Upfront Costs of Buying a Home: What You’ll Need Beyond the Deposit

The short answer

Your deposit isn’t the only money you need to buy a home. Stamp duty, legal fees, inspections and a handful of smaller costs can add up to tens of thousands of dollars.

Knowing what to expect, and where you can save, helps you budget properly and avoid surprises at settlement.

Stamp duty

Stamp duty, also called transfer duty, is usually the biggest upfront cost after your deposit. Each state sets its own rates, and they’re based on the purchase price.

• Example in NSW: for contracts from 1 July 2026, standard duty on an $800,000 home is $30,187.
• First home buyers: in NSW, eligible first home buyers pay no duty on homes up to $800,000, with a concession up to $1 million. Other states have their own schemes.

We’ll cover first home buyer schemes and grants in detail in a separate lesson. Always confirm the exact amount with your conveyancer or solicitor before you exchange.

Conveyancer or solicitor?

You’ll need someone to review your contract, run searches and handle settlement. Budget roughly $1,500 to $3,000 for this, including settlement adjustments, which is your share of any council rates, water or strata levies the seller has already prepaid.

• A conveyancer: licensed to handle standard property transfers. Usually the more affordable option for a straightforward purchase.
• A solicitor: can also give legal advice. Worth considering for more complex situations, such as off-the-plan purchases, buying through a company or trust, a deceased estate, unusual contract conditions, subdivision or development, a property settlement after separation, or a guarantor arrangement.

Government fees: you’ll also pay small fees to register the transfer and the mortgage, usually a few hundred dollars in total.

Inspections and reports

• Building and pest inspection: usually a few hundred dollars, and essential before you commit to a house.
• Strata report: for apartments and townhouses, to check the building’s finances, levies and any major repairs ahead.

Don’t throw money away: these reports add up quickly if you order one for every property you look at. Save them for the properties you’re serious about, and where you have a real chance of securing the deal, such as once negotiations are progressing or for an auction you’re genuinely planning to bid at. Some agents also offer existing reports you can review first.

Lender costs

The good news: for home loans, most banks charge no application fee and cover the cost of the valuation.

Costs you may still see include:

• Settlement or loan establishment fees: at some lenders.
• Package fees: commonly $395 a year, if you choose a package loan.
• LMI: if your deposit is under 20% and you’re not eligible for a waiver or scheme. It’s usually added to the loan rather than paid in cash.

Insurance

Lenders usually require building insurance from settlement for a house. For apartments, the building is usually covered by strata insurance, though you’ll want contents cover.

Worked example

Here’s a rough guide to the total cash needed for an $800,000 home in NSW, with a 20% deposit:

Cost	Standard buyer	Eligible first home buyer
Deposit (20%)	$160,000	$160,000
Stamp duty	$30,187	$0
Conveyancing, legal and settlement adjustments	$1,500 to $3,000	$1,500 to $3,000
Government registration fees	about $350	about $350
Building and pest inspection	about $500	about $500
Lender fees	$0 at most banks	$0 at most banks
Total cash needed	about $192,500 to $194,000	about $162,350 to $163,850

Your own figures will depend on your state, property, lender and circumstances.

Want to know your total cash needed?

Our team of lending specialists will work out your full cost to buy, including stamp duty, fees and any concessions you’re eligible for, so there are no surprises at settlement.

Book a chat · Next lesson: First home buyer schemes

All Knowledge Hub lessons

General information only. This article does not consider your objectives, financial situation or needs and is not credit, financial, legal or tax advice. Stamp duty figures are based on NSW rates for contracts from 1 July 2026 and may change. Other costs are estimates and vary by property, state and provider. Seek advice from a licensed credit adviser and a conveyancer or solicitor before acting. Insight Property Finance.