So you’re thinking of buying your first home? An exciting move, and we’re here for you every step of the way with the latest info and tips. Yes, there’s some lingo to wrap your head around, but before long, you’ll be on top of stamp duty concessions and the HomeBuilder Grant.
If you’re buying or building a home for the first time in NSW, you could be eligible for financial help from the state government, bringing your dream of getting into the property market that much closer.
Stamp duty is a government tax on certain purchases, including buying a home, land or investment property. The good news is, when you buy your first home and it’s in NSW, you might be eligible for a stamp duty exemption (you pay no stamp duty) or concession (a discount on the stamp duty). The amount of the discount depends on the value of your home.
NSW residents buying their first home for less than $1 million. It can be a house, townhouse, apartment, unit or something similar.
If you buy a new home valued at less than $800,000 you can apply for a full exemption and pay no stamp duty. Check this out on a NSW stamp duty calculator and you’ll see it saves you up to $31,335.
If you buy a new home valued between $800,000 and $1 million, you can apply for a concessional stamp duty rate. The amount you save will be based on the value of your home. (For example, on a $900,000 home, you will only pay a stamp duty of $20,167.50, saving you $15,667.50)
If you buy an existing home valued at less than $650,000, you can apply for a full exemption and pay no stamp duty. A NSW stamp duty calculator shows this will save you up to $24,585.
If you buy an existing home valued between $650,000 and $800,000, you can apply for a concessional stamp duty rate. The amount you save will be based on the value of your home. (For example, on a $700,000 home you will pay $10,445 stamp duty, saving you $16,390.)
If you buy land valued at less than $400,000, you won’t pay stamp duty. This will save you up to $13,335 according to a NSW stamp duty calculator.
If you buy land valued between $400,000 and $500,000, you’ll receive a concessional stamp duty rate. (For example, if you buy a block of land for $450,000 you will pay stamp duty of $8,917.50, saving you $6,667.50)
These rates apply to contracts dated between 1 August 2020 and 31 July 2021.
You’ll need to download and complete the First Home Buyers Assistance Scheme application form and the Purchaser/Transferee Declaration Form (both available at revenue.nsw.gov.au). Lodge the application forms and supporting documents with your solicitor or conveyancer.
If you’re buying or building a new home or a substantially renovated one, you could receive a $10,000 grant.
First home buyers buying a new home or a substantially renovated home in NSW, with a value of less than $600,000. If you are buying land to build on, the combined value of the land and any home you intend to build must be less than $750,000.
To qualify for this grant, you must be buying or building your first new home. This includes:
You can apply for the FHOG through an approved agent (your lender, which can be a bank or other financial institution). They’ll lodge the application form on your behalf.
If you’ve already completed the purchase process or construction has started, you can send your application straight to revenue.nsw.gov.au . It needs to be received within 12 months of settlement (or the date construction of your new home was completed).
If you’re building a new home, substantially renovating an existing one or buying a new (or off-the-plan) home, you could be eligible for the government’s $15,000 HomeBuilder grant.
This grant applies to first home buyers and existing homeowners who earn no more than $125,000 (individuals) or $200,000 (couples).
Eligibility and application process for the HomeBuilder Grant is governed by each State or Territory Government. Please speak with a lender to discuss how the grant could assist with your loan application.
Details of how to lodge your application online are available at revenue.nsw.gov.au. You’ll lodge your application in a multi-step process, with the initial lodgement made after an eligible HomeBuilder contract has been entered into. Applications must be received no later than 14 April 2021.
A home loan expert will call you once you have submitted your application to talk through next steps.
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