First Home Owner Grant NSW 2026

What Is the First Home Owner Grant in NSW?

The New South Wales First Home Owner Grant (FHOG) is a government-funded payment of $10,000 designed to help first home buyers purchase or build a brand new home. Administered by Revenue NSW, the grant has been a cornerstone of the state government's housing affordability strategy since 2000, though the amount and eligibility criteria have been adjusted numerous times over the years.

The grant is specifically targeted at new housing stock. This means it applies to newly constructed homes, off-the-plan purchases, and homes built by owner-builders. The policy rationale is to encourage new housing supply, which in turn helps address the broader housing shortage across Greater Sydney and regional NSW.

It is important to understand that the FHOG is separate from the stamp duty concessions available in NSW. You may be eligible for one or both, depending on your property type and purchase price. When combined, these incentives can save you well over $40,000 on your first home purchase.

NSW FHOG Eligibility Criteria

To qualify for the $10,000 NSW First Home Owner Grant, you must meet all of the following requirements:

• You must be an Australian citizen or permanent resident (at least one applicant if applying jointly)
• You must be aged 18 years or older at the date of settlement or completion
• You (or your spouse/partner) must not have previously owned residential property in Australia
• You (or your spouse/partner) must not have previously received a first home owner grant in any Australian state or territory
• The home must be a new home — newly built, purchased off the plan, or substantially renovated
• The total value of the property must not exceed $600,000
• You must move into the property within 12 months and live there for at least six continuous months

Notably, the NSW FHOG does not impose an income test. Whether you earn $50,000 or $250,000 per year, you are eligible provided you meet the other criteria. This is different from some federal schemes such as the First Home Guarantee, which does have income thresholds.

Property Value Cap: $600,000

The NSW First Home Owner Grant applies to new homes with a total value of up to $600,000. This cap includes the value of the land and the building combined. If you are purchasing a house and land package, the total contract price must not exceed this threshold.

For those building a new home, the relevant value is the total cost of the land plus the building contract. If you are an owner-builder, it includes the land value plus the reasonable cost of construction. Revenue NSW may request documentation to verify the total value if it is close to the cap.

If the property value is even one dollar over $600,000, you are not eligible for any portion of the grant. There is no sliding scale or partial payment — it is a hard cap. This is worth careful consideration if you are looking at properties near the threshold. A property valued at $599,000 receives the full $10,000 grant, while a property at $601,000 receives nothing.

New Homes vs Existing Homes in NSW

One of the most frequently misunderstood aspects of the NSW FHOG is the distinction between new and existing homes. The grant is exclusively for new homes, which Revenue NSW defines as:

• A home that has not been previously occupied or sold as a place of residence
• A home purchased off the plan that is newly constructed
• A home that has been substantially renovated (where the renovation is comprehensive enough that the result is essentially a new home)
• A home built by an owner-builder on land they own

Existing (established) homes — those that have been previously lived in — do not qualify for the FHOG in NSW. However, they may still qualify for stamp duty exemptions and concessions, which apply to both new and existing properties. If you are buying an established home, the stamp duty savings alone can still be worth over $30,000.

NSW Stamp Duty Exemptions and Concessions for First Home Buyers

Separate from the FHOG, New South Wales offers significant stamp duty (transfer duty) concessions for first home buyers. These apply to both new and existing homes, making them particularly valuable for buyers who prefer established properties in established suburbs.

Full Stamp Duty Exemption (Up to $800,000)

If you are a first home buyer purchasing a property valued at $800,000 or less, you pay no stamp duty at all. On an $800,000 property, this represents a saving of approximately $31,335 compared to what a non-first-home buyer would pay. This exemption applies to both new and existing homes, provided the property will be your principal place of residence.

Concessional Rate ($800,000 to $1,000,000)

For properties valued between $800,000 and $1,000,000, a concessional rate applies on a sliding scale. The closer the value is to $800,000, the greater the discount. For example, on a $900,000 property, a first home buyer might save around $15,000 compared to the standard duty rate. Once the property value reaches $1,000,000, the full standard stamp duty rate applies with no concession.

How the Exemption and FHOG Work Together

For a new home valued at $600,000 or under, you can receive both the $10,000 FHOG and the full stamp duty exemption. On a $600,000 new home, your total savings would be approximately $32,700: $10,000 from the grant plus around $22,700 in stamp duty savings. This combination makes buying a new home under $600,000 in NSW extremely attractive for first home buyers.

How to Apply for the NSW First Home Owner Grant

There are two ways to apply for the NSW FHOG:

Option 1: Through Your Lender (Most Common)

When you apply for your home loan, your lender or mortgage broker will include the FHOG application as part of the loan process. The grant amount is typically credited at settlement, reducing the amount you need to pay on the day. This is the most convenient and common method, as it aligns the grant payment with your property purchase.

Option 2: Directly with Revenue NSW

You can apply directly to Revenue NSW within 12 months of settlement or completion of construction. This method is typically used by people who paid cash for their property or who did not apply through their lender. Applications can be submitted online through the Revenue NSW website or by completing and submitting a paper application form.

Regardless of which method you choose, you will need to provide proof of identity, evidence that the property is a new home, the contract of sale or building contract, and a statutory declaration confirming you meet the eligibility requirements. If applying through your lender, they will guide you through the required documentation.

Other First Home Buyer Benefits Available in NSW

First Home Guarantee (Federal Scheme)

The First Home Guarantee allows eligible first home buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI). The federal government guarantees up to 15% of the property value. In Sydney, the property price cap is $900,000, while in regional NSW it ranges from $600,000 to $750,000 depending on the area. Income limits apply: $125,000 for singles and $200,000 for couples.

First Home Super Saver Scheme

The FHSS scheme allows you to withdraw voluntary super contributions (up to $50,000) to use towards your first home deposit. Because concessional super contributions are taxed at 15% rather than your marginal rate, this can help you save faster, especially if you are on a higher income. You can contribute up to $15,000 per financial year under this scheme.

Shared Equity Home Buyer Helper

The NSW Government's Shared Equity scheme helps eligible single parents and older singles purchase a home by co-owning the property with the state government. The government contributes up to 40% of the purchase price for new homes or 30% for existing homes, reducing your mortgage and repayments. Income and property price caps apply.

Tips for Maximising Your First Home Buyer Benefits in NSW

To make the most of the available grants and concessions in New South Wales, consider the following strategies:

• Consider new builds under $600,000: This is the sweet spot where you can access both the $10,000 FHOG and the full stamp duty exemption, saving over $30,000 combined.
• Look at house and land packages in growth areas: Western Sydney, the Central Coast, and the Hunter region offer new homes within the $600,000 cap, particularly house and land packages.
• Combine the FHOG with the First Home Guarantee: If eligible, you can use the $10,000 grant as part of your 5% deposit and avoid LMI entirely, significantly reducing your upfront costs.
• Use the First Home Super Saver scheme: Start making voluntary super contributions now, even if you do not plan to buy for a year or two. The tax savings compound over time.
• Engage a broker early: A mortgage broker can map out exactly which benefits you qualify for and structure your purchase to maximise savings. This service is free to you.