has entered into a contract for the purchase of a home or signed a contract to build a home on or after 1 July 2000. In the case of an owner-builder, laying of the foundations commenced on or after 1 July 2000.
• The total value of the property does not exceed the $835,000 cap for eligible transactions which commenced on or after 1 January 2011.
• This is the first time an applicant and/or their spouse/de facto will receive a grant under the First Home Owner Grant Act 2000 in any State or Territory (unless subsequently repaid).
• At least one applicant will occupy the home as their principal place of residence for a continuous period of at least six months, commencing within 12 months of settlement or construction of the home.

First Home Plus Scheme 

The First Home Plus scheme provides exemptions or concessions on transfer duty for people who are buying their first home in NSW. This includes buying vacant land on which you intend to build your first home.

The First Home Plus Scheme provides eligible purchasers with exemptions on transfer duty on secondary homes valued up to $500,000 and concessions on duty for homes valued between $500,000 and $600,000. These concessions will no longer be available for properties where the Contract of Sale is dated on or after January 1 , 2012.

Eligible purchasers buying a vacant block of residential land to build their home on 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.

Currently all purchasers buying a new, substantially renovated or off-the plan homes pay no duty on transactions valued up to $600,000. Starting on January 1, 2012, eligible purchasers buying a new, substantially renovated or off-the plan homes pay no duty on homes valued up to $500,000, and will receive concessions on duty for homes valued between $500,000 and $600,000

To qualify for First Home Plus you must meet the criteria listed below:

• at least one first home buyer must be an Australian citizen permanent resident

• the contract and the transfer must be for the purchase of the whole of the property

• all purchasers must be ‘eligible purchasers’

• at least one eligible purchaser must occupy the home as their principal place of residence for a continuous period of six months, commencing within 12 months of completion of the agreement. Where an eligible purchaser was a member of the permanent forces of the Australian Defence Force and all eligible purchasers were enrolled on the NSW electoral roll as at the date of the agreement or transfer, on or after 21 October 2009, then all purchasers are exempt from the residency requirement.

• the first home buyer/s must be purchasing at least 95 per cent of the property.

An ‘eligible purchaser’ is a natural person (i.e. not a company or trust) at least 18 years of age who has not, and whose spouse/de facto has not:

First Home Plus One

From 1 May 2007, First Home Plus One allows eligible purchasers to buy property with other parties and still receive a concession. To qualify, the eligible purchasers must buy at least 50 per cent of the property. The value limits and purchasers eligibility criteria of First Home Plus apply.

Transfer duty is calculated with reference to the proportion of the property purchased by other parties. However, this interest is disregarded if it is not more than five per cent.

Full mortgage duty concessions and exemptions apply to mortgages given to assist the purchase of property under First Home Plus One.

From 1 September 2007 an advance made to natural persons for the purpose of buying or building their home, or buying vacant residential land, is not liable to duty. This applies irrespective of the amount of the advance.

Calculate the exact amount of your concession using the First Home Plus calculator.

Note: if the first home buyer's spouse has previously owned a home or received a benefit under First Home Plus, the first home buyer will not be entitled to First Home Plus One, regardless of whether or not the spouse is also a purchaser.

Read the First Home Benefits Factsheet.

Download the First Home Benefits Application Forms.

Continue reading to see how we can help you.