Achieving your dreams of owning your first home comes with a massive hurdle: saving up 20% of that property deposit. Because of this, a lot of us has been holding back on buying our first home. In fact, homeownership rates overall have been falling, particularly among young people which pushed the Government to do something to help, the First Home Buyers Assistance Scheme.
Let’s find out how the First Home Buyer Assistance Scheme can help you achieve your dream of homeownership.
First Home Buyers Assistance Scheme
The First Home Buyers Assistance Scheme (FHBAS) helps eligible NSW first home buyers by giving them an exemption or concession on transfer duty (stamp duty).
Unlike the First Home Owner Grant (FHOG), the FHBAS applies to
- Purchasing an existing home
- Purchasing a new home
- Purchasing a vacant land where you plan to build your home
New and existing homes
As a first time buyer, you are eligible for a transfer duty concession or exemption if…
- Your home’s value is less than $650, 000, you can apply for a full transfer duty exemption
- Your home’s value is between $650, 000 and $800, 000, you can apply for a concessional rate of transfer duty. The amount you will have to pay will depend on the value of your home. Refer to the table below to see the duty concessions available
|Purchase price||First Home – New Home Duty|
|$680, 000||$6, 290|
|$720, 000||$10, 490|
|$750, 000||$20, 990|
|$800, 000||No discount|
Source: Revenue NSW
The FHBAS applies to a vacant land where you plan to build your home.
- You will be exempted from paying transfer duty if your land is valued at less than $350, 000.
- You will have a concessional rate of transfer duty is your land is valued between $350, 000 – $450, 000
How do I apply for the FHBAS
To apply for an FHBAS grant you need a compile the following:
- The First Home Buyers Assistance Scheme Application form
- The Purchaser/Transferee Declaration (individual)
- Your proof of identity
- The agreement for sale or transfer
- Supporting documents (as applicable)
You can apply for NSW first home buyer schemes through the Revenue NSW. Once you’ve completed all of them, lodge the forms and supporting documents with your solicitor or conveyancer.
Further, your mortgage broker can help you when it comes time to lodging the grant along with your home loan application.
Who is eligible for first homeowners grants in NSW?
The eligibility conditions for these two schemes differ from each other. But they both look at the same two criteria, the property value and the date in which you entered into the eligible transaction.
Generally, you need to satisfy the following (apart from other criteria) to qualify:
- At least one applicant is a permanent resident or an Australian citizen
- Each applicant must be aged 18 years or older
- All applicants have not previously owned a residential in Australia
- All applicants have not previously received a grant under the First Home Owner Grant Act 2000 in any state or territory.
Living in the property
- You must live in the property for at least six continuous months, and you must move in within 12 months from purchase.