Under NSW’s new “Building the State” Package”, the first home owners grant NSW will increase from $7,000 to $15,000 and also provide a new home grant of $5,000 to non first home buyers. The more than doubling of the first home owners grant NSW (FHOG) will decrease to $10,000 from 2014.
There are limits to the new home grant for new homes or when building a home. The house and land components can not exceed $650,000. But there is a nasty surprise for first home buyers wanting to buy an established home. The FHOG in operation since 2000, will cease to exist for established homes. This move is to motivate first home buyers to buy brand new rather than existing properties.
Can I Use these Grants for my Deposit?
The good news is we have lenders that can use the first home owners grant as your deposit plus also use the new home grant as a deposit. What’s more is that we can source lending to 97% of the house and land package price.
For example, a $500,000 house and land package for a first home buyer would require a total contribution of $30,250 to cover small deposit, mortgage insurance, conveyancing and lender fees. Deduct the $15,000 FHOG and you would only require just over $15,000 of your own savings. Buying a house and land for $400,000 reduces this figure down to $9,400 and for $450,000 to $12,425.
Do I need to have Genuine Savings of 5% still?
No, not at all. We have lenders that do not require you to show 5% of the package price saved in an account over 3 months as most lenders ask you to. Instead if you have been renting through a property manager for at least 12 months then we can use your rental history instead. If you don’t rent through a property manager or you are boarding you may still be eligible and we suggest you contact us to look at the alternatives.
How do I apply for the FHOG and New Home Grant in NSW?
The first home owners grant and the new home grant are applied for once you have signed contracts on a house and land package and we have your finance approved. We will help you fill out these forms and fast track them through an approved agent at no cost to you. This is the only way we can use these grants as deposits as the funds can be made available at land settlement rather than at construction.