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What is the 0.25% deposit during the cooling-off period when I'm buying a property in NSW?
Bayley Clarke · Mortgage broker on the road · Last checked 16 October 2026 · 3 min read
The short answer
The 0.25% is your commitment to the purchase. Once your offer's accepted and you want to move ahead, you transfer 0.25% of the purchase price to the real estate agent. On an $800,000 place that's $2,000, and it's what gets you a contract to sign, ready for the bank to approve.
If you then pull out during cooling off, because finance isn't approved or the building and pest report turns something up, you forgo that $2,000. That's the seller's money now. It's the price of walking away in NSW, where there's generally a cooling-off period instead of a finance clause.
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What the 0.25% actually buys you
In NSW, once you have an offer accepted and you're looking to move ahead with the property, you need to transfer 0.25% of the purchase price. That's your commitment to the purchase, and it's what gets the contract in front of you so you can sign it and the bank can get on with approving the loan.
To give you a bit of an idea of the numbers: if you're buying something for $800,000, 1% is $8,000, so 0.25% is $2,000. That's the amount you give the real estate agent. On a $500,000 purchase it's $1,250, on a $1,000,000 purchase it's $2,500. It scales with the price, and it's small next to the deposit you'll pay overall.
When you lose it
The cooling-off period is your window to do your checks. That's normally when your building and pest inspection happens and when your finance gets its final approval. In NSW the cooling-off period is five business days.
If for any reason during that window your finance isn't approved, or you want to turn away from the house because of something uncovered in the building and pest report, you can walk. But you forgo the right to claim that $2,000 back. That's the seller's money now. It's a cost of doing business, and it's the reason you want your finance as close to certain as possible before you sign.
Why NSW is different
That's the difference between NSW and other places around the country like Queensland, where contracts commonly carry a finance clause. With a finance clause, the purchase is conditional on finance being approved, and if it isn't, you're generally eligible to get your initial deposit back.
NSW generally just has cooling-off periods, where you forgo that 0.25% if you don't proceed with the purchase. So in NSW, the work happens before the offer, not after it. Pre-approval in place, a lender that turns approvals around quickly, and a broker who has already checked your situation against that lender's policy.
The honest bit: 0.25% is the cheap way out
Losing $2,000 hurts, but it's a known, capped number, and it buys you the right to walk away from a house with a problem. That's a fair trade if the building and pest report finds something serious.
What you don't want is to let the cooling-off period run out and then decide to pull out. Once cooling off ends, walking away is a different conversation, and a much more expensive one. If you're unsure, talk to your conveyancer before the five days are up.
Buying in NSW and want finance sorted before you pay the 0.25%?
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Next question
Do I get my deposit back if finance falls through?It depends on the state. In NSW there's generally no finance clause, so you lose the 0.25% cooling-off deposit.
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The full guide: How to buy your first home When do I pay the deposit to the agent, and where does it go? What is a deposit bond? Can I bid at auction with just a pre-approval? What is the first step to buy your first home?Not your question? Book a call and ask it, or call 0437 189 939.