Am I Eligible?
The First Home Guarantee (FHBG) was created to help first-time home buyers in Australia who require financial support and security overcome the barriers and challenges that come with this process. As a prospective buyer in NSW hoping to benefit from this scheme, you must ensure to meet the following criteria:
- You are applying as an individual or couple and not a company or trust
- You are an Australian citizen
- You are at least 18 years old
- As an individual, you are earning less than $125,000
- As a couple, your combined earnings are less than $200,000
- You will be the owner-occupier of the home, with no intention to rent it out
- You have not previously owned a property in Australia or received the FHBG grant
With the First Home Guarantee in NSW, there is a price cap on properties of $900,000 in Sydney and other regional centres such as Newcastle, Geelong, Illawarra, Lake Macquarie, Gold Coast, and Sunshine Coast. In the rest of the state, there is a price cap of $750,000, so you must ensure the home you are buying does not exceed this in value.
4. Shared equity Home Buyer Helper 2023
The Shared Equity Home Buyer Helper is another NSW Government initiative designed to help eligible residents within the state purchase a home without needing a massive deposit.
What is the Shared Equity Home Buyer Helper, and How does it work?
This scheme is targeted towards single parents, older singles, and critical worker first home buyers, and it helps eligible buyers to purchase a new or existing home with as little as a 2% deposit. To achieve this, the NSW Government contribute a proportion of the purchasing price and, in return, will receive equivalent interest in the property.
The contribution the Government make is a percentage of the purchasing price, and the maximum amount they contribute is determined by whether it is an existing home or a new home that you are purchasing.
- For an existing home, the maximum contribution is 30% of the property value
- For a new home, the maximum contribution is 40% of the property value
This scheme is relatively flexible for participants. As long as you remain eligible, you are not required to make any repayments and will not be charged interest or rent. Furthermore, the NSW Government allows you to make voluntary payments, meaning you increase your ownership of the property.
Am I Eligible?
This initiative is focused on helping NSW residents that require financial support due to their occupation or family status. The scheme is open to:
- Single parents of a dependent child or children
- Single people who are 50 years of age or older
- First home buyer key workers, including paramedics, nurses, midwives, police officers, teachers, and early childhood educators
If you find yourself within one of these demographics, you also need to meet the below criteria to receive assistance:
- You are 18 years old
- You are an Australian or New Zealand citizen, or a permanent resident of Australia
- You do not currently own a home or any land
- You will occupy the home as your principal place of resident
- You have a minimum deposit of 2% of the purchase price
- As an individual, your gross income is no more than $90,000
- As a couple, your combined income does not exceed $120,000
- You would not be able to service the mortgage or purchase the property without this Government contribution
If you want to buy in Sydney or any major regional centres (Illawarra, Newcastle, Lake Macquarie, Central Coast, and North Coast of NSW), the property’s value cannot exceed $900,000. If you hope to buy in other areas within the state, the home cannot cost more than $600,000.
Maximising First Home Buyer Benefits in NSW
If you are an aspiring homeowner struggling to navigate the complexities of buying your first home, we hope this guide helps. As one of Sydney’s leading mortgage brokers with a deep understanding of the property market, we understand the stresses and difficulties of purchasing your first home. With this guide, we wanted to highlight that multiple NSW property incentives and grants are available to make buying a home easier for you.
With multiple first home buyer grants available in NSW, we recommend researching the benefits of each scheme and figuring out if you are eligible before you apply. By understanding the financial assistance available, you can remove a lot of the financial burden of buying your first home and focus on landing the house of your dreams.
If you still need help navigating the application process or require the advice of a professional mortgage broker, reach out to our experts at Lendstreet. We can provide everything you need to make the right decision and purchase the home you deserve.