First home buyers in New South Wales are acting quickly upon pre-approvals to beat the clock before the stamp duty concession runs out at the end of the year.

According to mortgage broker Loan Market, in the past three weeks, 60 per cent of its brokers in NSW were reporting a spike in the number of pre-approved customers finding properties.

Loan Market Chief Operating Officer Dean Rushton said in normal market conditions, a pre-approved customer can take up to three months to decide the time is right to purchase a property.

“The increase in activity around pre-approvals is a clear indication that parts of the NSW property market are due for increased competition,” he said.

“What we’re starting to see in the NSW market right now is a similar scenario to the end of 2009 when the government withdrew the increased First Home Owners Grant. Market demand has been pulled forward and buyers are accelerating their purchasing plans.

“Pre-approved customers are acting more decisively in response to the removal of a government concession that can save thousands of dollars.”

Rushton said 75 per cent of brokers in NSW have seen an increase in enquiries from first home buyers.

First home buyers in NSW currently do not pay any stamp duty on a property purchase below $500,000, but starting Jan. 1, stamp duty on a $300,000 property in NSW would be $9,300 and close to $18,000 on a $500,000 property.