The Real Cost of Buying Your First Home in Australia (Beyond the Deposit)

You've Saved the Deposit — But Are You Actually Ready to Buy?

The most common financial shock for first home buyers isn't the size of the mortgage — it's discovering, days before settlement, that they're $15,000 short because they didn't account for the costs outside the purchase price.

This guide runs through every realistic cost you'll face, with Australian-specific figures for 2026. Use the First Home Buyer Costs Calculator to model your specific situation.

The Big One: Stamp Duty

For most first home buyers purchasing in NSW, Victoria, or South Australia, stamp duty is the largest upfront cost after the deposit. On a $650,000 property in NSW, stamp duty is approximately $24,457 for a standard buyer — but zero for a first home buyer under $800,000. Your state concession status changes everything.

Run a quick estimate with the Stamp Duty Calculator for your state before you set your search budget. A lot of buyers anchor on purchase price alone and get the shock of their life at contract signing.

Lenders Mortgage Insurance (LMI)

If your deposit is less than 20% of the purchase price, your lender will almost certainly require Lenders Mortgage Insurance. LMI protects the lender — not you — but you pay the premium.

LMI is calculated on a sliding scale. On a $650,000 purchase with a 10% deposit ($65,000), LMI typically runs between $8,000 and $14,000 depending on the lender. At 5% deposit ($32,500), LMI can exceed $20,000. These premiums are usually capitalised into the loan, meaning you pay interest on them over the life of the mortgage.

The First Home Guarantee scheme allows eligible buyers to purchase with a 5% deposit and no LMI by having the government guarantee the remaining 15%. Places are limited each financial year — check the NHFIC website for current availability.

Legal and Conveyancing Fees

You cannot buy property in Australia without a licensed conveyancer or solicitor reviewing the contract and handling the settlement. Costs vary by state and property complexity:

• Standard conveyancing: $1,500 – $2,500
• Complex purchases (off-the-plan, rural, caveats): $2,500 – $5,000
• Title search and registration fees: $200 – $600 depending on state

Don't choose a conveyancer on price alone. Settlement delays caused by slow or inexperienced conveyancers can cost you your finance approval.

Building and Pest Inspections

For any established property, a building and pest inspection is non-negotiable. It's also a cost you pay before you know if your offer will be accepted — you may pay for inspections on two or three properties before securing one.

• Building inspection: $400 – $700
• Pest inspection: $200 – $350
• Combined report: $550 – $900

For new builds, you'll need a handover inspection by an independent building consultant, typically $400 – $600.

Mortgage Application and Setup Fees

Some lenders charge establishment fees, valuation fees, or settlement fees even on owner-occupier loans. These can include:

• Loan establishment fee: $0 – $600 (many lenders have waived this)
• Valuation fee: $0 – $400 (often covered by the lender)
• Lender's legal fees: $200 – $400
• Mortgage registration fee: $100 – $200 (state government fee)

Always compare the comparison rate, not just the advertised interest rate — it factors in most of these fees.

Building Insurance

Your lender will require you to have building insurance in place from the moment contracts are exchanged (not just settlement). Get quotes early — for a standard 4-bedroom home, expect $1,200 – $2,000 per year depending on location, build type, and insurer. Factor in the first year's premium as an upfront cost.

Moving Costs

Easily overlooked, moving costs can add up fast, especially for interstate moves or large homes:

• Local move: $800 – $2,500
• Interstate move: $3,000 – $8,000+
• Temporary storage: $200 – $600/month if settlement dates don't align

The Running Total: What to Budget

For a first home buyer purchasing a $650,000 established home in NSW with a 15% deposit and no stamp duty exemption (above the threshold):

• Deposit: $97,500
• Stamp duty (standard rate): ~$24,457 (or $0 if first home buyer exemption applies)
• LMI: ~$9,000
• Conveyancing: ~$1,800
• Inspections: ~$700
• Lender fees + registration: ~$500
• Building insurance (first year): ~$1,400
• Moving: ~$1,500
• Total extra beyond deposit: ~$39,357

Run your own numbers with the First Home Buyer Costs Calculator, and check your expected repayments with the Mortgage Repayment Calculator.

For a comprehensive guide to navigating the entire buying process, these first home buyer books on Amazon AU cover everything from saving strategies to negotiating at auction.