The Real Costs of Buying Your First Home: A Complete Breakdown for First Home Buyers
Discover the full cost of buying your first home in Australia. From stamp duty and legal fees to moving costs, insurance, and buffers, this guide helps first home buyers budget with clarity and confidence.
Buying your first home is an exciting milestone, but it's also one of the biggest financial commitments you can make. While most people focus on the deposit, the true cost of purchasing your first home includes a range of other fees and expenses that are easy to overlook.
If you're not prepared, these extra costs can catch you off guard. But with the right knowledge, you can plan ahead, avoid surprises, and move into your first home feeling confident and in control.
In this guide, we break down the real costs of buying your first home in Australia, step by step.
Government Fees
When you buy a home, there are government charges involved. These include stamp duty, the transfer fee, and the mortgage registration fee. They’re paid at settlement and can add thousands to the total cost of your purchase. Let’s break them down:
Stamp Duty
What it is: Stamp duty is a one-off state government tax you’ll need to pay when buying a property. The amount depends on the purchase price and which state or territory you're buying in.
Why it matters:
Stamp duty can be a significant upfront cost that often catches first home buyers off guard. It’s important to factor it into your budget early in the process. The good news is that many states offer stamp duty concessions or full exemptions for eligible first home buyers, depending on the property value and location.
Want to check your eligibility?
Explore our State-by-State Stamp Duty Guide for First Home Buyers PDF for a full breakdown of current thresholds across Australia, or speak with your broker to understand what applies to your situation.
Transfer Fee
What it is: A government fee charged to legally transfer the property title from the seller to you.
Why it matters: It’s a standard cost paid at settlement, usually handled by your conveyancer. While it’s not the biggest fee in the process, it’s one more thing to include in your budget so there are no surprises on settlement day.
Note:
This fee varies by state and property value. In NSW, for the 2025–26 financial year, it is a flat fee of $175.70.
Mortgage Registration Fee
What it is: A government fee to register your lender’s interest on the title of your property.
Why it matters: It’s a one-off cost paid at settlement that formalises your mortgage in government records.
Note:
This fee varies by state. In New South Wales, for the 2025–26 financial year, it is a flat fee of $175.70.
Legal and Lender Fees
In addition to government charges, there are legal and lender-related costs. These cover the professionals and processes that help get your purchase over the line, from reviewing your contract to finalising settlement. Some fees are fixed, while others vary depending on your lender or the complexity of your property purchase.
Conveyancer
What it is: A licensed professional who manages the legal side of buying a property by reviewing contracts, running title checks, and coordinating settlement.
Why it matters: A conveyancer is essential when purchasing a property. They ensure everything is in order so the property legally becomes yours, giving you peace of mind and helping you avoid legal issues down the track.
Typical cost: $1,000–$4,000
Lender Fees
What it is: These are fees charged by your lender or bank. They may include application and valuation fees, as well as annual package fees for features like offset accounts.
Why it matters: While these fees are usually smaller, they can still affect your budget and should be included in both your upfront and long-term planning.
Typical cost:
Application/valuation fees: $100–$500
Annual package fees: $90–$395
Additional Out-of-Pocket Costs
These costs are not paid at settlement but come out of your own pocket along the way. They can be easy to overlook but are critical to include in your budget.
Building and Pest Inspection
What it is: An inspection carried out by a qualified professional to assess the property’s condition, including any structural issues, damage, or signs of pests like termites.
Why it matters: This gives you peace of mind before you commit. Identifying red flags early can save you thousands and help you avoid buying a home with costly hidden problems.
Typical cost: $400–$1,000
Home, Building and Contents Insurance
What it is: Insurance protects your home and belongings from events like fire, flood, or theft.
If you have a mortgage, building insurance is mandatory and must be in place before settlement.
Why it matters: Insurance protects your biggest asset. It’s not optional. You must show evidence of building insurance before settlement.
Moving Costs
What it is: Costs associated with getting you into your new home, from hiring removalists or renting a truck, to setting up essential services like electricity, gas, water, and internet.
Why it matters: These costs can add up quickly and often come at a time when money is already tight.
Furniture and Household Setup
Once you've moved in, you'll need to furnish your home with the basics, things like a bed, fridge, washing machine, couch, and kitchen essentials. Even if you’re buying second-hand or keeping things minimal, the setup can still get expensive. It’s easy to underestimate how many small items are needed to make your space comfortable and functional.
Cash Buffer
A cash buffer is a safety net, extra savings set aside to cover the unexpected. This might include urgent repairs, appliance issues, or surprise bills that pop up once you’ve settled in. Having a buffer in place helps reduce financial stress and gives you greater peace of mind.
Final Thoughts
Understanding the true cost of buying your first home in Australia is more than just saving for a deposit. From stamp duty and legal fees to inspections, moving costs, furniture, insurance and cash buffers, being across every cost helps you build a budget that works, and avoid nasty surprises at settlement.
Whether you're just starting to plan or you're almost ready to buy, factoring in these expenses is key to a clear, calm, and confident home buying journey.
Want more support?
Listen to Episode 3 of First Home Unlocked for a full walkthrough of these costs. Or if you're planning to buy your first home, book a Chat With Jack to help you map out your next steps with confidence.
