Building a house in NSW.
Helpful Information for buyers
7 Star Basix and how to comply.
When building a house in NSW, you will need to ensure your new home complies with the BASIX standards.
BASIX stands for Building Sustainability Index and was introduced in NSW in 2004 as the mandatory standards to achieve reductions in water and energy consumption and greenhouse gas emissions. It’s an important part of the development application process and it’s up to your builder to provide a BASIX certificate to outline their methods for meeting the minimum requirements.
In October 2023 the NSW government increased the minimum rating from 5.5 stars to 7 stars in a bid to meet Australia’s goal to achieve zero-carbon-ready buildings by 2050.
In this article, we’ll cover what is needed to reach BASIX 7 Star compliance to help you continue navigating the compliance process with ease.
Helpful tips for your Home Loan Application.
The first step before building a house in NSW is to determine your budget and lending capacity. Whether it’s your first or fourth home, affordability is your main consideration.
We’ve created this general guide to help you get started but not all the information may be relevant to you. If you haven’t already done so, we recommend consulting a professional such as your lender, financial advisor or mortgage broker to get the right information for your situation.
Government Grants.
For Building a House in NSW
From time to time, the NSW and Federal Government offers financial incentives to assist home buyers in purchasing or building new homes.
As of April 2025, New South Wales (NSW) offers several programs to assist first-time homebuyers. Here's an overview:
- First Home Owner Grant (FHOG)
- Buyers Assistance Scheme (FHBAS)
- The Home Guarantee Scheme (FGS)
- First Home Super Saver Scheme (FHSSS)
Government Grants.
For Building a House in NSW
From time to time, the NSW and Federal Government offers financial incentives to assist home buyers in purchasing or building new homes.
As of November, 2024 the government grants available to home buyers are:
- First Home Owner Grant (FHOG)
- Buyers Assistance Scheme (FHBAS)
- The Home Guarantee Scheme (FGS)
- First Home Super Saver Scheme (FHSSS)
First Home Owner Grant (FHOG).
The FHOG was first introduced in 2000 to offset the effect of the GST on home ownership. to help first-time homeowners cover some of the costs associated with buying property in New South Wales.
It consists of a $10,000 contribution towards the cost of your new home or vacant land under $600,000 or for a house and land package under $750,000.
To be eligible for the FHOG, applicants need to be:
- 18 years or over.
- An Australian citizen or a permanent resident of Australia.
- Purchasing your first home.
- Buying or building a house in NSW.
- Move into the property within a year of buying and live there for at least 12 months.
- The grant is not available on investment properties, or properties purchased through a trust or company.
Find more information about the grant and how to apply for it by clicking the button. Your lender may also provide you with further information and make the application on your behalf. Contact your mortgage broker for more information.
First Home Buyers Assistance Scheme (FHBAS).
The FHBAS allows eligible first home buyers purchasing an existing property for $800,000 or less a 100% exemption from transfer duty. Those who buy a property worth between $800,000 and $1 million will pay a reduced rate. The amount payable depends on the value of the property.
If you buy vacant land to build a house on, there will be no transfer duty if it costs $350,000 or less. For vacant land valued between $350,000 and $450,000 a reduced transfer duty rate applies.
To be eligible for the program, you must be:
- 18 years or over.
- An Australian citizen or a permanent resident of Australia.
- Purchasing your first home in Australia.
- Planning to live in the home for 12 months.
You can find more information about the scheme and how to apply for it by clicking the button. Your mortgage broker may also be able to assist with the application so you should contact them for further information.
Home Guarantee Scheme.
The Home Guarantee Scheme (HGS) is an Australian Government initiative to support eligible home buyers to buy a home sooner. The Scheme is administered by Housing Australia on behalf of the Australian Government.
The Scheme includes three types of Guarantees:
- First Home Guarantee (FHBG) – supporting eligible home buyers to buy a home sooner, with a deposit as little as 5%. For FY2024-25, 35,000 places are available.
- Regional First Home Buyer Guarantee (RFHBG) - supporting eligible regional home buyers to buy a home sooner, in a regional area, with a deposit as little as 5%. For FY2024-25, 10,000 places are available.
- Family Home Guarantee (FHG) – supporting eligible single parents and eligible single legal guardians of at least one dependent to buy a home sooner, with a deposit as little as 2%. For FY2024-25, 5,000 places are available.
There is very specific criteria for these schemes such as your family situation, location and income thresholds as well as price caps on the cost of the new home.
Eligible home buyers can apply for a loan through a Participating Lender who has been authorised by Housing Australia to participate in the HGS.
Housing Australia provides a Guarantee to the Participating Lender of up to 15% of the value of a home loan under the First Home Guarantee or the Regional First Home Buyer Guarantee; and up to 18% under the Family Home Guarantee. This enables the home buyer to buy a home without paying Lenders Mortgage Insurance. The Guarantee is not a cash payment or a deposit for a home loan.
Contact your mortgage broker for more information.
First Home Super Saver Scheme (FHSSS).
The first home super saver (FHSS) scheme allows you to make personal voluntary contributions into your super fund to help you save for your first home.
You can withdraw up to $15,000 of your voluntary contributions from any one financial year, up to a total of $50,000 across multiple years, plus associated earnings.
You don't need to be an Australian citizen or Australian resident for tax purposes to use the FHSS scheme.
To use this scheme, you must satisfy all the following conditions:
- You're 18 years old or older when requesting a FHSS determination. Your FHSS determination can include eligible contributions that were made before you turned 18.
- You're a first home buyer, having never owned property in Australia – this includes an investment property, vacant land, commercial property, a lease of land, or a company title interest in land.
- Your name must be on the title of the property you buy.
- You don't have a completed release request in relation to a FHSS determination made in relation to you.
If you've previously owned property, you may still qualify if we determine that you've suffered a FHSS financial hardship.
Progress payment schedule
tender request (initial deposit) $1500
- This is where the journey to your new home begins.
- With your concept plan provided by your sales consultant, we will conduct a site inspection, contour survey and soil testing to prepare your new home tender.
tender acceptance $3500
- During your tender presentation meeting we will confirm your site costs, review your plans and tender.
- At this stage, you still have the opportunity to make any structural changes to your plans if needed.
- Once you accept the tender, a tender acceptance fee of $3500 is required and we can progress to the contract stage.
(The above is deducted from the overall contract price)
building contract (construction deposit) 10% of contract build price
- The acceptance of your new home tender allows us to progress to the building contract.
- At this stage we will prepare architectural plans of your new home and get your building contract ready.
- Alongside your building contract, we will include your contract tender, contract plans, promotions and inclusions packages.
- Once you have reviewed and signed your building contract, a 10% deposit is required, and then we can fialise your plans for lodgement and commence construction on site.
| Stage | Percentage |
|---|---|
|
1. Construction Deposit |
10% |
|
2. Concrete slab |
15% |
|
3. Frame & roof trusses |
20% |
|
4. Enclosed |
25% |
|
5. Fixing |
20% |
|
6. Practical completion |
10% |
Progress payment schedule
tender request (initial deposit) $1500
- This is where the journey to your new home begins.
- With your concept plan provided by your sales consultant, we will conduct a site inspection, contour survey and soil testing to prepare your new home tender.
tender acceptance $3500
- During your tender presentation meeting we will confirm your site costs, review your plans and tender.
- At this stage, you still have the opportunity to make any structural changes to your plans if needed.
- Once you accept the tender, a tender acceptance fee of $3500 is required and we can progress to the contract stage.
(The above is deducted from the overall contract price)
building contract (construction deposit) 10% of contract build price
- The acceptance of your new home tender allows us to progress to the building contract.
- At this stage we will prepare architectural plans of your new home and get your building contract ready.
- Alongside your building contract, we will include your contract tender, contract plans, promotions and inclusions packages.
- Once you have reviewed and signed your building contract, a 10% deposit is required, and then we can finalise your plans for lodgement and commence construction on site.
| Stage | Percentage |
|---|---|
|
1. Construction deposit |
10% |
|
2. Concrete slab |
15% |
|
3. Frame & roof trusses |
20% |
|
4. Enclosed |
25% |
|
5. Fixing |
20% |
|
6. Practical completion |
10% |
Building a House in NSW
How to get started.
Once you have decided you want to purchase land and build a brand new home, the first step is to contact a mortgage broker to assess your borrowing capacity. It’s a good idea to ask your broker about all the grants and schemes available to you and assess your ability before going any further with your plans. There are price caps on many of the schemes so you may need to find the right home our house and land palcge to fit into those parameters.
Our Candor Homes sales consultants can then assist in finding the perfect design to suit your property and your budget, or create a custom design that’s just right for you.
Building a House in NSW
How to get started.
Once you have decided you want to purchase land and build a brand new home, the first step is to contact a mortgage broker to assess your borrowing capacity. It’s a good idea to ask your broker about all the grants and schemes available to you and assess your ability before going any further with your plans. There are price caps on many of the schemes so you may need to find the right home our house and land palcge to fit into those parameters.
Our Candor Homes sales consultants can then assist in finding the perfect design to suit your property and your budget, or create a custom design that’s just right for you.
Glossary of building terms.
Glossary of
building terms.
Details showing any restrictions applicable to the block of land – i.e. easement.
This is a trench designed to hold stormwater. Some Councils specify the requirement of an absorption trench and this will form part of your Hydraulic design.
This is the name given to soils that contain iron sulphides. Additional measures are required to ensure the structural integrity of your home. The classification is 1,2, 3, 4 or 5.
Some Councils will require a report from an Acoustic Engineer to accompany your Development Application. Additional measures may be required to comply with an internal noise level (L10) of 50DA(A) for busy urban areas.
The architectural requirement to alleviate flat faces (long straight walls).
A vertical gap between panels of brick wall that allows for movement in the framework or footings. It prevents the build-up of pressure and cracking of the wall
Refers to the detailed assessment of the sustainability of your new home. Some Councils require this as part of your Development Submission.
A more detailed survey where levels are calculated from the average of many tide gauges on the East Coast of Australia (sea level).
Letter issued from the relevant lending authority confirming all documents have been signed and received, the loan has been settled and construction may commence.
Is an assessment which must be completed on your new dwelling to assess its energy and water efficiency.
The Site has been prepared with level platforms in preparation for construction of your slab.
Three holes drilled into the surface of your block to provide additional information on the soil type.
The proposed development will be partially or wholly constructed within the zone of influence (close to) the sewer. Additional measures are required to protect the water authorities’ asset of the sewer.
The proposed development will be constructed over the top of the sewer. Additional measures are required to protect the water authorities’ asset of the sewer.
Is the rating used to determine the risk of your property from bush-fire. The rating will determine which additional measures are required to reduce the risk of your home in the event of a fire. The rating is measured as BAL (Bushfire Attack Level) 12.5, 19, 29, 40.
An alternative method to DA approval, where council is not involved in the approval process. Approval is obtained through the certifying authority. CDC requires 100% compliance with relevant regulations.
A Construction Certificate (CC) is required prior to construction commencing on site. It can only be obtained once DA approval is received. Candor Homes obtains the Construction Certificate through the certifying authority.
A survey completed to illustrate the levels/slope of your block to assist in the siting of your new home.
This is a formal contract binding Candor Homes and yourself to proceed with the construction of your new home.
The portion of land owned by Council between the road and the front boundary of your property.
Describes the movement of soil over your block as required to provide a level platform to construct your new home on.
Certificate provided by the demolition company to confirm that the site is free of hazardous material and safe to commence work.
Application to build the house obtained through Council.
Additional costs required to unload and store materials on tight sites.
The flatter portion of your kerb, between the road and your driveway. The location of the layback is determined by the developer/council and may require relocation to suit your house design.
If you want to build your new home on a slope you may need to have the additional cost of drop edge beams to contain the fill on the low side of the slab (instead of using a retaining wall that is away from your home). These are a type of retaining wall that hold the fill under the house slab as shown in the drawing below.
The right of use to a section of your property by another party.
The EER is a rating of the thermal performance of the building shell. It is designed to provide accurate and standardised information about building energy efficiency (excluding the hot water and lighting system, other fixed or movable appliances and occupant requirements for temperature control).
Efficient thermal performance means that a house achieves a comfortable temperature for the occupants for the time they are in the house with minimal energy input from fossil fuel or other unsustainable or polluting sources.
Rules which have been created by the developer on the estate to guide the development within that specific area to ensure a high standard of design and consistency.
When you live within the vicinity of breaking surf, your property is prone to corrosion. Therefore, additional measures are required to ensure the structural integrity of your home.
The level to the top of the slab.
The excavated level on which we intend to build on.
Flood levels are a determination of the levels of floods which have been recorded over the past. These levels help determine if your block is likely to be affected by flood waters and the depth of these waters. Flood levels are determined by the occurrence in years ie. (1:5) one in five years, (1:20) one in 20 years to a maximum of (1:100) one in 100 years.
The ratio of the building’s living area over the size of the site.
Provides critical and vital information about the soil and geological conditions of the site for the owner, architect, design engineer, and the contractor to use and evaluate.
An industry association for members of the residential building sector.
A design completed by a Hydraulic Engineer to deal with the collection, disbursement and use of storm water on your property, dependant on: water collection area, volume of water, council’s requirements and site constraints.
A certificate provided by the PCA when all critical stage inspections have been completed and the house is able to be occupied however there may be a few minor outstanding items required to be completed prior to the issue of the Occupation Certificate e.g. Landscaping.
Certificate from the land titles office showing the name of the person that owns the land.
The percentage of the site which is designated to soft landscaping.
A levy applied by the state government to building and construction works costing more than $25,000. This levy is paid by Candor Homes as part of your Development Submission.
When building in an area affected by underground mining, a Geotechnical Engineer must complete an independent inspection. Conditions may be imposed and additional measures required to comply with the Mine Subsidence Board including but not limited to the type of building materials used, use of control joints, additional footings, a maximum height of foundation brickwork.
A uniform set of technical provisions for the design and construction of buildings throughout Australia.
A survey that is completed prior to site start. Pegs will be placed on your land with 1 to 3 metres offsets to show the position of your home.
Concrete or metal supports dug into the ground to provide a solid foundation for your slab.
This is a document that shows any changes that have been made after the contract has been done and signed.
Water safe enough to be consumed by humans.
Private Certifiers complete the Construction Certificate and have been appointed to complete inspections during construction to ensure Candor Homes is in compliance with the National Construction Code and Council Conditions.
The private area of the site designed for recreation of the residents.
Only required if self funded or partially funding the loan yourself. A bank statement or letter from the bank noting client’s name, account number and the balance of the account covering the shortfall or contract amount.
Estimate added to the tender for costing that is unknown until further information received in order to fix quotes.
A planted pit which allows the rainwater runoff to be absorbed into the ground, reducing the runoff to storm water drains and surface water. Some Councils specify the use of a rain garden.
An additional survey which may be required to fully define all of the subject boundaries of the property.
Measurement which appears on your survey and is used to illustrate levels on the land. The height above or below a datum.
Is the application of a premixed cement or acrylic finish over brick-work which is to be painted.
Information received from Council showing any additional requirements to the land. This is read in conjunction with the 88b, and will determine whether the land is bushfire prone for example.
Are fees which may be applied by council on a new development within their Council area. These fees are used to help fund local infrastructure e.g. parks. Please note that S94 contributions are the responsibility of the owner.
Some blocks may have salt present in the soil. Salt can erode and disintegrate the piers and slab over time. Therefore in order to ensure the structural integrity of your home a stronger concrete strength needs to be used.
The required distance between your dwelling and the boundaries of the property.
A survey required if the exact location (depth and position from house and boundary) of your sewer is unclear. This may be as a result of the land being newly registered and therefore not gazetted in the Water Authorities database or in an established area where it is unclear of the location of the sewer running through the property. In some instances we are able to avoid this cost if you can obtain a copy of the Works as Executed (WAE) or Works as Constructed (WAC) plans from your developer.
The percentage of the site which is actually covered by the building.
Is the determination of the type of soil on your block. This classification is used to determine strength of the slab required for your new home. This strength is measured as M, H1, H2 or E.
Unused soil/debris removed from the site.
A statement which we will prepare as part of your Development Application. This addresses an environmental assessment, and identifies the planning and environmental information specific to your proposed development and site.
Formal offer, quotation and outline of items required to construct your home on your block (not a contract, but will form part of a contract).
Black and yellow synthetic tubes which highlight the wires and are clipped over powerlines to make persons aware and avoid injury due to accidental contact with live lines. This is a WH&S requirement.
Additional costs associated with the safe movement of motorists and pedestrians around the worksite. Required on busy roads or where pedestrian traffic is at a high rate.
A TPO is a permit to remove trees which is required to be lodged to Council if any trees need to be removed in order to apply for CDC approval. This may also be required for any trees the client wishes to remove that are not within 3m of the proposed dwelling.
A space saving rainwater tank which is installed underneath the surface of your yard, thereby not taking up any usable space in your yard. Some councils specify the use of the underground system and this will form part of your Hydraulic Design.
An independent assessor who is accredited and qualified to approve the design for construction of your home adjacent to or over the sewer on behalf of the Water Authority.
The rating of wind gust speeds typically located on ocean cliffs or on top of hills with no surrounding trees. The rating used is N1, N2, N3 & N4.
A very strict legislation which we must adhere to. This is to ensure the safety of anyone who has access to our worksites.
A zone of influence is an area either side of a buried pipe where it is considered that a structure may impose a load through the ground on to the pipe, or where settlement or excavation of the sewer or water trench may cause damage to a structure.