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.

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