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Buying a Property

For information about buying a property, including application forms, guides and fact sheets, please click on the following headings:

First Home Owners Grant

First Home Owner Grant Scheme

The First Home Owner Grant Scheme is a joint Commonwealth and NSW Government initiative to help first home buyers. In NSW, the scheme is administered by OSR.

No tax is payable on the First Home Owner Grant. Eligible first home owners can receive the grant regardless of their income, the area they are planning to buy / build or the value of their first home.

Applications and Fact Sheets

You can apply through your financial institution or through any OSR office. Applications lodged with financial institutions will have the grant available for settlement or completion. If you are building your home under a contract, payment may be available after the first draw down.

Applications must be lodged within 12 months of completion or settlement of your new home.

You can print the following application forms and fact sheets.

Application Details Forms Fact Sheets
First Home Owner Grant Scheme download pdf
size 39KB 		download pdf
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Additional $7,000 grant
- for new housing between 9 March 2001 and 31 December 2001		 download pdf
size 21KB		 download pdf
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Additional $3,000 grant
- for new housing between 1 January 2002 and 30 June 2002 .		 download pdf
size 21KB		 download pdf
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First Home Owners Guide - Proof of Identity download pdf
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First Home Plus Scheme

First Home Plus provides exemptions or concessions on transfer stamp duty and mortgage duty for first home buyers and builders in NSW.

This includes people buying vacant land on which the buyers intend to build their first home.

Applications and Fact Sheets

Whether or not you qualify for the First Home Owner Grant, you may still be eligible for First Home Plus. Print the First Home Plus fact sheet and application.

You should submit your First Home Plus application when you lodge your purchase agreement for stamping by OSR. You must have already exchanged contracts to purchase your first home or vacant land. You will need to consult your lender about the discount on mortgage duty.

Please note your application must be accompanied by all supporting documents.

You can apply through your financial institution or through any OSR office.

Read the fact sheet and complete the application form for the date you exchanged your contract:

Date you exchanged contract Factsheet Application Form
On or after 1 July 2004 download pdf
size 23.4KB 		download pdf
size 80.8KB
Between 4 April and 30 June 2004 download pdf
size 21.3KB		 download pdf
size 26KB
Before 4 April 2004 Contact OSR for a fact sheet and application form
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Cost of Purchasing a Property

Loan Application Fee

This is a fee which is charged by a lending body when a formal loan application is made.

Approximate cost: $Nil - $750

Settlement/Legal Fees

This is the fee which is charged by the lenders solicitors for preparation and registration of the mortgage. This is usually incorporated as part of the application fee.

Approximate cost: $Nil - $500

Valuation Fee

Your lender will usually require a formal valuation of the property for lending purposes. This fee may be included in the application fee charged by your lender.

Approximate cost: $Nil - $300

Mortgage Insurance

This type of insurance is required when the buyer is borrowing more than a set proportion of the valuation as specified by the lender (usually 80%). This insurance protects the lender against loss should the borrower default and the property be sold for less than the outstanding loan amount. Premiums vary according to the amount borrowed and the loan-to-value ratio (LVR). The mortgage insurance premium is a once-only payment.

Approximate cost: 0.40% - 3.00% of the amount borrowed.
On a $350,000 loan at 95% LVR the premium would be approximately $7,600

Survey Report

A survey shows where the property is in relation to the boundaries of the land. Lenders often require a survey report.

Approximate cost: $350 - $450

Conveyancing Fees

Conveyancing means the process of transferring the ownership of property from the seller to the buyer. You can engage a solicitor or conveyancer to do this or you can do it yourself.

There are no set fees charged by solicitors or conveyancers for conveyancing. You should negotiate with the solicitor or conveyancer and obtain a written estimate of the likely costs before engaging them to act on your behalf.

Approximate cost: $400 - $1,500

Disbursements

Your solicitor/conveyancer will charge for expenses incurred on your behalf during the conveyancing of the property. Some of these documents may be included in the Contract of Sale.

Title Search

$20 - $60

Local Council, Section 149

$40-$100

Local Council, Building Certificate (S149D)

$50

Water Board (S66)

$20

Drainage Diagram

$20

Environmental Protection Authority (S5)

$10

Department of Education and Training

$11

Land Tax (S47)

$15

Roads and Traffic Authority

$20

Transgrid (Electricity/Power Stations)

$21

Stamp Duty

Contract Duty is payable on the purchase price of the property (or valuation in certain circumstances). Duty must be paid within three months of the date of exchanging contracts, unless buying "Off the Plan" or a house and land package.

Mortgage Duty is payable on the mortgage. A fee applies to register the mortgage and a further fee applies to register the transfer document or discharge of an existing mortgage.

Stamp Duty rates and registration fees vary from state to state. To work out the stamp duty applicable in your state use our Stamp Duty Calculator

Inspection Fees

Building Inspection

A building inspection checks structural soundness, indicating visible quality defects and necessary repairs.

Approximate cost: $275 - $440

Pest Inspection

A pest inspection checks for any signs of past or present pest infestation.

Approximate cost: $140 - $220

Strata Inspection

A strata inspection examines and reports on the written records of the owners corporation. It is additional to the certificate supplied to the buyer by the seller providing relevant information about strata levies, insurances etc.

Approximate cost: $165 - $220

Home Building Insurance

It is suggested the buyer arrange home building insurance prior to completion of the purchase.
Two types of insurance cover are available:

Replacement Cover: This type of cover pays to reinstate your property to its former condition. It means, simply, new for old.

Indemnity Cover: This type of cover pays to repair or reinstate your property taking into account depreciation on the dwelling.

Approximate cost: $220 - $330

Council and Water Rates Adjustment

The buyer and seller share these costs in proportion to the length of time each party owns the property during the rating period.

Electricity Reconnection

The electricity is usually disconnected upon change of property ownership.

Approximate cost to reconnect: $Nil (normal working hours) or $95.50 (outside normal working hours)

Telephone Reconnection

Telephone lines are usually disconnected upon change of property ownership.

Approximate cost to reconnect: $55 (where phone connected previously) or $191 (where phone not connected previously)

Removalist Costs

Removalist costs vary considerably due to factors such as location, amount and quality of furniture; and type of packing (by owner or removalist).

Approximate cost: $550 - $3,000

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Deposit Bonds

A Deposit Bond replaces the need for a cash deposit when exchanging on a property purchase.

How Does a Deposit Bond Work?

The bond provider issues a Deposit Bond to the vendor of the property and guarantees payment to the vendor of the deposit should the purchaser fail to settle. The bond provider is indemnified by the purchaser for any losses incurred.

Who Can Qualify For a Deposit Bond?

There are several bond providers all with different assessment criteria. In short, you must be able to demonstrate that you have the income and equity to settle the property purchase when settlement falls due.

Who Will Benefit From a Deposit Bond?

  • Off the plan purchases up to 48 months.
  • Investors funding 100% of the property price.
  • Buying at Auction.
  • Homebuyers purchasing a new home and haven't sold existing home.
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Help For Home Borrowers

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