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A Look In To The First Home Buyers Grant

Market insights 11 February 2016 Read time: 2 minutes

The First Home Owners Grant (FHOG) is a one off payment for first home buyers who purchase or build a residential property to live in for at least 6 months.

It is usually only available for properties up to a certain capped value, and was recently changed so that it is typically only available to those buying or building new homes. This includes new and off-the-plan apartments.

Stamp duty (now known as transfer duty) is a tax on the transfer of real estate. First home buyers are usually entitled to a concession, although these concessions are now also only available to those buying or building new homes.

The FHOG and stamp duty concessions are administered slightly differently by each state. Visit the government FHOG website for detailed and up to date information for each state and territory. 

See below for a summary of first home buyer benefits available in Victoria and New South Wales.

Victoria

  • $10,000 grant available for new homes only, for properties up to $750,000 in value
  • New homes up to $600,000 enjoy a 50% discount on transfer duty
  • Read more from the VIC SRO about the grant here and duty exemptions here

New South Wales

  • $15,000 grant available for new homes only, for properties up to $750,000 in value
  • Grant will reduce to $10,000 on 1 January 2016
  • New homes up to $550,000 are exempt from transfer duty, and there are concessions for homes up to $650,000
  • Read more from the NSW OSR about the grant here and duty exemptions here

Be aware that the FHOG and stamp duty concessions are constantly changing. Be sure to always check the links above for the latest information.

Most people choose to lodge their application through their mortgage broker or lender, although you can also apply yourself through the links above. 

The money should become available on settlement day, and is usually used as a credit against the stamp duty.

It’s also important to note that if your purchase your property with a partner, only one of you may receive the grant, however neither of you will be able to claim it again in the future.Find more information here.