FHOG NSW: A simple guide to the $10,000 grant

Key takeaways:

• The First Home Owner Grant in New South Wales is a tax-free, one-off payment of $10,000 designed for buying or building a brand new property.
• Strict price limits apply, meaning the total property value cannot exceed $600,000 for a finished home or $750,000 if you are buying land and building.
• To satisfy the personal rules, you must be a first-time buyer over 18 who is an Australian citizen or permanent resident, and you must live in the home for at least 12 continuous months

If you're taking your first steps towards home ownership in New South Wales, you've likely come across the First Home Owner Grant (FHOG) NSW and wondered whether you're eligible.

This is a one-off, tax-free payment designed to help first home buyers offset the effect of GST on buying or building a new home.

This explainer on the First Home Owner Grant in NSW will walk you through everything you need to know about this $10,000 payment. We’ll cover what it is, who can claim it and exactly what type of property qualifies.

What is the FHOG and how much is it?

The First Home Owner Grant NSW amount is currently $10,000. It’s a single payment that goes directly to you – it's not a loan that needs to be repaid, and it's completely tax-free. The grant is paid once per household, which means if you're buying with a partner, you'll receive one payment of $10,000 between you, not $10,000 each.

Importantly, it only applies to new properties or ones that have been substantially renovated, not existing ones.

You can use this money in several ways:

• Boost your deposit to reduce the amount you need to borrow
• Pay for legal fees and conveyancing costs
• Cover other upfront expenses associated with buying your first home
• Reduce your overall loan costs.

The crucial ‘new home’ rule

The most important point to understand when applying for the FHOG NSW is that the grant is not available for established homes that have been previously lived in. 

To be eligible, the property you are buying or building must meet the strict definition of a ‘new home’. This typically covers:

• Newly built homes: A house, apartment, unit or townhouse that has never been sold or lived in
• Off-the-plan purchases: Where you enter a contract to buy a new home before or during construction  
• Substantially renovated homes: This applies in limited circumstances where the seller has completely or substantially removed or replaced the structure of a home, and no one has lived in the property since the renovations were completed. If you're considering a renovated property, it's worth checking with your Loan Market mortgage broker whether the extent of the work meets Revenue NSW's definition.

If you are buying an established home, you will not be eligible for the First Home Owner Grant NSW amount.

The property price cap

While the FHOG isn’t based on your income, the NSW government does set strict value limits on the property you buy or build. These limits are known as the FHOG NSW property cap.

To be eligible, your property must fall within one of these two categories:

• Buying a new or substantially renovated home: The total purchase price must not exceed $600,000
• Buying land and building a new home: The total combined value of the land and the building contract must not exceed $750,000.

These FHOD NSW property caps are firm. If your property purchase exceeds these amounts, you won't be eligible for the grant, even by a small margin.

Key eligibility criteria (applicant requirements)

The property itself is only half the equation. All individuals applying for the grant must also meet specific personal criteria. 

To meet the NSW FHOG eligibility rules, you must satisfy all the following criteria:

• Age: All applicants must be at least 18 years old at the time of application.
• Buyer type: You must be a ‘natural person’. That means the home must be purchased in the name of an individual, not a company or trust.
• Residency and citizenship: At least one applicant must be an Australian citizen or a permanent resident of Australia.
• Previous ownership: You (and your spouse or partner, if any) must never have owned residential property in Australia before 1 July 2000. If you have owned property after this date, you must not have lived in it for more than six continuous months. This includes property owned solely, jointly, or through a company or trust.
• Previous grant: You must never have previously received the FHOG in any state or territory of Australia.
• Occupying the home: You must move into the home within 12 months of the settlement date or completion of construction. You must then live there continuously as your principal place of residence for a minimum of 12 continuous months.

FHOG vs. stamp duty relief

One of the most common areas of confusion for first home buyers is the difference between the First Home Owner Grant and the First Home Buyers Assistance Scheme (FHBAS) which offers stamp duty relief.

It is important to know that these are two different benefits, and you may be eligible for both. 

The FHOG is a $10,000 cash grant for buying a new or significanty renovated home that meets the relevant FHOG NSW property caps.

The FHBAS is a separate scheme that provides stamp duty exemptions or concessions on the purchase of both new and established homes. Under the FHBAS, you may be entitled to:

• A full stamp duty exemption for new or established homes valued up to $800,000
• A concessional rate (discount) for new or established homes valued between $800,000 and $1 million.

It is a good idea to read our 2026 Sydney first home buyer’s guide, which explores how to navigate a market where the median house price is forecast to hit $1.92 million and how to strategically use the full ‘grants stack’ and the 5% deposit hack to break in.

You can receive the $10,000 and benefit from stamp duty relief at the same time, provided you meet the eligibility criteria for both schemes. Your mortgage broker can help you understand exactly what benefits apply to your situation.

How to apply for the FHOG in NSW

It is relatively straightforward to apply for the FHOG in NSW, especially when you work with a mortgage broker. 

The easiest way to apply is through an approved agent – typically your mortgage broker or lender – who can submit the application alongside your home loan paperwork. This streamlined approach means you don't need to navigate the process separately or deal with multiple organisations.

Your broker will:

• Verify that you meet all NSW FHOG eligibility criteria before submitting
• Complete the application forms on your behalf
• Ensure all required documentation is included
• Submit everything to Revenue NSW.

If your application is successful, the grant amount is usually paid directly to your lender at the time of settlement (for purchases) or with the first construction payment (for building contracts). This timing works well because it reduces the amount you need to bring to settlement or allows you to reduce your loan amount.

While you can apply for the FHOG NSW directly through Revenue NSW, working with a broker simplifies the process and ensures everything is coordinated with your home loan approval and settlement.

Taking the next step

The FHOG NSW is a great starting point for first home ownership, providing a cash boost that can help reduce upfront costs.

However, working out whether your specific situation qualifies – particularly around the 'new home' definition and the price caps – requires careful assessment. The criteria are detailed, and getting it wrong could delay your purchase or mean missing out on the grant altogether.

A Loan Market broker can review your circumstances, confirm your NSW FHOG eligibility and handle the FHOG application alongside your home loan. We’ll make sure all the paperwork is completed correctly and submitted at the right time, so the grant is paid at settlement.

If you’re planning to buy or build your first home, get in touch with a Loan Market broker in Double Bay or Erskineville to find out what support you could access and how to get your application underway.