Are you considering buying your first home in New South Wales? Navigating the complexities of home buying can be daunting, but fortunately, there are various assistance programs available to help make the process more manageable. Here is an overview of the key home buying assistance initiatives offered by the NSW government and how they can benefit you.
1. First Home Buyers Assistance Scheme:
One of the primary programs designed to support first-time homebuyers in NSW is the First Home Buyers Assistance Scheme. This scheme offers exemptions or concessions on transfer duty (also known as stamp duty) for eligible first home buyers purchasing new and existing homes, as well as vacant land.
Key benefits of the scheme include:
- Exemption or concession on transfer duty for homes valued up to $800,000 (with discounts available for homes valued between $800,000 and $1,000,000).
- Transfer duty exemptions for vacant land valued at less than $350,000, with discounts available for land valued between $350,000 and $450,000.
- Eligibility criteria include being over 18 years old, never having owned residential property in Australia, and intending to move into the property within 12 months of settlement and live there continuously for 12 months.
2. First Home Owner (New Homes) Grant:
In addition to the First Home Buyers Assistance Scheme, first-time homebuyers in NSW may also be eligible for the First Home Owner (New Homes) Grant. This grant provides financial assistance to eligible individuals purchasing or building their first new home.
Key features of the grant include:
- A $10,000 grant for purchasing a newly built, or substantially renovated home valued at no more than $600,000, or for purchasing vacant land and signing a building contract to construct a new home valued at no more than $750,000.
- Eligibility criteria include being an Australian citizen or permanent resident, not having previously owned a home in Australia or received a government grant, and intending to move into the new home within 12 months of settlement and live there continuously for 12 months.
3. Shared Equity Schemes:
In addition to the First Home Buyers Assistance Scheme and the First Home Owner (New Homes) Grant, another option for aspiring homeowners in NSW is participation in the Shared Equity Scheme. This scheme provides a pathway to homeownership by allowing buyers to share the cost of purchasing a property with the NSW government.
Key Benefits of Shared Equity Scheme:
- The Shared Equity Scheme makes homeownership more attainable for individuals and families who may not have sufficient savings for a traditional deposit – potentially down to as little as 2% of the purchase price.
- By sharing the cost of purchasing a home, the Shared Equity Scheme reduces the financial barriers associated with buying property.
- You will not have to make repayments towards the government’s equity share, and will not be charged rent or interest on it. If you do have capacity, you can make voluntary payments over time.
Key Features of Shared Equity Scheme:
- The Shared Equity Scheme involves the participation of The NSW government to contribute up to 40% of the purchase price for a brand-new home or 30% for an existing dwelling.
- In exchange for financial assistance, the government receives an equity share in the property however, the mortgage – and the home – is yours.
- You won’t have to make repayments towards the government’s equity share, and you won’t be charged rent or interest on it, either. If you do have capacity, you can make voluntary payments over time.
- To be eligible you must have:
- a gross household income of no more than $90,000 for singles and $120,000 for couples
- buy a home with a property price no more than $950,000 in Sydney and major regional centres (Newcastle, Lake Macquarie, Illawarra, Central Coast, North Coast of NSW) or no more than $600,000 in other regional areas
- be at least 18 and an Australian or New Zealand citizen, or a permanent Australian resident 9 have a minimum deposit of 2 per cent of the
purchase price - occupy the property as your principal place of residence.
- As a single parent or older single applicant, you must not own an interest in any other land or property at the time of settlement on your newly purchased property.
Buying your first home is a significant milestone, and with the assistance programs available in NSW, it’s may be more attainable than you think. Whether you’re seeking exemptions on transfer duty, financial grants, or deposit assistance, there are options to suit your needs and circumstances. To learn more about these programs and determine your eligibility, visit the NSW Government’s Home Buying Assistance webpage and take the first step towards owning your dream home.
