Everything you need to know about getting a home loan and buying a property in NSW

Rates and Fees verified correct on December 11th, 2016

Home Loans NSWThinking of taking out a home loan to purchase property in New South Wales? Here’s what you need to know to be a savvy mortgage holder and property owner.

Given that the rules and regulations of property ownership are governed at state level, it’s tricky to know precisely what applies to you. When it comes to the first home owner grant (FHOG), stamp duty and property ownership, find out exactly what you need to know if your property is based in New South Wales (NSW).

If you’re a first home buyer, you may be entitled to one of the NSW government's first home buyer grants or concessions, and you may need to understand how property and land ownership is managed in your state.

We’ve broken it down to a state level (as it should be), to help you quickly identify the information that applies to you.

Compare brokers and home loans in NSW

The first home owner grant (FHOG) in NSW

Under the FHOG in NSW, there are several schemes which have been developed to help first home buyers get into the property market sooner: The First Home-New Home Scheme, the First Home Owner Grant (New Homes) Scheme, and the New Home Grant Scheme.

First Home - New Home Scheme

The First Home - New Home Scheme commenced from 1 January 2012. The scheme offers eligible buyers exemptions or concessions on transfer duty. This includes an exemption from stamp duty for new homes valued up to $500,000 and concessions on duty for new homes valued between $500,000 and $600,000.

New home

If you want to estimate the duty concession on a new home valued between $500,000 and $600,000, take the purchase price and multiply it by 0.2249 and then subtract $112,450.

Find out what duty concessions are available for new homes under this scheme

Vacant land

The First Home-New Home Scheme also provides a duty exemption on vacant land valued between $350,000 and $450,000.

To calculate the concession on vacant land, take the purchase price and multiply it by 0.1049 and then subtract $31,470.

Find out what duty concessions are available for vacant land under this scheme

First Home Owner Grant (New Homes) Scheme

The NSW First Home Owner Grant (New Homes) scheme provides a grant to eligible first home owners to help them buy a new home or to assist them with building a new home.

For eligible transactions made on or after 1 January 2016, the grant is $10,000.

For eligible transactions made between 1 October 2012 and 31 December 2015, the grant offered was $15,000.

To find out if you’re eligible for the FHOG, please check out our complete FHOG guide.

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Other grants

New Home Grant Scheme

The NSW New Home Grant Scheme was introduced on 1 July 2012 to encourage eligible purchasers to construct new homes. It provides a $5,000 grant for the purchase of a new home, an off-the-plan home or vacant land on which a new home is constructed.

The terms of the New Home Grant scheme depend on whether you entered into the agreement on or before 30 June 2014 or on or after 1 July, 2014.

The New Home Grant Scheme is not compatible with the First Home Owner Grant (New Homes) Scheme.

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Stamp duty in NSW

If you own property in NSW, it’s worth understanding how stamp duty works.

The NSW State Office of Revenue states that transfer of land is a duty in NSW on the following transactions:

  • A sale or transfer of land
  • A sale or transfer of business assets
  • A declaration of trust over dutiable property

Stamp duty is calculated on the total dutiable value of the property and generally the purchaser of the property or the transferee is liable to pay the duty.

Learn more about how stamp duty is calculated and view the current rates and thresholds on our NSW stamp duty page

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NSW property and land ownership

If you own property in NSW, you can access the ownership records governed by Land and Property Information (LPI) under the Torrens title system.

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Changing property ownership

How to add a partner's name to the title

If you’d like to include your partner’s name on the title or transfer property ownership, you should notify your lender before you complete any paperwork. Your lender can lodge the documents and the Certificate of Title on your behalf after you have completed the Transfer Form and had it approved by the State Office of Revenue (OSR).

Once you’ve obtained approval from your lender, you’ll need to access and complete a transfer form from the LPI website under "Land title dealing forms".

You’ll then need to complete and submit a Notice of Sale (NOS) form and access your Certificate of Title.

For more information about how to include a partner’s name on your property title, view our NSW property and land ownership article.

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Buying NSW property: Cooling-off period

When you purchase residential property in NSW, there's a critical stage that happens after the exchange of contracts which is known as the cooling-off period.

In NSW, the cooling-off period is five business days. During this time, you can get out of the contract as long as you provide written notice to the vendor. If you decide to cancel the contract during the cooling off period, you will incur a 0.25% penalty of the sale price of the property. For example, if the property sells at $500,000, you would forfeit $1,250 (which would be paid to the seller).

If you want to back out of the contract after the cooling-off period has expired, it could be expensive. Your contract will include details about the penalties imposed if you decide to do this. You may need to pay default penalties and compensate the seller for any losses they have encountered as a result of your actions.

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Need a mortgage broker in NSW?

If you need help comparing home loans, find a local mortgage broker near you to discuss your borrowing options. A licensed broker has expert knowledge of the home loan industry and can recommend home loans that are suitable to you. They can draw upon their panel of lenders to find one that’s likely to review your application and they can even negotiate for a better deal on your behalf.

Remember that brokers generally offer their services free of charge so it’s worth speaking to one to help find a home loan that’s right for you.

Local area/mortgage broker guides

We've written a number of guides which lists the local brokers as well as information about an area. You can read them below:

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Compare home loans available in NSW

Rates last updated December 11th, 2016.

CUA Kick Start Variable Home Loan - 2 Years Introductory (Owner Occupier)

Comparative rate decreases by 0.03%

November 29th, 2016

UBank UHomeLoan Variable Rate - Standard Variable Rate (Investor with Investor Extra Offer P&I)

Comparative rate decreases by 0.10% | Interest rate decreases by 0.10%

December 2nd, 2016

UBank UHomeLoan Variable Rate - Standard Variable Rate Value Offer (Owner Occupier P&I)

Comparative rate increases by 0.10% | Interest rate increases by 0.10%

December 2nd, 2016

View latest updates

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Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
3.74% 3.74% $0 $0 p.a. 80% Go to site More info
HSBC Home Value Loan - Resident Owner Occupier only
Enjoy the low variable rate with $0 ongoing fee and borrow up to 90% LVR.
3.55% 3.57% $0 $0 p.a. 90% Go to site More info
loans.com.au Essentials - Variable Refinancers Only (Owner Occupier, P&I)
A low-interest rate loan suited for refinancing with no application or ongoing fees.
3.59% 3.61% $0 $0 p.a. 80% Go to site More info
Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed ($150K+ Owner Occupier)
Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.
3.59% 4.42% $0 $375 p.a. 85% Go to site More info
ANZ Breakfree Package Home Loan - 2 Year Fixed (Owner Occupier) $150k+
This 2 year fixed ANZ Breakfree Package rate comes with package discount and product bundle. Terms and conditions, package fee and fees, charges & eligibility criteria apply.
3.75% 4.62% $0 $395 p.a. 95% Go to site More info
ClickLoans The Online Home Loan - Owner Occupier ≤ 80% LVR
Enjoy a competitive interest rate when you have a deposit of at least 20%.
3.69% 3.69% $0 $0 p.a. 80% Go to site More info
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)
A fixed rate package loan with flexible repayments options. 250,000 Velocity Frequent Flyer point offer, conditions apply.
3.75% 4.87% $0 $395 p.a. 95% Go to site More info
Bank Australia Basic Home Loan - Variable (Owner Occupier)
A competitive variable that allows borrowers to borrow from a minimum of $100,000 and $0 ongoing fee.
3.59% 3.60% $0 $0 p.a. 80% Go to site More info
CUA Kick Start Variable Home Loan - 2 Years Introductory (Owner Occupier)
Borrow up to 90% LVR and enjoy an introductory rate for the first 2 years.
3.69% 3.87% $600 $0 p.a. 90% Go to site More info
State Custodians Standard Variable Spring Special - LVR 80% (Owner Occupier)
Special Owner Occupier Rate. Free Offset Account.
3.59% 3.92% $0 $299 p.a. 80% Go to site More info
Australian Unity Kick Starter Home Loan
$0 ongoing service fees, maximum 80% LVR and a linked transaction account.
3.79% 3.82% $600 $0 p.a. 80% Go to site More info
ME Bank Flexible Home Loan Fixed - 3 Year Fixed Rate (Owner Occupier)
A competitive 3 year fixed rate with a redraw facility and split loan options, plus no application fee.
3.84% 4.66% $0 $0 p.a. 95% Go to site More info
Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier)
Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.
3.74% 4.12% $0 $395 p.a. 95% Go to site More info
IMB Budget Home Loan - LVR <=90% (Owner Occupier)
A competitive budget rate without any unwanted bells and whistles.
3.87% 3.92% $445 $0 p.a. 90% Go to site More info
Switzer Home Loan
No upfront or ongoing fees and a competitive variable rate for owner occupiers.
3.89% 3.89% $0 $0 p.a. 90% Go to site More info
State Custodians Standard Variable Spring Special - LVR 90% (Owner Occupier)
Special Owner Occupier Rate. Free Offset Account.
3.69% 4.02% $0 $299 p.a. 90% Go to site More info
3.94% 4.33% $0 $395 p.a. 90% Go to site More info
Greater Bank Ultimate Home Loan - Discounted Variable ($150K+ Owner Occupier)
A discounted rate with 100% offset account. NSW, QLD and ACT residents only.
3.89% 4.27% $0 $375 p.a. 85% Go to site More info
Bank Australia Premium Home Loan Package - 2 Year Fixed (Owner Occupier) LVR < 80%
Buy a new home even if you haven't yet sold your existing one with the bankmecu Bridging Loan
3.69% 4.24% $0 $350 p.a. 95% Go to site More info
IMB Accelerator Home Loan  - LVR <=80% $300k+ (Owner Occupier)
A two year discounted rate which reverts to an ongoing life of loan discount afterwards.
3.64% 4.39% $445 $0 p.a. 80% Go to site More info
Greater Bank Great Rate Home Loan - Discounted Variable ($150K+ Owner Occupier)
A competitive rate with redraw facility. NSW, QLD and ACT residents only.
3.89% 3.89% $0 $0 p.a. 85% Go to site More info
ClickLoans The Online Investor Home Loan - LVR <70%
An investment home loan with competitive rate and 100% offset account.
3.79% 3.79% $0 $0 p.a. 70% Go to site More info
Greater Bank Ultimate Home Loan - Discounted 2 Year Fixed ($150K+ Owner Occupier)
Discount off an already competitive 2 year fixed rate for loans over $150k. NSW,QLD and ACT residents only.
3.74% 4.40% $0 $375 p.a. 85% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Years Fixed (Owner Occupier)
Enjoy a low interest rate and borrow up to 95% (with LMI) of your home value.
3.99% 4.81% $0 $0 p.a. 95% Go to site More info
AMP Essential Home Loan  -  Owner Occupier
Take advantage of a redraw facility, competitive variable rate and no application or settlement fees for a limited time.
3.98% 4.00% $350 $0 p.a. 90% Go to site More info
Bank Australia Premium Home Loan Package - LVR<=80% $700k + (Owner Occupier)
Enjoy the discounted interest rate with redraw facility and no ongoing fees.
3.74% 4.09% $0 $350 p.a. 95% Go to site More info
Beyond Bank Low Rate Special Home Loan
A special low variable rate for Owner Occupier with 100% offset account and no application or ongoing fees.
3.73% 3.73% $0 $0 p.a. 70% Go to site More info
Switzer Fixed Rate Home Loans - 2 Years Fixed Rate
A competitive 2 year fixed rate with your very own lending service manager.
3.97% 3.99% $0 $0 p.a. 80% Go to site More info
Australian Unity Health, Wealth and Happiness Package - (Owner Occupier)
Get a 0.60% discount on your rate, a 100% offset account and no ongoing fees.
3.99% 4.02% $600 $0 p.a. 90% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 1 Year Fixed (Owner Occupier)
Get a short term fixed rate for that investment property with no application or ongoing fees.
3.99% 4.90% $0 $0 p.a. 95% Go to site More info
CUA Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier)
A fixed home loan with no ongoing fees and flexible repayments options.
3.69% 4.56% $600 $0 p.a. 95% Go to site More info
loans.com.au Fixed - 2 Year Fixed (Owner Occupier)
Another low interest rate offer from loans.com.au. No application fee to pay.
3.89% 3.72% $0 $0 p.a. 90% Go to site More info
3.89% 3.89% $0 $0 p.a. 80% Go to site More info
Switzer Investment Loan
An investment loan with no application or ongoing fees, and your very own lending service manager.
4.09% 4.09% $0 $0 p.a. 80% Go to site More info
IMB Essential Home Loan - LVR < 80% (Owner Occupier)
100% offset account, unrestricted additional repayments and no monthly account keeping fees
4.09% 4.09% $0 $0 p.a. 80% Go to site More info
ME Bank Flexible Home Loan Fixed - 2 Year Fixed Rate (Owner Occupier)
No application or ongoing fees and a competitive 2 year fixed rate.
3.84% 4.75% $0 $0 p.a. 95% Go to site More info
NAB Base Variable Rate Home Loan - Owner Occupier (P&I)
A competitive no frills home loan with no application fees for a limited time. 250,000 Velocity Frequent Flyer point offer, conditions apply.
4.10% 4.14% $0 $0 p.a. 95% Go to site More info
Commonwealth Bank Wealth Package Fixed Home Loan - 2 Year Fixed (Owner Occupier)
Fee free extra repayments available during the fixed term. $1,250 cash back offer for refinancers. Conditions apply.
3.99% 5.00% $0 $395 p.a. 95% More info
Suncorp Home Package Plus Fixed - 3 Year Fixed Rate (Special Offer $150k+ LVR <=90% Owner Occupier)
Lock in a special offer rate for 3 years for loans over $150k with LVR below 90%.
3.64% 4.26% $0 $375 p.a. 90% More info
St.George Fixed Rate Advantage Package -  2 Year Fixed Rate (Owner Occupier)
A discounted package rate for owner occupiers with the ability to package a Qantas rewards earning Amplify credit card. $1,500 cash back available for refinancers, conditions apply.
3.99% 5.07% $0 $395 p.a. 95% More info
Westpac Fixed Options Home Loan Premier Advantage Package - 2 Years
A low interest rate home loan and competitive two year fixed rate.
3.99% 4.97% $0 $395 p.a. 95% More info
St.George Basic Home Loan - Promotional Rate (Owner Occupier, P&I)
A no frills loan with a competitive rate and a maximum LVR of 95%.
4.08% 4.09% $0 $0 p.a. 95% More info
Westpac Flexi First Option Home Loan - 3 Years Introductory Special Offer (New Owner Occupier, P&I)
A limited time deal for new owner occupiers. Advertised rate includes 1.03%p.a. discount for the first two years.
3.99% 4.37% $0 $0 p.a. 95% More info
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Related Posts

HSBC Home Value Loan - Resident Owner Occupier only

Enjoy the low variable rate with $0 ongoing fee and borrow up to 90% LVR.

ME Bank Basic Home Loan - LVR <=80% Owner Occupier

A low variable rate loan with no application or ongoing fees.

NAB Choice Package Home Loan - 3 Year Fixed (Owner Occupier)

Receive discounts on interest rates with the Choice Package. 250,000 Velocity Frequent Flyer point offer, conditions apply.

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