The total upfront cost of buying a house in Australia extends well beyond the deposit. On a $700,000 property with a 10% deposit, you'll need approximately $95,000-$120,000 in total funds before you even move in - and then there are ongoing costs that catch many new homeowners off guard. This guide breaks down every cost, upfront and ongoing, so you can budget accurately.
The Complete Upfront Cost Breakdown
Here's what buying a $700,000 property actually costs, assuming a 10% deposit ($70,000):
| Cost | Approximate Amount | Notes |
|---|---|---|
| Deposit | $70,000 | 10% of purchase price |
| Stamp duty | $15,000 - $37,000 | Varies by state |
| LMI (if LVR > 80%) | $22,000 - $36,000 | Avoidable with 20% deposit |
| Conveyancing / legal | $1,000 - $2,500 | Solicitor or conveyancer |
| Building & pest inspection | $400 - $800 | Essential, not optional |
| Strata report (if applicable) | $200 - $350 | For apartments/units |
| Loan application fees | $0 - $600 | Often waived |
| Title registration | $150 - $300 | Government fee |
| Moving costs | $500 - $2,000 | Removalists, van hire |
| Total | $95,250 - $119,550 |
Stamp Duty by State
Stamp duty is the largest cost after the deposit, and it varies significantly by state:
| State/Territory | Stamp Duty on $700,000 | First Home Buyer |
|---|---|---|
| NSW | ~$26,000 | Exempt up to $800,000 |
| VIC | ~$37,000 | Exempt up to $600,000, concession up to $750,000 |
| QLD | ~$17,350 | Concessions for properties up to $700,000 |
| SA | ~$32,330 | No stamp duty on eligible new homes |
| WA | ~$27,265 | Exempt up to $500,000 |
| TAS | ~$24,000 | 50% discount available |
| ACT | ~$20,000 | Concessional rate available |
| NT | ~$34,650 | Stamp duty concessions available |
Rates are approximate and change periodically. Check your state's revenue office for exact figures.
Lender's Mortgage Insurance (LMI)
LMI is required when your deposit is below 20% of the property value. It protects the lender if you default. Crucially, it does not protect you.
LMI costs escalate sharply as your LVR increases:
| LVR | Deposit on $700,000 | Approximate LMI Cost |
|---|---|---|
| 90% | $70,000 (10%) | $22,000 - $36,000 |
| 85% | $105,000 (15%) | ~$12,000 |
| 80% | $140,000 (20%) | $0 (not required) |
How to avoid LMI:
- Save a 20% deposit
- Use a family guarantee (guarantor loan)
- Apply for the Home Guarantee Scheme (limited places, eligibility criteria apply)
First-Year Ongoing Costs
The costs don't stop at settlement. Here's what to budget for in year one:
| Cost | Annual Amount | Notes |
|---|---|---|
| Mortgage repayments | ~$36,000 - $42,000 | On $630,000 loan at ~6% |
| Council rates | $1,500 - $4,000 | Varies by LGA |
| Water rates/usage | $800 - $1,500 | Including usage charges |
| Home & contents insurance | $1,500 - $3,000 | Shop around annually |
| Building insurance | Often incl. above | Required by lender |
| Strata fees (units/apartments) | $3,000 - $8,000 | If applicable |
| Maintenance & repairs | $5,000 - $10,000 | Budget 1-2% of home value |
| Utility connections | $200 - $500 | Electricity, gas, internet |
The Maintenance Surprise
The most commonly underestimated cost is maintenance. A general rule is to budget 1-2% of the property's value per year for maintenance and repairs. On a $700,000 home, that's $7,000-$14,000 per year.
In the first year, common expenses include:
- Fixing issues not caught by the building inspection
- Painting, flooring, or cosmetic updates
- Garden setup or maintenance
- Appliance replacements
- Lock changes and security updates
First Home Buyer Assistance
First Home Owner Grant (FHOG)
Most states offer a grant for first home buyers, typically for new homes or new builds:
| State | Grant Amount | New Home Cap |
|---|---|---|
| NSW | $10,000 | $600,000 |
| VIC | $10,000 | $750,000 |
| QLD | $30,000 | $750,000 |
| SA | $15,000 | None (New Homes) |
| WA | $10,000 | $750,000 |
| TAS | $30,000 | Various |
Grants are generally for new homes or substantially renovated properties, not established homes.
Home Guarantee Scheme
The Australian Government's Home Guarantee Scheme allows eligible first home buyers to purchase with as little as 5% deposit without paying LMI. The government guarantees the remaining 15% to the lender. Places are limited each financial year, and there are price caps by location.
A Realistic Budget Calculator
Here's a simplified framework for working out your total cost:
- Property price: $___
- Deposit (aim for 20%): Property price x 0.20 = $___
- Stamp duty: Use your state calculator = $___
- LMI (if deposit < 20%): Get a quote from your lender = $___
- Legal/conveyancing: Budget $2,000 = $___
- Inspections: Budget $800 = $___
- Moving and setup: Budget $2,000 = $___
- Total upfront needed: Sum of items 2-7 = $___
- First year ongoing (excl. mortgage): Budget $10,000-$20,000
Common Mistakes
- Only budgeting for the deposit. The deposit is typically only 60-70% of the total upfront cash needed. Many buyers are shocked by stamp duty and LMI costs.
- Forgetting the "empty house" costs. A new home needs curtains, light fittings, a lawn mower, a washing machine. Budget $5,000-$15,000 for household setup.
- Skipping the building inspection. A $500 inspection can uncover $50,000 in hidden defects. Never skip it.
- Underestimating ongoing costs. Council rates, insurance, maintenance, and utilities add up to $15,000-$25,000 per year on top of your mortgage.
Adding It All Up: Can You Afford It?
Buying a house costs significantly more than the purchase price. On a $700,000 property, expect to need $95,000-$120,000 upfront (with a 10% deposit) and $15,000-$25,000 per year in ongoing costs beyond your mortgage. Budget conservatively, get your finances audited before making offers, and don't forget the first-year costs that catch almost every new homeowner off guard.
Related Guides
- First Home Buyer Grants & Schemes - every federal and state grant available
- Guarantor Home Loans Explained - bypass LMI with family support
- Best Home Loan Rates - find the lowest mortgage rate
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