Are you Eligible for the First Home Owners Grant 2020?

WHAT IS THE FIRST HOME BUYERS ASSISTANCE SCHEME?

The First Home Buyers Grant NSW, called the ‘First Home Buyer Assistance Scheme (FHBAS)’ was developed to assist eligible first home owners to purchase or build a new home by offering a $10,000 grant.

The NSW Government’s comprehensive package to improve housing affordability is focused on helping first home buyers, who often face stiff competition from investors.

For first home buyers, this comprehensive package will:

• Abolish stamp duty on all homes up to $650,000
• Give stamp duty relief for homes up to $800,000
• Provide a $10,000 grant for builders of new homes up to $750,000 and purchasers of new homes up to $600,000
• Abolish insurance duty on lenders’ mortgage insurance
• Ensure foreign investors pay higher duties and land taxes
• No longer allow investors to defer paying stamp duty on off-the-plan purchases

WHO IS ELIGIBLE FOR FIRST HOME BUYERS GRANT IN NSW?

First home buyers are entitled to the First Home Buyers Grant, however, the amount payable and eligibility criteria varies by state. The guidelines for First Home Owners Grant eligibility in NSW are:

• You must be an individual, not a company or trust
• You must be over 18
• You, or at least one person you are buying with, must be an Australian citizen or permanent resident
• You must be purchasing a brand new home
• You can either purchase a new home worth up to $600,000, or build one yourself worth up to $750,000
• You must not have received the first home owners grant in any other State or Territory
• Applications for the grant must be lodged within 12 months of completion of settlement

Generally, you will not be eligible for the First Home Owner Grant if you or your spouse:

• Have previously owned or co-owned a home in Australia
• Have already received an Australian first home owner grant

FURTHER FAQS FOR FIRST HOME BUYERS NSW

Is stamp duty payable for first home buyers in NSW?

No stamp duty is payable by eligible purchasers buying a vacant block of residential land valued at up to $350,000, while concessions are available for vacant land purchased for between $350,000 and $450,000.

Stamp Duty concessions are available, the First Home Buyers Assistance Scheme provides first home buyers with exemptions from transfer duty on new homes valued up to $650,000 and concessions for new homes valued between $650,000 and $800,000.

Insurance stamp duty on lenders’ mortgage insurance has now been abolished, saving first home buyers even more money.

How much is the first home buyers grant NSW in 2020?

If eligible you will receive $10,000.

Can I apply for the first home owner grant if I’m a temporary resident?

Unfortunately no, first home owner benefits aren’t available for temporary residents. They also cannot be retroactively applied for once permanent residency is obtained, as you must be eligible at the time of signing the contract.

If I am buying the property jointly with a friend, do we both have to be eligible?

If you are buying the property in conjunction with another person, you must both meet the First Home Owners Grant criteria for the grant to be applicable.

My partner and I are buying the property jointly and neither of us has owned a property before. Do we each get a grant?

No. A single grant is payable per property transaction not per person.

Does my income affect the grant, and is the grant taxed?

No, the grant is not means tested, and you do not have to pay tax on it.

If I’m buying a home in Australia but I already own property outside of Australia, does that mean I don’t qualify for the grant?

You can still be eligible for the grant, provided you have not owned property in Australia before.

What happens if I move out of my new home within the first 12 months?

If you have lived in your new home for a continuous period of six months, you may keep the grant, but if you move out before this time, you will be required to repay the grant.

APPLYING FOR THE FIRST HOME BUYERS ASSISTANCE SCHEME NSW 2020

HOW DO I APPLY FOR MY FIRST HOME BUYERS GRANT IN NSW?

If you would like to apply for the First Home Owners Grant NSW 2020, you can do so through your trusted financial institution, or through the NSW Office of State Revenue.

TIP: Keep in mind that you can only lodge an application with NSW Office of State Revenue once you are registered on the property title.

All applications must be lodged within 12 months of completion or settlement of your home.

HOW LONG DOES IT TAKE TO PROCESS MY FIRST HOME OWNERS GRANT NSW 2020 APPLICATION?

Generally, it’s fast! Once your application is received, it will normally take about five days to be processed.

HOW AND WHEN DOES THE FIRST HOME BUYERS GRANT GET PAID?

This depends on whether you’re buying or building. The grant will be paid:

• At settlement (if you are buying)
• At your first funds draw down, this usually happens when the slab is laid (if you are building)

You may choose how your First Home Owners Grant is paid, but generally, it is paid directly to the lender to reduce the deposit required.

For all the latest details on the NSW First Home Owner Grant, see here.

DISCLAIMER: THIS ARTICLE PROVIDES GENERAL INFORMATION AND HAS BEEN PREPARED WITHOUT TAKING INTO ACCOUNT YOUR OBJECTIVES, FINANCIAL SITUATION OR NEEDS. WE RECOMMEND THAT YOU CONSIDER WHETHER IT IS APPROPRIATE FOR YOUR CIRCUMSTANCES. YOUR FULL FINANCIAL SITUATION WILL NEED TO BE REVIEWED PRIOR TO ACCEPTANCE OF ANY OFFER OR LOAN PRODUCT. IT DOES NOT CONSTITUTE LEGAL, TAX OR FINANCIAL ADVICE AND YOU SHOULD ALWAYS SEEK PROFESSIONAL ADVICE IN RELATION TO YOUR INDIVIDUAL CIRCUMSTANCES. ALL LOAN APPLICATIONS ARE SUBJECT TO LENDERS’ TERMS AND CONDITIONS, AND ELIGIBILITY CRITERIA. LENDER FEES AND CHARGES WILL APPLY.