Most first home buyers plan for the deposit. Fewer plan for the long list of smaller costs that turn up between signing the contract and the first year of ownership. Individually they look small. Together they can easily reach five figures.
Here's what to budget for.
Upfront costs
Stamp duty
Stamp duty (transfer duty) is usually the biggest cost after the deposit. In NSW, first home buyers pay none on homes up to $800,000 and a reduced amount up to $1,000,000. If you're not eligible, duty on a $900,000 home is roughly $36,000.
Other states have their own rules. Victoria exempts first home buyers up to $600,000. Queensland charges no duty for first home buyers on new homes, with a concession for established homes up to around $800,000.
Conveyancing or legal fees
A conveyancer or solicitor checks the contract, handles searches and runs settlement. Expect roughly $1,500 to $3,000, plus disbursements like title searches.
Building and pest inspection
Usually $400 to $800 for a house. If you inspect several properties before buying, you might pay this more than once. It's money well spent.
Strata report (apartments and townhouses)
Around $250 to $400. It shows the building's finances, upcoming special levies and any disputes. Skip this and you might buy into a building facing a $50,000 levy for cladding or waterproofing.
Loan costs
Some lenders charge application or settlement fees. Many don't. Your lender also charges a fee to register the mortgage with the land titles office, set by the state government.
Lenders Mortgage Insurance
If you borrow more than 80% without a government scheme or waiver, LMI applies. It's often added to the loan, but it's still a real cost because you pay interest on it.
Moving
Removalists, cleaning your rental for the bond, and connecting utilities and internet. Budget $1,000 to $3,000 depending on distance.
Ongoing costs people forget
Council rates
Paid quarterly. Depending on the council, often $1,500 to $3,000 a year.
Water rates
Owners pay fixed water service charges. Tenants usually only paid usage.
Strata levies
For units and townhouses, levies cover building insurance, maintenance and the sinking fund. They can range from a few hundred dollars a quarter to several thousand.
Home and contents insurance
Building insurance is essential for a house. Premiums have risen sharply in flood and bushfire-prone areas, including parts of the NSW South Coast. Get a quote before you buy.
Maintenance
A common rule of thumb is to set aside 1% of the home's value each year. Hot water systems, roofs and gutters don't care that you just bought.
Land tax
Not usually payable on your own home, but it applies if you later rent it out.
A sample budget
Here's a realistic upfront budget for a first home buyer in NSW buying a $780,000 house with the 5% Deposit Scheme:
| Item | Estimate |
|---|---|
| Deposit (5%) | $39,000 |
| Stamp duty | $0 (FHBAS) |
| Conveyancing | $2,200 |
| Building and pest | $600 |
| Mortgage registration and transfer fees | about $500 |
| Moving | $1,500 |
| Emergency buffer | $5,000 |
| Total | about $48,800 |
That buffer line isn't optional. The first few months in a new home often bring a surprise.
How to reduce your costs
- Use every scheme you qualify for. Stamp duty exemptions and the 5% Deposit Scheme can save tens of thousands.
- Choose a lender with no upfront fees. A broker can filter for these.
- Ask your conveyancer for a fixed fee.
- Get insurance quotes early, especially near rivers, coastline or bushland.
- Avoid making big purchases on credit before settlement. It can affect your approval.
Frequently asked questions
Can I add stamp duty to my home loan?
Generally no. Stamp duty is paid from your own funds at settlement. Some lenders allow a slightly higher loan to cover costs in certain cases, but plan to pay it in cash.
How much should I keep aside after settlement?
We suggest at least one to three months of repayments, ideally in an offset account.
Are inspection costs refundable if I don't buy?
No. It's still cheaper than buying a property with a major defect.
Want a personalised list of upfront costs before you start looking? Call Finfident on 0424 545 654. We'll build your full budget, not just your loan amount.
This article is general information only and doesn't take into account your objectives, financial situation or needs. Figures, rates and scheme rules are current as at October 2026 and can change. Finfident Finance Brokers (ABN 94 679 280 801) is Credit Representative 569374 of Outsource Financial Pty Ltd (ACN 131 090 705), Australian Credit Licence 384324.