Most buyers focus on the deposit and forget everything else. By the time settlement comes, they're thousands of dollars short — or scrambling to borrow more. Here's the complete list so you're never caught off guard.
The Number That Shocks Most Buyers
On a typical $800,000 Sydney home purchase, the total costs beyond your deposit can reach $15,000–$50,000+. For first home buyers who've been laser-focused on hitting their deposit target, this gap can delay settlement or force last-minute scrambling.
The Full List: Every Cost You Need to Budget For
1. Stamp Duty (or Land Tax) — Up to $35,000+
Stamp duty is the single biggest cost beyond your deposit — and the most misunderstood. In NSW in 2026:
- First home buyers under $800K: $0 — completely exempt
- First home buyers $800K–$1M: Partial concession (sliding scale)
- First home buyers over $1M: Full stamp duty payable (~$40K+ on $1M)
- Non-first-home buyers: Full stamp duty — approximately $30,000 on $800K, $40,000 on $1M
If you're a first home buyer purchasing under $800K, this is $0 — a saving of up to $31,335. But if you're upgrading or buying above the threshold, it's a major cost to budget for upfront.
2. Lenders Mortgage Insurance (LMI) — $15,000–$40,000
If you borrow more than 80% of the property value (i.e., your deposit is under 20%), most lenders charge LMI — an insurance premium that protects the lender, not you. On an $800K purchase with 10% deposit ($80K), LMI can be $12,000–$20,000. With 5% deposit, it's even higher — $25,000–$40,000.
How to avoid it: Use the First Home Guarantee (5% deposit, no LMI) or save a 20% deposit. Some lenders also offer LMI waiver for certain professions (doctors, lawyers, accountants). See our waived LMI page for details.
3. Conveyancing / Solicitor Fees — $1,500–$3,000
You must use a licensed conveyancer or solicitor to review the contract, manage searches, and oversee settlement. Budget $1,500–$2,500 for a standard conveyancing service. Online/fixed-fee conveyancers are available from around $1,200 but ensure they're licensed in NSW.
4. Building and Pest Inspection — $500–$900
Critical for established properties — this report identifies structural issues, defects, termites, and other problems that could cost thousands to fix post-purchase. Never skip this for an established property. Budget $400–$700 for building inspection, $200–$300 for pest inspection (often bundled).
Note: For new builds under a building contract, this is less critical at exchange — but a pre-handover inspection by an independent inspector is strongly recommended before you accept the keys.
5. Loan Application and Lender Fees — $0–$1,000
Some lenders charge an establishment or application fee when you take out your loan. Many competitive lenders (especially online and non-bank lenders) have waived these fees. Your broker will factor this into the comparison. Also watch for:
- Valuation fee: $0–$300 (often absorbed by lender)
- Annual loan fee: $0–$395/year (ongoing)
- Settlement fee: $0–$200 (charged by lender)
6. Council and Water Rates Adjustment — $300–$1,500
At settlement, the vendor is paid back any rates they've prepaid that cover beyond the settlement date. If the vendor has paid annual council rates in advance, you'll reimburse them their portion. This adjustment is calculated by your conveyancer and is often $300–$1,000 depending on the council and property.
7. Home and Contents Insurance — $1,500–$3,000/year
Lenders require you to have home building insurance from settlement day as a condition of your loan. Don't overlook this — you need to have a policy in place before settlement. Compare policies carefully; contents insurance is separate. Budget $1,200–$2,500/year for building insurance on a Sydney house.
8. Moving Costs — $500–$3,000
Professional removalists in Sydney typically charge $80–$150/hour for a team of 2, plus truck. A full home move across Sydney can easily run $1,000–$2,500 depending on distance and volume. DIY truck hire is cheaper but underestimated in effort.
9. Immediate Repairs and Improvements — $2,000–$20,000+
Most established homes need something done after purchase — new locks, fresh paint, garden clean-up, new appliances, minor plumbing. First-time buyers often underestimate this. Budget at least $2,000–$5,000 for minor works, more if you're buying something that needs renovation.
10. Connection and Setup Costs — $200–$1,000
- Electricity/gas: Connection fee $50–$150
- Internet setup: $0–$200 (some providers include)
- Changing of address notifications: Time cost
- Mail redirect: ~$30 for 3 months via Australia Post
The Complete Cost Summary: $800K Purchase, First Home Buyer
Upfront Cost Summary — $800K Purchase, NSW First Home Buyer
First home buyer purchasing at $800K in NSW using FHBG. Estimates only — get exact figures from your broker and conveyancer.
The Buffer Rule
Financial advisers typically recommend having at least $10,000–$15,000 in cash buffer after settlement — for unexpected repairs, new appliances, or life events. Don't spend every dollar on the purchase and leave yourself with nothing. Banks also look favourably on borrowers who maintain savings after purchase.
What About Ongoing Costs After You Move In?
The "hidden costs" don't stop at purchase. Here's what to budget for each year once you own:
- Council rates: $1,000–$2,500/year depending on LGA and property value
- Water rates: $800–$1,400/year
- Home and contents insurance: $1,500–$3,000/year
- Maintenance and repairs: Industry rule of thumb is 1% of property value per year (~$8,000/year on $800K)
- Strata fees (units/townhouses): $2,000–$8,000+/year for admin and sinking fund
Understanding the full cost of homeownership is important before you commit. Our brokers walk every client through the complete picture — not just the deposit. Start with our first home buyer consultation — it's free and obligation-free.
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