In short: Your deposit isn’t the only cash you need to buy a first home. Budget for stamp duty (often the biggest, though first home buyers may get a concession), LMI if your deposit is under 20%, conveyancing/legal fees, building and pest inspections, loan fees, moving and insurance. Together these ‘upfront costs’ can add a meaningful sum on top of the deposit.
Many first home buyers save hard for a deposit, then get blindsided by the costs around it. Here’s the full list.
Stamp duty
A state government tax on the purchase, and usually the largest single upfront cost — though first home buyers often pay nothing below one price threshold and a reduced amount up to a higher one. It’s state-based; check your own state or territory’s revenue office for current thresholds. We cover the concessions in first home buyer grants and schemes.
Lenders Mortgage Insurance (LMI)
Charged when your deposit is under 20% (unless waived by a scheme). It can be thousands — see how it scales in how much deposit you need.
Conveyancing and legal fees
A conveyancer or solicitor handles the legal transfer of the property and checks the contract. Expect a professional fee plus search/disbursement costs.
Building and pest inspections
Worth getting before you commit — a few hundred dollars that can save you from buying an expensive problem.
The smaller ones that add up
- Loan application/establishment fees.
- Council and water rates adjustments at settlement.
- Moving costs and connection fees.
- Home and contents insurance (lenders usually require building insurance from settlement).
A common conversation we have with first home buyers is around the “extra” money needed beyond the deposit. A buyer might feel ready because they have saved their deposit, but once we factor in conveyancing, inspections, lender fees, government charges, moving costs, and settlement adjustments, the real cash needed can be higher than expected. For many first home buyers we speak with, a realistic buffer is often around $10,000–$15,000 on top of the deposit, before relying on grants or concessions.
For independent cost guidance, see Moneysmart. And start from the first home buyer guide for the full journey.
Talk to a broker before you commit
Every first home is different. A licensed mortgage broker can compare 50+ lenders, check which grants and schemes you qualify for, and tell you what you can realistically borrow — free, and with no obligation.
Frequently asked questions
What are the upfront costs of buying a first home in Australia?
Beyond the deposit: stamp duty (often reduced for first home buyers), LMI if your deposit is under 20%, conveyancing, building and pest inspections, loan fees, moving and insurance.
How much is stamp duty for a first home buyer?
It depends on your state and the price. Many states give first home buyers a full exemption below one threshold and a reducing concession above it — check your state revenue office.
Do I have to pay LMI?
Only if your deposit is under 20% and you don’t qualify for a scheme that waives it, such as the First Home Guarantee.
General information only — this article is not financial or credit advice and doesn’t account for your personal situation. Best Brokers Melbourne is a referral service, not a licensed credit provider; we connect you with a licensed mortgage broker. Grant amounts, thresholds and scheme rules change and vary by state — always confirm current details with the official source linked, or a licensed broker, before acting.