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

Rates and fees last updated on

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.

Back to top

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.

Back to top

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

Back to top

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.

Back to top

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.

Back to top

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.

Back to top

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:

Back to top

Compare home loans available in NSW

Rates last updated October 22nd, 2017
$
Loan purpose
Offset account
Loan type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.64%
3.66%
$0
$0 p.a.
80%
A basic home loan with a competitive rate and low fees.
3.65%
3.66%
$0
$0 p.a.
90%
Enjoy a low variable rate with no ongoing fees and borrow up to 90% of the value of the property.
3.64%
3.66%
$0
$0 p.a.
80%
A home loan with a competitive variable rate, limited fees and plenty of flexibility.
3.49%
4.47%
$0
$375 p.a.
90%
Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.
3.88%
4.89%
$0
$395 p.a.
95%
A fixed rate package with flexible repayment options. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.65%
4.84%
$0
$395 p.a.
90%
A 2 years fixed platinum package that has $0 application and a loan redraw facility.
3.74%
3.74%
$0
$0 p.a.
80%
Combine a low variable interest rate and free redraw with no application or ongoing fees.
3.69%
3.72%
$0
$0 p.a.
80%
A low rate home loan with no ongoing fees.
3.74%
3.74%
$0
$0 p.a.
80%
A basic owner-occupier home loan with a low variable rate that requires a 20% deposit.
3.72%
3.74%
$0
$0 p.a.
80%
Take advantage of a 100% offset account along with no annual or application fees.
3.73%
3.73%
$0
$0 p.a.
90%
A special limited time offer for owner occupiers. An IMB Transaction Account must be opened with this loan.
3.86%
3.87%
$0
$0 p.a.
80%
Pay no ongoing fees on a competitive variable rate home loan.
3.99%
4.02%
$600
$0 p.a.
90%
Take advantage of a 0.60% discount on your rate, a 100% offset account and no ongoing fees.
3.97%
4.02%
$445
$0 p.a.
90%
Get a competitive rate without features you may not use.
3.84%
3.84%
$0
$0 p.a.
110%
Requires a family member to act as guarantor. Discounted rate available with family pledge loans. Family pledge loans require no LMI and no deposit. NSW, Qld and ACT only.
3.58%
3.59%
$0
$0 p.a.
80%
A competitive variable rate product with low fees offered by a 100% online lender.
3.64%
3.64%
$0
$0 p.a.
70%
A basic low-rate home loan that still offers some useful features.
3.77%
3.81%
$200
$0 p.a.
95%
A basic home loan with a low interest rate and a redraw facility available.
3.65%
4.10%
$500
$0 p.a.
95%
Get a discounted fixed interest rate for the first 12 months while you settle into your new loan.
3.74%
3.75%
$0
$0 p.a.
80%
A special variable rate home loan with no application or ongoing fees.
3.74%
4.15%
$0
$395 p.a.
80%
Enjoy a discount of a competitive interest rate and 100% offset account.
3.97%
3.99%
$0
$0 p.a.
90%
A great interest rate home loan offer with unlimited redraw and unlimited extra payments.
3.96%
3.98%
$0
$0 p.a.
90%
Take advantage of a redraw facility, competitive variable rate and no application or settlement fees for a limited time.
3.74%
3.74%
$0
$0 p.a.
90%
A competitive variable rate with a redraw facility. NSW, QLD and ACT residents only.
3.97%
3.97%
$0
$0 p.a.
80%
A competitive variable rate home loan with no ongoing fees.
3.84%
4.83%
$0
$0 p.a.
95%
Get a competitive 2-year fixed rate with no application or ongoing fees.
3.72%
4.19%
$0
$0 p.a.
80%
Enjoy a variable 3 year introductory rate with the Bankwest Equaliser Home Loan.
3.64%
4.03%
$0
$395 p.a.
95%
Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.
4.09%
4.12%
$0
$0 p.a.
80%
Access the equity in your home with a competitive interest-only rate and no application fee.
3.99%
4.02%
$395
$0 p.a.
80%
A flexible low-rate variable home loan that lets you combine your loan with other financial products.
3.69%
4.45%
$0
$375 p.a.
90%
Discount off an already competitive 2 year fixed rate for loans over $150k. NSW,QLD and ACT residents only.
3.83%
3.83%
$0
$0 p.a.
70%
A special low variable rate for owner occupiers with 100% offset account and no application or ongoing fees.
3.89%
3.91%
$0
$0 p.a.
80%
Package your owner-occupied loan with your investment loan and enjoy low rates for both.
3.79%
3.92%
$0
$10 monthly ($120 p.a.)
80%
A competitive variable rate home loan with flexible features. You can earn 30,000 Velocity Points for every $100k you borrow (for a limited time, subject to eligibility requirements).
4.09%
4.11%
$0
$0 p.a.
80%
A low variable rate loan with no application or ongoing fees.
4.19%
4.19%
$0
$0 p.a.
90%
100% offset account, unrestricted additional repayments and no monthly account keeping fees
3.69%
4.00%
$0
$350 p.a.
95%
Fix your rate for 3 years and borrow up to 95% LVR.
3.99%
4.77%
$0
$0 p.a.
95%
A competitive 3 year fixed rate with a redraw facility and split loan options, plus no application fee.
3.94%
4.88%
$0
$0 p.a.
95%
Enjoy a low interest rate and borrow up to 95% (with LMI) of your property's value.
4.33%
4.33%
$363
$0 p.a.
70%
A variable home loan with $0 annual or monthly fees.
3.80%
3.81%
$0
$0 p.a.
95%
A no frills loan with a competitive rate and a maximum LVR of 95%.
4.03%
4.07%
$0
$0 p.a.
95%
Enjoy a basic home loan with a high LVR and no application or ongoing fees.
3.88%
4.47%
$0
$0 p.a.
95%
This competitive introductory rate is a limited time offer for new owner-occupiers
3.68%
3.69%
$600
$0 p.a.
90%
Get a low variable rate along with some important basic features.
3.79%
3.79%
$0
$0 p.a.
80%
Minimum loan amount for this basic home loan is $750001.
4.39%
5.42%
$300
$10 monthly ($120 p.a.)
95%
Lock in a fixed interest rate term for repayment certainty.
3.69%
4.03%
$0
$299 p.a.
80%
Enjoy a low variable rate with no application fee.
3.99%
4.99%
$0
$395 p.a.
95%
A package home loan with fee free extra repayments available during the fixed term.
3.85%
4.95%
$0
$395 p.a.
95%
A discounted package rate for owner occupiers with the ability to package a Qantas rewards earning Amplify credit card. $1,500 cashback available for refinancers. Conditions apply.
3.88%
4.88%
$0
$395 p.a.
95%
Lock in a discounted fixed rate with a low service fee.

Have we missed anything in the comparison table? Tell us

Compare up to 4 providers

Back to top
Was this content helpful to you? No  Yes

Related Posts

Bank Australia Basic Home Loan - Variable (Owner Occupier)

Pay no ongoing fees on a competitive variable rate home loan.

NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier P&I)

A fixed rate package with flexible repayment options. 350K NAB Rewards Points offer available. Terms and conditions apply.

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤90% ($150K+ Owner Occupier)

Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.

IMB Budget Home Loan - LVR <=90% (Owner Occupier, P&I)

Get a competitive rate without features you may not use.

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, read the PDS or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question