It's not just the deposit
One of the most common mistakes first home buyers make is only budgeting for the deposit and repayments. There's a whole stack of additional costs — both before settlement and after.
Upfront costs
Stamp duty / transfer duty — A state government tax based on the purchase price. Needs to be paid within 30 days of settlement. As a first home buyer you may be eligible for an exemption or concession.
Legal and conveyancing costs — A conveyancer handles the legal side of the property transfer. Expect $1,000–$2,500 depending on complexity.
Building and pest inspection — Non-negotiable. Costs typically $400–$800 but can save you from a very expensive mistake.
Strata report — If buying an apartment or unit, this is essential. It covers the building's financial health, upcoming works, levies, and by-laws.
Lenders Mortgage Insurance (LMI) — If your deposit is under 20%, most lenders require LMI. It protects the lender (not you) and can add thousands to your costs.
Home insurance — Most lenders require this before your loan goes unconditional.
Moving costs — Removalists, packing, connecting utilities. Budget at least $1,000–$3,000.
Ongoing costs
Once you've settled, you're managing: loan repayments and fees, council rates, strata levies (if applicable), land tax, utilities, maintenance and repairs, and home and contents insurance.
The rough rule of thumb
Budget 3–5% of the purchase price on top of your deposit for upfront costs. On a $700,000 property that's $21,000–$35,000.
Questions about your specific situation? Book a free chat with Kick Finance.
