Building a new home just got a whole lot easier!

NSW First Home Buyers Assistance Scheme

If you’re a first home buyer in NSW, you could qualify for a full exemption or reduced transfer duty under the First Home Buyers Assistance Scheme (FHBAS).

Eligibility

To be eligible, you must:

• Purchase a new or existing home, or vacant land in NSW.
• Ensure the property value is within the threshold amounts.
• Be an individual (not a company or trust*), over 18 years old*.
• Never have owned or co-owned residential property in Australia.
• Never have received an exemption or concession under this scheme.
• Be an Australian citizen or permanent resident.
• Meet the residence requirements for living in the property.

*Some requirements may be waived upon application. Contact Revenue NSW for details.

Thresholds (Effective 1 July 2023)

• Full exemption: For homes valued up to $800,000.
• Concessional rate: For homes valued between $800,000 and $1,000,000.
• Vacant land: Exemption for land valued up to $350,000; concessional rate for land valued between $350,000 and $450,000.

Additionally, the property price cap for the Home Guarantee Scheme has been raised to $1,500,000 in Sydney and other high-cost areas, making it easier for buyers in these regions to access assistance.

Residence Requirements

If buying a home, you must:

• Move in within 12 months of settlement.
• Live there as your principal residence for at least 12 continuous months.

Members of the Australian Defence Force are exempt from these requirements if they’re on the NSW electoral roll. If circumstances prevent you from meeting the residence requirement, you must notify Revenue NSW immediately to arrange the correct duty payment. In exceptional cases, shorter residence periods or waivers may be granted.

Buying with Others

If you’re purchasing with someone who isn’t eligible, you can still apply if eligible buyers are purchasing at least 50% of the property (shared equity arrangement). However, this doesn’t apply if your spouse is the ineligible buyer.

The Game-Changing Home Guarantee Scheme

The Australian Government’s Home Guarantee Scheme has already helped over 230,000 Australians achieve homeownership and will continue to do so under the new changes coming into effect 01/10/2025. This initiative reduces the financial barriers to buying a home by allowing smaller deposits without the need for expensive Lenders Mortgage Insurance (LMI).

How It Works

Typically, a 20% deposit is required for a home loan, and smaller deposits often mean paying for LMI. Under this scheme, Housing Australia provides a guarantee to the lender, so you only need a 2% or 5% deposit, depending on the guarantee. While you’re still responsible for other costs like stamp duty and legal fees, the upfront financial burden is significantly reduced.

Three Guarantees to Choose From

1. First Home Guarantee
   • Minimum 5% deposit.
   • Individual income ≤ $125,000 or joint income ≤ $200,000.
   • For first-time buyers or those who haven’t owned property in the last 10 years.
2. Regional First Home Buyer Guarantee
   • Same requirements as above, tailored for regional property markets.
3. Family Home Guarantee
   • Minimum 2% deposit.
   • For single parents or legal guardians of dependent children.
   • Same income limits as other guarantees.

Eligible Properties

The scheme supports new or existing residential properties, including:

• Existing houses, townhouses, or apartments.
• House and land packages.
• Vacant land with a separate building contract.
• Off-the-plan apartments or townhouses.

All properties must be at or below the price cap for your location and must be owner-occupied (not investment properties).

How to Apply

You can’t apply directly to Housing Australia. Instead, work with a participating lender who will:

1. Check your eligibility.
2. Submit your application to Housing Australia.
3. Reserve your place while you complete paperwork.
4. Secure your guarantee once documents are provided.
5. Allow you time to find and settle on your home.

Ongoing Responsibilities

To keep your guarantee active, you must:

• Live in the property as your main residence.
• Meet ongoing eligibility requirements.
• Continue making loan repayments as agreed.

Failing to meet these requirements may result in the guarantee being revoked, and you could be required to pay LMI or additional costs.

Why This Matters for Your Masterton Home

These government initiatives can make building your dream Masterton home a reality. Whether you’re dreaming of a spacious family home or a sleek modern design, these schemes remove many financial barriers, making homeownership more achievable.

With deposits as low as 2% and no LMI required, building your dream Masterton home has never been more accessible. Combine this with Masterton’s quality construction and innovative designs, and you’ve got the perfect recipe for turning your homeownership dreams into reality.

Ready to Take the Next Step?

The landscape for first home buyers has dramatically improved, and now is the perfect time to act. Start by checking your eligibility using the government’s online tools, then check out our Home Lending Hub to find the best solution for your situation.

Your new Masterton home could be closer than you think. All that’s left is choosing which beautiful Masterton design will become your family’s foundation for the future.