First home buyer costs beyond the deposit (the ones people forget)

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First-home budgets often stop at deposit — sometimes they stop at "20% of price" and call it done. Settlement needs cash for duty, legal work, government registrations, adjustments between parties, and the messy reality of moving week. The ledger is detailed on purpose; every line must clear, not just the loan advance.

Map this with stamp duty blind spots, deposit and LMI, First Home Guarantee deposit pathway, and low deposit sequence. For the expanded scheme rules from October 2025, see our 5% deposit scheme playbook.

The costs people forget

Transfer duty (commonly called stamp duty) — state-based, concession-dependent. Conveyancing and searches — professional fees plus disbursements. Adjustments — rates, water, strata levies split between buyer and seller at settlement. Lender fees and LMI — application, valuation, insurance premiums capitalised or upfront. Moving and connection — removalists, bonds, utilities. A living buffer after keys — life rarely aligns rent end, first mortgage, and pay cycles perfectly.

Stamp duty and concessions

Rules shift with budgets — verify with your conveyancer and the official tools we link from stamp duty planning. A friend's figure from another year is not your figure.

Legal: fees vs disbursements

Quotes often split professional work from search and certificate costs. Easements, strata questions, or title quirks can add disbursement lines — budget a small contingency.

Adjustments explained briefly

Settlement statements apportion period expenses so each party pays their share of time in the property. Normal — still absent from many mental models that stop at "deposit plus loan".

Lender-side lines

Application charges, valuation, and LMI (where applicable) affect "funds to complete" — your broker shows where they land. Investors comparing broader strategy can peek at investor borrowing pitfalls — different purchase, same habit of underestimating cash stack.

Sanity-check sequence

1. Duty from the official state calculator.
2. Legal quote with an upper disbursement allowance.
3. Broker cost sheet for lender fees and LMI if relevant.
4. Moving plus a post-settlement buffer — two months of living costs if you can swing it.

FAQs

Is "an extra 5% on top of deposit" enough?

Maybe — depends on state, price, and fee stack. Model explicitly; round shortcuts lie.

Do grants reduce cash I need at settlement?

Some assist timing or deposit — mechanics vary. Conveyancer and lender cash-flow map beat rumours.

Can I borrow duty?

Indirectly sometimes via higher lending needs — subject to LVR/LMI — but cash must still work on the day.

New build or off-the-plan differences?

Deposit schedules and duty timing can differ — align contract, conveyancer advice, and finance clauses early.

See the whole picture with a broker

Apply or contact with a draft price band and state — we align loan proceeds with settlement reality.

Related guides

• First home buyer service
• Home loans overview

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General information only. This article does not consider your objectives or situation. Speak with a mortgage broker or qualified adviser before acting.