Buying your first home in Australia: the complete cost breakdown for 2026

On a $700,000 first home, you'll need around $90,000 in cash before stamp duty even hits. Here's every cost broken down, plus the schemes that can dramatically reduce them.

By ECTD Editorial · Published 2026-05-02 · Updated 2026-05-02

Buying your first home is the largest financial transaction most Australians ever make. The deposit is just the start — there are a dozen other costs that surprise first-time buyers, and getting any of them wrong can leave you short at settlement. This guide walks through every single line item, what to expect for typical 2026 prices, and the schemes that can save you tens of thousands.

The big picture: what you actually need in cash

For a typical $700,000 home in 2026, you're looking at upfront cash needs of approximately:

Deposit (10%): $70,000
Stamp duty: $0–$25,000 (varies massively by state and concession eligibility)
Conveyancing: $1,500–$3,000
Building & pest inspections: $400–$700
Loan establishment fees: $0–$700
LMI (if deposit under 20%): $10,000–$20,000
Title transfer fees: $200–$300
Council rates & water adjustments: $200–$800

Total: approximately $82,000 to $120,000 on a $700,000 home, depending on state and concession eligibility. For a 20% deposit ($140,000) with no LMI, the total need rises to around $145,000–$170,000.

These numbers shock most first home buyers. The deposit you've been saving toward is only one of several major costs. Let's break each one down.

1. The deposit

Australian lenders typically require at least 5% deposit in most cases, though some scenarios (specifically the First Home Guarantee scheme — see below) allow as little as 5% with no LMI.

Common deposit scenarios:

20% deposit ($140k on a $700k home): no LMI, best rates, smallest loan
10–15% deposit ($70k–$105k): LMI applies, typically 1–2% of the loan amount
5% deposit ($35k): LMI is significant ($15k+), or qualify for First Home Guarantee to skip LMI

Note that "deposit" usually includes both the cash you put down at exchange (typically 5–10% paid to the seller's agent) and the additional funds needed at settlement. Lenders look at your total contribution, not just the exchange deposit.

2. Stamp duty

Stamp duty is the second-largest cost after deposit, varying massively by state and your buyer category. For a $700,000 home as a first home buyer in 2026:

NSW: $0 (FHBAS exemption up to $800k)
VIC: partial concession, ~$15,000 (sliding scale $600k–$750k)
QLD: $0 (full first home concession to $700k)
WA: full duty applies (~$26,000) — concession only goes to $600k
SA: $0 if new build; full duty (~$31,000) if established
TAS: 50% concession ~$13,000
ACT: $0 if income-tested HBCS qualifies; otherwise ~$22,000
NT: ~$50,000 discount potentially applies for new builds

The eligibility rules are tight — you generally must be 18+, an Australian citizen or permanent resident, never have owned property in Australia, and intend to live in the property as your principal place of residence within 12 months for at least 6–12 months.

3. Lenders Mortgage Insurance (LMI)

LMI is insurance that protects the lender (not you) if you default. It's charged on most loans where the deposit is under 20% (loan-to-value ratio over 80%).

Typical LMI premiums on a $700,000 home:

5% deposit ($35k): LMI ~$22,000
10% deposit ($70k): LMI ~$13,000
15% deposit ($105k): LMI ~$5,000
20% deposit ($140k): no LMI

Most lenders allow LMI to be capitalised into the loan amount — added to your mortgage rather than paid upfront. This makes it easier to manage cash-flow but means you pay interest on it for the life of the loan.

Ways to legitimately avoid LMI:

Save a 20% deposit — the simplest path
Use a parental guarantor — parents pledge equity in their home as security
First Home Guarantee scheme — government acts as guarantor for up to 15% of the loan (see below)
Special profession waivers — some lenders waive LMI for doctors, accountants, lawyers, engineers, vets

4. The First Home Guarantee scheme

This federal scheme (formerly First Home Loan Deposit Scheme) lets eligible first home buyers purchase with as little as 5% deposit and avoid LMI entirely. The government guarantees the difference between your deposit and 20%.

On a $700,000 home: instead of 5% deposit + $22,000 LMI = $57,000 cash needed, the scheme drops it to 5% deposit + $0 LMI = $35,000 cash. That's $22,000 saved.

Key requirements: must be an Australian citizen, must intend to live in the property, must meet income caps ($125,000 single / $200,000 couple in 2024–25, indexed), and the property must be under the price cap for your state and area. Spots are limited — typically 35,000 places per year nationally — and they re-open each financial year on 1 July.

5. Conveyancing fees

A conveyancer or solicitor handles the legal side of property transfer — contract review, title searches, settlement coordination, dealing with the state revenue office for stamp duty. You can't legally settle a property purchase without one (in most states).

Typical fees for a residential first home in 2026:

Conveyancer (non-lawyer): $1,000–$2,000 — fine for standard transactions
Solicitor: $1,500–$3,500 — useful if anything is complex (off-the-plan, trust ownership, special conditions)
Disbursements (searches, certificates): $300–$600 added on top

Get 2–3 quotes. Some conveyancers charge fixed fees; others charge by the hour. For a straightforward first home, fixed-fee conveyancers (like ZipConvey, Settle Easy, etc.) are typically the best value.

6. Building and pest inspections

For established homes, a building and pest inspection is essential. Don't skip it. The cost is small relative to the size of the issues it can uncover.

Building inspection: $300–$500 — checks structural condition, roof, plumbing, electrical visible issues
Pest inspection: $200–$300 — termite damage, treatment history, current activity
Combined report: $400–$700 — most inspectors offer both bundled

Get the inspection done before exchanging contracts if you're bidding at auction (auction contracts are unconditional). For private treaty purchases, you can usually make the contract conditional on satisfactory inspection results.

For new builds and off-the-plan apartments, you generally don't need a building inspection at purchase, but a defect inspection at handover (also $400–$700) is worth doing.

7. Mortgage application and establishment fees

Most lenders charge:

Application/establishment fee: $0–$700 (some lenders waive)
Valuation fee: $0–$300 (usually waived for online lenders)
Settlement/disbursement fee: $250–$400
Ongoing monthly account fees: $0–$15/month — varies by lender

Always compare the comparison rate, not the headline rate — the comparison rate bundles fees into the percentage and reveals the true cost.

8. Title transfer and registration fees

These are state government fees for registering the change of ownership. Typically $200–$300 in 2026, depending on state. Your conveyancer pays these on your behalf and adds them to the bill.

9. Insurance

You'll need building insurance from settlement day. For most lenders this is required as a condition of the loan. Typical premiums in 2026 for a $700k home: $1,500–$3,000/year, depending on location, build type, and excess.

Contents insurance is optional but recommended — typically $500–$1,200/year for a typical first home buyer's belongings.

For apartments, building insurance is usually covered by the strata levy — you only need contents.

10. Council rates and water adjustments

At settlement, the buyer reimburses the seller for council rates and water charges already paid for the period after settlement. Typically a few hundred dollars, calculated on the day.

Putting it all together: budget templates

Scenario A: $700k home, 20% deposit, NSW first home buyer

Deposit: $140,000
Stamp duty: $0 (FHBAS)
Conveyancing: $2,000
Inspections: $600
Loan fees: $300
Title transfer: $250
First-year insurance: $2,000
Council/water adjustments: $400
Total upfront cash: ~$145,500

Scenario B: $700k home, 5% deposit, FHG, QLD first home buyer

Deposit: $35,000
Stamp duty: $0 (QLD first home concession)
Conveyancing: $2,000
Inspections: $600
Loan fees: $300
Title transfer: $250
First-year insurance: $1,800
Council/water adjustments: $400
Total upfront cash: ~$40,400

The contrast is striking — the same home costs $145k upfront with a 20% deposit, or $40k with the FHG scheme + first home concession. Both have valid trade-offs (the lower deposit means a bigger loan and higher repayments), but the cash difference matters enormously for many buyers.

Ongoing costs after settlement

Don't forget the costs that continue after you have the keys:

Mortgage repayments — the biggest one. On $560k at 6.25% over 30 years, that's ~$3,440/month
Council rates: $1,500–$3,500/year depending on location
Water rates: $800–$1,500/year
Strata levies (apartments): $3,000–$8,000/year for typical apartments
Building insurance: $1,500–$3,000/year (houses; covered in strata for apartments)
Repairs and maintenance: budget 1% of property value/year as a rough rule for established homes
Land tax: typically only on investment properties or very high-value PPRs (depends on state thresholds)

Common first-home-buyer mistakes

1. Underestimating total upfront costs

Most first home buyers focus on the deposit and forget the other 5-8% of purchase price in extras. Plan for the full picture, not just the deposit number.

2. Stretching to the maximum borrowing capacity

Banks calculate "maximum" capacity assuming you live frugally and have no surprises. Real life isn't like that. Borrowing 20% under your maximum capacity gives you breathing room for rate rises, life events, and the genuine joy of having a home without it being a financial straitjacket.

3. Skipping the building inspection at auction

Auction contracts are unconditional. If you bid without having had the inspection done, you're committing to buy whatever's actually there. Get the inspection done before the auction, even though it costs $600 if you don't end up winning.

4. Choosing a lender on rate alone

Comparison rate matters more than headline rate. Whether the loan has offset, redraw, and what fees apply over time can swing the lifetime cost by tens of thousands. A good broker can save you more in the right loan structure than they ever charge in fees.

The bigger picture

Buying a first home in Australia is genuinely one of the more complex personal financial transactions you'll ever undertake. There are at least eight separate fee categories, two or three different schemes potentially applicable, and dozens of small decisions that compound into the final cost.

The good news: it's all knowable, all calculable, and all manageable. Start with the calculators linked above, get a borrowing capacity estimate from a broker, talk to a conveyancer early, and run scenarios with realistic numbers — not optimistic ones. Done right, the upfront effort pays back over decades.

General information only — not personal financial, tax, legal or medical advice. Consider your own situation and consult a licensed professional before acting. Figures are current as at the date shown above.