The True Cost of Buying a Home in Australia: A Breakdown of Expenses
- My Finance Agent
- Mar 10
- 4 min read
Updated: Mar 24
What are the total costs of buying a home in Australia? Learn about deposit, stamp duty, LMI & legal fees. Use our calculators to budget & plan smarter!
Buying a home is an exciting milestone, but many first-home buyers underestimate the true cost of homeownership. Beyond the property price, you need to consider stamp duty, lenders mortgage insurance (LMI), legal fees, loan charges, and even moving costs.
To help you budget correctly, we’ve broken down all the key costs and included helpful tools and calculators to guide you through the process.
Disclaimer: The costs provided in this article are estimates only and are intended for general informational purposes. Actual expenses may vary based on your location, lender policies, government regulations, and individual financial circumstances.
Upfront Costs
These are the expenses you need to cover before settlement or at the time of purchase.
Deposit: How Much Do You Need?
Most lenders require a minimum 5% deposit (plus additional costs), but contributing 20% or more can help you avoid Lenders Mortgage Insurance (LMI) and lower your total loan amount.
Deposit Examples:
Property Price | 5% Deposit | 20% Deposit |
$500,000 | $25,000 | $100,000 |
$750,000 | $37,500 | $150,000 |
$1,000,000 | $50,000 | $200,000 |
Finding a property that fits your budget is key to keeping your deposit manageable. A Digital Property Report can help you assess property values, locations, and amenities to find the right balance between affordability and lifestyle.
Want to estimate how long it will take to save your deposit? 👉 Use our How Long to Save Calculator
Stamp Duty: A Major Upfront Cost
A stamp duty is a state government tax applied when buying a home. The amount depends on your state, property price, and first-home buyer eligibility.
As of 1 July 2024, additional fees include:
✅ Mortgage registration fee: $171
✅ Land transfer fee: $171
👉 Use our Stamp Duty Calculator to find out your costs.
Not sure what stamp duty, LVR, or conveyancing mean? Check out our First Home Buyer Glossary for easy-to-understand explanations of key home-buying terms.
Lenders Mortgage Insurance (LMI)
LMI applies if your deposit is less than 20%, and it protects the lender (not you).
Estimated LMI Costs:
Property Price | 5% Deposit (LMI cost) | 10% Deposit (LMI Cost) | 15% Deposit (LMI Cost) |
$500,000 | $12,000 | $7,000 | $4,000 |
$750,000 | $22,000 | $12,000 | $7,000 |
$1,000,000 | $30,000 | $16,000 | $9,000 |
These costs may vary in other states – this is purely in NSW.
How to avoid LMI?
✔ Save a 20% deposit ✔ Check if you're eligible for the First Home Guarantee scheme (buy with a 5% deposit and no LMI)
✔ Use a Family Pledge (Security Guarantee) – A family member (usually a parent) can offer their property as security to help you reach the required deposit amount, allowing you to avoid LMI without extra savings.
Use the My Finance Agent App to track your savings goal and estimate how much LMI you may need to pay. Read more about setting a savings goal in the My Finance Agent App here.
Legal & Conveyancing Fees
You’ll need legal professionals to review contracts, handle settlements, and conduct property checks.
Estimated costs:
Conveyancing & legal fees: $800 – $2,500
Property valuation: $300 – $600 (sometimes covered by the lender)
Building & pest inspection: $300 – $700 (highly recommended for older properties)
We have a strong referral network created to help you with all your needs. Reach out to us if you need a conveyance.
Loan Application & Bank Fees
Some lenders charge extra fees when processing your loan.
Estimated costs:
Loan application fee: $150 – $700
Settlement & bank charges: $100 – $300
Use our Property Purchase Calculator to estimate all your upfront costs in one place.
After Settlement Costs
Moving Costs
Removalist fees: $500 – $2,500
Utility connections (electricity, gas, internet): $100 – $300
Packing supplies & storage: $100 – $500
These are the ongoing expenses after you’ve purchased your home:
2. Home & Contents Insurance
Required by lenders, home insurance protects your property from damage.
Estimated cost: $800 – $2,500 per year
Council Rates & Strata Fees
Council rates: $1,500 – $3,000 per year
Strata fees (for apartments or townhouses): $500 – $5,000 per year
Repairs & Maintenance
Even brand-new homes may need minor repairs or upgrades.
Estimated cost: $1,000 – $10,000+ per year (varies by property condition)
Total Estimated Costs for Buying a Home
💰 For a $500,000 property purchase in NSW:
Cost Category | Estimated Amount |
5% Deposit | $25,000 |
Stamp Duty | $0-$17,000 |
LMI (if deposit <20%) | $12,000 (5% deposit) |
Legal & Conveyancing Fees | $800-$2,500 |
Valuation & Inspections | $600 - $1,300 |
Bank & Loan Fees | $250 -$1,000 |
Moving Costs | $500 -$2,500 |
Total Upfront Costs (approx.) | $39,150 - $61,300 |
💰 For a $1,000,000 property purchase in NSW:
Cost Category | Estimated Amount |
5% Deposit | $50,000 |
Stamp Duty | $40,000+ |
LMI (if deposit < 20%) | $30,000 (5% deposit) |
Legal & Conveyancing Fees | $800 - $2,500 |
Valuation & Inspection | $600 - $1,300 |
Bank & Loan Fees | $250 - $1,000 |
Moving Costs | $500 - $2,500 |
Total Upfront Costs (Approx.) | $122,150 - $127,300 |
💡 Important Note:
The costs above are based on NSW estimates and may differ in other Australian states due to variations in stamp duty rates, government fees, and legal expenses.
Use our Stamp Duty Calculator to check costs in your state.
Speak with us for a more accurate cost breakdown based on your location and circumstances.
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Final Thoughts: Plan & Budget Wisely
Buying a home isn’t just about the deposit—you need to budget for stamp duty, legal fees, inspections, and moving costs too.
Use the My Finance Agent App to track your savings, set goals, and get ready for homeownership.
Need help planning your home loan journey? Get in touch with My Finance Agent today! 🎉
Call us at (02) 8313-8400 or request a call back
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