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First Home Buyers Incentive from NSW Government

The NSW government has announced a new package designed to even the playing field for first time buyers and bring housing costs under control.

The new measures, effective July 1, include stamp duty exemption for first time buyers purchasing new or existing properties under $650,000. Buyers of homes under $800,000 will also get stamp duty discounts.

Those purchasing homes with small deposits will no longer have to pay 9 per cent stamp duty charges on lenders’ mortgage insurance.

Other measures are aimed at further restricting investor purchases. Investors will no longer be able to defer stamp duty payments on off-the-plan purchases for 12 months.

The same concession will become available for off-the-plan buyers who intend to live in the properties they are purchasing.

The stamp duty surcharge on foreign investors, meanwhile, will increase from 4 per cent to 8 percent.

NSW Premier Gladys Berejiklian also announced eligibility criteria for the existing $10,000 First Homeowners Grant would be restricted to those building new homes valued up to $750,000 or those purchasing new homes valued up to $600,000.


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