House Purchase Costs in Australia: What You Actually Need Beyond the Deposit

The listing price is the starting line, not the cash you need on settlement day. Stamp duty, conveyancing, inspections, loan fees and (often) Lenders Mortgage Insurance can add another 4-6% on top of the deposit. This guide walks a realistic cost stack and points you at the property buying cost calculator and stamp duty calculator.

The 30-second summary

• Budget deposit + stamp duty + legal + inspections + loan fees + LMI (if LVR > 80%), not just the deposit.
• Stamp duty is usually the largest add-on and varies sharply by state and buyer type.
• A rough national buffer is 4-6% of purchase price for non-deposit costs before concessions - always confirm by state.
• LMI kicks in under a 20% deposit and can run into five figures on a mid-priced loan.
• First-home concessions and grants can cut stamp duty a lot - rules differ by state and change over time.
• Model the full stack in the property buying cost calculator before you make an offer.

What sits in the cost stack

Cost	Typical range (AU)	Notes
Stamp duty / transfer duty	Often ~2-5% of price (state rules)	Largest variable after deposit
Conveyancing / legal	$1,500-$3,000	Shop quotes; complexity raises fees
Building & pest	$500-$1,000	Do not skip on established homes
Loan establishment / application	$0-$800	Sometimes waived on packages
LMI	~1-4% of loan if LVR > 80%	Protects the lender; can be capitalised

Ongoing ownership costs (council rates, insurance, strata, maintenance) sit outside settlement cash but belong in your monthly budget once you own the place.

Worked example - $800,000 NSW purchase, 10% deposit

Figures below are illustrative for planning, not a quote. Stamp duty for a given state and buyer type should always be confirmed in the stamp duty calculator.

Item	Amount
Purchase price	$800,000
Deposit (10%)	$80,000
Loan amount	$720,000
Stamp duty (illustrative, standard buyer, NSW-style)	~$30,000-$32,000
Conveyancing	$2,000
Building & pest	$800
Loan fees	$600
LMI (illustrative, ~80-90% LVR band)	~$10,000-$20,000
Cash at settlement (excl. deposit already paid)	Often $45,000-$55,000+

A first-home buyer in the same price band may face a much lower stamp duty bill if they sit inside their state's exemption or concession caps. That is why buyer type and state are first-class inputs, not footnotes.

Plug the same purchase into the property buying cost calculator with your state, deposit and buyer type to get a tighter estimate.

State rules matter more than national averages

Crossing a state border can change stamp duty by tens of thousands on the same price. First-home grants (usually for new builds) and stamp duty concessions are also state-specific. For the high-level first-home picture - Help to Buy, FHSS and concessions - see the first home buyer guide, Help to Buy scheme and First Home Super Saver Scheme.

LMI and the 80% LVR line

If you borrow more than 80% of the property value, lenders typically require LMI. It is a one-off premium sized off loan amount, LVR and borrower profile. Capitalising LMI into the loan avoids a cash hit at settlement but means interest on the premium for years.

Raising the deposit enough to clear 80% LVR is often the cleanest way to remove that cost. Use the borrowing capacity calculator alongside deposit planning so the loan size and LVR stay coherent.

FAQ

How much cash do I need on top of my deposit?

Plan for roughly 4-6% of the purchase price for stamp duty, legal fees, inspections and loan setup, before any first-home concessions. On an $800,000 purchase that is often $30,000-$50,000 depending on state and buyer type. Run the property buying cost calculator for your state rather than relying on a national rule of thumb.

What is usually the biggest cost after the deposit?

Stamp duty (transfer duty) is almost always the largest one-off cost after the deposit. It is set by your state or territory, and first-home concessions can cut it sharply or remove it within price caps. Check the stamp duty calculator for your state before you firm a budget.

When do I pay Lenders Mortgage Insurance (LMI)?

LMI is usually required when your loan-to-value ratio is above 80% (deposit under 20%). It protects the lender, not you. Premiums are often 1-4% of the loan amount and can sometimes be capitalised onto the loan, which means you pay interest on the premium.

Are buying costs different for an investment property?

Yes. Investors typically miss first-home grants and stamp duty concessions, so upfront tax is higher. Investment loan rates are also often a touch higher than owner-occupier rates. Model both buyer types in the property buying cost calculator before comparing options.

Can I negotiate any of these costs?

Conveyancing and building/pest inspection fees are shoppable. Stamp duty, registration fees and most government charges are not. LMI is set by the insurer and lender once LVR and borrower profile are fixed.

Should I use a house purchase costs calculator before making an offer?

Yes. The listing price is not the cash you need at settlement. A state-aware cost stack (deposit + stamp duty + legal + inspections + loan fees + LMI if any) is what tells you whether an offer is affordable.

Next step

Run your price, deposit, state and buyer type through the property buying cost calculator, then double-check stamp duty in the stamp duty calculator. If you are still building the deposit, see the first home buyer guide and the savings goal (deposit) calculator.

This article provides general information and does not constitute personal financial or legal advice. Stamp duty, grants and lender fees change - confirm current figures with your state revenue office, lender or broker before you commit.