The First Home Owner Grant (FHOG) is one of the oldest first home buyer incentives in NSW, and also one of the most misunderstood. A lot of people assume everyone buying their first place gets $10,000. They don't. The grant is only for new homes.
Here's who qualifies and how to make sure you actually receive it.
The basics
- Amount: $10,000
- Property type: a new home that hasn't been lived in or sold as a residence before
- Price caps: up to $600,000 for buying a new home, or up to $750,000 combined value for land plus a home you build
A "new home" includes a newly built house, a house-and-land package, an off-the-plan apartment, or a home you build yourself or with a builder. A home that's been substantially renovated can also count in some cases.
An established home, even one only a few years old, generally doesn't qualify.
Eligibility checklist
You'll generally need to meet all of these:
- At least one applicant is an Australian citizen or permanent resident
- All applicants are 18 or over
- No applicant (or their spouse) has previously owned residential property in Australia that they lived in
- No applicant has received a first home owner grant in any state before
- You'll live in the home for at least 12 continuous months, starting within 12 months of settlement or completion
When is it paid?
Buying a new home: usually paid at settlement, often through your lender, so it effectively forms part of your funds to complete.
Building: usually paid with the first progress payment to your builder. That helps with the early stages of a construction loan.
If you apply directly through Revenue NSW, it may be paid after settlement instead. That timing matters if you were counting on it for your deposit, so check with us early.
Where the grant makes a real difference
$10,000 might not sound huge next to a $600,000 purchase. But first home buyers are often short by a small amount, not a large one. Combined with no stamp duty and the 5% Deposit Scheme, the grant can be what makes a deal work.
Example: Josh is buying a new two-bedroom apartment in the Illawarra for $590,000.
- 5% deposit under the 5% Deposit Scheme: $29,500
- First Home Owner Grant: $10,000 (helps cover deposit and costs)
- Stamp duty: $0 under the NSW First Home Buyers Assistance Scheme
- LMI: $0
Josh can get into the home with far less of his own cash than the price suggests.
Building in regional NSW
The $750,000 combined cap for land and construction stretches further outside Sydney. On the South Coast, in the Hunter and in many inland towns, a house-and-land package can still sit under the cap.
If you're building, the grant works alongside a construction loan, which releases money in stages as the build progresses. We explain how that works in Building your first home.
Common reasons people miss out
The price goes over the cap. Upgrades, variations and the land price all count. A $30,000 kitchen upgrade can push a build over $750,000 and wipe out the grant.
One partner owned before. If your spouse has owned and lived in property in Australia, neither of you usually qualifies, even if they're not on the new title.
Moving in too late. Delays happen with builds. If you don't move in within 12 months of completion, the grant can be clawed back.
Renting it out early. You need to live there for 12 continuous months. Renting a room is usually fine, but moving out isn't.
Frequently asked questions
Can I get the grant on an established home?
No. In NSW the FHOG only applies to new homes. Established homes may still get stamp duty relief under the First Home Buyers Assistance Scheme.
Can I use the grant as my deposit?
Sometimes. If it's paid through your lender at settlement, some lenders count it towards your funds to complete. Policies vary, so ask before you rely on it.
Is the grant taxable?
No, the First Home Owner Grant isn't treated as taxable income.
Building or buying new and want to make sure you don't miss out on the grant? Call Finfident on 0424 545 654. We'll check eligibility and line up a lender that releases it at the right time.
This article is general information only and doesn't take into account your objectives, financial situation or needs. Figures, rates and scheme rules are current as at October 2026 and can change. Finfident Finance Brokers (ABN 94 679 280 801) is Credit Representative 569374 of Outsource Financial Pty Ltd (ACN 131 090 705), Australian Credit Licence 384324.