Accessing the first home buyer grant

In NSW

A $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home.

Your first new home can be a house, townhouse, apartment, unit or similar that is newly built, purchased off the plan or substantially renovated.

For more information, visit the NSW Government website.

In QLD

The Queensland first home owners' grant provides first-time home buyers an extra bit of help to get into the market sooner. If eligible, you'll get $15,000 towards buying or building your new home. The Queensland grant covers new houses, units and townhouses—you can even buy off the plan or choose to build yourself.

For more information, visit the QLD Government website.

In NSW

In NSW, eligible first home buyers no longer have to pay transfer duty on homes valued up to $800,000. For homes valued between $800,000 and $1,000,000 a concessional rate is applied.

As a first home owner, you also won’t pay any transfer duty on vacant land worth up to $350,000, while land valued between $350,000 to $450,000 attracts a concessional rate.

For more information, visit the NSW Government website.

In QLD

In Queensland, first home owners receive a concessional rate of transfer duty on homes worth up to $550,000. This concession is applied by deducting a set amount from the usual rate of transfer duty that would apply to owner/occupiers.

This means that you will effectively pay no transfer duty if you’re buying a first home worth less than $500,000, with a concessional rate applying to home valued between $500,000 and $550,000.

If you’re buying vacant land, you’ll also receive similar benefits, which mean that you’ll pay no transfer duty on land valued up to $250,000. A concessional rate applies to land valued between $250,000 and $400,000.

For more information, visit the QLD Government website.

In NSW

To qualify as a first home buyer, you must be purchasing the first home you or your spouse have owned or co-owned in Australia, although there are some exceptions.

You must also move into the property within 12 months, and live there for at least six continuous months.

You must be:

• an Australian citizen or a permanent resident of Australia
• at least 18 years old.

To find out more, visit the NSW Government website.

In QLD

• You need to be a natural person (not a company or trust) aged 18 years or older.
• You must be an Australian citizen or permanent resident (or applying with someone who is).
• You need to be a permanent resident or Australia citizen.
• You or your spouse must not have previously received a First Home Owner Grant in Australia.
• You must not have previously owned property in Australia that you lived in.
• You may still be eligible for the First Home Owner Grant in Queensland if you have owned an investment property as long as you haven’t lived in it.

In addition, you’ll need to live in your first home for at least six months within a year of becoming the owner.

To find out more, visit the QLD Government website.

As a general rule, there are a number of things which can pose problems for first-time buyers, which include:

• not finding the right home loan for your circumstances,
• buying with emotion rather than common-sense,
• borrowing more than your budget will allow,
• not doing enough research,
• underestimating additional costs, and
• not getting a pest and building inspection.

To familiarise yourself with the home-buying journey, check out our piece on 5 questions every first-time buyer should answer.

As a buyer, once you have secured a home loan, and have agreed on terms and exchanged contracts with the seller, you will have to pay your full deposit amount.