The grant in one paragraph
Revenue NSW states that a $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home. A 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 for new homes only; buying an existing home doesn’t qualify.
Rules and thresholds change from time to time, so always confirm the current details on the Revenue NSW website before you sign a contract. The figures below are as published by Revenue NSW when this guide was written.
The value caps: buying versus building
If you buy a newly built house, townhouse, apartment, unit or similar, Revenue NSW states the purchase price must not exceed $600,000.
If you buy vacant land and sign a contract with a builder to build your home — which covers most house-and-land and custom builds on your own land — the total of the land value, the comprehensive home building contract and any building variations made together must not exceed $750,000. Variations count toward the cap, so a home that starts just under $750,000 can lose eligibility if upgrades push the total over.
Who is eligible
Revenue NSW lists the key criteria. Each applicant must be at least 18 years old. You must be a first home buyer as a person, not as a company or trust. At least one applicant must be a permanent resident or Australian citizen. And you, your spouse, partner or co-purchaser must not have previously owned a home before 1 July 2000 — read the full prior-ownership rules on the Revenue NSW site, as they also consider previous grants and residential property owned since.
If you are buying with a partner, both of you are assessed, even if only one name is on the contract.
The occupancy requirement
For contracts signed on or after 1 July 2023, Revenue NSW states you must occupy your first home as your principal place of residence within 12 months of the construction or purchase of your home, and the minimum period of occupancy is 12 continuous months. If you plan to rent the home out first, you won’t meet this requirement.
How to apply when you are building
Revenue NSW says you can apply through an approved agent — usually the bank or lender financing your build — or directly through the FHOG customer portal after settlement or completion. When you are building, your lender can explain when they lodge the application and how the grant is applied to your loan.
Keep copies of the land contract, the building contract and any variations, since the combined value is what is tested against the cap.
Planning a new build around the grant
If you are close to the $750,000 cap, agree your inclusions and selections before signing so later variations don’t push you over. Ask your builder to price the upgrades you want up front. Site costs on a sloping or difficult block also form part of the building contract, so get them fixed early.
Other NSW first home buyer assistance, including stamp duty concessions, has its own rules and thresholds. Check the Revenue NSW first home buyer pages for what applies to your purchase.
Sources
Revenue NSW — First Home Owner (New Homes) Grant: https://www.revenue.nsw.gov.au/grants-schemes/first-home-owner-new-homes-grant