ClickCeaseFirst Home Buyers Grant.

Click here for upcoming MRE OPEN HOMES & AUCTIONS

First Home Buyers Grant.

First Home Buyers Grant

Buying First Home in NSW in 2022: First Home Buyers Grant and Stamp Duty in NSW Explained

Buying your first home in NSW can be one of the most exciting, challenging, and stressful parts of your life. There is a wide range of financial choices to consider  starting with the First Home Buyers Grant in NSW. Understanding all available options is the first step towards owning your own little piece of Australia.

A new package of measures has been developed by the NSW Government to increase housing affordability for first home buyers across the state. These policies take into consideration the state’s growing population and the difficulty for first home buyers to enter the market. They also ensure housing developments are close to essential infrastructure including main roads, railway lines, shopping centres, and schools.

The main support offered by the Government comes through the First Home Owners Grant, but in this guide, McLaren Real Estate Team will also cover additional ways to finance buying your first house in NSW, like the First Home Loan Deposit Scheme or The New Home Guarantee, The Super Saver Scheme, and the First Home Buyers Assistance Scheme. The MRE team explained in detail all opportunities a first home buyer has in NSW in 2022.

Who is Eligible for First Home Buyers Grant in NSW?

First home buyers are essentially any Australian citizen above 18 y.o. who has never bought a property which was used as their own home. To be eligible for the First Home Owners Grant in NSW is a requirement that you then remain living in your new home for at least 6 months. No companies or trusts can apply as first home buyers.

The NSW Government and Australian Government equally assists those who are not only buying a first home in NSW but also building one. In this case, the same conditions apply: you will have to live for at least 6 months in your new home within 12 months after the building is finished. 

Applicants' income does not affect eligibility for the grant. 

What Is The First Home Buyers NSW Grant?

The First Home Buyers Grant is a financial support from the Government worth $10,000 to help you buy or build your first home in NSW. While there are special loans available from banks and other lenders, the First Home Owners Grant (or FHOG) was originally created by the federal government almost 20 years ago to offset the effects of GST while easing some of the financial burdens of buying the first home in NSW. 

According to Finder’s First Home Buyers Report in 2021, the average budget for first-time buyers nationally was $500,000-$750,000. Considering this information, the NSW Government redefined how the FHOG works so that anyone building their first home up to $750,000 or buying new up to $600,000 will be eligible for the $10,000 Grant. In some conditions, a new home can be defined as a home which has recently undergone substantial renovations. The First Home Owners Grant is not, however, applicable for established houses. 

To apply for First Home Owner Grant you should provide supporting documentation including a few documents confirming your ID, contract with stated property value or transfer agreement, applicant title search, and a statement from the vendor. In case of purchasing a renovated house, you have to show a list of all undertaken renovations. 

Each applicant is eligible only for 1 grant. No repetitive financial support can be offered, as well as only one grant is issued per transaction, meaning if you and your partner are buying a home, you can only receive one grant.

First Home Buyers Stamp Duty in NSW

The average stamp duty rate over the past 15 years increased from 3.37% to 4.05%, while the median house price rose from $400,000 to $1,5 million in Sydney. According to Gateway Bank’s survey, 60% of first home buyers would potentially buy their first house sooner if there was no stamp duty. The same study revealed that a third of first home buyers see current stamp duties as “too high”. 

To counter this, stamp duty brackets have now been indexed to the Consumer Price Index (CPI) since 1 July 2019, which means that home-buyers will be able to put more money towards a deposit. While the initial savings will be quite modest, they will eventually become substantial in the long term.

First Home Buyers purchasing a property valued less than $650,000 or land valued up to $350,000 are exempt from paying stamp duty. Even if the property you’re buying is valued above $650,000, you are still eligible for some stamp duty savings. The accurate stamp duty and savings can be calculated using the official NSW Government Calculator for first home buyers, and the MRE team has also prepared a comparison table for you:

Property value

Stamp duty


Land, $350,000



Land, $400,000



Land, $450,000



Home, $500,000



Home, $550,000



Home, $600,000



Home, $650,000



Home, $700,000



Home, $750,000



Home, $800,000



Numbers are gathered via Revenue NSW calculator

​​The NSW Government is considering some new changes and more exemptions for first home buyers to help young families enter the real estate market and find a dream home faster and more cost-efficiently.

First home buyers in NSW are additionally exempt from paying the insurance duty on the lender’s mortgage insurance. 

What other first home buyers grants exist in NSW?

Luckily, there are few more opportunities to save money on duties and pay a lower deposit for first home buyers in NSW, including the New Home Guarantee (formerly known as First Home Loan Deposit Scheme), the Family Home Guarantee, First Home Super Saver Scheme, First Home Buyers Assistance Scheme, and the Home Builder Scheme. Most of them can be easily combined and work together to help you buy your first house in NSW.

New Home Guarantee (formerly First Home Loan Deposit Scheme)

From January 1, 2020, the First Home Loan Deposit Scheme (or FHLDS) aka The New Home Guarantee allowed more than 10,000 people to buy their first home with only 5% deposit saved on a ‘first come, first served’ basis, and they will also be exempt from paying for the often mandatory lenders mortgage insurance (or LMI) for deposits of below 20%. The remaining 15% are secured by the Government.

The New Home Guarantee in NSW capital and regional centre will be available for properties priced up to a maximum of $800,000 for established properties or $950,000 for newly built houses, and a maximum of $600,000 in the rest of the state.

In 2022, 5% deposit is still available for 10,000 more first home buyers as stated in the Federal budget for the 2021/2022 financial year. The program will be open until 30 June 2022. To meet eligibility criteria for First Home Loan Deposit Scheme in 2022, your taxable income should be less than $125,000 if you are single, or less than $200,000 for couples for the previous financial year.

Currently, application to this scheme is only available through 27 designated lenders. Ask the MRE team to help you get the New Home Guarantee to cover the deposit for your future house.

First Home Super Saver Scheme

The Super Saver Scheme (FHSSS) has existed since 2017 and allows first home buyers to use their voluntary superfund as additional money for a deposit. It helps save taxes and gain potential high returns as while money remains in this super fund, they earn 3.04% of interests p.a.. An individual can contribute up to $15,000 per year.

Considering the fast-growing property market and high demand in NSW, from July 2021, the government increased the limit of the withdrawal you can use as a deposit from $30,000 to $50,000. 

What is ​​First Home Buyers Assistance Scheme?

In addition to FHOG in NSW first home buyers can be eligible for partial or full transfer duty exemption as a part of FHBAS or First Home Buyers Assistance Scheme. If you are purchasing a new or existing home valued under $650,000, or a vacant land valued less than $350,000, you are fully exempt from transfer duty.

In case if the property value is between $800,000 and $1,000,000 concessional rates will apply based on the precise property value. 

Contrary to the FHOG, First Home Buyers Assistance Scheme doesn't have a $750,000 eligibility threshold and applies to existing homes as well as newly built or renovated homes.

The Family Home Guarantee

The Family Home Guarantee is active since 2021 and allows single parents to get a home loan with only a 2% deposit. They don’t have to pay LMI and the remaining 18% will be secured by the Government. This scheme offers 10,000 spots over four financial years starting from 2021/2022.

Both previous owner-occupiers and first home buyers are eligible for this program. The main criteria are the income and the loan term: 

  • a maximum annual income cap of $125,000, 

  • for loans no longer than 30 years.  

How to apply to First Home Buyers Grant NSW?

To make sure you are eligible for the First Home Buyers Grant together with other schemes, contact the MRE team. Our experts will not only guide you through our Buyer Readiness Program and help you gather all supporting documents but also will assist you to find a dream home within your budget to make sure you meet the eligibility criteria for the FHOG.

Over decades of experience, we guided many first home buyers towards their first family house, and we know for sure which steps to take and how to benefit the most from the current conditions. Ask us today about your buying options. 

FAQ: First Home Buyers Grant in New South Wales  

Let’s briefly address some additional questions people may have about buying their first home in NSW.

How much is the First Home Buyers Grant NSW?

Currently, the FHOG or first home buyers grant in NSW is worth $10,000 for First Time Buyers and those who are building their first house.

Can I use the First Home Owners Grant in NSW as a deposit?

Yes, buying your first home in NSW you can use FHOG as a deposit, however, it will most likely not be enough to cover the whole amount of the needed deposit and you will have to add 5% to 10% from your savings. Apply for the New Home Guarantee scheme to reduce the deposit to 5% and get support from the Government.

Can I apply for the First Home Owner Grant if I have an investment property?

Yes, if previously you’ve only owned an investment property that was not your residence, you can still apply for FHOG in 2022. 

Do I have to repay the First Home Buyers Grant?

No. As long as you comply with all conditions, especially living in your property for 6 months within the first year, you don’t have to repay the grant. However, if you move out of the house earlier, you will be subject to grant repayment. Failure to return the grant will result in an $11,000 fine.

Is the First Home Owners Grant still available in NSW in 2022?

Yes, the First Home Owners Grant is still available in 2022, and there are no recent updates or changes. The same conditions still apply for all first-home buyers in Australia to get a $10,000 grant.

Do first home buyers pay stamp duty in NSW?

Some first buyers can be eligible for stamp duty exemptions or concessional rates. These conditions rely on property value. For example, buying a first home valued under $650,000 you won’t pay any stamp duty. 

Mortgage Calculator