First Home Buyers8 min read
First Home Buyer Costs Beyond the Deposit: What to Budget Before Making an Offer
PT
PropertyLens TeamThe deposit gets all the attention, but it is rarely the number that catches first home buyers off guard. The costs that accumulate between signing a contract and collecting the keys are what genuinely strain budgets. Depending on the state, property type, and purchase price, those additional costs can run anywhere from $5,000 to well above $50,000 on top of your deposit.
This post breaks down each cost category, gives you realistic ranges, and points you toward the official schemes worth checking before you make an offer.
## Stamp Duty: The Biggest Variable
Stamp duty (called transfer duty in Queensland and some other states) is typically the largest cost outside the deposit itself. It is calculated as a percentage of the purchase price and varies substantially by state.
As a rough guide, on a $700,000 purchase with no concessions applied:
- **New South Wales**: approximately $26,000 to $27,000
- **Victoria**: approximately $37,000 to $38,000
- **Queensland**: approximately $12,500 to $13,500
- **Western Australia**: approximately $23,000 to $24,000
Those figures shift considerably once first home buyer concessions enter the picture. Most states offer either full exemptions, reduced rates, or thresholds below which duty is waived entirely. NSW, for instance, has offered first home buyers the choice between paying stamp duty upfront or opting into an annual property tax under its First Home Buyer Choice scheme, though eligibility conditions apply. Victoria provides duty exemptions for properties under $600,000 and concessions up to $750,000. Queensland's threshold sits lower.
Do not assume you qualify automatically. Each scheme has price caps, residency requirements, and conditions around whether the property is new or established. Check your state revenue office directly:
- NSW: [revenue.nsw.gov.au](https://www.revenue.nsw.gov.au)
- VIC: [sro.vic.gov.au](https://www.sro.vic.gov.au)
- QLD: [qro.qld.gov.au](https://qro.qld.gov.au)
- WA: [wa.gov.au/organisation/department-of-finance](https://www.wa.gov.au/organisation/department-of-finance)
## Conveyancing and Legal Fees
A licensed conveyancer or solicitor handles the legal transfer of the property. Their work covers title searches, reviewing the contract of sale, liaising with the vendor's solicitor, and managing settlement. Budget between **$1,500 and $3,500** for a standard residential purchase, though complex transactions or those involving off-the-plan contracts can push higher.
Some conveyancers advertise flat fees; others charge on a time-cost basis. Get a written quote before you engage anyone, and confirm whether disbursements (title searches, registration fees, bank cheque fees) are included or additional.
## Building and Pest Inspection
For a freestanding house or townhouse, a combined building and pest inspection is one of the most important pre-purchase expenditures you will make. A qualified inspector assesses structural integrity, moisture, drainage, and the presence of termites or timber pest damage.
Fees typically range from **$400 to $800**, depending on property size and location. In some states, inspectors are separately licensed for building and pest work, meaning you may need two inspections. Always use a licensed inspector and read the full report, not just the summary.
If the report flags issues, you have options: renegotiate the price, request rectification before settlement, or walk away if the contract allows it. Skipping this step to save $500 on a property with $30,000 of concealed termite damage is a trade-off that rarely makes sense.
## Strata Reports and Owners Corporation Records
If you are buying a unit, apartment, or townhouse in a strata scheme, a strata inspection report is essential. This document covers the scheme's financial health, sinking fund balance, outstanding levies, any current or pending special levies, and a history of building defects or disputes.
Strata report fees generally fall between **$200 and $450**. Some buyers order a summary report to save money; a full report costs more but gives you the complete picture, including meeting minutes that can reveal disputes or deferred maintenance. A building with a depleted sinking fund and a history of water ingress complaints is a different asset to one with healthy reserves and clean records.
## Lender Fees
Mortgage products carry their own cost layer. Common fees include:
- **Application or establishment fee**: $0 to $600, though many lenders waive this
- **Valuation fee**: $200 to $600 (some lenders absorb this cost)
- **Settlement fee**: $100 to $400
- **Ongoing monthly fees**: $0 to $15 per month depending on the product
Always request a Key Facts Sheet from your lender or broker. This document, required under Australian credit law, sets out the comparison rate, fees, and total cost of the loan over its term. The comparison rate accounts for most fees and is a more useful comparison tool than the advertised interest rate alone.
## Lenders Mortgage Insurance
If your deposit is below 20% of the purchase price, most lenders will require Lenders Mortgage Insurance (LMI). This insurance protects the lender, not you, if you default on the loan. Despite that, you pay the premium.
LMI costs vary by lender, loan-to-value ratio, and loan size, but as a general guide:
- On a $600,000 loan at 90% LVR (10% deposit): approximately $8,000 to $12,000
- On the same loan at 95% LVR (5% deposit): approximately $15,000 to $20,000
These are estimates. Your lender will provide a specific figure before you proceed.
The federal government's Home Guarantee Scheme (HGS) allows eligible first home buyers to purchase with as little as a 5% deposit without paying LMI, because the government guarantees the difference. Places are limited each financial year and income caps apply. Check [nhfic.gov.au](https://www.nhfic.gov.au) for current eligibility criteria and available places rather than assuming access.
## Building Insurance
For a freestanding house, you need building insurance in place from the date contracts are exchanged in most states, not from settlement. This is a point many first buyers miss. If the property is damaged between exchange and settlement, you bear the risk without cover.
Annual premiums vary widely based on construction type, location, flood and fire risk, and sum insured. Expect to pay anywhere from **$1,200 to $3,500 or more per year** for a standard suburban house. Properties in flood-mapped areas or bushfire-prone zones attract higher premiums, sometimes substantially so. Getting an insurance quote before you exchange contracts is worth doing, particularly if the property has planning overlays that indicate flood or fire risk.
For strata properties, building insurance is generally covered by the owners corporation levy. You will still need contents insurance for your own belongings.
## Moving Costs
Removalist fees depend on distance, volume, and whether you want a full-service move or a self-pack option. Local moves within a city typically cost **$800 to $2,500**. Interstate moves can run from $3,000 to $10,000 or more.
Get at least two written quotes. Check that the removalist carries transit insurance covering your belongings, and confirm whether that insurance is included or an add-on.
## Urgent Repairs and Immediate Costs
Even a building inspection that comes back clean does not mean the property is move-in ready. Budget for:
- Lock rekeying or replacement: $200 to $600
- Pest treatment if the inspection flagged activity: $300 to $1,500
- Cleaning before move-in: $300 to $800
- Immediate appliance or fixture replacements
- Any conditions you negotiated at purchase but need to manage post-settlement
Setting aside **$3,000 to $5,000** as a buffer for the first few weeks is a reasonable precaution rather than an optimistic assumption.
## Putting It Together: A Realistic Budget Framework
For a first home buyer purchasing an established house at $700,000 in Queensland with a 10% deposit and no stamp duty concession, the cost stack might look like this:
- Deposit: $70,000
- Stamp duty: approximately $13,000
- Conveyancing: approximately $2,000
- Building and pest inspection: approximately $600
- Lender fees: approximately $500
- LMI (if applicable): approximately $8,000 to $12,000
- Building insurance (first year): approximately $1,500
- Moving costs: approximately $1,500
- Immediate repairs and buffer: approximately $3,000
Total cash required (excluding LMI if capitalised into the loan): approximately $92,000 to $96,000 before any government concessions.
That gap between the deposit figure and the actual cash required is where buyers get caught short.
## Before You Make an Offer
The time to run these numbers is before you fall in love with a property, not after you have signed a contract. Knowing your full cost position lets you negotiate with clarity and avoids the situation where a deal falls through because the numbers stopped working at the last minute.
PropertyLens publishes suburb-level data on planning overlays, flood risk, and market conditions across Brisbane, Sydney, Melbourne, and the Gold Coast. Understanding what overlays apply to a property can affect both your insurance costs and your renovation options, two factors that feed directly into your post-purchase budget. Visit [propertylens.au](https://propertylens.au) to run a property or suburb check before you make your next move.
This post breaks down each cost category, gives you realistic ranges, and points you toward the official schemes worth checking before you make an offer.
## Stamp Duty: The Biggest Variable
Stamp duty (called transfer duty in Queensland and some other states) is typically the largest cost outside the deposit itself. It is calculated as a percentage of the purchase price and varies substantially by state.
As a rough guide, on a $700,000 purchase with no concessions applied:
- **New South Wales**: approximately $26,000 to $27,000
- **Victoria**: approximately $37,000 to $38,000
- **Queensland**: approximately $12,500 to $13,500
- **Western Australia**: approximately $23,000 to $24,000
Those figures shift considerably once first home buyer concessions enter the picture. Most states offer either full exemptions, reduced rates, or thresholds below which duty is waived entirely. NSW, for instance, has offered first home buyers the choice between paying stamp duty upfront or opting into an annual property tax under its First Home Buyer Choice scheme, though eligibility conditions apply. Victoria provides duty exemptions for properties under $600,000 and concessions up to $750,000. Queensland's threshold sits lower.
Do not assume you qualify automatically. Each scheme has price caps, residency requirements, and conditions around whether the property is new or established. Check your state revenue office directly:
- NSW: [revenue.nsw.gov.au](https://www.revenue.nsw.gov.au)
- VIC: [sro.vic.gov.au](https://www.sro.vic.gov.au)
- QLD: [qro.qld.gov.au](https://qro.qld.gov.au)
- WA: [wa.gov.au/organisation/department-of-finance](https://www.wa.gov.au/organisation/department-of-finance)
## Conveyancing and Legal Fees
A licensed conveyancer or solicitor handles the legal transfer of the property. Their work covers title searches, reviewing the contract of sale, liaising with the vendor's solicitor, and managing settlement. Budget between **$1,500 and $3,500** for a standard residential purchase, though complex transactions or those involving off-the-plan contracts can push higher.
Some conveyancers advertise flat fees; others charge on a time-cost basis. Get a written quote before you engage anyone, and confirm whether disbursements (title searches, registration fees, bank cheque fees) are included or additional.
## Building and Pest Inspection
For a freestanding house or townhouse, a combined building and pest inspection is one of the most important pre-purchase expenditures you will make. A qualified inspector assesses structural integrity, moisture, drainage, and the presence of termites or timber pest damage.
Fees typically range from **$400 to $800**, depending on property size and location. In some states, inspectors are separately licensed for building and pest work, meaning you may need two inspections. Always use a licensed inspector and read the full report, not just the summary.
If the report flags issues, you have options: renegotiate the price, request rectification before settlement, or walk away if the contract allows it. Skipping this step to save $500 on a property with $30,000 of concealed termite damage is a trade-off that rarely makes sense.
## Strata Reports and Owners Corporation Records
If you are buying a unit, apartment, or townhouse in a strata scheme, a strata inspection report is essential. This document covers the scheme's financial health, sinking fund balance, outstanding levies, any current or pending special levies, and a history of building defects or disputes.
Strata report fees generally fall between **$200 and $450**. Some buyers order a summary report to save money; a full report costs more but gives you the complete picture, including meeting minutes that can reveal disputes or deferred maintenance. A building with a depleted sinking fund and a history of water ingress complaints is a different asset to one with healthy reserves and clean records.
## Lender Fees
Mortgage products carry their own cost layer. Common fees include:
- **Application or establishment fee**: $0 to $600, though many lenders waive this
- **Valuation fee**: $200 to $600 (some lenders absorb this cost)
- **Settlement fee**: $100 to $400
- **Ongoing monthly fees**: $0 to $15 per month depending on the product
Always request a Key Facts Sheet from your lender or broker. This document, required under Australian credit law, sets out the comparison rate, fees, and total cost of the loan over its term. The comparison rate accounts for most fees and is a more useful comparison tool than the advertised interest rate alone.
## Lenders Mortgage Insurance
If your deposit is below 20% of the purchase price, most lenders will require Lenders Mortgage Insurance (LMI). This insurance protects the lender, not you, if you default on the loan. Despite that, you pay the premium.
LMI costs vary by lender, loan-to-value ratio, and loan size, but as a general guide:
- On a $600,000 loan at 90% LVR (10% deposit): approximately $8,000 to $12,000
- On the same loan at 95% LVR (5% deposit): approximately $15,000 to $20,000
These are estimates. Your lender will provide a specific figure before you proceed.
The federal government's Home Guarantee Scheme (HGS) allows eligible first home buyers to purchase with as little as a 5% deposit without paying LMI, because the government guarantees the difference. Places are limited each financial year and income caps apply. Check [nhfic.gov.au](https://www.nhfic.gov.au) for current eligibility criteria and available places rather than assuming access.
## Building Insurance
For a freestanding house, you need building insurance in place from the date contracts are exchanged in most states, not from settlement. This is a point many first buyers miss. If the property is damaged between exchange and settlement, you bear the risk without cover.
Annual premiums vary widely based on construction type, location, flood and fire risk, and sum insured. Expect to pay anywhere from **$1,200 to $3,500 or more per year** for a standard suburban house. Properties in flood-mapped areas or bushfire-prone zones attract higher premiums, sometimes substantially so. Getting an insurance quote before you exchange contracts is worth doing, particularly if the property has planning overlays that indicate flood or fire risk.
For strata properties, building insurance is generally covered by the owners corporation levy. You will still need contents insurance for your own belongings.
## Moving Costs
Removalist fees depend on distance, volume, and whether you want a full-service move or a self-pack option. Local moves within a city typically cost **$800 to $2,500**. Interstate moves can run from $3,000 to $10,000 or more.
Get at least two written quotes. Check that the removalist carries transit insurance covering your belongings, and confirm whether that insurance is included or an add-on.
## Urgent Repairs and Immediate Costs
Even a building inspection that comes back clean does not mean the property is move-in ready. Budget for:
- Lock rekeying or replacement: $200 to $600
- Pest treatment if the inspection flagged activity: $300 to $1,500
- Cleaning before move-in: $300 to $800
- Immediate appliance or fixture replacements
- Any conditions you negotiated at purchase but need to manage post-settlement
Setting aside **$3,000 to $5,000** as a buffer for the first few weeks is a reasonable precaution rather than an optimistic assumption.
## Putting It Together: A Realistic Budget Framework
For a first home buyer purchasing an established house at $700,000 in Queensland with a 10% deposit and no stamp duty concession, the cost stack might look like this:
- Deposit: $70,000
- Stamp duty: approximately $13,000
- Conveyancing: approximately $2,000
- Building and pest inspection: approximately $600
- Lender fees: approximately $500
- LMI (if applicable): approximately $8,000 to $12,000
- Building insurance (first year): approximately $1,500
- Moving costs: approximately $1,500
- Immediate repairs and buffer: approximately $3,000
Total cash required (excluding LMI if capitalised into the loan): approximately $92,000 to $96,000 before any government concessions.
That gap between the deposit figure and the actual cash required is where buyers get caught short.
## Before You Make an Offer
The time to run these numbers is before you fall in love with a property, not after you have signed a contract. Knowing your full cost position lets you negotiate with clarity and avoids the situation where a deal falls through because the numbers stopped working at the last minute.
PropertyLens publishes suburb-level data on planning overlays, flood risk, and market conditions across Brisbane, Sydney, Melbourne, and the Gold Coast. Understanding what overlays apply to a property can affect both your insurance costs and your renovation options, two factors that feed directly into your post-purchase budget. Visit [propertylens.au](https://propertylens.au) to run a property or suburb check before you make your next move.