The First Home Owner (New Home) Grant provides eligible first home buyers with a $10,000 payment to help purchase or build a new property. The program is designed for people entering the property market for the first time and applies to newly built homes, off-the-plan purchases and substantially renovated properties that have not been lived in before.
The grant is not means tested and there is no tax payable on the amount received. Applicants must be at least 18 years old, an Australian citizen or permanent resident, and intend to live in the property as their principal place of residence for at least 12 continuous months within the first year of settlement or completion. Exemptions to this residency requirement are available for permanent members of the Australian Defence Force who are enrolled to vote in New South Wales.
Price limits apply to the type of property being purchased. A newly built house, townhouse, apartment or unit must not exceed $600,000. For vacant land combined with a building contract, the total value of the land, building contract and any variations must not exceed $750,000. Substantially renovated homes are also eligible, provided the renovations involved major work such as replacing or removing most of the building and that the property has not been occupied or sold since the completion of the renovations.
The grant cannot be used for the purchase of existing homes. To qualify, applicants must not have previously received the grant and must not have owned residential property prior to 1 July 2000. In some cases, buyers who purchased property after that date but did not occupy it for more than six continuous months may still be eligible. Applications must be made by individuals, not companies or trusts, although limited exceptions may apply where a trustee acts on behalf of a person under legal guardianship.
Strict penalties apply for false or misleading claims. Applications are routinely checked against information held by other government agencies and businesses. Applicants who are dissatisfied with a decision can request a review or lodge a formal objection.
Application process
Applications for the First Home Owner (New Home) Grant can be submitted either through an approved agent, such as the financial institution providing the home loan, or directly with Revenue NSW. Applicants need to complete the official application form and provide supporting documents.
When the application is lodged through a lender, the grant is usually applied directly at settlement or during the construction process. Applications made directly to Revenue NSW are assessed after settlement, and the grant is paid into the applicant’s nominated bank account.
Processing times vary, but applications lodged through lenders are often faster as they form part of the loan approval process. Revenue NSW recommends lodging the application as early as possible to avoid delays.
Applicants seeking to use the grant towards property settlement or the first progress payment on a building contract should apply before settlement. Most banks, credit unions, building societies, housing co-operatives, finance companies and other lenders are approved agents and can lodge the application on behalf of the buyer. Proof of identity documents must also be supplied to the lender. For contracts entered into on or after 1 July 2023, the current First Home Owner (New Home) Grant- how to apply guide should be used.
Documents required
For a newly built home, an off-the-plan purchase or a substantially renovated property valued up to $600,000, applicants must provide a copy of the signed contract for sale, a title search confirming ownership, and a statement from the vendor or their legal representative confirming it is the first sale and that the property has not been occupied since completion.
In the case of substantially renovated properties, a list of the renovations is also required. Where no contract exists, or where the sale is between related parties, a copy of the signed transfer, evidence that consideration has been paid and evidence of the total value of the property are necessary.
For vacant land with a comprehensive home building contract valued up to $750,000, applicants must provide the signed contract, a title search, and either an interim or final occupation certificate. Recent evidence of land value and a final statement from the builder, including details of all variations, are also required.
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