First Home Owner Grant (FHOG) in Sydney

The First Home Owner Grant (FHOG) was introduced on 1 July 2000 as a way of helping first home buyers offset the effect of the Goods and Services Tax (GST) on the cost of new home construction. It's administered by Revenue NSW and funded by the NSW Government.

The essentials: The grant amount is $10,000. It's paid once per property transaction - not once per buyer. If you're purchasing jointly with a partner or co-buyer, you receive $10,000 between you, not $10,000 each. The grant is completely tax-free. There is no income test - the FHOG is not means-tested, and your income has no bearing on eligibility or the amount paid. You don't pay the grant back as long as you meet the residency requirement.

The FHOG is paid at or shortly after settlement for property purchases, or at the first progress payment for construction loans. It cannot be used as your exchange deposit.

To qualify for the First Home Owner Grant in NSW, both you (as the buyer) and the property you're purchasing must meet specific requirements. Every box must be ticked - the grant isn't available if any single eligibility criterion is not met.

Personal eligibility

You must be a natural person - not a company or trust. The FHOG is only available to individual human buyers. Purchases made through company or trust structures do not qualify.

You must be at least 18 years old at the time of application. All applicants must satisfy this age requirement.

At least one buyer must be an Australian citizen or permanent resident. Temporary residents are not eligible, and the grant cannot be backdated if permanent residency is later obtained after purchasing.

You must be a first home buyer under Revenue NSW's definition. First, neither you, your spouse, nor your co-buyer can have previously owned residential property in Australia (either wholly or jointly) AND lived in it for six or more continuous months, on or after 1 July 2000. Second, neither you nor any co-buyer can have previously received a First Home Owner Grant anywhere in Australia - in any state or territory.

The investment property exception

If you have owned residential property in Australia since 1 July 2000 solely as an investment - and you never lived in it for more than six continuous months - you may still be eligible for the FHOG on a new home you intend to occupy as your principal residence. The key is whether you lived there, not whether you owned it.

Overseas property

Owning property outside Australia has no effect on your FHOG eligibility. Revenue NSW only considers Australian property ownership when assessing first home buyer status.

Inherited property

Inheriting a property counts as ownership for FHOG purposes. Revenue NSW does not distinguish between chosen and inherited ownership - if you inherited a property, you are generally not eligible, even if you never chose to own it and never lived in it. Each situation has nuances; speak to us if this applies to you.

Buying jointly

If buying with a partner or friend, both must individually meet all eligibility criteria. If either buyer has previously owned and lived in property in Australia, neither buyer qualifies for the grant on that transaction.

The most important thing to understand is this: the FHOG applies only to new homes that no one has ever lived in. This is not a minor technicality - it fundamentally shapes which properties you should be looking at if claiming the FHOG is part of your plan.

There are three types of eligible properties:

1. Newly built homes (completed and never occupied)

A house, townhouse, apartment, unit, or similar property that has been newly constructed and has never previously been sold or occupied as a place of residence. This includes off-the-plan purchases - contracts signed before or during construction.

One important nuance: even a brand-new property can lose FHOG eligibility if the builder lived in it after completing construction, leased it out, or used it for short-term accommodation (such as Airbnb). A property is only "new" for FHOG purposes if no one has ever lived in it or rented it - from construction to the moment it reaches you as the buyer.

Price cap: $600,000.

2. House and land packages (vacant land plus building contract)

If you purchase vacant land and simultaneously sign a comprehensive home building contract with a licensed builder, the FHOG is available based on the combined total cost. Revenue NSW adds the land purchase price, the total building contract value, and any building variations together - and this combined figure must not exceed $750,000.

Note that this is not simply the price you pay for the land. The full cost of construction - including all contract variations - is included. If your builder quotes a base price but you add optional upgrades during construction, those variations are included in Revenue NSW's calculation. It's essential to get an accurate estimate of the total combined cost before signing contracts.

Price cap: $750,000 combined (land + construction + variations).

3. Substantially renovated homes

A property where the seller has essentially rebuilt the home from the ground up can qualify - but the bar for "substantial renovation" is very high and all three of the following conditions must be simultaneously satisfied:

• Most or all of the original home's structural elements have been removed or replaced. A cosmetic renovation or a major internal fitout is not sufficient.
• The seller, the builder, and any tenant must not have lived in the home at any point before, during, or after the renovations.
• The property must be being sold for the first time since the renovations were completed.

Practically speaking, substantially renovated homes are rare in the FHOG context. The documentation requirements to prove substantial renovation status are significant. If you're considering a property marketed as substantially renovated, we can help assess whether it genuinely qualifies.

Price cap: $600,000.

What doesn't qualify

Established homes - properties that have been previously lived in by anyone - never qualify for the FHOG, regardless of price, age, condition, or how recently they were last occupied. Investment properties do not qualify. The home must be purchased as your principal place of residence.

The NSW FHOG has two property price caps:

• $600,000 - for newly built homes and substantially renovated properties
• $750,000 combined - for house and land packages (land + construction + variations)

For context: Sydney's median dwelling price as of January 2026 is approximately $1,290,537. The median house price is approximately $1,598,819 and the median unit price approximately $903,210. The $600,000 cap sits well below the median for virtually every property type across most of Sydney.

That said, the FHOG price cap doesn't represent the ceiling on what first home buyers can afford or access - it's simply the threshold above which this particular grant doesn't apply. First home buyers purchasing above $600,000 can still access the 5% Deposit Scheme (up to $1.5M in Sydney), FHBAS stamp duty exemption (up to $1M), and Help to Buy (up to $1.3M Sydney).

Where the FHOG is realistically applicable in Sydney

Entry-level new apartments in western and outer Sydney suburbs remain accessible below the $600,000 cap. Suburbs like Blacktown, Parramatta fringe, and parts of Western Sydney have new apartment developments targeting the first home buyer market, with some studio and one-bedroom configurations priced to qualify.

House and land packages in Sydney's northwest and southwest growth corridors - Box Hill, Marsden Park, The Gables, Schofields, Riverstone, Leppington, Oran Park - represent the strongest FHOG opportunity for Hills District buyers. With careful selection of land size and builder package, some configurations can come in under the $750,000 combined cap. However, many packages in these suburbs now exceed the cap - this requires careful verification before contracts are signed.

Our recommendation for Hills District buyers: If you're considering a house and land package in the northwest corridor and want to access the FHOG, we review the complete cost breakdown - land price plus full build contract value plus all variations - before you sign. Fifteen minutes of checking saves a potential $10,000 loss.

Receiving the grant comes with a condition attached: you must live in your new home as your principal place of residence. Specifically, for contracts signed on or after 1 July 2023 (which covers virtually all current purchases):

• You must move in within 12 months of settlement or construction completion
• You must then live there continuously for at least 12 months

This exists to prevent the FHOG from being claimed by investors who have no intention of living in the property.

If your circumstances change

If something arises after receiving the grant that prevents you from moving in on time - a job relocation, a medical situation, a construction delay - contact Revenue NSW immediately. Do not wait for the deadline to pass. Revenue NSW has provisions to assess genuine hardship situations. If you move out before completing the 12-month continuous residency, you must repay the $10,000 grant. If you fail to notify Revenue NSW, you may face a fine of up to $11,000 on top of repayment. Revenue NSW regularly cross-checks FHOG applications against data from the ATO and electoral rolls.

The Australian Defence Force exemption

If all buyers on the FHOG application are active ADF members enrolled on the NSW electoral roll, the residency requirement is waived entirely. ADF members can claim the grant and are not required to satisfy the 6-month or 12-month live-in obligation. This recognises that military postings and deployments can make continuous occupation impossible.

There are two ways to apply. For the vast majority of buyers, the first option is both faster and simpler.

Option 1: Through your lender or mortgage broker (recommended)

When you arrange your home loan, your bank or mortgage broker - provided they are an approved Revenue NSW agent - submits the FHOG application on your behalf alongside your home loan application. This is how most buyers claim the grant.

If you need the grant funds available at settlement or for your first construction drawdown, the application must be lodged through an approved lender. You cannot apply directly to Revenue NSW in time for settlement funds to be coordinated.

At RyRo, we handle the FHOG application as part of the loan process at no additional cost. We complete the correct form (OFH 002 for all contracts signed on or after 1 July 2023), ensure documents are submitted correctly, and coordinate with the lender so the grant is ready by settlement.

Option 2: Directly with Revenue NSW (after completion)

If you've already completed your purchase or build and didn't apply through a lender, you can apply via the Revenue NSW FHOG customer portal. You must apply within 12 months of settlement or construction completion. After 12 months, you can still apply but additional documentation is required.

Processing time for direct applications: approximately 15 business days from lodging a complete application with all required documents.

Documents you'll need

For identity: Australian passport, birth certificate, or driver's licence (combination to establish identity for all applicants). If born overseas: your foreign passport, even if you also hold an Australian passport.

For citizenship/residency: Australian passport or citizenship certificate (citizens); permanent visa documentation (permanent residents).

For the property: signed and dated contract of sale (purchases) or building contract (construction). For off-the-plan: off-the-plan contract. For substantially renovated properties: seller's statutory declaration or legal representative's statement confirming it has never been occupied since renovation and is being sold for the first time.

For construction loans: land contract, comprehensive building contract, builder's licence number, builder's insurance, and an "as built" cost schedule or valuation upon completion.

For property purchases: The grant is paid at or shortly after settlement. If applied through your lender, it's typically credited at settlement - often directly reducing your loan balance or applied to the settlement funds.

For construction loans: The grant is paid at the first construction drawdown - the first progress payment your lender makes to your builder. This is after land settlement but before construction is complete.

For direct Revenue NSW applications: Approximately 15 business days after lodging a complete application.

The exchange deposit point: The FHOG is not available at exchange. When you exchange contracts and pay your deposit, the grant funds are not yet available. Your exchange deposit must come from your own savings, FHSS withdrawal, or another source. Plan your deposit around this timeline.

The FHOG rarely stands alone. For buyers whose purchase qualifies for the grant, it can typically be combined with every major NSW and federal first home buyer scheme.

FHOG + NSW Stamp Duty Exemption (FHBAS)

If you're buying a new home under $600,000 - the same threshold that qualifies for the FHOG - you are also well within the $800,000 threshold for the full stamp duty exemption under the FHBAS. The two schemes can be used simultaneously on the same property. On a $580,000 new home, the FHOG provides $10,000 in cash and the FHBAS eliminates approximately $20,870 in stamp duty. Combined benefit: approximately $30,870 at settlement with no repayment required. This combination is the most common and impactful "stack" for buyers in the $500,000–$600,000 range.

FHOG + 5% Deposit Scheme (FHBG)

Both can be used on the same property if it's a new home under $600,000. The 5% Deposit Scheme eliminates LMI (potentially saving $10,000–$25,000 on a $600,000 property), while the FHOG provides the $10,000 cash payment at settlement. Note on timing: the FHOG is paid at settlement, not at exchange. Your 5% deposit still needs to be in cleared funds when you sign the contract.

FHOG + First Home Super Saver Scheme (FHSS)

FHSS funds are used to boost your deposit savings - drawn from your super before you sign contracts - and are completely separate from the FHOG. If you've used FHSS to save your deposit and you're buying a new home that qualifies for the FHOG, you can receive both.

FHOG + Help to Buy

The FHOG can be combined with Help to Buy if you're buying a new home under $600,000. Note the price cap interaction: Help to Buy's NSW Sydney cap is $1,300,000, but the FHOG cap is $600,000 - so the FHOG is only available on Help to Buy purchases that are also under $600,000.

FHOG + Family Home Guarantee

Single parents using the Family Home Guarantee (2% deposit, no LMI) who are purchasing a new home under $600,000 can also receive the FHOG simultaneously.

Triple stack - FHOG + FHBAS + 5% Deposit Scheme

On a new home at $580,000: $10,000 FHOG cash + $20,870 stamp duty saving (FHBAS) + $12,000+ LMI saving (5% Deposit Scheme) = approximately $43,000 in combined government support. Deposit required: $29,000 (5% of $580,000). This is the optimal scenario for a qualifying Hills District buyer - and it's exactly the type of combination we help structure.

If you're purchasing land and building a new home with a licensed builder, the FHOG works slightly differently but is fully available for qualifying builds.

The price cap: The combined total of your land purchase price + comprehensive building contract value + all building variations must not exceed $750,000.

"Building variations" matter more than people realise: The $750,000 threshold includes every cost variation approved during construction - from upgraded fixtures to site preparation costs that weren't known at contract signing. For buyers targeting house and land packages in Sydney's growth corridors, it's essential to get a realistic estimate of final total costs before signing.

When the grant is paid for builds: The grant is released at the first progress payment - the first drawdown from your construction loan to your builder. This is typically after land settlement and after the first construction milestone is reached (slab pour or similar, depending on your construction contract).

Owner-builders: Owner-builders who are building their own home are eligible for the FHOG if all other criteria are met. Additional documentation requirements apply - speak to us if you're considering this pathway.

Construction loans are structured differently from standard home loans. We specialise in structuring construction loans for first home buyers and coordinate the FHOG application timing with the lender to ensure the grant is ready for the first drawdown.

The First Home Owner Grant is a genuine and useful piece of support - $10,000 at settlement is real money. But there are common misconceptions that can lead buyers to make property decisions based on incorrect assumptions.

The FHOG is not a deposit. You cannot use the $10,000 grant as your exchange deposit. The grant is paid at or after settlement - by which point you've already exchanged contracts and paid your deposit weeks or months earlier. Your deposit needs to come from savings, FHSS funds, a gift, or another source.

The FHOG does not replace stamp duty savings. On properties between $600,001 and $800,000 that are new homes (above the FHOG cap), buyers can still access the full FHBAS stamp duty exemption - saving up to approximately $31,000 - even though they don't receive the FHOG. The FHBAS is a larger saving than the FHOG for most buyers.

Many Sydney buyers won't qualify - and that's OK. The $600,000 cap excludes most of the Sydney property market. If the FHOG doesn't apply to your situation, the more powerful tools in the first home buyer toolkit - the stamp duty exemption (up to $1M), the 5% Deposit Scheme (up to $1.5M), and the FHSS - remain fully available.

The FHOG is one piece of a broader set of schemes available to NSW first home buyers.

NSW Stamp Duty Exemption (FHBAS) - arguably the largest single saving for most Sydney buyers. Full stamp duty exemption for new or existing homes under $800,000. Available for both new AND established homes - unlike the FHOG, which is new homes only.

5% Deposit Scheme (FHBG) - buy with 5% deposit and no Lenders Mortgage Insurance. Sydney property cap $1,500,000. Can be combined with the FHOG.

Help to Buy - Government contributes up to 40% of purchase price (new homes) or 30% (existing), with buyers needing only 2% deposit. Income-capped. Sydney cap $1.3M. Can be combined with the FHOG for new homes under $600,000.

Family Home Guarantee - for single parents and single legal guardians with at least one dependent child. 2% deposit, no LMI. Can be combined with the FHOG for eligible new homes.

First Home Super Saver Scheme (FHSS) - save up to $50,000 per person in super with tax advantages, then withdraw to use as a first home deposit. Can be combined with the FHOG.

We're a mortgage brokerage based in Norwest in the Hills District. Helping first home buyers understand and access every available scheme - including the FHOG - is central to what we do.

We check eligibility before you sign anything. The most common FHOG problem we see is buyers who sign a contract, then discover the property doesn't qualify or the combined cost has crept above the $750,000 threshold. We verify price caps, property type eligibility, and buyer eligibility as part of the pre-approval conversation - before contracts are exchanged.

We handle the application. As approved Revenue NSW agents, we submit the FHOG application through the home loan process at no additional cost. You provide the documents; we do the paperwork. The grant is coordinated with the lender to be available at settlement.

We identify the full combination. For buyers eligible for the FHOG, we also assess eligibility for the FHBAS stamp duty exemption, the 5% Deposit Scheme, and FHSS simultaneously. Most qualifying FHOG buyers are also eligible for at least two other schemes.

We've done this hundreds of times in the Hills District. We know which new developments in Castle Hill, Kellyville, Norwest, Box Hill, Marsden Park, and Schofields are priced within the FHOG thresholds, and which house and land packages are worth reviewing. That local knowledge makes the FHOG conversation faster and more grounded.