NSW pauses stamp duty for first home buyers
The NSW government has announced that stamp duty will be temporarily eliminated for first home buyers purchasing newly-built homes, as the state looks to the residential construction sector to spearhead economic recovery.
The changes will come into effect on 1 August 2020, and will raise the current stamp duty exemption threshold from $650,000 to $800,000 for first home buyers. Discounts will also be offered at a tapered rate on homes valued up to $1 million.
Importantly, the exemption will only apply to purchases of newly-built homes, meaning those looking to buy existing houses and apartments will not be eligible. It will also be kept in place for 12 months.
NSW Premier Gladys Berejiklian said the move will offer some much-needed support to the building sector, which faces a diminishing supply of work, and allow first home buyers to begin their property journey sooner.
"Thousands of people will see their bank balances benefit from this change - it will help get more keys into more front doors of more new homes," she said.
"It will also boost housing construction across NSW and support jobs in the building industry at a time when we need them more than ever before."
It’s predicted that the changes will help up to 6,000 Australians. According to NSW Treasurer Dominic Perrottet, the increased threshold will spare first home buyers from having to pay up to $31,335 in stamp duty on a new $800,000 home.
Who will benefit the most?
Mozo’s property expert Steve Jovcevski welcomed the changes, but said they won’t be much help for Australians looking to buy a free-standing house within reasonable distance of the Sydney CBD.
“The NSW government has realised the previous caps weren’t relevant, and they’re focusing deliberately on new homes as they provide a greater benefit when transacted than established homes,” he said.
“But the reality is today’s decision is unlikely to benefit people buying houses unless those properties are at least 40 km out from the CBD. You simply can’t get a new home 15 to 20 km from the CBD for under $1 million.”
At the same time, the stamp duty exemption could be a boon for those looking to purchase an apartment in the middle ring of Sydney, especially when coupled with any existing discounts on prices from developers.
“I think it’s going to help sell some of these apartments that are struggling to find buyers. It seems to be that houses are performing better than apartments, and the move may encourage first home buyers to start looking in areas where there is a bit of an oversupply,” Jovcevski said.
Is there more help available?
Support for NSW first home buyers isn’t just limited to stamp duty waivers. Currently, there are multiple programs designed to help Australians take their first steps on the property ladder.
Chief among them is the First Home Loan Deposit Scheme, which commenced its second round this month. Under the scheme, eligible first home buyers can purchase a home with a deposit of at least 5%, with the government guaranteeing the remaining amount.
This allows borrowers to avoid having to pay for lenders mortgage insurance (LMI) — a type of insurance which protects a lender from loss in case customers default on their loan. In many cases LMI can cost up to 4.5% of the amount borrowed.
Some banks have even begun offering discounts on LMI themselves. Earlier this month, St.George announced it will be reducing LMI to just $1 for first home buyers with a deposit of at least 15% of a property’s value.
Also worth mentioning is the HomeBuilder Scheme. Announced in early June, the scheme offers grants of $25,000 to those purchasing newly-built homes or making substantial renovations to existing ones.
If you’ve got your sights on the property market and have received a confidence boost from today’s announcement, make our home loans comparison page your first stop.
Home loan comparisons on Mozo - last updated 29 March 2024
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Offset Home Loan
Package, Owner Occupier, LVR<60%, Principal & Interest
interest rate
comparison rate
Initial monthly repayment6.15% p.a. variable6.40% p.a.Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
CompareCompareOffset Home Loan
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
- interest rate
- 6.15% p.a. variable
- comparison rate
- 6.40% p.a.
- interest rate
- 6.15% p.a. variable
- comparison rate
- 6.40% p.a.
- Upfront fees
- $350
- Ongoing fees
- $248.00 yearly
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
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Read our Mozo Review to learn more about the Macquarie Offset Home Loan
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Mozo experts choice awards won:
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Express Home Loan
Owner Occupier, Principal & Interest, LVR <90%
interest rate
comparison rate
Initial monthly repayment6.01% p.a. variable6.14% p.a.Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
CompareCompareExpress Home Loan
Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
- interest rate
- 6.01% p.a. variable
- comparison rate
- 6.14% p.a.
- interest rate
- 6.01% p.a. variable
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- 6.14% p.a.
- Upfront fees
- $134
- Ongoing fees
- $10.00 monthly
- Discharge Fee
- $350.00
- Extra repayments
- yes - free
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- yes - free
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- yes
- Maximum loan to value ratio
- 90.00%
- minimum borrowing amount
- $5,000
- maximum borrowing amount
- $3,000,000
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- Variable
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- Weekly, Fortnightly, Monthly
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Read our Mozo Review to learn more about the Bendigo Bank Express Home Loan
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Mozo experts choice awards won:
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Fixed Rate Home Loan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment5.99% p.a.
fixed 2 years6.24% p.a.Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.
CompareCompareFixed Rate Home Loan
Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.
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fixed 3 years
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- 6.30% p.a.
- interest rate
- 6.29% p.a.
fixed 3 years
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- 6.30% p.a.
- Upfront fees
- $0
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- $0.00
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- $395.00
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- yes, up to $25,000 during fixed period - fee applies
- Redraw facility
- no
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- no
- Maximum loan to value ratio
- 95.00%
- minimum borrowing amount
- $20,000
- maximum borrowing amount
- $2,500,000
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- Fixed
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Read our Mozo Review to learn more about the BCU Bank Fixed Rate Home Loan
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Featured Product
Ultra Low Rate <95% LVR
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment6.30% p.a. variable6.58% p.a.Only 5% deposit required to apply. Low upfront costs to pay. No LMI Required. Unlimited Redraw and additional repayments. No Application or ongoing fees. No guarantors or equity sharing required. New Purchase - Metro only.
CompareCompareUltra Low Rate <95% LVR
Only 5% deposit required to apply. Low upfront costs to pay. No LMI Required. Unlimited Redraw and additional repayments. No Application or ongoing fees. No guarantors or equity sharing required. New Purchase - Metro only.
- interest rate
- 6.30% p.a. variable
- comparison rate
- 6.58% p.a.
- interest rate
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- 6.58% p.a.
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- $790
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- yes - free
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- yes - free
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- no
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- 95.00%
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- $350,000
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- $2,000,000
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- Variable
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Read our Mozo Review to learn more about the Sucasa Ultra Low Rate <95% LVR
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Mozo experts choice awards won:
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Unloan Variable
Owner Occupier, Refinance Only, LVR <80%
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comparison rate
Initial monthly repayment5.99% p.a. variable5.90% p.a.For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
CompareCompareUnloan Variable
For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
- interest rate
- 5.99% p.a. variable
- comparison rate
- 5.90% p.a.
- interest rate
- 5.99% p.a. variable
- comparison rate
- 5.90% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
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- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $10,000
- maximum borrowing amount
- $10,000,000
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- Variable
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Read our Mozo Review to learn more about the Unloan Unloan Variable
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* 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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