SELLING · 22 MIN READ
Selling your first home early: what happens if you sell within 1 to 5 years?
Grants, stamp duty concessions, the 5% Deposit Scheme, Help to Buy, your mortgage and what you’d actually have left after selling.
You bought your first home expecting to stay. Then the job moved, the relationship ended, the repayments got harder or the place stopped fitting your life. None of that means you made a mistake. It means you need to know what selling would involve before you decide.
Can you sell your first home early in Australia?
Yes. You can generally sell your first home at any time, even within the first year. Selling early may affect first home buyer grants, stamp duty concessions or government-backed loan schemes you used. You’ll also need to repay your mortgage and cover selling costs. Whether you make or lose money depends on the sale price, your equity and the costs. Check your scheme conditions and your loan payout figure before you commit to a sale.
| Quick facts | General answer |
|---|---|
| Can I sell after six months? | Generally yes, but check your grant and concession conditions |
| Can I sell after one year? | Generally yes, subject to any scheme or contract obligations |
| Is there a minimum ownership period? | No, not as a general rule |
| Can I lose a first home buyer grant? | Yes, if you don’t meet its occupancy conditions |
| Could I have to repay stamp duty savings? | Yes, depending on the state, concession and timing |
| Does a mortgage stop me selling? | No, but the loan has to be paid out or dealt with at settlement |
| Can I sell for less than I owe? | Only if you can resolve the shortfall with your lender |
| Do I pay CGT if I sell within 12 months? | Not automatically. The main residence exemption may apply. |
| Can I buy again afterwards? | Yes, subject to finance and eligibility |
| Can I avoid agent commission? | Yes, by selling privately or with a fixed-fee service |
Key takeaways
- No general Australian rule says you must keep your first home for a set number of years.
- Grants and stamp duty concessions often have occupancy conditions, and they vary by state and scheme.
- A government deposit guarantee, a cash grant and a shared equity scheme are three different things with different consequences.
- Selling early is expensive because you pay buying and selling costs within a short time.
- With a small deposit, you may have very little equity, especially if values have dipped.
- A genuine main residence doesn’t become taxable just because you sell within 12 months.
- Work out your likely cash at settlement and check your scheme conditions before you sign anything.
- Waiting, renting it out or refinancing may be worth comparing, depending on your situation.
Four things decide what selling early means for you:
TimingHow long you’ve owned and lived in the home
Government supportAny grant, duty concession or government-backed loan you used
Equity and costsWhether the sale covers your loan and selling costs
What comes nextBuying again, renting, or keeping it as an investment
Ben’s insightOne of the biggest misconceptions is that you have to own your first home for a certain number of years before you can sell it. Generally, you don’t. But that doesn’t mean there aren’t costs or conditions to understand before you make the decision.
How soon can you sell your first home in Australia?
Whenever you choose, as long as you can meet the legal and financial requirements of the sale. Keep two things apart: your right to sell, and the conditions attached to any help you got when you bought. The law doesn’t stop you selling. A grant or concession can come with strings.
Can you sell after six months?
Generally yes. But six months may not satisfy every scheme you used. Some grants require 12 months of continuous occupancy, others six. If you sell at six months, don’t assume every benefit you received is safe.
Can you sell after one year?
Generally yes. By then you may have met some occupancy requirements, but it depends on the scheme, the state and the dates you moved in and settled.
Can you sell after two, three or five years?
Once your scheme obligations are met, the decision is mostly financial: what the property’s worth, what you owe, what selling costs, where you’ll live next, your loan terms and any ongoing shared equity arrangement.
| Time owned | What to check |
|---|---|
| Less than 6 months | Occupancy requirements probably not met. Very little loan paid off, and buying costs still fresh. |
| 6 to 12 months | Some grant conditions may be met. Others, and some duty concessions, may not. |
| 1 to 2 years | Any remaining scheme obligations, your loan payout and likely sale proceeds |
| 2 to 3 years | Transaction costs, how the market has moved and how much equity you’ve built |
| 3 to 5 years | Your net proceeds compared with the costs and benefits of keeping the home |
These are checkpoints, not legal waiting periods.
Will you have to repay your First Home Owner Grant if you sell early?
The First Home Owner Grant is run by each state and territory under its own rules. Whether you keep it depends on where and when you bought, and on the scheme’s conditions at that time.
Owning is not the same as occupying
Grant conditions usually aren’t about how long you own the home. They’re about how long you live in it as your principal place of residence, continuously, starting within a set time after settlement. Work out:
- When you bought the property
- When you moved in
- Whether you received a grant
- Which conditions applied on your purchase date
- Whether you’ve finished the required occupancy period
State-by-state occupancy requirements
| State or territory | Occupancy requirement to check |
|---|---|
| Victoria | Generally 12 continuous months for the First Home Owner Grant and first home buyer duty relief |
| NSW | 12 continuous months, starting within 12 months of settlement, for contracts from 1 July 2023. Earlier purchases may have had a shorter period. |
| Queensland | Generally 6 continuous months for the grant. The first home duty concession is separate: selling within a year of moving in can cost you part of it. |
| Western Australia | Generally 6 continuous months, starting within 12 months, for the grant |
| South Australia | Generally 6 continuous months, starting within 12 months, for the grant |
| Tasmania | Generally 6 continuous months, starting within 12 months, for the grant |
| ACT | No first home owner grant. The Home Buyer Concession Scheme generally requires 12 continuous months, starting within 12 months. |
| Northern Territory | The HomeGrown Territory grant generally requires 12 months of occupancy |
Summary as of October 2026. Rules depend on your contract date. Check with your state revenue office.
What if you can’t meet the occupancy requirement?
Moving out or selling early can trigger:
- Repayment of some or all of the grant
- A reassessment of stamp duty
- Interest or penalties
- A legal obligation to tell the revenue office
Some states can grant extensions, variations or exemptions in limited circumstances. WA lets you apply to vary the residence requirement, Victoria requires you to tell the State Revenue Office if you can’t meet it, and the ACT Commissioner can extend, shorten or waive the period on a written request. None of these is automatic, and a hard situation doesn’t guarantee approval.
Call the revenue office firstBefore you assume you’ll have to repay a grant, or that your circumstances qualify for relief, contact your state revenue office. Do it before you sign a sale contract.
What happens to your stamp duty concession if you sell early?
Some first home buyers got a grant, some got a duty exemption or concession, and some got both. The conditions can be different, so check each one on its own.
Is stamp duty automatically repaid when you sell?
No. It depends on the concession and whether you met its conditions. Queensland shows how different the rules can be. To keep the first home concession, you must move in within a year of settlement. If you then sell or transfer the property within a year of moving in, only a partial concession may apply, and you must notify the Queensland Revenue Office. That’s a different test from the grant’s six months.
What about NSW and Victoria?
In NSW, for contracts exchanged from 1 July 2023, the First Home Buyers Assistance Scheme requires you to move in within 12 months of settlement and live there for at least 12 continuous months. Victoria’s first home buyer duty exemption and concession also carry a 12-month residence requirement.
How to check what you received
Find these documents:
- Your purchase settlement statement
- Any grant approval letter
- Your transfer duty assessment
- Any scheme declaration or agreement you signed
- Proof of the date you moved in
Selling doesn’t get you back the stamp duty you paid on the way in. And if you buy again, you may pay duty again on the next property.
What if you bought with the Australian Government 5% Deposit Scheme?
Under the 5% Deposit Scheme, formerly the Home Guarantee Scheme, the government guarantees part of your loan to the lender. That lets you buy with a 5% deposit without paying lenders mortgage insurance (LMI). It’s a guarantee to the lender, not a cash grant to you.
Can you sell a home bought with a 5% deposit?
Generally yes. Talk to your lender about the loan payout and any scheme conditions before you list.
What happens if you move out early?
The scheme requires you to live in the property as an owner-occupier while the guarantee supports your loan. If you move out and rent it, the guarantee may stop applying, and your lender may ask you to pay LMI or other costs. Ask your lender before you move out.
What if the property has fallen in value?
A 5% deposit means you start with 5% equity. A small fall in value plus selling costs can wipe that out completely. The government guarantee protects the lender in certain situations. It doesn’t protect you from losing money, and it doesn’t cancel what you owe if the sale falls short.
What if you bought through Help to Buy?
Help to Buy is a shared equity scheme. The government contributes part of the purchase price and holds a matching share in the property. That’s a different arrangement again, with a different result when you sell.
Can you sell early?
Yes. You can sell while in the scheme, following its notification, valuation and repayment process.
How is the government’s share calculated?
You don’t simply repay the dollars the government put in. You repay its percentage of what the home is worth at the time. Under the scheme rules, the repayment on sale is the greater of the sale price or a current valuation, multiplied by the government’s equity percentage. If the government holds 20% and you sell for $700,000, its share is $140,000, whatever it originally contributed. If the home has gone up, its share has too. If it’s gone down, so has its share.
Why the difference matters
Keep these four things separate. People mix them up constantly:
| What you’re paying | Why |
|---|---|
| Your mortgage | You borrowed the money |
| A grant repayment | You didn’t meet the grant’s conditions |
| The end of a lender guarantee | You stopped meeting the 5% Deposit Scheme’s conditions |
| The government’s equity share | The government owns part of your home under Help to Buy |
What if you used the First Home Super Saver scheme?
If you released voluntary super contributions through the First Home Super Saver (FHSS) scheme, it has its own conditions. The ATO requires you to genuinely intend to live in the home as soon as practicable, and to do so for at least 6 of the first 12 months from when it’s practicable to move in.
Check:
- Did you meet the occupancy requirement?
- Did you use the released money for an eligible purchase?
- Did you notify the ATO as required?
- Is anything still unresolved?
If you met the requirements, selling later doesn’t mean you have to repay the FHSS release.
How much does it cost to sell your first home early?
Property has costs on the way in and on the way out. Sell after a short time and there may not have been enough price growth, or enough loan paid off, to cover both.
The costs you paid when buying
- Stamp duty, if you paid any
- Conveyancing
- Building and pest inspections
- Loan application and settlement fees
- Lenders mortgage insurance, if you paid it
- Moving costs
That money is spent. Selling doesn’t bring it back.
The costs of selling
| Expense | What to know |
|---|---|
| Agent or fixed-fee service | Commission is a percentage of the price. A fixed fee is set up front. |
| Marketing | Portal listings, photos, floorplans and advertising |
| Conveyancing | Contract, disclosure documents and settlement |
| Mortgage discharge | Discharge fees and, on a fixed rate, possible break costs |
| Preparation | Cleaning, repairs and styling |
| Holding costs | Interest, insurance and rates until settlement |
| Scheme adjustments | Possible grant repayment or duty reassessment |
Why costs matter more when your equity is small
Someone who has owned for ten years usually has plenty of equity to absorb selling costs. A first home buyer who bought last year with 5% down doesn’t. Every dollar of selling cost comes straight out of a small pool. That’s why the fee you pay to sell matters more to you than to almost anyone else. See real estate advertising costs for the marketing side.
Ben’s insightWhen you’ve only owned a property for a short period, selling costs can make a real difference. It’s worth understanding what you’re paying for and whether you need every service included in a traditional agent arrangement.
How much money will you have left after selling?
Take a first home buyer who bought for $700,000 with a 5% deposit: $35,000 down and a $665,000 loan. A year later, the payout figure is $655,000, and they expect to sell for $680,000.
| Hypothetical early sale | Amount |
|---|---|
| Original purchase price | $700,000 |
| Original deposit | $35,000 |
| Sale price | $680,000 |
| Mortgage payout | −$655,000 |
| Selling and marketing costs | −$15,000 |
| Legal and discharge costs | −$4,000 |
| Estimated cash remaining | $6,000 |
Illustrative figures only. Excludes any grant repayment, duty reassessment, tax, other settlement adjustments and the costs of buying.
They put in $35,000 and a year of repayments, and walk away with $6,000. Three reasons:
- The property sells for less than they paid
- The loan is still most of the property’s value
- Selling costs come out of what’s left
The $6,000 is the cash at settlement, not the overall return on the home. They also lived there for a year, and in this example the repayments did a job rent would otherwise have done. Put the same numbers through a $6,900 fixed fee instead of $15,000 in commission and marketing, and the cash left rises to about $14,100. Your figures will differ.
What if the property is worth less than the mortgage?
That’s negative equity. If the sale doesn’t cover the loan and the costs, you have to make up the shortfall. Your lender has to release its mortgage at settlement, so you’ll need its agreement before the sale can complete. Talk to your lender before you sign a contract that would leave a shortfall.
Ben’s insightFirst-home buyers often focus on whether the property has gone up or down in value. The more important starting point is understanding what’s left after the mortgage is repaid and the selling expenses are deducted.
To run your own numbers, start with how much equity do I have in my home and how much is my house worth.
Do you pay capital gains tax if you sell your first home early?
Not just because you sold within 12 months. If the property genuinely was your main residence, the main residence exemption may cover the whole gain. The ATO says there’s no minimum time you have to live in a home for it to count as your main residence.
What if you only lived there for six months?
The ATO looks at the facts. Did you actually live there? Were your belongings there? Was it your address on the electoral roll, for bills and for mail? Six months isn’t a magic number either way. Genuine occupation is what counts.
What if you rented it out?
Renting complicates things. If it was your home first, the six-year absence rule may let you keep treating it as your main residence while it’s rented, as long as you don’t treat another property as your main residence. Get tax advice before you rent it out.
What if you bought it to renovate and resell?
If the plan was always to do it up and sell for a profit, the tax treatment can be different, and the profit may be taxed as ordinary income.
Does the 12-month CGT discount matter?
The 12-month discount and the main residence exemption are separate rules. The discount is for taxable gains. If your home is fully exempt, there’s no taxable gain to discount, so selling inside 12 months doesn’t create a tax bill on its own.
What happens to your mortgage when you sell early?
You can sell with a mortgage. At settlement, the loan is paid out from the sale proceeds and the lender releases its security over the property.
Will you pay a break fee?
If you’re on a fixed rate, maybe. Paying off a fixed loan early, including by selling, can trigger break costs. As a rule, the more rates have fallen since you fixed, the bigger the fee. Ask your lender for a figure before you list.
What about lenders mortgage insurance?
LMI is usually paid once, when the loan is set up. It protects the lender, not you. Whether any of it is refunded when you pay the loan out early depends on the policy, so don’t count on getting it back.
What if you can’t afford the repayments?
Talk to your lender early. Lenders have hardship arrangements, such as reduced or paused repayments for a time. A free financial counsellor (call the National Debt Helpline on 1800 007 007) can help you understand your options before you decide to sell.
Should you sell, rent out your first home or wait?
| Option | Possible advantages | Possible disadvantages |
|---|---|---|
| Sell now | Free up whatever equity you have, reduce debt, move on | Selling costs, a possible loss, possible scheme consequences |
| Rent it out | Keep the property and earn rent | Landlord obligations, ongoing costs, possible lender and scheme restrictions |
| Stay longer | More time to pay down the loan and reassess | Ongoing costs, and future prices are uncertain |
What if you want to rent it out?
Check these first:
- Your grant and duty occupancy conditions
- The 5% Deposit Scheme’s owner-occupier requirement, if you used it
- Your loan terms and whether an investor rate applies
- Insurance, which needs to change to landlord cover
- Tenancy laws and property management costs
- The capital gains tax effect when you eventually sell
What if you need to move for work or family?
Look at where you’re moving, what rent you’ll pay there and what it costs to hold the property. A short posting interstate is a different decision from a permanent move. There’s no single right answer.
Does waiting guarantee you’ll get your costs back?
No. Prices can go up or down while interest and costs keep running. Base the decision on realistic numbers, not on a price rise you’re hoping for. Should I sell my home? walks through the bigger decision.
Ben’s insightSometimes the right decision is to sell. Sometimes it makes sense to explore keeping the property. What matters is having enough information to make that choice without guessing.
What happens if you want to buy another home?
Can you claim first home buyer benefits again?
Usually not the same ones. Owning property before, or having received a benefit, generally rules you out of first home grants and concessions. Some schemes are different. The 5% Deposit Scheme, for example, accepts buyers who haven’t owned property in Australia in the past ten years. Repaying a grant doesn’t necessarily restore your eligibility.
What about stamp duty on the next home?
Expect to pay duty and other buying costs again, possibly without a first home concession.
Should you sell before buying again?
Think about whether you need the sale money for a deposit, whether bridging finance makes sense, whether you can make a purchase conditional on selling, whether you can service the new loan, and how to line up the settlement dates. Read should you buy or sell a house first.
How to sell your first home early: step by step
The first seven steps matter most. Do them before you talk to anyone about listing.
Review your purchase
Find your purchase date, settlement statement, grant approval, duty assessment and any scheme paperwork.
Check your occupancy conditions
For each benefit, confirm the rule that applied on your contract date and whether you’ve met it. If not, call the revenue office.
Call your lender
Get a payout figure, discharge costs, any break cost and any scheme conditions on your loan.
Work out what it’s worth
Look at comparable sales and get a realistic range, not the number you’d like.
Calculate your proceeds
Sale price minus loan payout, selling costs and any scheme repayments. If the answer is negative, talk to your lender before going further.
Compare your options
Sell now, stay longer, or rent it out, with realistic numbers for each.
Get advice
A conveyancer, mortgage broker, accountant or financial counsellor, depending on your situation.
Choose how to sell
Private sale, a fixed-fee service or a traditional agent.
Prepare and advertise
Presentation, photos, listing, enquiries and inspections.
Negotiate and settle
Make sure the settlement date works with your lender, your next move and any scheme process.
Can you sell your first home without a real estate agent?
Yes. And when your equity is thin, the selling fee is one of the few costs you can control.
Your options
- Sell it yourself: you handle everything, with a conveyancer for the legal side
- Online listing service: you get on the major portals and run the sale yourself
- Managed fixed fee: professionals run the campaign for a set price
- Traditional agent: full service for a percentage of the price, usually with marketing on top
Unreserved charges a flat fee, never a percentage. Unreserved Lite is $900 and you run the campaign yourself. With Unreserved Plus, a licensed campaign manager handles the marketing, buyer enquiries and negotiation, and you open the door for inspections. Plus is a flat $6,900: $2,000 up front and $4,900 when the home sells. A lower fee won’t rescue a sale that doesn’t add up. But when the margin is a few thousand dollars, the fee can decide whether you walk away with something or nothing.
Explore your home selling options
See how a flat-fee sale works and what you’d keep compared with commission.
See how Unreserved worksFREE GUIDE
The 24 page Unreserved selling guide
Pricing, agency agreements, offers and settlement, written for homeowners who want to know what good looks like before they sign anything.
One email with the guide attached. No agent will call you.Questions people ask
Can I sell my first home after six months?
Generally yes. But check your grant, duty concession and any loan scheme first. Some require 12 months of continuous occupancy, and selling earlier can mean repaying part of a benefit.
Can I sell my house after owning it for one year?
Generally yes. By then you may have met many occupancy requirements, but check each scheme’s rule for your contract date.
How long do I have to live in my first home before selling?
There’s no general minimum. Grants and concessions have their own occupancy periods, usually 6 or 12 continuous months depending on the state and scheme.
Do I have to repay the First Home Owner Grant if I sell early?
You may, if you sell before meeting the grant’s occupancy requirement. Contact your state revenue office to confirm your position before you sell.
Will I lose my stamp duty exemption if I sell?
You may lose some or all of it if you sell before meeting its residence requirement. In Queensland, for example, selling within a year of moving in can mean only a partial concession applies.
Can I sell after using the Australian Government 5% Deposit Scheme?
Generally yes. Talk to your lender first. The scheme guarantees part of your loan to the lender. It doesn’t protect you if the sale doesn’t cover the loan.
What happens if I sell a home purchased through Help to Buy?
You repay the government’s equity share, worked out as its percentage of the greater of the sale price or a current valuation. Its share rises or falls with the home’s value.
Do I have to repay my First Home Super Saver withdrawal?
Not if you met the scheme’s requirements, including living in the home for at least 6 of the first 12 months once practicable. Check with the ATO if you’re unsure.
Do I pay capital gains tax if I sell my first home within 12 months?
Not automatically. If it was genuinely your main residence, the main residence exemption may cover the gain. There’s no minimum period to qualify.
What if I sell my first home for less than I paid?
You’ll have less cash after paying out the loan and selling costs, and possibly none. A loss on your own home generally can’t be claimed as a capital loss.
Can I sell my home if the mortgage is higher than its value?
Only if you can cover the shortfall or agree an arrangement with your lender, because it has to release its mortgage at settlement. Talk to your lender before you sign a contract.
Will I pay a mortgage break fee?
Possibly, if you have a fixed-rate loan. Break costs are usually higher when rates have fallen since you fixed. Variable loans generally don’t have them.
What happens to lenders mortgage insurance when I sell?
LMI was usually paid up front and protects the lender. Whether any is refunded depends on the policy, so don’t count on getting it back.
Is it better to sell my first home or rent it out?
It depends on your equity, the rent it would earn, your loan terms, any scheme conditions and your plans. Check grant and lender conditions before renting it out.
Can I buy another property after selling my first home?
Yes, if you can get finance. Expect to pay stamp duty and buying costs again, possibly without first home concessions.
Can I receive first home buyer benefits again?
Usually not for first home grants and concessions. Some schemes, like the 5% Deposit Scheme, accept buyers who haven’t owned property in Australia for ten years.
How much does it cost to sell a house after one year?
Typically commission or a fixed fee, marketing, conveyancing, loan discharge fees and possible break costs, plus any grant or duty repayment. On top of that, the costs you paid to buy aren’t recovered.
Can I sell my first home without a real estate agent?
Yes. You can sell privately or use a fixed-fee service. You’ll still need a conveyancer for the contract and settlement.
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Planning a sale? Read the process of selling a house, check how to price your property, or see legal fees for selling a house.
General information only. This article explains selling a first home early in Australia. It is not personal financial, lending, legal or tax advice. Grants, duty concessions, government loan schemes and tax rules vary by state, purchase date and circumstances, and they change. Before you sell, rent out or refinance, get advice from a qualified mortgage broker, lender, financial adviser, registered tax agent, conveyancer, solicitor or financial counsellor. Scheme rules were checked against state revenue offices, firsthomebuyers.gov.au, the ATO and Moneysmart in October 2026.
