Information Guide for First Home Buyers options for first time home buyers

Buying a house for the first time is incredibly exciting! But if you’re a first-time home buyer, it can also be overwhelming and stressful. There are many factors to consider—from determining how much you can borrow and finding the best home loan, to making an offer  , signing and exchange of contract to preparing for property settlement. That’s why we’ve created this first home buyers guide and checklist to help you to navigate the process. Read on to learn how to buy your first house, and if you have any questions, call us or email us at info@kdlconveyancing.com.au. 

First Home Buyers Assistance Scheme (FHBAS)

First home buyers can receive a transfer duty exemption or pay a reduced rate when buying an existing home, new home, or vacant land to build a home. Under this scheme:

• Eligible first home buyers purchasing an existing property for $800,000 or less won’t pay any transfer duty.
• Those buying a property worth between $800,000 and $1 million will pay a reduced rate, depending on the property's value.
• If you buy vacant land to build a house on, there will be no transfer duty if it costs $350,000 or less. For vacant land valued between $350,000 and $450,000, a reduced transfer duty rate applies.

To be eligible, you must move into the property within 12 months of the settlement date on an existing home or within 12 months from the completion date of a newly built home. You then need to live in your home for at least 12 months.

• Property:  The maximum property purchase price is $1 million. The transaction must be for the acquisition of the entire property.
• Single Applicants: Must be over 18, a natural person (not a company or trust), a permanent resident or citizen of Australia, and must not have owned or co-owned residential property in Australia before.
• Couples/Spouses: Neither partner must have owned or co-owned residential property in Australia or previously received an exemption or concession under the scheme. At least one partner must be an Australian citizen or permanent resident.
• Others: If buying with friends or family, the eligible first home buyer(s) must purchase at least half of the property, and the ineligible buyer(s) must pay transfer duty on their share.

• For an existing home, you must move in within 12 months and live there for at least 12 months.
• For vacant land, you must move in within 12 months of the completion of construction and live there for at least 12 months.

• New Home: A home that has not been previously occupied or sold, was substantially renovated, or built to replace demolished premises.
• Spouse/Partner: Someone you are legally married to or living with in a de facto relationship. If legally married but separated, you are not considered to have a spouse/partner if not living with them and having no intention to do so.

For more information, visit the Revenue NSW website or call KDL Conveyancing at 0451585152.

A $10,000 First Homeowner Grant is available when you buy or build your first new home. Your new home can be a house, townhouse, apartment, unit, or similar that is newly built, purchased off the plan, or substantially renovated. The grant is not available for those buying an established home in NSW. 

 A $10,000 First Homeowner Grant is available when you buy or build your first new home. Your new home can be a house, townhouse, apartment, unit, or similar that is newly built, purchased off the plan, or substantially renovated. The grant is not available for those buying an established home in NSW. 

• For a newly built home, the purchase price must not exceed $600,000.
• For vacant land plus a building contract, the total combined cost must not exceed $750,000.
• For a substantially renovated home, the purchase price must not exceed $600,000, and most of the home must be removed or replaced. The seller, builder, or tenant must not have lived in the home prior to, during, or after renovations.

The grant can be paid in addition to other exemptions or concessions for eligible homebuyers.

This scheme helps eligible first home buyers by allowing them to purchase a home with a deposit as low as 5% without paying for Lenders Mortgage Insurance. The government guarantees the value of the deposit with the lender. 

• Must be an Australian citizen or permanent resident over 18.
• Must apply for an owner-occupier home loan with principal and interest repayments.
• Taxable income must not exceed $125,000 (single applicants) or $200,000 (joint applicants) based on the prior financial year Notice of Assessment.
• Must be a first home buyer or not have owned a home in the past 10 years. Single parents or single legal guardians with at least one dependent child who don’t currently own a home are also eligible.
• Must have a minimum deposit of 5% (2% for single parent applicants).
• Price Limits: In New South Wales, the limit is $900,000.
• Eligible property types include an existing house, townhouse, apartment, house and land package, land with a separate building contract, or an off-the-plan apartment or townhouse.

• Must be an Australian citizen or permanent resident over 18.
• Must apply for an owner-occupier home loan with principal and interest repayments.
• Taxable income must not exceed $125,000 (single applicants) or $200,000 (joint applicants) based on the prior financial year Notice of Assessment.
• Must be a first home buyer or not have owned a home in the past 10 years. Single parents or single legal guardians with at least one dependent child who don’t currently own a home are also eligible.
• Must have a minimum deposit of 5% (2% for single parent applicants).
• Price Limits: In New South Wales, the limit is $900,000.
• Eligible property types include an existing house, townhouse, apartment, house and land package, land with a separate building contract, or an off-the-plan apartment or townhouse.

•  Both singles and couples can benefit. From 1 July 2023, siblings or friends buying together are also eligible. 

• All guarantees are available to Australian permanent residents.
• The scheme is expanded to non-first home buyers who haven’t owned property in the past 10 years.
• Friends, siblings, and other family members can apply jointly under the First Home Guarantee and Regional First Home Buyer Guarantee.
• Family Home Guarantee eligibility includes single legal guardians of a dependent, such as aunts, uncles, and grandparents.

For more information, call KDL Conveyancing at 0451585152.