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

Rates and Fees verified correct on May 25th, 2017

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

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Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier Special Rate, P&I)
A limited time 2 year fixed rate for owner occupiers. Conditions apply.
3.64% 4.83% $0 $0 p.a. 95% Go to site More info
loans.com.au Essentials - Variable (Owner Occupier, P&I)
A low-interest rate loan suited for purchases and refinances with no application or ongoing fees.
3.64% 3.66% $0 $0 p.a. 80% Go to site More info
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.
3.75% 3.77% $0 $0 p.a. 90% Go to site More info
Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤85% ($150K+ Owner Occupier)
Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.
3.59% 4.48% $0 $375 p.a. 85% Go to site More info
loans.com.au Offset Variable - Up to 80% LVR (Owner Occupier P&I)
Take advantage a 100% offset account along with no annual or application fee.
3.72% 3.74% $0 $0 p.a. 80% Go to site More info
3.69% 3.72% $0 $0 p.a. 80% 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.
3.82% 4.17% $0 $350 p.a. 80% Go to site More info
IMB Budget Home Loan - Special LVR <=80% (Owner Occupier and Principal & Interest only)
A special limited time offer for owner occupiers. An IMB Transaction Account must be opened with this loan.
3.84% 3.89% $445 $0 p.a. 80% Go to site More info
Beyond Bank Low Rate Special Home Loan
A special low variable rate for owner occupiers with 100% offset account and no application or ongoing fees.
3.83% 3.83% $0 $0 p.a. 70% Go to site More info
Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier, P&I)
Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.
3.84% 4.22% $0 $395 p.a. 95% Go to site More info
State Custodians Low Rate LOC - LVR up to 80% (Owner Occupier)
No application fee and competitive interest rate to access the equity in your home.
3.69% 3.72% $0 $0 p.a. 80% Go to site More info
3.59% 4.03% $500 $0 p.a. 95% Go to site More info
Community First Fixed Home Loan - 3 Years Fixed Owner Occupier special offer (New Loans only)
A limited time fixed rate special with no monthly or annual fees plus a 100% offset account.
3.69% 4.93% $600 $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.
3.84% 4.71% $600 $0 p.a. 95% 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
Bank Australia Basic Home Loan - Variable (Owner Occupier)
A competitive variable that allows borrowers to borrow a minimum of $100,000 with a $0 ongoing fee.
3.86% 3.90% $595 $0 p.a. 80% Go to site More info
IMB Budget Home Loan - LVR <=90% (Owner Occupier)
A competitive budget rate without any unwanted bells and whistles.
3.97% 4.02% $445 $0 p.a. 90% Go to site More info
3.92% 4.35% $0 $395 p.a. 90% Go to site More info
3.94% 4.41% $0 $395 p.a. 90% Go to site More info
State Custodians Low Rate LOC - LVR 80% to 90% (Owner Occupier)
Borrow up to 90% property value and pay no application fee.
3.79% 3.82% $0 $0 p.a. 90% Go to site More info
Greater Bank Great Rate Discount Variable with Family Pledge Home Loan - Up to 110% LVR
Discounted rate available with family pledge loans. Family pledge loans require no LMI and no deposit. NSW, Qld and ACT only.
3.89% 3.89% $0 $0 p.a. 110% Go to site More info
Bankwest Equaliser Home Loan - $200k+ LVR ≤80% (Owner Occupier, new customers only)
Enjoy a variable 3 year introductory rate with Bankwest Equaliser Home Loan.
3.79% 4.20% $0 $0 p.a. 80% Go to site More info
SCU Basic Variable Rate Home Loan
A basic home loan with a low interest rate and a redraw facility available. Take out a new SCU loan and enjoy $500 cash back on loans above $150k, terms and conditions apply.
3.77% 3.81% $200 $0 p.a. 95% Go to site More info
Bank Of Queensland Economy Home Loan - Variable (Owner Occupier)
A basic home loan with additional repayment options.
3.89% 4.04% $300 $10 monthly ($120 p.a.) 95% Go to site More info
Bank Australia Premium Home Loan Package - 2 Year Fixed (Owner Occupier) LVR < 80%
A discounted 2 year fixed rate loan with high maximum LVR and no application fee.
3.94% 4.35% $0 $350 p.a. 80% Go to site More info
QT Mutual Bank Mortgage Saver Home Loan
A low rate home loan with no application or ongoing fees. Note that to be eligible for this loan you must be QLD resident.
3.95% 3.95% $0 $0 p.a. 95% Go to site More info
SCU My Life Fixed Rate Home Loan Package - 3 Years
Enjoy the same interest rate for 3 years fixed and borrow up to 95% LVR. Enjoy $500 cash back on new loans above $150k, terms and conditions apply.
3.69% 4.00% $0 $350 p.a. 95% Go to site More info
NAB Choice Package Home Loan - 2 Year Fixed (Owner Occupier)
A fixed rate package loan with flexible repayments options. NAB Rewards Points offer available, terms and conditions apply.
3.88% 4.95% $0 $395 p.a. 95% Go to site More info
CUA Fresh Start Basic Variable Home Loan - Owner Occupier
A basic mortgage with flexible repayments options.
3.99% 4.04% $600 $0 p.a. 90% Go to site More info
Heritage Bank Discount Variable Home Loan - Special Rate Offer (Owner Occupier) New Customers Only
A great interest rate home loan offer with unlimited redraw and unlimited extra payments.
3.99% 4.04% $600 $0 p.a. 90% Go to site More info
loans.com.au Essentials - Smart Loan Package P&I
This competitive rate is only available if you package your investment loan with your owner occupier loan.
3.64% 3.66% $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 - 3 Year Fixed (Owner Occupier Special Rate, P&I)
A limited time fixed rate home loan with extra repayment abilities. Conditions apply.
3.74% 4.74% $0 $0 p.a. 95% 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.
3.99% 3.99% $0 $0 p.a. 85% Go to site More info
Bank of Queensland Fixed Rate Home Loan - 3 Year Fixed Rate Discount Rate $150k+ <80% LVR (Owner Occupier, P&I)
Special offer for new lending of $150k or more & under 80% LVR, this offer has been extended.
3.79% 4.44% $300 $10 monthly ($120 p.a.) 80% Go to site More info
4.09% 4.09% $0 $0 p.a. 80% Go to site More info
ME Basic Home Loan - LVR <=80% Owner Occupier
A low variable rate loan with no application or ongoing fees.
4.09% 4.11% $0 $0 p.a. 80% Go to site More info
UBank UHomeLoan - 3 Year Fixed Rate (Investor)
Pay no ongoing fees on this investment loan fixed for 3 years.
4.09% 4.46% $395 $0 p.a. 80% Go to site More info
UBank UHomeLoan Variable Rate - Real Reward Offer (Owner Occupier Interest Only)
A home loan with a competitive variable rate and no bank fees.
4.13% 4.13% $0 $0 p.a. 80% 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. NAB Rewards Points offer available, terms and conditions apply.
4.17% 4.21% $600 $0 p.a. 95% Go to site More info
IMB Essential Home Loan - LVR <=90% (Owner Occupier)
100% offset account, unrestricted additional repayments and no monthly account keeping fees
4.19% 4.19% $0 $0 p.a. 90% Go to site More info
ME 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.
4.19% 4.82% $0 $0 p.a. 95% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Years Fixed (Standard Rate, P&I)
Enjoy a low interest rate and borrow up to 95% (with LMI) of your home value.
4.34% 4.96% $0 $0 p.a. 95% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 1 Year Fixed (Standard Rate, P&I)
Get a short term fixed rate for that investment property with no application or ongoing fees.
4.34% 5.02% $0 $0 p.a. 95% Go to site More info
ANZ Simplicity PLUS Home Loan - Special Offer (Owner Occupier, P&I)
Enjoy a home loan with no application fee or ongoing fee.
4.03% 4.07% $0 $0 p.a. 95% Enquire now More info
3.88% 3.89% $600 $0 p.a. 90% Enquire now 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%.
3.88% 3.89% $0 $0 p.a. 95% Enquire now More info
Commonwealth Bank Wealth Package Fixed Home Loan - 2 Year Fixed (Owner Occupier) P&I
A package home loan with fee free extra repayments available during the fixed term.
3.99% 5.01% $0 $395 p.a. 95% Enquire now More info
St.George Fixed Rate Advantage Package -  2 Year Fixed Rate (Owner Occupier, P&I)
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% 5.04% $0 $395 p.a. 95% Enquire now More info
Westpac Fixed Options Home Loan Premier Advantage Package - 2 Years, P&I
A low interest rate home loan and competitive two year fixed rate.
3.88% 4.94% $0 $395 p.a. 95% Enquire now More info
Virgin Reward Me Variable Home Loan - LVR <= 80% ($750k+ Owner Occupier)
A variable rate home loan with competitive interest rate and flexible product features that can earn Velocity points.
3.79% 3.92% $0 $10 monthly ($120 p.a.) 80% Enquire now 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.

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

A fixed rate package loan with flexible repayments options. NAB Rewards Points offer available, terms and conditions apply.

IMB Budget Home Loan - LVR <=90% (Owner Occupier)

A competitive budget rate without any unwanted bells and whistles.

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤85% ($150K+ Owner Occupier)

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

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