Financing Schemes for First-Time Buyers

June 1, 2020
home builder

Buying a home for the first time is a big decision for many people. In Australia, particularly in New South Wales, first-home buyers are eligible for two financing schemes that can help them secure their first home.

  • First Home Buyers Assistance Scheme (FHBAS)

 Full or partial exemption of transfer duty

Applies to buying an existing home or buying a new home or a vacant land on which you intend to build a home.

New or Existing homes Eligibility and Vacant Land

  • If your new or existing home (one contract) is valued below $650,000you can apply for a full exemption – meaning you won’t have to pay any transfer (stamp) duty.
  • If your new or existing home (one contract) is valued between $650,000 and $800,000, you can apply for a concessional rate of transfer (stamp) duty.
  • If your purchase a split contract house and land package, you only need to assess transfer (stamp) duty on the land value of the transaction.
  • If the land value is less than $350,000, you won’t have to pay any transfer (stamp) duty.
  • If the land value is above $350,000but less than $450,000, you can apply for a concessional rate of transfer (stamp) duty.

To compute for your Transfer Duties, use this online calculator:

Grants Schemes first-time buyer’s calculator

 Are you eligible?

To be eligible, you or your partner must be purchasing your first home in Australia, its value is no more than $800,000 and never owned or co-owned residential property in Australia and must not have received an exemption or concession under this scheme.

The contract date must be on or after 01st July 2017.

You or your partner must be an individual over 18 who is either Australian Citizen or Permanent resident or and not be a company or a trust entity.

How to apply?

Fill out FHBAS application form and Purchaser/Transferee Declaration – Individual form and lodge it with your solicitor or conveyancer.

Requirements for living in the property

You or one of the other first home buyers must:

  • Move into the new home within 12 months after buying the property and
  • Live there for at least six continuous months.

If you’re a member of the Australian Defence Force when buying your first home, and those whom you are buying with are on the NSW electoral roll, you won’t have to meet these living requirements.

  • First Home Owner Grant (New Home)

 

  • If you buy a brand-new home (one contract) up to the value of $600,000, you’ll get $10,000.
  • If you are building a new home (house and land package) up to the value of $750,000you’ll get $10,000.

Here’s an online calculator to help you for this scheme:

Grants Schemes calculator for New Homes

Are you eligible?

To receive the grant for your property:

  • You must be an individual, not a company or trust
  • You must be over 18
  • You, or at least one person you’re buying with, must be an Australian citizen or permanent resident.

You won’t be eligible for the First Home Owner Grant (New Homes) scheme if you or your spouse have previously:

  • Owned or co-owned a home in Australia
  • Received a first home owner grant in Australia.

However, you may still be eligible if:

  • You purchased a residential property after 1 July 2000 and
  • Didn’t live in it for more than six continuous months.

Requirements for living in the property

You or one of the other first home buyers must:

  • Move into the new home within 12 months after buying the property, and
  • Live there for at least six continuous months.

If you’re buying land and building a new home, you must move in within 12 months after construction is complete.

If you’re a member of the Australian Defence Force, you may be exempt from the six-month residence requirement, providing all buyers are on the NSW electoral roll. Contact us for more details.

If you’re buying a home, you can apply for the grant if:

  • This is the first time the house has been sold, and
  • The house has never been lived in before you move in, including by the builder or a tenant.

How to apply?

You will need to complete the First Home Owner Grant (New Homes) Application form and lodge it with your solicitor or conveyancer.