Last Updated: 23rd May, 2024

Making Your First Home A Reality: Financial Support Options In NSW

Published by Otto Dargan on March 22, 2023
Buying your first home is an exciting milestone, but it can also be a daunting experience, especially regarding finances. Fortunately, the Australian Government has introduced several schemes to help first-home buyers make their dream of homeownership a reality. In this blog, we’ll explore some of the most popular first-home buyer schemes available in NSW and how they can benefit you.

NSW Stamp Duty Exemption

This program is designed to provide financial support to eligible first-home buyers in NSW. It allows them to pay less or even zero transfer duty on their first home, depending on the value of the purchase. NSW Stamp Duty Exemption is also known as First Home Buyer Assistance Scheme (FHBAS). It covers various property purchases, including buying an existing home, a new home, or vacant land on which you intend to build. Eligible first-home buyers can use this scheme to reduce, or even eliminate, the stamp duty they need to pay upfront, giving them the financial flexibility to manage other costs associated with buying a home.

First Home Owner Grant

If you’re a first-time homebuyer in Australia and your dream home is newly built, off the plan, substantially renovated, or set to be built on vacant land, then you may be eligible for the First Home Owner Grant NSW. This grant provides up to $10,000 to help with the cost of purchasing your first home, with the amount varying depending on the value of the property. The grant is designed to provide a financial boost to first-home buyers and help them take the first step onto the property ladder. It can be used towards a deposit or to help cover other costs associated with the purchase, such as legal fees and stamp duty.

Shared Equity Home Buyer Helper

The NSW’s Shared Equity Home Buyer Helper is a lifeline for those who dream of owning their own home but struggle to save enough for a deposit. With this scheme, eligible homebuyers can secure their homes with as little as a 2% deposit and no LMI. Under this program, the NSW Government chips in a portion of the purchase price in exchange for an equal interest in the property. The scheme is open to single parents of dependent children, individuals aged 50 or over, and first-home buyer key workers, including nurses, midwives, paramedics, teachers, early childhood educators, and police officers.

First Home Buyer Choice

This is an option for eligible first-home buyers who want to reduce their upfront costs when purchasing a property. By choosing to pay a yearly property tax instead of stamp duty, buyers of properties valued up to $1.5 million can greatly reduce their upfront costs for buying a home. You can find useful information on the differences between stamp duty and annual property tax, eligibility requirements, and how to calculate and compare your estimated property tax and stamp duty on our First Home Buyer Choice NSW page.

First Home Super Saver Scheme

This program allows you to access your superannuation fund for your property purchase. The First Home Super Saver Scheme is a smart way for first-home buyers to save up for their dream home while taking advantage of possible tax benefits. The scheme enables you to apply to withdraw up to $15,000 from your voluntary contributions each financial year, up to a maximum of $50,000 across all years, to use towards your first home purchase. Do keep in mind that other conditions may apply.

Home Guarantee Scheme

The Home Guarantee Scheme allows eligible buyers to purchase or build a new home with a deposit as low as 5%, or just 2% for eligible single parents, without the added expense of Lenders Mortgage Insurance. This initiative has been designed to assist those struggling to enter the property market due to high upfront costs.

Talk To An Expert

If you’re a first-home buyer, it’s essential to do your research and determine which schemes are best suited to your needs and financial situation. With the right support and guidance, you can take the first step towards owning your home. If you have further questions or want to discuss your options in more detail, call us on 1300 889 743 or complete our free online assessment form.