How much you can borrow, also known as your borrowing capacity, will depend on how much of a deposit you have, your current income and what expense commitments you have. It will also vary from lender to lender. 

While the answer isn’t always straightforward, you can give us a call and talk to a mortgage expert who will walk you through what to expect. Alternatively, you can jump to our calculator and enter in your details yourself.

The first thing to note is that the First Home Owners Grant is no longer available for established homes.

The $10,000 NSW First Home Owner Grant (FHOG) is only available when you buy a newly built house, townhouse, apartment, unit or similar or you intend to build your first new home. In addition to building a new home, you have to intend to move in within 12 months of the construction or purchase and live in it as your principal residence for at least 12 months.

Note that if you are purchasing the property in conjunction with others, be it family, your spouse or other partner, they must also meet the same criteria for the grant to be available.

For more guidance on how to navigate the First Home Owner Grant, call our office and speak to a mortgage expert.

It is one thing to work out how much you can borrow, but you need to know if you can afford the repayments. This will depend on a few different factors, including which lender can provide the right loan for you, fixed or variable interest rates and whether you pay off the Principal and Interest or Interest only.

Visit our repayments calculator to learn more and enter your own details or call our office and speak to a mortgage expert.

The amount you need as a deposit will depend on the type of home loan and the lender you select. Generally you will require a minimum of 5% of the property value, but various lenders will have different criteria. There are also a number of government schemes recently implemented which are designed to help first home buyers with lower deposit amounts.

If you are unsure or would like to explore your options, call our office and speak to a mortgage expert.

Stamp duty is a tax levied on the purchase of a property. It is calculated according to the purchase price of the property and the state or territory in which the property is located.

In New South Wales, stamp duty is also referred to as transfer duty. The cost of transfer duty depends on a property’s sale price or current market value.

$0 to $16,000
$1.25 for every $100 (minimum $20) with a minimum duty of $10, before 1 February 2024

$16,000 to $35,000
$200 and an additional $1.50 for every $100 over $16,000

$35,000 to $93,000
$485 and an additional $1.75 for every $100 over $35,000

$93,000 to $351,000
$1,500 and an additional $3.50 for every $100 over $93,000

$351,000 to $1,168,000
$10,530 and an additional $4.50 for every $100 over $351,000

Over $1,168,000
$47,295 and an additional $5.50 for every $100 over $1,168,000

On 1 July 2023, the government increased the stamp duty exemption in the First Home Buyers Assistance Scheme to $800,000, with stamp duty concessions lifted to $1 million. You can calculate your stamp duty in NSW using the transfer or land or business revenue calculator.

Being fully informed on what you need to spend is important for first home buyers. As a rough guide, you should budget for between 5-7% of the purchase price, in addition to your deposit, to cover fees and charges. While mortgage and stamp duties will make up the bulk of this 5-7%, the balance may include;

• Building and pest reports
• Valuation fees
• Lenders mortgage insurance (LMI)
• Solicitors fees
• Insurances
• Utility connection fees – phone/gas/electricity
• Council and water rates
• Removalist costs

When deciding on the area to live in, apart from considering proximity to family, friends and work commitments, you will obviously need to think about a number of other factors. 

The most obvious of these are prices, which will vary greatly from suburb to suburb. However, a high price does not always mean a bad first home purchase. Growth opportunities of the suburb, available amenities such as schools and other factors will influence if it is the right home for you.  

Only you will really know if the home is the right one for you, but our team have bought, sold and managed properties across Sydney and other parts of Australia. We know what makes a good purchase for the long term.

Get in touch with one of our friendly property experts and use our guidance to make the right call on what to buy and where.