First Home Buyer Costs in Australia

1. Your home deposit

Your deposit is the amount of your own money contributed toward the purchase. A larger deposit generally means borrowing less, which can mean lower repayments and interest over the life of the loan.

A 20% deposit is a common target because it typically avoids lenders mortgage insurance, but it is not universally required. Some lenders accept smaller deposits, and eligible buyers may purchase with a smaller deposit through government schemes or other arrangements.

Keep in mind that the deposit is not necessarily the same as the total cash you need, because buying costs (covered below) may also need to be paid at or around settlement.

2. Transfer duty and stamp duty

Transfer duty — commonly called stamp duty — is a state or territory tax on property transfers. The rules, exemptions, concessions and amounts vary by jurisdiction and by your circumstances, including the property price and whether you are an eligible first home buyer.

Because duty rules change and differ in every state and territory, we don't publish fixed amounts here. Our Government Help for first home buyers page covers current concessions and links to each revenue office, and our calculator estimates duty from published brackets for your state.

3. Conveyancing and legal costs

A solicitor or licensed conveyancer reviews the contract of sale, handles the legal transfer of the property and manages the settlement process. Costs vary depending on the provider, the state or territory and the complexity of the purchase, so it's worth comparing quotes. We don't quote a standard amount here because fees genuinely differ.

4. Building and pest inspections

A building inspection checks the condition of the property — structure, roof, wiring, plumbing and defects — while a pest inspection looks for termite activity and damage. Buyers typically arrange these before committing to a property so they understand what they're buying and can factor any repairs into their decision. Inspection prices vary by property size, location and provider, so we don't quote fixed amounts.

5. Lenders Mortgage Insurance (LMI)

LMI is insurance that protects the lender — not the borrower — if the loan isn't repaid. It may apply when you borrow at a higher loan-to-value ratio (LVR), for example with a deposit under 20%. The actual amount depends on the lender, the loan size and your circumstances, so treat any LMI figure as an estimate.

Eligible buyers using the Australian Government 5% Deposit Scheme may avoid LMI entirely under the scheme. Read more on our Government Help page, or see whether LMI applies to your numbers with the first home buyer affordability calculator.

6. Other costs to consider

Depending on your lender, property and state, other costs may include:

• loan application or establishment fees
• valuation or property search costs
• mortgage registration and settlement-related fees
• home insurance (often required from settlement)
• moving costs
• initial repairs or improvements
• strata or body corporate fees, where applicable

It helps to separate one-off purchase costs from the ongoing costs of owning a home, such as loan repayments, council rates, utilities and insurance. Our calculator lists the one-off costs separately so you can adjust each one.

7. Government help for first home buyers

Government assistance can reduce the cash a first home buyer needs upfront. Programs include the Australian Government 5% Deposit Scheme, the First Home Super Saver Scheme, Help to Buy and various state and territory grants and duty concessions. Each has its own eligibility rules and limits, so check the current details on our Government Help page and confirm with the official source before relying on any program.

8. Example: buying a $700,000 home

The table below shows the kinds of costs involved in a $700,000 purchase. Many of them depend on your situation, so no dollar amounts are guessed here — our calculator estimates them from your own inputs.

9. What Aus Property Guide can estimate

Our first home buyer affordability calculator uses your income, expenses, debts, savings and target price to estimate your:

• borrowing position and affordable property price
• deposit and total cash contribution
• upfront purchasing costs, including estimated transfer duty
• loan required, LVR and estimated LMI
• estimated repayments

Once you have a loan amount, the home loan repayment calculator estimates what different rates, terms and repayment frequencies could mean for your repayments.

10. What can change your actual costs?

Your actual costs can vary based on:

• your state or territory
• the property type and price
• your first-home-buyer eligibility
• the lender you choose
• the loan structure
• your deposit size and resulting LVR
• government programs you may qualify for
• your individual circumstances

Aus Property Guide provides estimates and general information only — it is not financial, legal or tax advice. Speak with a licensed mortgage broker, lender, conveyancer or financial adviser before making decisions.