What Schemes are Available for the First Home Buyer in NSW?

December 19, 2022

There is no doubt that first home buyer in Sydney (NSW)is facing various challenges because of high property rates along with high-interest rate. Fortunately, the NSW government is there for you because they have introduced various concessions and schemes for first-home buyers to secure a home loan. If you are in New South Wales (NSW) and looking to buy your own home, this blog is especially for you to help you understand what schemes are available for first-time home buyers and how you can access them. In today’s blog, we’ll talk about schemes introduced by NSW Government for first-time home buyers.

Table of Contents

What are NSW First Home Buyer Grants?

If you are a first home buyer in New South Wales but worried about high property rates, then you shouldn’t be sad because the NSW government has introduced new government grants and concessions for first-time home buyers. The government offers an assistance scheme that includes exemptions from certain fees related to purchasing a property.

NSW First Home Owner Grant
The NSW government is offering a first home owner grant (FHOG), which is support offered to first-time home buyers with money for helping them buy their first home. However, conditions to be met may vary between the Australian State and Territory. In New South Wales, the first home owners grant offers $10,000 to individuals who are eligible for this grant and looking to buy or build their first home. Most eligible first-home buyers use their grant of $10,000 as a house deposit.

While the amount is small, this grant can boost your savings and it can help first-time home buyers put down a deposit equal to 20% of their property’s worth. It will also avoid LMI and help them secure a better home loan.

First Home Buyers Assistance Scheme NSW
The FHBAS is another useful first home buyer scheme in Sydney (NSW) that offers you either a discount or an exemption on stamp duty costs. Stamp duty is also known as transfer duty, which is a government tax. Stamp duty may vary between state and territory. The total tax that you have to pay on your purchase will completely depend on the value of your home. However, the NSW government has introduced several terms and conditions to access FHBAS. Take a look at the following table to know whether you can get a discount or full exemption on stamp duty:

FHBAS Benefit (After 01/08/2021)	New Homes	Existing Homes	Vacant Land
Concession	If the property value is between $650,000 and $800,000	If the property value is between $650,000 and $800,000	If the property value is between $350,000 and $450,000
Full Exemption on Stamp Duty	If the property value is less than $650,000	If the property value is less than $650,000	If the property value is less than $350,000

The Family Home Guarantee
This is another NSW first home buyers scheme that helps single parents to buy a home by helping them get a loan with only a 2% deposit. Subsequently, the government guarantees the rest 18% of the deposit and it also helps single parents secure home loans easier with no LMI. In the recent 2022-2023 Federal Budget, the government extended the scheme for 3 financial years and providing with 5,000 places for eligible single parents. To be eligible for the scheme, you must have at least one dependent child and should be an Australian citizen. However, conditions may vary between different states and territories in Australia.
First Home Loan Deposit Scheme NSW
This is an initiative by the Australian government to help first-home buyers to buy their first home with a low deposit. With the help of this scheme, eligible first-home buyers can buy their own first home with only a 5% deposit without paying LMI and the Australian government guarantees the rest 15% of the deposit. From 1 July 2022 to June 30, 2023, up to 35,000 places are available for eligible candidates. To meet eligibility criteria of this grant, you must:

Be at least 18 years old
You can apply as a married/de facto couple or an individual
Be an Australian citizen
Shouldn’t have owned any property previously

However, conditions may vary from state to territory. Thus, you must check your eligibility before applying for any scheme.

Regional Home Guarantee
It was introduced in 2022, and this scheme allows eligible candidates in regional areas to construct or buy a new home with only a 5% deposit with no LMI. The Australian guarantees the rest 15% of the deposit. Conditions may vary from state to territory.

How Can You Buy Your First Home in NSW with Low Deposit?

If you are looking to buy your first home in NSW but are worried about high property rates, then you can reach Star Homeloans. We have been serving our home loan and mortgage solutions for years and you can speak to one of our experts. You can buy your first home with only a 2% or 5% deposit and conditions may apply.

Conclusion

Many first home buyers in NSW are afraid of buying a house because of high property rates. However, if you are looking to buy your first home in NSW, you shouldn’t be worried about a house deposit because you can access some government grants as mentioned above (Only if you are eligible). You can also seek help from home star home loans in Australia as we have years of experience in this field and have served various clients with the best home loan and mortgage solutions across Australia. Other Useful Links: