$25k first home buyer grants tabled as part of NSW stamp duty reform

First home buyers would be able to access grants of up to $25,000 from the state government to assist them with property purchases under a new initiative outlined by New South Wales Treasury.
Released as part of the Treasury’s NSW Property Tax Proposal progress paper, the initiative would see grants replace the existing stamp duty concessions available to first home buyers.
The grant is part of a wider set of measures put forward by the state government to reform property tax in New South Wales, the most significant of which would be the replacement of stamp duty with a ‘broad-based’ land tax.
“The proposed new property tax system, which replaces stamp duty with a small, annual tax, would not be a panacea for our future economic challenges. Nor could it single-handedly solve the ever complex home-ownership puzzle for NSW citizens,” said NSW Treasurer, Dominic Perrottet.
“But it would make things better - substantially so. It would stimulate home ownership, grow the economy and create jobs. It is estimated that, as a result of reform, more than 300,000 NSW residents could achieve their dream of home ownership and Gross State Product could increase by 1.7%.”
First home buyers are said to be at the core of reform efforts, with the progress paper noting that home ownership rates for younger residents in New South Wales have dropped significantly over the last two decades.
From 1995-96 to 2017-18 the average age of first home buyers increased from 33 to 35, while the share of these buyers aged under 35 dropped from 69% to 55%.
With property prices having surged over recent years though, so too has the amount of stamp duty required of buyers - creating an additional hurdle for many first home buyers.
Not only is the switch to an annual land tax hoped to ease this upfront cost for buyers, the introduction of a new first home buyer grant would seek to address concerns that the current concessions haven’t kept up.
At present, New South Wales offers full first home buyer stamp duty concessions on property purchases up to $650,000 and partial concessions on purchases up to $800,000.
According to Treasury though, the state of property prices means that as many as one third of first home buyers are paying the full amount of stamp duty.
Corelogic’s latest figures show that home values in Sydney have increased by 11.2% over the past year to a median value of $970,355, which is well above the maximum stamp duty concession threshold currently in place.
While there’s currently no set date for any of the reforms to be enacted, the state government says that it will continue to seek feedback until the end of July 31.
You can use a NSW stamp duty calculator to work out an approximation of the stamp duty fees you will pay on your property purchase.
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Compare first home loans - last updated 2 December 2023
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Mozo experts choice awards won:
- Low Cost Home Loan - 2023
Variable Home Loan 90
Principal and Interest, LVR <90%
interest rate
comparison rate
Initial monthly repayment6.04% p.a. variable6.06% p.a.Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required. Advertised rates include Nov RBA rate increase. T&Cs apply.
CompareCompareVariable Home Loan 90
Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required. Advertised rates include Nov RBA rate increase. T&Cs apply.
- interest rate
- 6.04% p.a. variable
- comparison rate
- 6.06% p.a.
- interest rate
- 6.04% p.a. variable
- comparison rate
- 6.06% p.a.
- upfront fees
- $530
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
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- Principal & Interest
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- Owner Occupier
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- Weekly, Fortnightly, Monthly
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- -
Read our Mozo Review to learn more about the loans.com.au Variable Home Loan 90
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Mozo experts choice awards won:
- First Home Buyer Loan - 2023
First Home Buyer Loan Special
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment6.64% p.a. variable6.67% p.a.A low variable rate loan for home buyers. No establishment or ongoing fees to pay. 100% offset account included. Allows for unlimited repayments, redraws and flexible repayment options.
CompareCompareFirst Home Buyer Loan Special
A low variable rate loan for home buyers. No establishment or ongoing fees to pay. 100% offset account included. Allows for unlimited repayments, redraws and flexible repayment options.
- interest rate
- 6.64% p.a. variable
- comparison rate
- 6.67% p.a.
- interest rate
- 6.64% p.a. variable
- comparison rate
- 6.67% p.a.
- upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - fees apply
- Offset account
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- Maximum loan to value ratio
- 95.00%
- minimum borrowing amount
- -
- maximum borrowing amount
- $5,000,000
- type of mortgage
- Variable
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- Owner Occupier
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- Special Offer Variable Rate available for a limited time.
Read our Mozo Review to learn more about the G&C Mutual Bank First Home Buyer Loan Special
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Basic Home Loan Special Offer
Owner Occupier, Principal & Interest, LVR 80-95%
interest rate
comparison rate
Initial monthly repayment6.69% p.a. variable6.70% p.a.CompareCompareBasic Home Loan Special Offer
- interest rate
- 6.69% p.a. variable
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- 6.70% p.a.
- interest rate
- 6.69% p.a. variable
- comparison rate
- 6.70% p.a.
- upfront fees
- $100
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- $0.00
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- $350.00
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- 95.00%
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- $150,000
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- Variable
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- Receive $2,000 refinance cashback, min loan size of $250,000 and LVR less than or equal to 80% (excludes refinances from Westpac Group), apply by 30 November 2023 and settle by 31 March 2023.
Read our Mozo Review to learn more about the St.George Basic Home Loan Special Offer
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FHBG Special Offer Classic Home Loan
interest rate
comparison rate
Initial monthly repayment6.24% p.a. variable6.26% p.a.CompareCompareFHBG Special Offer Classic Home Loan
- interest rate
- 6.24% p.a. variable
- comparison rate
- 6.26% p.a.
- interest rate
- 6.24% p.a. variable
- comparison rate
- 6.26% p.a.
- upfront fees
- $195
- Ongoing fees
- $0.00
- Discharge Fee
- $530.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 95.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $800,000
- type of mortgage
- Variable
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- Weekly, Fortnightly, Monthly
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- -
Read our Mozo Review to learn more about the QBANK FHBG Special Offer Classic Home Loan
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Basic Variable Home Loan
Owner Occupier, Principal & Interest
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Initial monthly repayment5.94% p.a. variable5.99% p.a.CompareCompareBasic Variable Home Loan
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- 5.99% p.a.
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- 5.94% p.a. variable
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- 5.99% p.a.
- upfront fees
- $600
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- $0.00
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- Offset account
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- Maximum loan to value ratio
- 95.00%
- minimum borrowing amount
- $50,000
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- -
Read our Mozo Review to learn more about the Community First Bank Basic Variable Home Loan
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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