Upfront costs first home buyers forget about

Saving a deposit tends to get most of the attention when you are buying your first home. It is a big number, so that makes sense.

The deposit is not the only money you may need, though. There can be costs before you buy, when you sign, during the build and right before you move in. Some will apply to almost everyone, while others depend on your home, land, lender and where you are buying.

Knowing about them early makes it much easier to work out what you actually need to save, rather than reaching your deposit goal and discovering another list of expenses waiting behind it.

1. Conveyancing or legal fees

A conveyancer or solicitor helps with the legal side of buying your property, including reviewing contracts, completing searches and managing settlement.

If you are buying a house and land package, remember there are usually separate contracts for the land and build. Make sure you understand what your conveyancing or legal costs cover and whether you want independent advice on your building contract as well.

This is one of those costs that is easy to forget because there is nothing particularly exciting to show for it. It is still money well spent when you are signing contracts worth hundreds of thousands of dollars.

2. Stamp duty or transfer duty

Depending on where you buy, the property value and your eligibility for first home buyer concessions, you may need to pay stamp duty or transfer duty.

First home buyers can qualify for exemptions or concessions in some circumstances, and the rules are different between states. New homes and vacant land can also be treated differently.

Do not automatically put a big stamp duty number into your budget, but do not automatically assume yours will be $0 either. Check what applies to the property you are considering before you commit. Victoria and Queensland both have first home buyer concessions, but the thresholds and rules differ.

3. Government registration and search fees

There can be smaller government and property-related fees alongside the bigger purchase costs.

These may include things like title searches, property transfer registration and mortgage registration fees. Your conveyancer or solicitor can usually tell you which ones apply and include them in an estimate of your settlement costs.

They are unlikely to be the thing that makes or breaks your first home budget, but they are exactly the kind of cost that gets forgotten when all your attention is on the deposit.

4. Home loan fees

Your home loan can come with costs of its own.

Depending on the lender and loan, these might include application, establishment, settlement or valuation fees. Some lenders waive certain fees or include them differently, so check the fee schedule rather than assuming every home loan works the same way.

When you are comparing loans, look beyond the interest rate and ask what you will actually need to pay to set the loan up.

5. Lenders Mortgage Insurance

If you are buying with a smaller deposit, Lenders Mortgage Insurance, usually shortened to LMI, may apply depending on your lender and whether you are using an eligible government scheme.

LMI protects the lender rather than you. It can sometimes be paid upfront and may sometimes be added to the loan, which means you are borrowing more and paying interest on that additional amount.

A 20% deposit is not your only path into your first home, but if you are planning to buy with less, ask your lender or broker whether LMI applies and how it would affect your overall loan. MoneySmart notes that LMI is generally associated with borrowing more than 80% of a property’s value, while government support can help some eligible buyers purchase with a smaller deposit without LMI.

6. Building and property inspections

What you need to inspect will depend on what you are buying.

For an established home, building and pest inspections can help identify issues before you commit. If you are building a new home, you may instead decide to arrange independent building inspections at relevant stages of construction.

Either way, it is worth thinking about inspection costs before you are at the point where someone tells you an inspection needs to happen next week.

7. Site costs when you are building

If you are building your first home, the block itself can affect the cost of construction.

Things like soil conditions, slope, excavation, foundations, drainage, retaining and service connections may influence site costs. Depending on the builder and package, some or all of these costs may already be included in your price.

This is why it is important to understand what has actually been allowed for rather than setting your budget using a base home price alone.

With a Mayde house and land package, the package is usually fixed price based on the specified home, block and inclusions. If you are comparing other builders or buying land separately, check how site costs are handled and when they become fixed.

8. Developer and council requirements

Buying in a new community can mean there are design guidelines or other requirements your home needs to meet.

These might affect the facade, materials, landscaping, fencing or other parts of the home. There may also be council or planning requirements that need to be accounted for before construction starts.

Your builder should help identify the requirements that apply to your block and explain whether they are already included in the price.

The important part for your budget is knowing whether there is anything still to be confirmed.

9. Colour selections and upgrades

Choosing the fun stuff can also be where the budget starts creeping.

Your standard inclusions may already give you everything you want. You may also decide that there are a few things worth upgrading while the home is being built.

At Mayde, you will make your selections through the Elle Design Studio, where you can choose the colours and finishes available for your home and explore upgrade options.

Before your appointment, it can help to decide whether you have an upgrade budget and what matters most to you. Spending more on the things you genuinely care about is much easier to manage than saying yes to a little bit of everything.

10. Changes after you sign

Changed your mind about something after signing your building contract? Depending on the change and stage of the build, it may be handled as a variation.

Variations can add to your build cost and may also affect timing.

This does not mean you can never change anything. It just means it is worth getting your plans and selections as right as you can before construction starts and understanding the cost before approving a change.

A $300 change here and $500 change there has a habit of becoming a much bigger number when you stop adding them up.

11. Paying for somewhere to live while you build

This one is particularly important for first home buyers building a new home.

Your land loan repayments generally begin once the land settles, while construction finance is drawn progressively as the home is built. At the same time, you may still be paying rent or contributing to wherever you currently live.

That can create a period where housing costs overlap.

Before committing to a build, ask your lender or broker what your repayments are likely to look like at different stages. Do not base your budget only on what the completed mortgage repayment will eventually be.

12. Insurance

Insurance can become relevant earlier than you expect.

Depending on what you are buying and your lender’s requirements, you may need to have appropriate insurance arranged by settlement or handover.

Once you move in, you will also need to think about building and contents cover based on your circumstances.

Get a few quotes before settlement rather than leaving it until the week you are moving. It also gives you another ongoing home ownership cost to factor into your budget.

13. Settlement adjustments

Settlement can involve adjustments for certain property expenses that have already been paid or are owing.

For example, rates or other property charges may be adjusted between the buyer and seller based on the settlement date.

Your conveyancer or solicitor should calculate these as part of the settlement process, but they can mean the final amount needed at settlement is not exactly the number you had in your head months earlier.

Ask for an estimate of the funds you will need before settlement so you are not trying to move money around at the last minute.

14. Moving and utility connections

You finally get the keys. Unfortunately, moving your belongings does not happen by itself.

Depending on your situation, you might need to budget for:

None of these are enormous compared with buying the home itself. Together, they can still turn moving week into a fairly expensive one.

15. The things your home does not come with

This is where checking your inclusions early really pays off.

Depending on the home and builder, you may need to organise things such as:

Some builders include many of these as standard. Others do not.

Before comparing home prices, ask what will I still need to buy or organise before I can comfortably live here?

For Mayde buyers, check the inclusions for the specific home or package so you know what is already taken care of and what, if anything, you want to add yourself.

16. Furniture and all the little things

You probably already own a bed and a toaster. You might not own enough furniture to fill an entire home.

There is no rule saying your first home needs to be completely furnished on day one. In fact, waiting until you have lived there for a little while can make it easier to work out what you actually need.

Still, leave room in your budget for the basics. Furniture, a fridge, washing machine, outdoor setting, lawn mower, bins, shelving and all the small household things can add up surprisingly quickly.

Getting the keys is expensive enough without deciding you also need an entirely new house worth of furniture that weekend.

Don’t forget about the costs that come after you move in

Your budget should not stop at moving day.

Once you own the home, you will need to allow for ongoing expenses such as council rates, utilities, insurance and general maintenance. Townhome buyers may also have body corporate or owners corporation fees depending on the development. Australian government consumer guidance recommends considering these ongoing ownership costs alongside the initial purchase expenses.

This is why your comfortable home budget can be more useful than simply asking for your maximum borrowing capacity.

You want enough room to own the home and still enjoy living in it.

When will you actually need the money?

Not every cost hits at once. Thinking about your first home budget as a timeline can make the numbers much easier to manage.

Before you buy

You may need money for things such as:

When you secure your home or land

This is where deposits and any costs associated with signing your contracts may come in.

If you are buying a house and land package, remember that the land and build generally involve separate contracts, so make sure you understand the deposit requirements for each.

At land settlement

You may need to account for:

Your land loan repayments will also generally begin once settlement takes place.

During the build

Your construction loan is generally drawn progressively as your home is built.

This is also when costs for any agreed variations or upgrades may come into the picture. If you are still renting, allow for that overlap in your budget as well.

Before handover and moving in

Think about:

This is often where lots of smaller costs arrive at roughly the same time.

So, how much extra should you save?

There is no single amount that works for every first home buyer.

Someone buying a Mayde fixed-price house and land package with strong standard inclusions may have a very different list of additional costs from someone buying an established home or choosing a build where several items are still provisional.

Instead of picking an arbitrary buffer, build your own list.

Start with:

Your deposit

Then add:

Buying and finance costs

Then:

Anything not included with your home

Then:

Your expected costs while building and moving

And finally, leave some breathing room for the things you did not predict.

You will get a much more useful savings target than simply aiming for a deposit percentage and hoping the rest works itself out.

Your first home budget, Mayde clearer

Saving for your first home is a big job. Finding out there are another dozen things you forgot to budget for is not particularly helpful.

Before you commit, get clear on the whole picture: what you need upfront, what is included with your home, when payments happen and what you may still need once you move in.

At Mayde, we work with first home buyers every day, so we will help you understand the home, land and inclusions before you commit. For everything outside the build, your lender, broker and conveyancer can help you put the rest of the numbers together.

Important information

Information on this page is general in nature and does not take into account your personal circumstances. Costs, lending requirements, Lenders Mortgage Insurance, government fees, duties, concessions and eligibility requirements can vary and may change over time. Speak with your lender, mortgage broker, conveyancer, solicitor or other appropriately qualified professional about your circumstances before making financial, legal or property decisions.

Information last reviewed: August 2026.