If you buy a home and leave a NSW fixed-term lease early, a set break fee applies on most leases of three years or less: four weeks’ rent if under a quarter of the term has passed, falling to three, two or one week. At the end of a fixed term, or on a periodic lease, you give 21 days’ notice instead.

NSW break fees, fixed terms of 3 years or less
Share of the lease already passed Break fee
Less than 25% 4 weeks’ rent
25% to less than 50% 3 weeks’ rent
50% to less than 75% 2 weeks’ rent
75% or more 1 week’s rent

How do you time settlement with your lease?

Settlement in NSW is usually about six weeks after exchange, sometimes longer by agreement. If your lease ends soon, negotiate a settlement date close to it. If it ends much later, compare the break fee with paying rent and a mortgage at the same time. The settlement guide explains timing.

What does it cost to overlap rent and a mortgage?

On a $3,597 monthly repayment for a $600,000 loan at 6%, plus rent of $650 a week, each month of overlap costs about $6,400. A break fee of a few weeks’ rent is often cheaper than carrying both for several months. Build the choice into your budget; the first home buyer costs guide lists the other costs at settlement.

What about leases over three years?

The set fees do not apply. The landlord can negotiate compensation for their costs, such as lost rent and re-letting, or claim from the bond or through the NSW Civil and Administrative Tribunal, and must take reasonable steps to limit the loss.

What should you do once you have bought?

  1. Check your lease end date and any break clause.
  2. Tell your agent in writing, with the date you will leave.
  3. Ask whether a new tenant could start sooner, which may reduce costs.
  4. Arrange the final inspection and bond return.
  5. Keep proof of the date you hand back the keys.

Does it matter for first home buyer relief?

Yes. NSW duty relief requires you to move in within 12 months of settlement. Ending your lease in time is part of meeting that deadline; see the NSW stamp duty guide for first home buyers.

Questions people ask

How much is the break lease fee in NSW?

For fixed terms of three years or less signed after 23 March 2020, between one and four weeks’ rent depending on how much of the term has passed.

Can I end my lease early because I bought a house?

Buying a home does not remove the break fee, but the fee is set and predictable on most leases.

How much notice do I give at the end of my lease?

At least 21 days at the end of a fixed term or on a periodic lease.

How do you calculate a break lease fee in NSW?

Work out how much of the fixed term has passed. On a 12-month lease at $700 a week, leaving after four months, a third of the term, costs three weeks’ rent, $2,100. Leaving after nine months costs one week, $700.

Charles Touma times your settlement around your lease, so you are not paying two homes for longer than you need. A free 30-minute call covers it. General information only, not legal or credit advice. Example figures use the 6% example rate.

Sources: NSW Fair Trading, breaking a fixed-term tenancy early; NSW Fair Trading, giving notice; NSW Government, contracts, deposits and cooling-off, checked 18 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.