What is the First Home Owners Grant?
The First Home Owners Grant (FHOG) in Australia is designed to encourage and assist home ownership across the country, and for eligible borrowers it’s a great start to life as a property owner. The grant differs in each state and territory, and in most places it applies to new homes only.
See our comparison table below for a snapshot into the current market offerings for variable home loans with links direct to the providers’ website. Please note that this table is sorted by comparison rate (lowest to highest) with product that are based on a loan amount of $750,000 with a LVR of 80%, under a first home buyer profile in NSW. You can try this comparison tool for yourself here.
New South Wales
From 1 July 2017, the NSW government announced several reforms to improve affordability for first home buyers. Chief among these are:
- A $10,000 First Home Owner Grant for builders of new homes up to $750,000, and for purchases of new homes up to $600,000
- No stamp duty for all homes up to $650,000
- Stamp duty reductions on homes up to $800,000
- No insurance duty on lender’s mortgage insurance
You must live in the home you buy for at least 6 months in the first year of owning the property in order to receive the grant (unless you work in the Australian Defence Force).
You may also be eligible for an exemption from transfer duty if you buy a new home valued up to $550,000, or vacant land up to $350,000. You can get a concession on the transfer duty for new homes valued between $550,000 and $650,000, or vacant land valued between $350,000 and $450,000.