Compare Home loans in NSW

Compare Home loans in NSW and calculate mortgage repayments - Data last updated on

Compare Home loans in NSW


Home loans in NSW

Due to having the largest metropolitan city in Australia, the property market in New South Wales (NSW) tends to be more competitive and expensive than in other states.

With an increasing population, NSW generally suffers housing shortages that increase as you move further towards Sydney. The state government offers several incentives if you are a first time buyer or are intending to build a property. These benefits should be fully researched before you consider getting a home loan as they can substantially reduce costs or can add to your initial deposit.   

What is the property market like in NSW?

Although figures fluctuate depending on market changes, the property market in NSW is generally more driven than in other states. The state has a high level of industry with both national and multinational companies based there and is therefore highly attractive to job seekers. The average income in NSW is also higher than in most states and is experiencing steady growth. This has pushed house prices up, with buyers now having more to spend on properties. Units and townhouses have also become a better option for potential homeowners with a greater availability of these housing types than traditional detached houses.

What influences getting a property in NSW?

As an attractive lifestyle option for many job seekers, NSW in recent years has experienced high demand for property and a housing shortage. This is compounded by the limited amount of land available to develop.

Therefore, if you are considering buying a property in NSW you will need a larger deposit than in most states and must be prepared to spend more due to the high demand that is driving prices. 

Due to the demand for both rental and properties to purchase in NSW, the state has become attractive for foreign and local investors wanting to capitalise on the booming market. This can make it even more difficult for first time buyers or those inexperienced in the property market to purchase properties.   

Are there any home loan incentive schemes in NSW?

The NSW government offers several incentive schemes for people looking to get onto the property ladder. However, you will need to fulfil specific criteria to be eligible for these programs. The government assists first home buyers with a variety of incentives and grant programs. For you to be successful in these programs, in most cases you will have to either purchase or build a new home. Currently, the First Home Owner Grant (New Homes) Scheme and NSW New Home Grant Scheme are two such schemes. These often change and should be fully researched to understand what is on offer. 

What are the added costs of getting a home loan in NSW? 

Both state and council laws and regulations control purchasing a property in NSW. Depending on the council region your property is in you may need to pay initial application costs as well as ongoing rates and charges. In all states you will need to pay a stamp duty on the purchase of a property. This will depend on the value of the property and the state in which it is located. NSW stamp duty costs are similar to other states with comparable population and industry.


Bad credit home loans can be dangerous if the borrower signs up for a loan they’ll struggle to repay. This might occur if the borrower takes out a mortgage at the limit of their financial capacity, especially if they have some combination of a low income, an insecure job and poor savings habits.

Bad credit home loans can also be dangerous if the borrower buys a home in a stagnant or falling market – because if the home has to be sold, they might be left with ‘negative equity’ (where the home is worth less than the mortgage).

That said, bad credit home loans can work out well if the borrower is able to repay the mortgage – for example, if they borrow conservatively, have a decent income, a secure job and good savings habits. Another good sign is if the borrower buys a property in a market that is likely to rise over the long term.

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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