The hidden costs beyond your deposit

First home buyers budget for the deposit. Many underbudget everything else. The settlement cheque - the cash you need on the day of settlement beyond the deposit - is often $15,000-$45,000 more than you expected, depending on state and property.

Stamp duty

On an $800k NSW property, full stamp duty is about $31,500. A first home buyer concession reduces this to zero (up to $800k) or partial (up to $1m). If your purchase is $880k, you still pay about $13,000 in duty.

Legal / conveyancing fees

$1,500-$2,500 including searches. Online conveyancers advertise lower, but a solicitor's review is worth the extra on a first purchase.

Loan establishment fees

• Application fee: $0-$600
• Settlement fee: $300-$400
• Valuation: usually covered by the lender but some lenders charge $250-$500
• Registration of mortgage: $154-$225 (state fee)

Total typical loan fees: $800-$1,500.

Property searches

• Title search
• Rates certificate
• Water certificate
• Land tax clearance
• Sewer diagram
• Strata report (if applicable)

Total: $500-$1,200 for a standard property; more for specialised properties (rural, heritage).

Building and pest inspection

$600-$900 for a combined report on a standard property.

Lenders Mortgage Insurance

If your LVR exceeds 80%, LMI ranges from $8k to $35k depending on LVR and loan amount. For most first home buyers at 90-95% LVR, LMI on a $650k loan is $15k-$25k. Often capitalised into the loan rather than paid upfront.

Moving costs

• Removalist: $1,200-$3,500 depending on distance and volume
• Utility connection: $100-$300 across gas, electricity, internet, phone
• Cleaning of old rental: $300-$600 if using a service
• Redirection of mail, address updates: $50-$150

Initial home costs

New owners typically underestimate the cost of settling into a new home:

• Appliances you don't already own: $2k-$8k
• Window furnishings: $1k-$5k
• Locks re-keyed: $300-$600
• First month of body corporate levies (apartments): $500-$2,000
• Garden equipment or servicing: $200-$600

Insurance

• Home insurance (if owning house): first year premium $1,200-$2,500 in a low-risk postcode; up to $4,500 in flood or bushfire zones
• Mortgage protection insurance: $300-$600/year if taken (optional but advisable for single-income households)
• Building insurance (house, not covered by body corporate): mandatory from settlement day

State transfer or stamp duty on the loan

Small amount in some states.

Title registration

• Transfer of land: $154-$225
• Mortgage registration: $154-$225

The total

On an $800k purchase with a 10% deposit ($80k), first home buyer concessions in NSW (nil stamp duty), 90% LVR loan:

• Deposit: $80,000
• Stamp duty: $0
• LMI (capitalised in loan): effectively $0 cash needed day 1
• Legal & loan fees: $3,000
• Searches and inspection: $2,000
• Moving costs: $2,500
• Initial home setup: $5,000
• First home insurance & rates: $2,500
• Buffer for surprises: $5,000

Total cash required: $100,000 roughly. The deposit itself is only 80% of the cash required.

The buffer principle

Never arrive at settlement with exactly the deposit plus minimal fees. Budget for 15-20% above expected outlay to handle:

• Valuation shortfall requiring top-up
• Last-minute variation in settlement figures
• Unexpected building inspection findings
• Insurance premium differences from initial estimate

For a first home buyer on $800k purchase, the cash-at-bank target is $95k-$110k, not $80k.