Buying your first home is a huge milestone, one worth celebrating. But it can also come with a few unexpected costs if you’re not fully prepared. Many first home buyers focus only on saving for their deposit, without realising there are several other expenses that need to be budgeted for.
To help you plan ahead, here’s a clear breakdown of the key costs you’ll want to factor in:
Deposit
This is the largest upfront cost. Ideally, you’ll save a 20% deposit, but it is possible to buy with less. Keep in mind that if your deposit is below 20%, you’ll likely need to pay Lenders Mortgage Insurance (LMI).
Stamp Duty
Stamp duty is a government tax charged on property purchases. The amount varies depending on which state or territory you buy in, the property price, and whether you’re eligible for first home buyer discounts or exemptions.
Lenders Mortgage Insurance (LMI)
If your deposit is less than 20%, most lenders require you to pay LMI, which protects them if you can’t meet repayments. The cost can be significant, but from 1 October 2025, the new First Home Buyer 5% Deposit Scheme will make it possible to purchase with a lower deposit without paying LMI, subject to eligibility. It’s worth checking whether you qualify, as this can save you tens of thousands of dollars.
Legal & Conveyancing Fees
To transfer the property into your name, you’ll need a solicitor or conveyancer. Their fees typically range from $1,200 to $2,500, depending on the complexity of the transaction.
Building & Pest Inspections
These are highly recommended to make sure the property is structurally sound and free from issues like termites. The cost is usually around $500–$1,000.
Strata Report
If you’re buying a unit, townhouse, or any property in a strata scheme, a strata report is essential. It gives you insight into the building’s financial position, upcoming maintenance works, and any disputes within the owners’ corporation. Expect to pay around $250–$500.
Loan Setup Fees
Some lenders charge application, settlement, or establishment fees to set up your loan. These are often between $200–$600.
Moving Costs
Whether you hire professional movers or organise a DIY move with friends, there will be costs involved in getting your belongings to your new home.
Ongoing Costs
Don’t forget the expenses that come after settlement. Council rates, water rates, home insurance, and strata fees (if you’re buying into a body corporate or strata complex) are all part of the ongoing costs of owning a home.
At PMC, we know that purchasing your first home can feel overwhelming, but with the right support, it doesn’t have to be. Our team is here to guide you through the process, help you understand the true costs involved, and make sure you feel confident every step of the way.
Looking for a mortgage broker?
If you’d like a trusted mortgage broker to guide you through your next purchase, we can connect you. Get in touch with us today and we’ll make the introduction.