Updated October 2026 · Victorian examples, but most of the list applies Australia-wide.
You've saved the deposit, you've won the auction, and the lender has said yes. Time for champagne? Not quite. There's a hidden cast of costs waiting at the door, usually holding invoices. According to Finder's research, around 2 in 5 Australian first home buyers say they faced unexpected costs, and 1 in 3 end up with under $10,000 in the bank in the year after buying. This guide helps you avoid becoming a statistic.
The headline rule of thumb
Victorian guides commonly suggest allowing roughly 5% to 10% of the purchase price on top of your deposit for upfront costs, and one national guide puts total buying costs at around 7% to 11% of the price, which includes stamp duty. If you qualify for the first home buyer stamp duty exemption, your upfront costs may sit toward the lower end, but you still need a real buffer.
The settlement-day costs list
Government costs
- Stamp duty (land transfer duty). Usually the biggest cost. Victorian first home buyers may pay $0 on homes up to $600,000 and a concession up to $750,000; without the concession, duty on a $550,000 home is roughly $26,000. Duty is lodged by your conveyancer through the SRO's digital duties form and is typically paid around settlement. Use the SRO's land transfer duty calculator for your exact figure.
- Land Use Victoria registration fees: a transfer of land fee (capped at a maximum of about $3,600 for 2026–27, depending on the price) and a mortgage registration fee to record your loan on the title. LUV publishes a fee calculator.
Lender and loan costs
- Loan establishment/application fees: commonly $0 to $1,500 depending on the lender and loan
- Valuation fees, if not absorbed by the lender
- Lenders Mortgage Insurance (LMI) if your deposit is under 20% and you aren't using the First Home Guarantee. It can be paid at settlement or added to the loan
- Settlement fee or discharge fees in some cases
Legal and professional costs
- Conveyancer or solicitor: commonly in the region of $1,500 to $3,000, depending on complexity
- Building and pest inspection: a few hundred dollars (published figures commonly range from about $300 to $600 or more, depending on the property)
- Strata/owners corporation report for apartments or townhouses (around $300 in some guides)
- Searches and certificates (title, rates, water, planning), often bundled by your conveyancer
Settlement adjustments
- On settlement day your conveyancer calculates adjustments so you only pay council rates, water rates and owners corporation fees from the day you take ownership, reimbursing the seller for any pre-paid periods. This can be hundreds to a couple of thousand dollars.
Moving in
- Removalists (commonly $1,000 or more for a full service), a cleaner, new locks, key cutting
- Utility connections (electricity, gas, internet)
- Home and contents insurance, which should be active from the moment of settlement, because the property is yours from then. Lenders usually require building insurance
- Essentials: furniture, window coverings, a lawnmower and, apparently, a surprising number of light bulbs
A worked example (illustration only)
A first home buyer buys a $590,000 home with the First Home Guarantee (5% deposit, no LMI). Rough figures:
- Deposit: $29,500
- Stamp duty: $0 (first home buyer exemption, assuming eligibility)
- Government registration/transfer fees: budget roughly $3,000–$4,500 (use the Land Use Victoria calculator)
- Conveyancing: about $2,000
- Lender fees and valuation: about $500–$1,500
- Building and pest: about $500–$700
- Settlement adjustments: about $500–$1,500
- Moving and set-up: about $1,500–$3,000
That's around $38,000 to $45,000 of total cash needed, before any emergency fund. On a purchase without the exemption, add the duty. Change the numbers for your own situation; these are illustrative ranges, not quotes.
How much should the buffer be?
Beyond the costs above, keep an emergency fund that doesn't belong to the purchase. Many financial educators suggest three to six months of living expenses. At minimum, ensure you can cover your first few mortgage repayments, the unexpected repair (hot water systems have a talent for dying on Friday afternoons) and a small rate rise. Your lender will also check your savings and spending habits, so don't drain everything on the day.
What the lender can and can't add to the loan
Some costs (such as LMI and sometimes stamp duty or fees, if you have enough equity and borrowing power) can be added to the loan, but this means you pay interest on them for years. Many costs, like conveyancing and inspections, must be paid in cash. Ask your broker which costs can be capitalised.
Checklist: settlement-day money
- Confirm whether you qualify for the stamp duty exemption/concession and the FHOG (new homes)
- Use the SRO duty calculator and Land Use Victoria fee calculator
- Get written quotes from at least two conveyancers (and ask what's included)
- Ask your lender for a schedule of fees, including LMI and valuation costs
- Book the building and pest inspection and any strata report before you're locked in
- Arrange building insurance from the settlement date, and contents insurance
- Ask your conveyancer for an estimate of settlement adjustments
- Budget for moving, connections and immediate repairs
- Keep an emergency fund separate from your purchase funds
- Make sure funds are cleared and available a few days before settlement, and confirm how and when to transfer them to your conveyancer
- Set up your first loan repayment (and a small buffer in the account)
- Diarise settlement date, final inspection and key collection
A final laugh
Buying a home is the only time you'll celebrate getting the keys, and then immediately discover your new hobbies: Bunnings, rates notices and Googling "why is there a hole in my ceiling". Plan the buffer now and you'll enjoy all three more.
Official links
- State Revenue Office Victoria, stamp duty and first home buyer relief: https://www.sro.vic.gov.au
- Land Use Victoria, 2025–26 and 2026–27 fees and fee calculator: https://www.land.vic.gov.au/land-registration/fees-guides-and-forms/2025-26-fees
- MoneySmart (ASIC), costs of buying a home: https://moneysmart.gov.au
- Consumer Affairs Victoria, buying property: https://www.consumer.vic.gov.au
- Housing Australia, First Home Guarantee: https://www.housingaustralia.gov.au/first-home-guarantee-faqs
Disclosure and Disclaimer
This article is general information only and is not financial, credit, legal, tax or investment advice. It does not consider your objectives, financial situation or needs. Costs and fees are indicative and change often; examples are illustrations, not quotes. Please do your own research and obtain independent advice from a licensed financial adviser, mortgage broker, accountant and conveyancer or solicitor before making any decision. Loan approvals are subject to lender criteria. To the maximum extent permitted by law, our business, its directors, employees and brokers accept no liability for any loss or damage arising from reliance on this article.
Disclaimer: The information in this article is general in nature and does not constitute personal financial or credit advice. Speak with Amber Finance so we can look at your own situation in detail.