Buying a house in NSW runs in a fixed order: budget and pre-approval, find the property, review the contract, make an offer or bid, exchange contracts with a deposit, get formal loan approval, pay stamp duty, and settle, usually 42 days after exchange. Most problems come from doing a step out of order, such as exchanging before the contract has been reviewed or before the loan is solid.

The steps at a glance

The NSW buying process, in order
Step Who Usual timing
1. Budget and pre-approval You and your broker A few days to two weeks
2. Search and inspections You Weeks to months
3. Contract review Your conveyancer or solicitor A few days, before you offer or bid
4. Offer or auction You On the day
5. Exchange and deposit Both conveyancers Once terms are agreed
6. Cooling-off (private sale only) You 5 business days after exchange
7. Formal loan approval Your broker and lender About one to two weeks
8. Stamp duty and settlement Your conveyancer, lender and you Usually 42 days after exchange

1. Set the budget and get pre-approval

The budget is the lower of what a lender will lend and what you are comfortable repaying. Pre-approval is a lender’s assessment of you before a property is chosen; it tells you the price range to search in and makes you ready to act. A full pre-approval, assessed by a credit assessor, is worth much more than an instant online estimate. The pre-approval guide explains the difference, and the buying cost calculator adds duty and costs to the price. First home buyers should also check the first home buyer checklist, which covers the schemes that change the numbers.

2. Search and inspect

Look at the property and the paperwork together. For a house, a building and pest inspection; for a unit, the strata report as well, which shows the sinking fund, levies and any special levies or defects. Lenders have their own rules on some property types, such as small apartments and properties with acreage, so ask before you fall in love with one.

3. Have the contract reviewed before you commit

In NSW the vendor must have the contract ready before the property is marketed. Your conveyancer checks it for special conditions, easements, zoning and anything unusual, and can negotiate terms. This step comes before you bid at auction, because an auction contract cannot be changed afterwards.

4. Make an offer or bid at auction

A private treaty offer can be negotiated and can include conditions, such as subject to finance or inspection, if the vendor agrees. At auction there are no conditions and no cooling-off: the winning bidder exchanges on the spot and pays the deposit. The questions before making an offer guide and the article on pre-approval before an auction cover both routes.

5. Exchange contracts and pay the deposit

Exchange is the moment the contract becomes binding. The deposit is usually 10 per cent, held in trust until settlement, although a smaller deposit can often be negotiated and some buyers use a deposit bond. From exchange, insure the property if the contract puts the risk on you; your conveyancer will tell you.

6. The cooling-off period

For a private sale of residential property, you have five business days after exchange to withdraw, at a cost of 0.25 per cent of the price. It does not apply at auction, and it can be waived with a certificate from your solicitor or conveyancer. The cooling-off period guide covers the rules and when to use it.

7. Formal approval

With the contract signed, the lender values the property and confirms its approval. The valuation is the usual sticking point: if it comes in below the price, the lender lends on the lower figure and the gap falls to you. The low valuation guide sets out the options. Once approved, you sign the loan documents.

8. Stamp duty, the final inspection and settlement

Transfer duty is due by settlement or three months after the contract date, whichever comes first, and in practice is paid at settlement through the electronic settlement workspace. In the last days you do a pre-settlement inspection. On settlement day the lender’s funds, your funds and the duty move electronically, the title transfers and you collect the keys. The settlement guide explains the day itself.

The timeline in one table

Typical times for a NSW purchase when documents arrive promptly
Step Typical time Who does it
Pre-approval One to five business days once documents are complete You and your broker or lender
Search and inspections Weeks to months You, with a building and pest inspector
Contract review One to three days Your conveyancer or solicitor
Cooling-off, private sales only Five business days after exchange You
Formal approval Three to ten business days Your lender
Exchange to settlement Usually 42 days Your conveyancer and lender

What it costs on an $800,000 purchase

The deposit is the largest cheque, but not the only one. On an $800,000 home in NSW:

  • Deposit: $40,000 with a 5 per cent deposit under the 5% Deposit Scheme, $80,000 at 10 per cent or $160,000 at 20 per cent.
  • Transfer duty: nil for an eligible first home buyer at $800,000 under the First Home Buyers Assistance Scheme; $30,187 for anyone else at current rates.
  • Other costs: conveyancing, building and pest inspections, government registration fees and any lender fees. The buying cost calculator adds them up for your price.
  • Lenders mortgage insurance: where the deposit is under 20 per cent and no scheme, waiver or guarantor applies.

The stamp duty calculator gives the duty at any price, including the concession between $800,000 and $1 million for first home buyers.

Private sale or auction: what changes

  • At auction the contract is unconditional when the hammer falls. There is no cooling-off, the deposit is usually paid on the day, and the contract review, inspections and pre-approval all have to be done before you bid.
  • On a private sale there is room to negotiate, to ask for changes to the contract and to rely on the five business day cooling-off period, at a cost of 0.25 per cent of the price if you withdraw. The cooling-off guide covers how it works.

Mistakes that cost buyers money

  • Bidding or exchanging before the contract has been reviewed.
  • Treating an online pre-approval as a lender’s assessed answer.
  • Paying a holding deposit without knowing whether it is refundable.
  • Leaving building and pest, or the strata report for a unit, until after exchange.
  • Changing jobs or taking on new debt between pre-approval and settlement.

Documents to gather before you start

Having these ready shortens pre-approval and stops a lender’s question from delaying formal approval later:

  • Photo identification, such as a driver’s licence or passport.
  • Your two most recent payslips, or two years of tax returns if you are self-employed.
  • Three months of statements for your everyday and savings accounts.
  • Statements for any loans and credit cards.
  • Evidence of where the deposit came from, including a signed gift letter for any family help.
  • Your rental ledger, if a lender will consider rent paid in place of genuine savings.

The home loan documents checklist lists what lenders ask for by situation.

Questions people ask

How long does it take to buy a house in NSW?

From pre-approval to keys, commonly two to four months: a few weeks to find the property, then a standard 42-day settlement. A buyer with documents ready and a property found quickly can move faster.

How much deposit do I pay at exchange?

Usually 10 per cent of the price, though a 5 per cent exchange deposit is often negotiated, especially by buyers using the 5% Deposit Scheme. The balance is paid at settlement.

When do I pay stamp duty in NSW?

By settlement or three months after the contract date, whichever comes first. With a 42-day settlement it is paid at settlement. Eligible first home buyers pay none up to $800,000.

Do I need a conveyancer or a solicitor?

Either can handle a standard NSW purchase. A solicitor may suit a complex contract, a company or trust purchase, or a dispute. What matters is that the contract is reviewed before you commit.

Can I pull out after exchanging?

Yes, on a private sale within the five business day cooling-off period, at a cost of 0.25 per cent of the price. After that, or at auction, withdrawing usually means losing the deposit.

Charles Touma sets buyers up with pre-approval before the search, and manages formal approval and settlement with your conveyancer once you exchange. If you are starting the process, a free 30-minute call sets out your budget and the order of steps. General information only, not legal or credit advice. Sources: Conveyancing Act 1919 (NSW) and Revenue NSW transfer duty rules, checked 14 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.