For a first home buyer in Australia in 2026-27, the total cash you need upfront can range from roughly $35,000 (for a $650,000 apartment in a state with strong stamp duty concessions, using a 5% deposit under the First Home Guarantee) to over $200,000 (for a $950,000 house with a full 20% deposit and partial stamp duty relief). The biggest swing factors are your deposit size, the property’s price, and — most critically — which state you buy in. Stamp duty alone can be zero or it can add tens of thousands to your settlement bill. This guide walks you through exactly what you pay and when, from the moment you start looking to the day you get the keys. We use verified state revenue office data, current as at July 2026, and offer a practical checklist so you can calculate your own number. For a full breakdown of grants and concessions available in each state, see our first home buyer grants state guide and our comprehensive concessions and shared equity schemes guide.
The upfront costs timeline: what you pay and when
Understanding when cash leaves your account is just as important as knowing the total. Here’s the stage-by-stage breakdown.
Stage 1: Before you start looking
Stage 2: At contract exchange
When your offer is accepted, you typically pay a holding deposit of 0.25% of the purchase price. This is later credited toward your full deposit. You’ll also engage a conveyancer or solicitor at this point — expect to pay a portion of their fee upfront, typically $300–$500 of the total $1,200–$2,500.
Stage 3: Between exchange and settlement
This is the busiest period for cash outflows. You’ll need to pay for:
- Building and pest inspection: $400–$800, paid at the time of inspection.
- Formal mortgage application fees: $0–$600, depending on the lender and product.
- Balance of your deposit: The full deposit (minus the 0.25% already paid) is due before settlement. If you’re using a 5% deposit under the First Home Guarantee, this is the remaining 4.75%. If you’re putting down 20%, it’s the remaining 19.75%.
Stage 4: At settlement
Settlement day is when the largest variable cost hits: stamp duty. This is paid by your conveyancer or lender on your behalf from funds you provide. You’ll also pay:
- Conveyancing balance: The remainder of your solicitor’s fee.
- LMI (if applicable): Usually capitalised into the loan, but if you’re paying it upfront, it’s due now. On a typical first-home loan with a deposit under 20%, LMI can be $8,000–$15,000.
- Council and water rates adjustment: $400–$1,200, your share of rates already paid by the vendor.
- Registration fees: Title transfer and mortgage registration, typically a few hundred dollars, often bundled into conveyancing.
Stage 5: After settlement
Once the keys are yours, you still have immediate costs:
- Home and contents insurance: $800–$1,500 for the first year, often required by your lender before settlement.
- Moving costs: Varies widely, but budget at least $500–$2,000.
- Immediate repairs or essentials: Even a well-maintained property can need a few hundred to a few thousand dollars in the first weeks.
Stamp duty: the biggest variable in your upfront costs
Stamp duty is a state tax on property transfers. For first home buyers, exemptions and concessions can slash it to zero — or leave you with a bill of tens of thousands. Here’s how it plays out at three common first-home price points across the states, based on July 2026 rules.
$650,000 established home
- NSW: Full exemption under the First Home Buyer Assistance Scheme (FHBAS) for properties up to $800,000. You pay $0.
- VIC: Partial concession. The full exemption cuts off at $600,000, so at $650,000 you pay a reduced amount. The standard duty on $650,000 is $2,870 + 6% of the amount over $130,000, which equals $34,070. The concession slides, bringing it down significantly but not to zero. You’ll pay roughly $11,000–$14,000 depending on the precise sliding scale.
- QLD: For an established home, full exemption applies up to $700,000. You pay $0.
- WA: Full exemption for homes up to $500,000. At $650,000, you’re in the phasing range and will pay a reduced amount. Standard duty would be $11,115 + 4.75% of the amount over $360,000, or $24,890. The concession reduces this, but you’ll still pay several thousand dollars.
- SA: Established homes are not eligible for first home buyer stamp duty relief. You pay full duty: on $650,000, that’s $21,330 + 5.5% of the amount over $500,000, totalling $29,580.
- TAS: The 100% duty exemption on established homes up to $750,000 lapsed on 30 June 2026. From 1 July 2026, first home buyers of established homes pay full duty. On $650,000, that’s $12,935 + 4.25% of the amount over $375,000, totalling $24,623.
- ACT: Under the Home Buyer Concession Scheme, no duty applies for properties up to $1,020,000. You pay $0.
- NT: No specific first-home stamp duty exemption, but the HomeGrown Territory Grant provides a $50,000 cash grant for new builds. For established homes, duty applies. On $650,000, the formula gives approximately $28,000–$30,000.
$850,000 established home
- NSW: You’re in the partial concession range ($800,000–$1,000,000). Standard duty is $11,602 + 4.5% of the amount over $387,000, or $32,437. The concession reduces this, but you’ll still pay a substantial portion.
- VIC: No first-home concession applies above $750,000. Full duty: $2,870 + 6% of the amount over $130,000, or $46,070.
- QLD: Established home partial concession applies between $700,000 and $800,000. At $850,000, you’re over the cap and pay full duty: $17,325 + 4.5% of the amount over $540,000, or $31,275.
- WA: Full duty applies (concession phased out by $700,000 metro). Duty: $28,453 + 5.15% of the amount over $725,000, or $34,891.
- SA: Full duty: $21,330 + 5.5% of the amount over $500,000, or $40,580.
- TAS: Full duty: $27,810 + 4.5% of the amount over $725,000, or $33,435.
- ACT: Still under the $1,020,000 threshold. $0 duty.
- NT: Full duty applies, approximately $38,000–$40,000.
$950,000 established home
- NSW: Partial concession. Standard duty: $11,602 + 4.5% of the amount over $387,000, or $36,937. Concession reduces this somewhat.
- VIC: Full duty: $2,870 + 6% of the amount over $130,000, or $52,070.
- QLD: Full duty: $17,325 + 4.5% of the amount over $540,000, or $35,775.
- WA: Full duty: $28,453 + 5.15% of the amount over $725,000, or $40,041.
- SA: Full duty: $21,330 + 5.5% of the amount over $500,000, or $46,080.
- TAS: Full duty: $27,810 + 4.5% of the amount over $725,000, or $37,935.
- ACT: $0 duty.
- NT: Full duty, approximately $44,000–$46,000.
The takeaway is clear: where you buy dramatically changes your upfront cash requirement. QLD’s zero-duty policy on new homes (with no price cap) and the ACT’s generous threshold make those jurisdictions exceptionally cash-friendly for first home buyers. Conversely, SA’s exclusion of established homes from relief and TAS’s lapsed exemption mean buyers there face full stamp duty bills.
How deposit size changes your total upfront bill
Your deposit is the single largest cash outlay — and its size dictates whether you pay Lenders Mortgage Insurance.
20% deposit (no LMI)
On a $650,000 property, a 20% deposit is $130,000. You’ll need that cash at settlement, plus stamp duty and fees. If you’re in NSW and eligible for the full stamp duty exemption, your total cash at settlement is roughly $130,000 + $2,000 conveyancing + $600 building and pest + $500 mortgage fees = $133,100. In SA, with full duty of $29,580, that jumps to $162,680.
5% deposit with First Home Guarantee (no LMI, no price cap for the guarantee itself)
Under the First Home Guarantee, eligible buyers can purchase with just a 5% deposit and the government guarantees the remaining 15%, so you pay no LMI. On a $650,000 property, your deposit is $32,500. In NSW with full stamp duty exemption, total cash at settlement is roughly $32,500 + $2,000 + $600 + $500 = $35,600. In SA with full duty, it’s $32,500 + $29,580 + $3,100 = $65,180.
5% deposit without a guarantee (LMI applies)
If you don’t qualify for the First Home Guarantee and put down only 5%, you’ll pay LMI. That LMI premium — often $12,000–$15,000 on a $650,000 loan at 95% LVR — is usually added to your loan. While it doesn’t increase your upfront cash need at settlement, it does increase your total debt. Your upfront cash remains similar to the guarantee scenario, but your ongoing repayments will be higher.
Remember: the First Home Owner Grant (FHOG) can often be used as part of your deposit. In QLD, the $30,000 FHOG for new homes can effectively reduce your cash deposit requirement. We cover FHOG eligibility in detail in our state-by-state grants guide.
LMI: when you pay it and what it costs
Lenders Mortgage Insurance is a one-time premium paid when your deposit is less than 20% of the property’s value. It protects the lender — not you — if you default. The cost depends on your loan amount and LVR:
- At 95% LVR (5% deposit): roughly 2.5%–3.5% of the loan amount.
- At 90% LVR (10% deposit): roughly 1.5%–2.5%.
- At 85% LVR (15% deposit): roughly 0.5%–1.5%.
On a $617,500 loan (95% of $650,000), LMI could be $15,000–$21,000. Most buyers capitalise this into the loan, so it doesn’t hit your upfront cash — but it adds to your debt and monthly repayments.
How to avoid LMI entirely:
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Save a 20% deposit.
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Use a family guarantee where a family member offers their property as additional security.
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Use the Help to Buy shared equity scheme (2% deposit, government equity up to 40%).
Conveyancing, inspections, and other settlement fees
These smaller costs are easy to overlook but mandatory in almost every purchase. Budget for the following ranges in 2026-27:
- Conveyancing or solicitor fees: $1,200–$2,500 total. Covers contract review, searches, title transfer, and settlement attendance.
- Building and pest inspection: $400–$800. Essential for established homes; less relevant for new builds or off-the-plan.
- Mortgage application or establishment fee: $0–$600. Many lenders waive this for first home buyers or package it into the loan.
- Council and water rates adjustment: $400–$1,200. You reimburse the vendor for rates they’ve already paid for the period after settlement.
- Title registration and transfer fees: Varies by state, typically $200–$500, often included in your conveyancing quote.
- Home and contents insurance: $800–$1,500 for the first year. Lenders require a certificate of currency before settlement.
These fees collectively add $3,000–$5,500 to your upfront cash requirement, on top of your deposit and stamp duty.
First home buyer support that reduces your upfront cash need
Several government initiatives directly reduce the cash you need at settlement. Here’s a brief overview — for full eligibility criteria and state-by-state breakdowns, visit our dedicated guides.
First Home Owner Grant (FHOG): A cash grant paid at settlement or first progress payment. In QLD, it’s $30,000 for new homes under $750,000. NSW, VIC, and WA offer $10,000. SA offers up to $15,000. The NT’s HomeGrown Territory Grant provides $50,000. This cash can form part of your deposit or cover other upfront costs. See the full state-by-state FHOG guide.
Stamp duty concessions: As detailed above, these can wipe out your single largest upfront cost. QLD’s zero-duty policy on new homes has no price cap, making it the strongest position in the country. The ACT offers zero duty up to $1,020,000. NSW exempts up to $800,000. Always check your state’s current thresholds.
First Home Guarantee: Allows a 5% deposit with no LMI. Income caps apply ($125,000 for singles, $200,000 for couples). 35,000 places are available in 2026-27.
Help to Buy shared equity: The government contributes up to 40% of the purchase price for a new home (30% for existing), and you need only a 2% deposit. This dramatically reduces both your deposit and your loan size.
All of these schemes are covered in detail in our comprehensive first home buyer schemes guide.
How to calculate your own upfront costs: a step-by-step checklist
Use this checklist to build your personal cash requirement. Work through it in order.
- Get pre-approval: Know your borrowing capacity and the price range you can target. This doesn’t cost cash but sets your budget.
- Find a property and agree on a price: Your target price is the base for all calculations.
- Calculate stamp duty for your state and price: Use your state revenue office’s online calculator. Check if you qualify for a first home buyer exemption or concession. If buying in TAS, remember the established-home exemption has lapsed — you’ll pay full duty from 1 July 2026.
- Add conveyancing: Budget $1,500–$2,500.
- Add building and pest: Budget $500–$800 if buying an established home.
- Add mortgage fees: Budget $0–$600.
- Subtract any FHOG you’re eligible for: This cash comes to you at settlement and reduces your net cash need.
- Total upfront cash = Deposit + Stamp Duty + Fees – FHOG: Your deposit is either 5% (with First Home Guarantee) or 20% (to avoid LMI), or another amount you’ve saved. Add your stamp duty and fees, then subtract any grant.
Run this calculation for a few different price points and states if you’re flexible on location. The difference can be tens of thousands of dollars.
Three worked examples: what you actually need in cash
Scenario 1: $650,000 existing apartment in NSW
A first home buyer purchasing an established apartment in Sydney for $650,000, using the First Home Guarantee with a 5% deposit.
- Deposit (5%): $32,500
- Stamp duty: $0 (FHBAS full exemption up to $800,000)
- Conveyancing: $2,000
- Building and pest: $600
- Mortgage fees: $500
- FHOG: Not applicable (existing home)
- Total cash needed at settlement: $35,600
Scenario 2: $850,000 established house in VIC
A first home buyer purchasing a house in Melbourne for $850,000 with a 20% deposit to avoid LMI.
- Deposit (20%): $170,000
- Stamp duty: ~$46,070 (no first-home concession above $750,000)
- Conveyancing: $2,200
- Building and pest: $700
- Mortgage fees: $400
- FHOG: Not applicable (existing home)
- Total cash needed at settlement: $219,370
Scenario 3: $750,000 new build in QLD
A first home buyer building a new home in Brisbane for $750,000, using the First Home Guarantee with a 5% deposit.
- Deposit (5%): $37,500
- Stamp duty: $0 (zero duty on new homes, no price cap)
- Conveyancing: $1,800
- Building and pest: Not required for new build
- Mortgage fees: $300
- FHOG: $30,000 (new home under $750,000)
- Net cash needed at settlement: $9,600 ($37,500 + $1,800 + $300 – $30,000)
These examples show the dramatic impact of location and property type. A QLD new-build buyer needs less than $10,000 cash, while a VIC established-home buyer needs over $200,000.
Information sources and as-at date
All stamp duty thresholds, FHOG amounts, and scheme parameters in this article are sourced directly from state and territory revenue offices, the Australian Taxation Office, and APRA guidelines. Median price illustrations are drawn from CoreLogic’s mid-2026 dwelling data. Data current as at: July 2026. Policy changes after this date may affect your calculations — always verify with your state revenue office or a licensed professional before making decisions.
Ready to get your numbers? Speak with a broker
Every buyer’s situation is different. Your exact upfront cash requirement depends on your deposit, the property, your state, and which government schemes you qualify for. An experienced mortgage broker can calculate your precise number and identify every concession and grant available to you.
Arrivau’s licensed mortgage brokers can assess your situation and provide guidance within one business day. We specialise in first home buyer pathways and know the 2026-27 policy landscape inside out. Get in touch and we’ll help you build a complete cash timeline for your purchase.
Disclaimer: This article is for general information purposes only and does not constitute financial, legal, or tax advice. All figures are based on state revenue office data as at July 2026 and are subject to change. You should verify your individual circumstances with the ATO, your state or territory revenue office, or a licensed professional before making any financial decisions.