Buying property

What costs do I need besides a house deposit?

Stamp duty, professional checks, loan costs and a cash buffer all sit outside the headline deposit.

Short answer

In addition to the deposit, budget for stamp duty or transfer duty, conveyancing, building and pest inspections, strata searches where relevant, lender and valuation fees, mortgage registration, insurance, moving costs and immediate repairs. Concessions vary by state and buyer type, so calculate costs for the specific property rather than using a national estimate.

Separate purchase costs from the deposit

The deposit reduces the amount borrowed. Transaction costs do not normally create property equity and often need to be paid from cash. If LMI is capitalised into the loan, it also increases the balance and LVR. Obtain a written funds-to-complete calculation before signing an unconditional contract.

Check duty and concessions for the relevant state.
Allow for lender, legal and registration fees.
Budget for inspections and property reports.
Keep money available after settlement.

First-home benefits do not remove every cost

A grant, duty concession or government guarantee may reduce part of the contribution for eligible buyers. Each program has separate price, income, occupancy and timing rules. Confirm eligibility before including the benefit in available funds.

Professional and due-diligence costs

A solicitor or conveyancer reviews the contract, title and settlement. Building and pest inspections examine physical issues, while a strata report can identify levies, insurance, defects and body-corporate decisions. These services cost money even if you decide not to proceed, but they address risks the lender's valuation does not. A bank valuation is prepared for lending security and should not be treated as a complete property inspection or buyer's valuation advice.

Loan and settlement costs

Possible costs include application, valuation, legal, settlement, package and government mortgage-registration fees. A high-LVR loan may involve LMI, which protects the lender rather than the borrower. If the premium is added to the loan, check whether it pushes the total LVR into another limit. Ask for an itemised estimate and keep a contingency because final adjustments for rates, water, strata or rent are calculated near settlement.

Keep a post-settlement buffer

Moving, utility connections, insurance, urgent maintenance and basic furnishings can quickly use remaining cash. Owners also face council rates, water, body-corporate levies and repairs that renters may not pay directly. Using every dollar at settlement can force new credit-card debt after purchase. Set a minimum emergency reserve before choosing the maximum deposit. A slightly higher loan may cost more, but leaving no buffer can be a greater household risk.

Questions to ask before you proceed

Which approval conditions and property checks are still outstanding?
How much cash is required for the deposit, purchase costs and a sensible buffer?
Does the lender have restrictions on this property type, title, size or location?

Key takeaway

Calculate the deposit, transaction costs and post-settlement buffer as three separate amounts before setting a purchase price.

Official guidance: Moneysmart: Buying a house

This is general information, not personal financial, tax or legal advice. Lending criteria, fees and eligibility vary.

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