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    First Home Buyers

    The Real Cost of Buying a House in Australia (Every Upfront Cost)

    12 July 20256 min read

    By Leo Forman

    Founder & Editor · 12 July 2025

    The deposit gets all the attention — but it's only one slice of the cash you need to buy a home in Australia. Stamp duty, lenders mortgage insurance, conveyancing, inspections and moving can quietly add tens of thousands on top. Here's every upfront cost, so nothing blindsides you at settlement.

    The quick tally

    Beyond the deposit, budget roughly 4–6% of the purchase price for everything else (less if you're a first home buyer with stamp duty concessions). On a $700,000 home that's commonly $28,000–$42,000 on top of your deposit — though concessions can slash it.

    1. Stamp duty (transfer duty)

    Usually the biggest extra cost. It's a state tax on the property transfer, and it scales with price — often 3–5% of the purchase price. The good news: most states waive or heavily discount it for first home buyers under a price threshold, which can save tens of thousands.

    Work out your exact figure with the stamp duty calculator, and read the state-by-state stamp duty guide.

    2. Lenders Mortgage Insurance (LMI)

    If your deposit is under 20% and you're not using a government guarantee, the lender adds LMI — insurance that protects them, not you. It can add $10,000–$40,000 depending on your deposit and loan size, and it's usually capitalised onto the loan.

    Ways to avoid it: a 20% deposit, the First Home Guarantee (5% deposit, no LMI), or a guarantor. Full breakdown of LMI →

    3. Conveyancing and legal fees

    A conveyancer or solicitor handles the legal transfer, contract review and searches. Expect roughly $800–$2,500 including government search fees. It's not optional — skipping proper legal review is how buyers inherit easements, unapproved works and nasty surprises.

    4. Building and pest inspection

    A licensed, independent inspection typically costs $400–$800 and is some of the best money you'll spend — it can reveal structural issues or pest damage worth far more than the fee, and gives you grounds to renegotiate or walk away.

    5. Loan and lender fees

    • Application / establishment fee — often $0–$800 (many lenders waive it)
    • Valuation fee — sometimes charged, often covered by the lender
    • Mortgage registration & transfer fees — government charges, typically a few hundred dollars

    6. The costs people forget

    • Council and water rates adjustments — you reimburse the seller for prepaid rates at settlement
    • Building insurance — usually required from exchange/settlement
    • Strata/body corporate levies — for apartments and townhouses, payable in advance
    • Moving costs — removalists, connections, and immediate repairs or furniture
    • A cash buffer — once you own, every repair is yours; don't settle with an empty account

    Put it together

    Add your deposit, stamp duty (after any concession), LMI (if applicable), and the smaller costs above to get the real cash you need before settlement day. First home buyers using concessions and a guarantee can land far below the 4–6% rule; buyers with a small deposit and full stamp duty can land above it.

    Map it against suburbs you can actually afford with the affordability calculator, and check how grants and concessions change the maths in the First Home Buyer Guide.

    Want the whole process in one place? The Complete Home Buying Checklist walks you from finances to settlement (50+ points), and a mortgage broker can confirm your costs and borrowing power for free.

    General information only — figures are indicative and vary by state, lender and property. Confirm your costs with your conveyancer, lender and state revenue office before acting.

    General Advice Warning

    The information on this site is general in nature and does not consider your personal circumstances, financial situation, or needs. Before acting on any information, you should consider its appropriateness having regard to your own situation and seek professional advice from a licensed financial adviser, mortgage broker, accountant, or solicitor.