Can I use the First Home Owner Grant for an existing property?
The First Home Owner Grant (FHOG) in NSW is not available for existing or established properties. It applies only to new homes — newly built houses, off-the-plan purchases, or substantially renovated homes where no one has lived since the renovation. The grant is currently $10,000 and is paid at settlement or during construction.
The Fuller Picture
The FHOG is a federal initiative administered by each state, and in NSW it is worth $10,000. The rule is clear: the home must never have been previously sold as a place of residence. A new home in this context means either a property built and never lived in before, a home purchased off-the-plan before construction is complete, or a home that has been substantially renovated to the point where it is essentially a new dwelling.
The definition of substantially renovated is important to understand. A standard kitchen and bathroom refresh does not qualify. Substantial renovation means the removal or replacement of most of the structure — walls, floors, roof, or foundation — and the home must not have been lived in between the time of renovation and the time of sale. If a vendor renovated a property and sold it without anyone moving in afterwards, it may qualify — but this scenario is relatively uncommon and needs to be verified carefully with your conveyancer.
The FHOG is separate from first home buyer stamp duty concessions. Even if you cannot access the FHOG on an existing property, you may still qualify for a stamp duty exemption or discount under the First Home Buyer Assistance Scheme, which applies to both new and existing homes up to the relevant price caps. These are different schemes and are assessed independently.
What This Means for Your Purchase
If you are buying an established home, the FHOG will not be available to you. This changes the cash you can rely on at settlement. If your budget was partly built around the $10,000 grant, you will need to adjust your figures or consider whether a new build or off-the-plan purchase is a better fit for your situation.
For buyers choosing between new and established, the FHOG adds weight to the new build side — but it should rarely be the deciding factor. New builds carry different risks: fixed price contracts, build timelines, delays, and the fact that you are buying a home you cannot inspect in its finished form. The $10,000 grant seldom offsets that additional complexity unless a new home is already the right choice for your needs.
The more impactful concession for most first home buyers is stamp duty relief, which applies to existing homes under the price cap. Depending on the purchase price, stamp duty savings can be worth significantly more than $10,000 — making the First Home Buyer Assistance Scheme the more valuable financial lever to understand when buying an established property.
How This Shows Up in the Illawarra
In the Illawarra, the majority of first home buyer purchases are established homes — not new builds. Most buyers entering the market in Wollongong, Shellharbour, and surrounding suburbs are purchasing properties with existing owners. For these buyers, the FHOG simply will not apply, and that is the norm rather than an exception. What matters more in this market is stamp duty relief, a solid pre-approval, and a clear buying strategy.
New builds and off-the-plan opportunities do exist in the region — particularly in growth corridors around Shellharbour, Dapto, Albion Park, and some outer Wollongong suburbs. If you are open to building or buying off-the-plan, these areas may offer entry points where the FHOG adds genuine value on top of other concessions. Factor in build timelines, price movement risk, and construction loan requirements before committing to that path.
Frequently Asked Questions
Can I get the FHOG if I buy a property and knock it down to build a new one?
Potentially, yes. If you buy vacant land and construct a new home on it, or demolish and rebuild, you may qualify for the FHOG — provided the new home meets all other eligibility requirements. The grant is assessed on the new home, not the original structure.
What is the current FHOG amount in NSW?
The First Home Owner Grant in NSW is $10,000. It is paid at settlement for new home purchases, or at the first progress payment for construction contracts and owner-builder arrangements.
Does the FHOG help with my deposit?
The FHOG does not directly increase your borrowing capacity, but it can contribute to your deposit. A larger deposit can lower your loan-to-value ratio (LVR) and reduce or eliminate the need for lenders mortgage insurance, which can be worth more than the grant itself.
Can I use both the FHOG and stamp duty exemption on the same purchase?
Yes, these are separate schemes. If you buy a new home under the relevant price caps, you could be eligible for both the $10,000 FHOG and a stamp duty exemption or concession under the First Home Buyer Assistance Scheme at the same time.
Is there a price cap on the FHOG in NSW?
Yes. In NSW, the FHOG applies to new homes with a purchase price or contract value of $600,000 or less when buying off-the-plan or from a builder, or $750,000 or less for owner-builder situations. Homes above these thresholds do not qualify for the grant.
Can a buyers agent help me work out what grants I qualify for?
A buyers agent can help you understand the grant and concession landscape before you start searching, so you are not excluding the right types of properties or making assumptions that turn out to be wrong. They work alongside your broker and conveyancer — not instead of them — but having the full picture early prevents costly mistakes.
If you are weighing up whether a new build or established home suits your situation, we can help you make sense of the numbers. Reach out to The Shoreline Agency and we will give you a clear-eyed view of your options.
