Total Cost of Buying a House in Australia — The Full Picture (2026)
The purchase price is just the beginning. Buying a home in Australia involves a significant stack of additional costs that most buyers underestimate. For a $700,000 purchase with a 10% deposit, total buying costs can range from $15,000 (first home buyer with stamp duty exemption) to over $55,000 (investor with LMI and full stamp duty).
This guide breaks down every cost — by scenario and by state — so you can set a savings target that actually reflects what you need.
Why Buying Costs Vary So Much
Three factors drive the range:
- First home buyer status — stamp duty exemptions can save $15,000–$31,000+
- Deposit size — under 20% triggers LMI, which adds $5,000–$30,000+
- State — stamp duty rates differ significantly (VIC is highest; ACT lowest)
Complete Buying Cost Breakdown
| Cost | Indicative Range | Notes |
|---|---|---|
| Stamp duty (transfer duty) | $0–$55,000+ | Zero for eligible FHBs in most states |
| Lenders mortgage insurance | $0–$35,000+ | Only if deposit <20% |
| Conveyancing/legal fees | $900–$3,000 | Solicitor or licenced conveyancer |
| Building inspection | $350–$700 | Strongly recommended |
| Pest inspection | $200–$400 | Often bundled with building |
| Strata report | $200–$500 | Apartments/units |
| Loan application fee | $0–$800 | Many lenders charge nothing |
| Property valuation | $0–$600 | Often absorbed by lender |
| Title insurance | $150–$500 | One-time premium |
| Mortgage registration | $100–$300 | State government charge |
| Title transfer registration | $100–$300 | State government charge |
| Settlement fee | $100–$300 | Legal/PEXA/settlement agent |
| Moving costs | $500–$5,000+ | Removalists, packing, storage |
| Connection fees (utilities) | $50–$500 | Electricity, gas, internet, water |
| Council rates adjustment | $0–$2,000 | Pre-paid by vendor; buyer reimburses portion |
| Body corporate/strata adjustment | $0–$3,000 | Apartments/units — proportion |
Total Cost Scenarios — Common Purchase Prices
Scenario 1: First Home Buyer, $600,000 Purchase, NSW, 10% deposit
| Cost | Amount |
|---|---|
| Stamp duty | $0 (NSW FHB exemption ≤$800k) |
| LMI (90% LVR, ~$540,000 loan) | ~$9,720 |
| Conveyancing | ~$1,400 |
| Building + pest inspection | ~$700 |
| Loan application fee | $0 |
| Valuation | $0 |
| Mortgage registration | ~$150 |
| Title insurance | ~$300 |
| Moving costs | ~$1,200 |
| Total buying costs | ~$13,470 |
| Total needed (deposit + costs) | ~$73,470 |
Scenario 2: Standard Buyer, $700,000 Purchase, VIC, 20% deposit (no LMI)
| Cost | Amount |
|---|---|
| Stamp duty (standard VIC) | ~$37,070 |
| LMI | $0 (20% deposit) |
| Conveyancing | ~$1,500 |
| Building + pest inspection | ~$700 |
| Loan application fee | $0 |
| Valuation | $0 |
| Mortgage registration | ~$150 |
| Title insurance | ~$350 |
| Moving costs | ~$1,500 |
| Total buying costs | ~$41,270 |
| Total needed (deposit + costs) | ~$181,270 |
Scenario 3: Standard Buyer, $700,000 Purchase, VIC, 10% deposit (LMI)
| Cost | Amount |
|---|---|
| Stamp duty (standard VIC) | ~$37,070 |
| LMI (~1.5% of $630,000) | ~$9,450 |
| Conveyancing | ~$1,500 |
| Building + pest inspection | ~$700 |
| Loan application fee | $0 |
| Valuation | $0 |
| Mortgage registration | ~$150 |
| Title insurance | ~$350 |
| Moving costs | ~$1,500 |
| Total buying costs | ~$50,720 |
| Total needed (deposit + costs) | ~$120,720 |
Scenario 4: First Home Buyer, $800,000 Purchase, NSW, 5% deposit (LMI + Guarantee)
Under the Home Guarantee Scheme (HGS), eligible FHBs can buy with a 5% deposit without LMI. Stamp duty is zero.
| Cost | Amount |
|---|---|
| Stamp duty | $0 (NSW FHB exemption ≤$800k) |
| LMI | $0 (covered by HGS guarantee) |
| Conveyancing | ~$1,500 |
| Building + pest inspection | ~$700 |
| Loan application fee | $0 |
| Valuation | $0 |
| Mortgage registration | ~$150 |
| Title insurance | ~$300 |
| Moving costs | ~$1,200 |
| Total buying costs | ~$3,850 |
| Total needed (deposit + costs) | ~$43,850 |
Buying Costs by State — $700,000 Standard (Non-FHB) Buyer with 20% Deposit
| State | Stamp Duty | Other Costs | Total Buying Costs |
|---|---|---|---|
| ACT | ~$17,880 | ~$4,000 | ~$21,880 |
| NSW | ~$26,990 | ~$4,000 | ~$30,990 |
| QLD | ~$27,025 | ~$4,000 | ~$31,025 |
| WA | ~$27,240 | ~$4,000 | ~$31,240 |
| TAS | ~$26,747 | ~$4,000 | ~$30,747 |
| SA | ~$32,330 | ~$4,000 | ~$36,330 |
| VIC | ~$37,070 | ~$4,000 | ~$41,070 |
| NT | ~$34,650 | ~$4,000 | ~$38,650 |
Lenders Mortgage Insurance — Scale by Deposit
LMI cost depends on the LVR (loan-to-value ratio) and the loan size. Higher LVR = higher LMI premium.
Indicative LMI premium (Helia/QBE, approximate — varies by lender):
| LVR | Approximate LMI on $600,000 Loan | Approximate LMI on $800,000 Loan |
|---|---|---|
| 90% (10% deposit) | ~$9,600 | ~$12,800 |
| 92% (8% deposit) | ~$15,000 | ~$20,000 |
| 95% (5% deposit) | ~$19,000 | ~$26,000 |
LMI is usually capitalised into the loan (added to your loan balance rather than paid upfront).
The Cost of Waiting — Is It Cheaper to Rent While Saving?
If property prices rise while you are saving, the amount you need increases. If prices fall, you may save significantly.
General principle: There is no universally correct answer — whether to buy now with LMI or wait to save a larger deposit depends on:
- Property price trajectory in your target area
- Your marginal tax rate (LMI is not deductible for owner-occupiers)
- How much LMI costs vs the opportunity cost of the rent you are paying
This is general information only — for your specific situation, speak with a mortgage broker or financial adviser.
Tips for Reducing Buying Costs
- Check FHB stamp duty exemptions — can save $15,000–$31,000+
- Save 20% deposit — eliminates LMI entirely
- Use the Home Guarantee Scheme — 5% deposit without LMI for eligible FHBs
- Choose lenders with no application fees — saves $300–$600
- Request lender to absorb valuation — often negotiable on standard residential loans
- Get fixed-price conveyancing quotes — compare 3 solicitors/conveyancers
Related Guides
- Hidden Costs of Buying a Home
- LMI Explained
- Stamp Duty Australia — All States
- Home Loan Costs and Fees
- First Home Buyer Guide Australia
- Costs and Fees Hub
This article provides general information about home buying costs. All amounts are approximate — costs vary by state, lender and individual circumstances. For advice tailored to your situation, speak with a licensed mortgage broker or financial adviser. Find one through MoneySmart.