Australian Property Buying Costs: What to Budget in November 2026

Verified November 10, 2026, at 10:31 UTC.

Buying property in Australia takes more cash than the deposit alone. Transfer duty, legal work, inspections and loan charges can add substantially to the amount needed, while insurance, rates and maintenance continue after settlement. The total depends on the property’s location, price, your loan and any concessions you qualify for.

For example, an $800,000 home in New South Wales carries $30,187 in ordinary transfer duty under the current 2026–27 rates if no concession applies. That is on top of the deposit and other costs. Eligible first-home buyers may pay less or no duty, so check the rules before setting a purchase limit.

Destaques

• Budget for the deposit plus duty, legal fees, inspections, registration and loan charges.
• A deposit below 20% may mean lenders mortgage insurance, although exemptions and guarantee schemes can change the cost.
• State and territory rules differ; use the relevant revenue office calculator and confirm any concession.
• Keep money available after settlement for repayments, insurance, rates, repairs and unexpected expenses.

How much cash do you need to buy a house in Australia?

Start with the purchase price, add the costs you must pay, and subtract the amount your lender will advance. The remainder is the cash you need. Then keep a separate emergency buffer rather than committing every dollar to the purchase.

Moneysmart suggests aiming for a deposit of 20% of the price, plus buying costs. Some lenders accept smaller deposits, but the loan and its conditions will determine the amount required. A contract deposit paid after exchange is generally part of your contribution toward the purchase price, not an extra cost on top of it; confirm its amount and timing with your conveyancer.

A worked $800,000 NSW example

Assume an existing home costs $800,000, its dutiable value is the same, and the buyer takes a $640,000 loan. Using the 2026–27 Revenue NSW rates, with no exemption or surcharge:

• Purchase price: $800,000.
• Buyer’s 20% contribution: $160,000.
• Ordinary transfer duty: $30,187.
• Subtotal of contribution and duty: $190,187, before legal fees, inspections, registration, loan charges and any buffer.

The duty calculation is $11,602 plus 4.5% of the amount above $387,000. This is an illustration, not a quote: the lender’s valuation, contract date, eligibility and property details can change the result. It also assumes no lenders mortgage insurance or foreign purchaser surcharge.

How much is stamp duty, and can first-home buyers save?

Transfer duty, commonly called stamp duty, is a state or territory tax on a property transfer. Rates, payment deadlines, exemptions and concessions vary by jurisdiction. Use the calculator for the property’s location and ask your conveyancer when payment is due; Moneysmart links to each jurisdiction’s calculator.

In NSW, eligible first-home buyers can apply for a full duty exemption on a new or existing home valued at $800,000 or less, and a concession on a home valued above $800,000 and below $1 million. Ownership history, residency and other conditions apply. Check the Revenue NSW eligibility rules before treating a saving as available. Grants are separate from duty concessions and have their own state or territory rules.

What other upfront costs should buyers include?

• Conveyancing or legal work: Obtain a written quote covering professional fees, searches and disbursements. A solicitor or conveyancer can review the contract and prepare settlement figures.
• Inspections: Budget for building and pest reports and, where relevant, a strata records inspection. Buyers may pay for reports on properties they ultimately do not purchase, including before an auction.
• Registration and searches: Allow for government charges to register the transfer and mortgage, plus property searches. Charges vary by jurisdiction and transaction.
• Loan expenses: Ask for an itemized estimate of application or establishment fees, valuation charges and any settlement or ongoing package fees. Compare the full loan cost as well as the interest rate.
• Moving and immediate work: Include removalists, utility connections, locks, essential repairs and any insurance premium due around settlement.

Settlement adjustments can also change the cash required on the day. For example, the buyer may reimburse the seller for an applicable share of prepaid council rates or strata levies. Ask your conveyancer for a settlement statement so these amounts are not overlooked.

When do you pay lenders mortgage insurance?

If your loan-to-value ratio is above 80%, your lender may require lenders mortgage insurance, or LMI. It protects the lender if you cannot repay; it does not cover your repayments. The premium depends on the loan and lender. It may be paid at settlement or added to the loan, which increases the balance on which interest is charged. Ask for quotes under both approaches. Moneysmart explains deposits and LMI.

A smaller deposit does not automatically mean LMI will apply: lender policies and government support can differ. Check current scheme eligibility, property price caps and lender requirements before relying on a guarantee.

What costs continue after settlement?

Allow for mortgage repayments, council and water rates, utilities, home and contents insurance, maintenance and repairs. Apartment owners should examine strata levies, the building’s financial records and potential special levies. Investment properties can add management fees, landlord insurance, vacancies and tax obligations; rental income may not cover every expense.

Repayment costs can change if interest rates change. As a planning exercise, Moneysmart suggests checking whether your budget could handle an interest rate two percentage points higher. That is a stress test, not a forecast. Compare that result with your income and other commitments before deciding how much to borrow.

Do foreign buyers face additional costs or restrictions?

Foreign persons may face approval requirements, application fees and state surcharges. A temporary federal ban generally prevents foreign persons from purchasing established dwellings from April 1, 2025, through March 31, 2027, subject to limited exceptions. Check the Australian Taxation Office’s foreign investment guidance and the relevant state revenue office before budgeting or signing.

FAQ

Is a 20% deposit mandatory?

No. Some lenders accept less, subject to their lending criteria. A smaller deposit can increase borrowing costs and may trigger LMI.

Can stamp duty be included in a home loan?

It depends on the lender and your approved borrowing amount. If borrowed funds cover buying costs, the larger loan can increase repayments, interest and potentially LMI. Ask the lender for a written breakdown.

How can I estimate my total buying costs?

Use your state or territory duty calculator, obtain lender and conveyancer estimates, add inspection and registration costs, and retain a separate post-settlement buffer. Confirm concessions before subtracting them.