Upfront costs of buying a home in Australia, beyond the deposit

The deposit is the number everyone saves towards. On settlement day it is rarely the only cheque. The costs around a purchase can add up to a meaningful share of the price, and they land in the year you buy, from money that has to be there.

Transfer duty (stamp duty)

Transfer duty, usually called stamp duty, is a state or territory tax on the transfer of property. It is the largest of the extra costs for most buyers. Each state sets its own scale: the rate climbs in steps as the price rises, so the amount isn’t a flat percentage, and the same price costs a different amount in Sydney, Melbourne or Brisbane.

Most states also have concessions or exemptions that cut or remove the duty, for example for first-home buyers or for a home bought to live in, usually with a price limit. The conditions and the limits change from time to time; our first home buyer stamp duty by state post compares them for 2026–27. The revenue office of the state you’re buying in is the source: Revenue NSW, State Revenue Office Victoria, Queensland Revenue Office and their counterparts.

Government registration fees

Transferring the title and registering a mortgage each carry a fee set by the state. They are small next to the duty, and also vary by state and, for the transfer, by price.

Lenders mortgage insurance

When the deposit is under 20% of the price, many lenders charge lenders mortgage insurance (LMI). It protects the lender, not the borrower, and is usually a one-off premium that can be paid on the day or added to the loan. The premium rises with the loan-to-value ratio and the size of the loan, so a smaller deposit costs more on both counts.

The smaller items

• Conveyancer or solicitor fees for the legal work.
• Building and pest inspections, and a strata report for an apartment.
• Loan application, valuation and settlement fees, where a lender charges them.
• Adjustments at settlement for council rates and water already paid by the seller.
• Moving costs, and whatever the new place needs before you can live in it.

Costs that start after you buy

Council rates, insurance and maintenance come with any property. An investment property adds land tax in most states (the Northern Territory has none), and a rental’s income and deductions go in your tax return. Land tax is assessed on the land value you own in each state, and a principal residence is usually exempt, so it often first appears with the second property. Each state’s threshold and rates are in land tax by state.

Why this belongs in a plan

A plan that stops at the deposit gets the purchase year wrong: the cash isn’t there on the day, or the loan is bigger than expected. Putting the buying costs into the year of the purchase shows the real cost of buying in 2029 rather than 2031, or of a $700,000 home against a $750,000 one. Because the duty scale climbs in steps, the extra $50,000 adds more than a flat percentage would.

My Runway prices a purchase with each state’s duty scale and concessions, and shows the costs in the year they fall due. These are estimates from published rates; confirm the final figure with the revenue office or your conveyancer.