The True Cost of Buying Your First Home in Australia (Beyond the Purchase Price)

You've saved your deposit. You've got pre-approval. You've found a place you love. And then someone tells you you need another $30,000 you didn't know about.

Welcome to buying your first home in Australia.

The purchase price is just the number on the contract. The actual cost of buying a home includes a long list of expenses that most people either underestimate or don't find out about until it's almost too late. Some of them are unavoidable. Some can be minimised. All of them need to be in your budget before you start bidding at auction.

Here's the full list, with real numbers.

The Quick Summary: Budget an Extra 5%

If you want a rough rule of thumb before we get into the details: add 5% on top of your purchase price to cover all upfront buying costs. On a $700,000 home, that's $35,000 in addition to your deposit.

Some buyers get away with less. Others spend more. But if you've got 5% in the bank beyond your deposit, you're unlikely to be caught short.

Now let's break down where that money actually goes.

1. Stamp Duty: The Big One

Stamp duty (officially called "transfer duty" in most states now, but nobody calls it that) is a state government tax on property transactions. It's usually the biggest upfront cost after your deposit, and it varies significantly depending on where you buy and whether you qualify for first home buyer concessions.

Here's a rough guide for a $700,000 purchase in 2026 for a first home buyer:

As you can see, buying in Victoria or South Australia at this price point will cost you significantly more in stamp duty than buying in Queensland. It's one of the reasons Brisbane has attracted so many buyers from Sydney and Melbourne in recent years.

Check your state's current rules carefully, because thresholds and concessions change regularly. Use our Stamp Duty Calculator to get a precise figure for your situation, including any first home buyer discounts you might be eligible for.

2. Conveyancing: $800 to $2,000

A conveyancer handles the legal side of the property transfer. They check the contract, conduct title searches (to make sure there are no surprise encumbrances on the property), liaise with your bank, and manage the settlement process.

Some buyers try to skip this or use a cheap online service. That's a false economy on a $600,000+ transaction. Budget $1,200 to $1,500 for a solid licensed conveyancer. In more complex situations (older properties, disputes, unusual contract conditions), a conveyancing solicitor might cost $2,000 or more.

What a conveyancer typically does:

• Reviews the contract of sale and vendor statement (Section 32/Form 1)
• Conducts council, water, and title searches
• Prepares transfer documents
• Coordinates with your lender on settlement
• Handles the actual settlement day process

Conveyancing is not where you cut corners.

3. Building and Pest Inspections: $400 to $800

Before you go unconditional on a property, you want a professional to crawl through it looking for problems you can't see. A building and pest inspection will typically run you $400 to $600 for a combined report, though prices vary by property size and state.

What they look for:

• Structural issues: foundation movement, wall cracking, roof damage
• Water damage and rising damp
• Termite activity (the quiet destroyer of Australian homes)
• Roofing problems: broken tiles, inadequate insulation, missing flashing
• Drainage issues: blocked or broken stormwater systems
• Electrical and plumbing red flags

A $500 inspection that finds $20,000 worth of termite damage before you've signed is money very well spent. Some buyers skip this at auction (where properties are sold unconditionally) and then discover problems after settlement. Don't be that person.

If you're buying at auction and can't make the inspection conditional, do the building and pest check in the weeks before the auction date. Yes, it costs money even if you don't win. Think of it as the cost of doing your due diligence properly.

4. Loan Application and Establishment Fees: $0 to $1,000

Some lenders charge an application fee or establishment fee to set up your home loan. This varies widely:

• Many online lenders and smaller banks: $0
• Big four banks: typically $200 to $600
• Some specialist lenders: up to $1,000

It's worth factoring this into your loan comparison, especially if you're looking at loans with lower interest rates that come with higher upfront fees. Use our Mortgage Repayment Calculator to model out the total cost over time, not just the monthly payment.

You might also pay a property valuation fee ($200 to $300) if the lender needs to arrange an independent valuation of the property before approving your loan.

5. Lenders Mortgage Insurance (If You Have Under 20% Deposit)

If your deposit is less than 20% of the purchase price, most lenders will charge you LMI. This is insurance that protects the bank (not you) if you default on the loan. You pay the premium, but you're not the one it's protecting. Fun.

LMI costs vary depending on your loan-to-value ratio and the loan size. On a $700,000 property with a 10% deposit ($70,000), LMI can easily run to $15,000 or more. At 95% LVR, you might pay $25,000+.

This is a big number that first home buyers often underestimate because it doesn't feel like a separate expense — it's typically capitalised onto your loan. But you're paying it in interest over the life of the loan.

Want to see whether LMI is worth paying vs waiting to save 20%? Our LMI Calculator can model both paths and show you the break-even point.

6. Building Insurance: Around $1,500 to $2,500 Per Year

You'll need building insurance in place from the moment you go unconditional on the purchase (in most states, risk passes to the buyer on the contract date, not settlement). This isn't just a good idea — your lender will require it before they'll advance funds.

Budget around $1,500 to $2,500 per year for a standard standalone home in metro areas. Premiums vary significantly based on:

• Property location (flood zones, bushfire-prone areas cost more)
• The age and construction type of the home
• The rebuilding cost (not the purchase price)
• Which insurer you go with

Compare a few insurers before you commit. The price spread between providers for the same property is often 40 to 50%, and it has nothing to do with how good the cover is.

7. Moving Costs: $800 to $3,000+

Removalists for a 2-3 bedroom home moving within the same city typically cost $800 to $1,500 for a half-day job. Longer distances, more furniture, or tight access (think inner-city terraces with no driveway) can push this to $2,500 or more.

Budget $1,200 and be pleasantly surprised if it comes in lower. Things that increase the cost:

• Moving interstate
• Piano or specialty furniture
• No direct vehicle access
• Moving on a weekend (usually more expensive)
• Needing storage between settlement and moving in

8. Connecting Utilities and Changing Over Services

This one people always forget until moving day. Budget a few hundred dollars for:

• Electricity and gas connection fees (sometimes $50 to $100 per service)
• Internet setup (potentially a new router if yours is old, or a Starlink setup for regional properties)
• Mail redirection (Australia Post charges for this)
• Updating your address on licenses, rego, superannuation, bank accounts, electoral roll

None of these are huge individually, but together they add another $500 or so to the pile.

9. Immediate Repairs and Move-In Essentials

Even a well-presented property usually needs something when you take possession. Maybe the garden is a mess. Maybe you want new locks. Maybe the carpets need cleaning, or you need to repaint a room because the previous owners had strong opinions about feature walls.

There's also a category of expenses that aren't repairs but are just "things you need now that you're a homeowner": a lawnmower, a garden hose, window furnishings if the previous owners took theirs, new appliances if the sale didn't include any.

Budget at least $2,000 to $5,000 for settling-in costs, and accept that it'll probably be more.

The Full Picture: Buying a $700,000 Home in Victoria

On a $700,000 purchase with a 10% deposit ($70,000), you'd need roughly $118,000 in savings to cover both the deposit and the upfront costs. That's before you've bought a stick of furniture.

If you can stretch to a 20% deposit ($140,000) and skip LMI, you'd need around $163,000 in total. More cash up front, but you save $15,000 in LMI and start with more equity and a lower monthly repayment.

How First Home Buyer Grants Can Help

Most states offer a First Home Owner Grant (FHOG) for eligible buyers. In 2026, the grant is generally $10,000 to $30,000 for new builds (not typically available for established homes). Queensland and WA have some of the more generous grants for new construction.

It's worth understanding exactly what you're eligible for before you start planning your budget. The grants have specific conditions around purchase price caps, property type (new vs established), and residency requirements. Don't assume you'll get it until you've confirmed your eligibility.

The Takeaway

Buying a home costs more than the price tag. A lot more. If you're planning to buy in the next year or two, start working backwards from the total cost now, not just the deposit.

The good news is that most of these costs are knowable in advance. You don't have to be caught off guard. Work through each line item for your specific state and property type, and you'll have a genuinely accurate savings target.

Speaking from experience: the buyers who sail through settlement are the ones who planned for everything. The buyers who stress out are the ones who were $15,000 short because nobody told them about LMI.

Work Out Your Numbers

• Stamp Duty Calculator — Get the exact amount for your state and purchase price, including first home buyer concessions
• LMI Calculator — See whether LMI is worth paying vs waiting to save 20%
• Borrowing Capacity Calculator — Find out how much the bank will actually lend you

Disclaimer: We're koalas with calculators, not licensed financial advisors. Stamp duty rules, first home buyer grants, and LMI rates change regularly. Always verify current figures with your state revenue office, mortgage broker, or conveyancer before making decisions.