You have saved a deposit, found a place you like and started estimating repayments. Then the extra costs arrive: conveyancing, building inspections, moving and possibly stamp duty. The deposit is a major part of buying, but it is not the whole upfront bill. Planning for the full amount can give you a more realistic picture of what you can afford.
Add up the buying costs
Some costs are tied to the purchase itself. Depending on your circumstances and where you buy, these may include stamp duty, conveyancing or solicitor fees, a building and pest inspection, and registration fees. Stamp duty rules and first home buyer concessions differ between states and territories, so check the rules that apply to the property’s location rather than relying on a general estimate.
Other costs can appear around settlement and moving day, such as utility connections, insurance and removalists. A lender may also charge fees, and a smaller deposit can mean lenders mortgage insurance, often called LMI, unless an exemption or other arrangement applies. Ask for each cost to be identified separately so you can see which amounts are estimates and which are confirmed.
Keep a cash buffer
A budget that uses every dollar of savings at settlement leaves little room for a repair, a delayed move or an unexpected bill. Work out what you want to keep aside after purchase, then compare that figure with the cash left once your deposit and buying costs are accounted for. The right buffer depends on your circumstances, but it should be a deliberate part of the plan.
Check schemes and conditions
First home buyer grants and concessions may reduce some costs, but eligibility can depend on factors such as the state or territory, property type, price and whether you plan to live there. Government schemes that help eligible buyers purchase with a lower deposit also have their own conditions and availability. Treat these as items to verify, not money to count on before you have checked the current rules.
A practical next step is to make one list with three columns: deposit, purchase costs and post-settlement buffer. Add estimates for each item, then confirm the figures that depend on your location or loan. That gives you a better buying target than the deposit figure alone.