How to use government grants to buy a property in NSW

September 19, 2023 Catherine Salat

Getting into the property market quicker.

NSW is a fantastic place to call home, but we also have some of the highest property prices in the country. So, owning a slice of the Australian dream can feel like an impossible goal.

Thankfully, the federal and state government recognise this. They have several first home buyer grants and schemes to help you break into the property market faster.

First Home Owner Grant (FHOG)

Got your eye on a new build? The NSW government may help you with a $10,000 grant – provided you meet certain eligibility criteria.

These include:

  • Buying a new property or a substantially renovated home with a value under $600,000
  • Buying land and building a new home that has a combined value of less than $750,000

More details can be found here.

First Home Loan Deposit Scheme (FHLDS)

Normally, you need to save for a 20% deposit to avoid paying thousands of dollars in lender’s mortgage insurance (LMI). LMI is a one-off charge that’s added to your home loan to protect the lender should you subsequently default on your repayments.
But, under the FHLDS, the federal government guarantees up to 15% of your home loan. This means you need as little as 5% for your deposit.

To qualify, you need to be an Australian citizen aged 18 or over. You need to be buying as an owner-occupier and income caps apply. Full eligibility criteria can be found here.


The federal government rolled out HomeBuilder as a direct response to the pandemic. As a result, it’s temporary – so you’ll need to act fast to take advantage of a $15,000 grant to buy a new build.

To qualify:

  • Enter into a contract before 31 March 2021 to buy a newly constructed home valued at no more than $950,000
  • Your annual taxable income must be below $125,000 for an individual or $200,000 as a couple

See the full eligibility requirements here.

First Home Buyer Assistance Scheme (FHBAS)

Stamp duty can add tens of thousands of dollars to your upfront costs when buying a property. But, as a first home buyer, you can apply for an exemption or concession on stamp duty under the FHBAS.

Even better, the price caps on new builds have been temporarily lifted until 31 July 2021. This means more properties are eligible for stamp duty exemptions or concessions.
See the thresholds and eligibility requirements here

How to use these government grants to buy your first home

Now, you’re probably wondering if you can apply for multiple grants and schemes.

The good news? Yes, you can – if you meet all the eligibility criteria and deadlines.

For example, imagine you want to buy a $600,000 new build. To avoid paying LMI, you’ll need to save up for a 20% deposit or $120,000. But get a FHLDS place and you only need to stump up a 5% deposit or $30,000.

That’s $90,000 you don’t need to come up with, knocking years off your saving time.
Next, qualify for FHOG and HomeBuilder grants and you’ll get a $25,000 boost to your bank balance.

Finally, comes the stamp duty exemption – saving you $22,000 in transfer duty.

All in all, that’s a significant saving.

But, getting the government grants to align ‘just so’ can be challenging. Just Imagine Finance can help make it happen. Call us on 0414 673 359 or book a call by filling out our online form.