We see that you are ready to take the plunge and buy your first home in Sydney. But before you start moving to your first home, you’ll need to know everything about how much grant for first home buyer is available in Sydney.
Owning your home is one of the biggest dreams of Australian dwellers. But finding the perfect real estate for sale in Sydney can be a bit challenging if you don’t know where to start.
But you may not be aware that as a first home buyer in Sydney, you are eligible for a range of government grants and incentives.
In this article, we’ll give you a comprehensive guide to the first home buyers grant, including everything about what it means, what conditions you need to meet, and how you can apply.
What is the first home buyers grant?
Before we tell how much grant for first home buyer is available for Sydney residents, let us first understand what a first home buyer grant is.
The First Home Owner Grant (FHOG) in Sydney is a one-off payment to eligible first-home buyers made by the NSW Government. The grant provides financial assistance to home owners, which can be used to purchase or construct a new home.
Since FHOG is paid on settlement of the property and is not means-tested, it is available to all eligible buyers regardless of income.
Other similar grants, such as home renovation grants in Sydney, are designed to help offset the costs of buying or building a first home, making home ownership more affordable for the residents of Sydney.
Who is eligible for first home owners grant?
Home ownership is a vital part of the Australian resident’s dream, and the First Home Buyers Grant helps make that dream a reality for many people.
Therefore, to be eligible for the grant, you must meet the following points:
- You must be an individual over the age of 18 who is an Australian citizen or permanent resident.
- You or your spouse must not have previously owned or co-owned residential property in Australia.
- You must have already exchanged contracts to purchase your first home or vacant land.
How much grant for first home buyer in Sydney?
The FHOG has been providing financial assistance since 2000. It is no less than a blessing for people with lower incomes to access property ownership more easily than before.
So, how much is the first home owners grant worth exactly? In Sydney, the First Home Owners Grant is worth $10,000, but there are some conditions that apply.
To be eligible, your first home must have a total value below $600,000 and be either newly constructed or ‘substantially renovated.’ A substantially renovated home has the majority or all of the house’s original structure dismantled or replaced.
But does that mean you can’t apply for FHOG if you’re building a home from scratch? Well, that’s not true.
As long as your land plus the home you build has a combined value of less than $750,000, you’ll still be eligible for the FHOG. This means that even if you’re starting from scratch with your new build, you could still receive up to $10,000 towards your purchase.
So, now that you know how much grant for first home buyer is worth, make sure you still do your research and understand all the eligibility criteria. It’s always beneficial to speak to your financial institution or a mortgage broker to see if your case qualifies.
Also, if you are planning to take a home loan, we recommend you to learn about having dependants on a home loan application since it is a crucial aspect of the process. Even though it won’t have much effect on the grant, it is still a good idea to check this point as well.
When should you be applying for first home owners grant?
Applying for first home owners grant can seem daunting, but it is pretty easy if you know when to apply.
The following deadlines must be met for your grant application and supporting documentation:
- If you’re purchasing a home, you have one year from when you take possession of the new residence and when your title is registered to apply.
- If you’re building a home, you must submit your application within a year of the completion of your new home, such as when the final inspection certificate is granted.
- And if you’re an owner-builder, you must submit your application within a year of the new home’s completion, such as when the final inspection certificate is given out.
By following these deadlines, you can ensure that you’ll be able to take advantage of this valuable program.
How to apply first home buyer grant in Sydney?
Now that you are all set to avail the benefits of FHOG let us tell you how to apply for the grant.
There are two ways you can apply for the first home buyers grant in Sydney:
- Through NSW Revenue Office or;
- Through an approved agent or lending institution.
How can you buy your first home in Sydney?
Buying a home is a complex process, no matter where you live. But if you’re looking to purchase your first home in Sydney, there are a few other things you’ll need to keep in mind.
- Since Sydney is a highly competitive housing market, you’ll need to be prepared to move quickly when you find a property you’re interested in.
- Prices in Sydney are relatively high, so you’ll need to make sure you have your finances in order before starting your search.
- It is essential to be aware of the unique quirks of the Sydney housing market. For example, many properties in Sydney are leased through real estate agents rather than directly from the owner.
As a result, getting in touch with an experienced agent who can help you navigate the market and find the perfect home for your needs is important.
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