A worked example
Meet Sarah, a nurse in Brisbane looking to buy her first established home for $650,000. She's saved $80,000 (12.3% deposit) and earns $78,000 a year.
Her upfront costs break down like this:
- Deposit: $80,000 (12.3% of purchase price)
- Lender's Mortgage Insurance (LMI): Around $18,500 (because her deposit is under 20%, the lender charges this to protect themselves)
- Stamp duty: $0 (as a Queensland first home buyer on an established home under $700,000, she qualifies for the full transfer duty exemption that applies from 9 June 2024)
- Conveyancing: $1,800
- Building and pest inspections: $600
- Loan application and valuation fees: $800
Sarah's total upfront cost is $101,700. She also qualifies for the Home Guarantee Scheme (formerly First Home Guarantee), which means she can avoid LMI entirely with just a 5% deposit. With that saving, her total upfront cost drops to about $83,200 on top of her deposit, most of which is the deposit itself.
State-by-state differences
Stamp duty and first home buyer concessions vary enormously by state:
- NSW: Full stamp duty exemption for first home buyers on properties up to $800,000 (vacant land up to $400,000). Partial exemption up to $1 million. A $650,000 purchase attracts zero stamp duty for eligible buyers.
- VIC: No stamp duty on properties up to $600,000 for first home buyers. Between $600,000 and $750,000, there's a tapered duty. Regional Victoria has higher thresholds ($750,000 full exemption).
- QLD: First home buyers pay no stamp duty on properties up to $500,000. From $500,001 to $550,000, there's a concession. Above that, you pay full duty.
- WA: Transfer duty exemption for first home buyers on properties up to $430,000 as at 2025. Above that, standard rates apply.
- SA: Stamp duty concessions available on properties up to $650,000 for first home buyers.
- TAS: First home buyers get a duty concession on properties up to $600,000. No duty on homes up to $400,000.
- ACT: Stamp duty has been abolished for all buyers, replaced with higher ongoing rates.
- NT: First home owner duty concession available, with specific thresholds for new and established homes.
Common mistakes people make
- Only saving for the deposit: First home buyers often focus solely on reaching that 20% deposit and forget about stamp duty, conveyancing, inspections, and LMI if they're borrowing more than 80%. A $600,000 home needs $120,000 for a 20% deposit, but total upfront costs can hit $130,000 to $135,000 when you add everything else. Always budget for at least 5-8% on top of your deposit for other costs.
- Assuming all states offer the same grants: The First Home Owner Grant (FHOG) only applies to new builds in most states, and the amounts differ wildly. NSW offers $10,000 for new homes, Victoria offers $10,000, and Queensland offers $30,000 for new home contracts signed between 20 November 2023 and 30 June 2026. Established home buyers generally don't get the grant at all. Don't assume you'll get a grant just because you're a first home buyer - check your specific state's eligibility.
- Confusing LMI with home insurance: Lender's Mortgage Insurance protects the bank, not you. If you default, the insurer pays the bank and then chases you for the debt. You still need separate home and contents insurance. LMI is a one-off cost (often $10,000 to $30,000) that can be added to your loan, but that means you pay interest on it for 30 years.
- Not checking First Home Guarantee eligibility first: Many buyers pay thousands in LMI when they could have avoided it entirely through the First Home Guarantee scheme, which lets you borrow up to 95% with no LMI if you meet income and price caps. The scheme has limited spots each financial year, so apply early.
What this calculator doesn't account for
This calculator provides upfront costs only. It doesn't account for ongoing costs like council rates (typically $1,200 to $3,000 a year depending on location), strata fees for apartments ($2,000 to $10,000+ annually), building insurance, or mortgage repayments.
LMI estimates are indicative. The actual cost varies by lender, loan size, and your specific circumstances. Some lenders charge significantly more than others for the same loan-to-value ratio.
Government grants and schemes change regularly. The First Home Guarantee has annual quotas that can be exhausted mid-year. State-based stamp duty concessions are subject to budget changes and may be updated.
We don't factor in the First Home Super Saver Scheme withdrawals, which can boost your deposit by up to $50,000 (contributions plus deemed earnings). This requires manual calculation based on your voluntary super contributions history.
Moving costs, furniture, immediate repairs, and connection fees for utilities aren't included. Budget another $5,000 to $15,000 for these.
Edge cases and nuances
- Buying with a spouse who previously owned property: If your partner owned a home (even decades ago), you may not qualify as a first home buyer for stamp duty concessions in most states, even if it's your first purchase. Some states assess eligibility individually, others jointly. NSW and Victoria assess both parties - if one has owned property before, no concession. Check your state's specific rules before assuming you qualify.
- Properties at the concession threshold: In Victoria, a $749,000 home gets you a stamp duty concession, but a $751,000 home costs you full duty (around $40,000+). It's sometimes worth negotiating the purchase price down just below the threshold to save tens of thousands. The same applies in other states with cut-off points rather than tapers.
- Contract date versus settlement date for schemes: The First Home Guarantee assesses property price caps based on when you apply and when the contract is signed, not settlement. If property prices rise between contract and settlement, you're locked in at contract price for eligibility. But if the scheme's annual allocation runs out, you miss out even with a signed contract.
- Off-the-plan purchases: Stamp duty is calculated on the contract price, not the market value at settlement (which might be higher years later). But you pay stamp duty within 30-90 days of the contract being signed, not at settlement, so you need those funds much earlier than buyers of established homes.
