In our experience, the biggest budgeting mistake isn't overspending on the house — it's treating the purchase price as the budget. The buyers who settle smoothly are the ones who priced in stamp duty, LMI and the settlement adjustments before they set their ceiling, not after.
Account for ALL the costs
The purchase price is the headline, but a real budget has three layers of cost underneath it. Miss any of them and your "affordable" price quietly isn't.
Before you buy
- Building and pest inspection — plus a strata report if it's an apartment or townhouse.
- Pre-approval and, on some loans, a lender's valuation of the property.
- Buyer's agent, if you choose to use one (optional).
At settlement (one-off)
- Your deposit — usually around 10% at exchange, though it varies by contract.
- Stamp (transfer) duty — the biggest extra for most buyers, unless a first-home concession reduces or removes it. See stamp duty and first-home grants.
- Lenders mortgage insurance (LMI) — if your deposit is under 20% and you're not using a guarantee scheme.
- Conveyancing or solicitor's fees, plus disbursements — the title, council and other searches they order on your behalf. See what conveyancing costs.
- Loan set-up costs — the lender's application or establishment fee and its valuation.
- Government registration fees — registering the transfer of title and your mortgage.
- The PEXA settlement fee — the small per-transaction cost of settling electronically. See cost of PEXA.
- Settlement adjustments — you reimburse the seller for council rates, water and any strata levies they've prepaid beyond the settlement date.
Once you own it (ongoing)
- Council rates, water, and strata or body-corporate levies where they apply.
- Building and contents insurance — arrange building cover from the day you sign, not from settlement.
- Utility connections and any immediate repairs or essentials.
- Land tax if the property is an investment, plus ongoing maintenance.
Don't forget the buffer
On top of the known costs, keep a cash buffer for the things that don't appear on any list until they happen — a settlement adjustment larger than expected, an urgent repair in the first month, or simply the gap before your finances settle into their new rhythm. The costs buyers most often miss are LMI when they assumed they had a full 20% deposit, the settlement adjustments, and a special strata levy raised soon after moving in.
In QLD on a $650,000 purchase with the first home concession, all-in extras typically land between $15,000 and $25,000 once LMI is in the mix. Do this maths before you set your max. Full breakdown in The real cost of buying your first home in QLD.
State-by-state: what shifts your budget
The budgeting principles are national. What changes between NSW, VIC and QLD is the cost stack underneath your max purchase price, and the schemes that can lift your effective deposit.
NSW
Transfer (stamp) duty concessions for FHBs via the First Home Buyers Assistance Scheme; $10K First Home Owner Grant for new builds only. Sydney median pushes most FHBs to outer rings or units. Shared Equity Home Buyer Helper is closed to new applicants — existing participants continue under their original terms.
VIC
FHB stamp duty exemptions/concessions via SRO Victoria. Melbourne median still well above Brisbane, so plan for a larger loan or further-out suburbs. Victorian Homebuyer Fund is closed to new participants — existing participants stay in.
QLD
First home transfer duty concession (full concession to $700K, tapered to $800K). First Home Owner Grant available for new builds. Boost to Buy shared-equity scheme opened in late 2025 — places are capped and have been releasing in tranches.
Grant and scheme amounts move. Confirm the current figure on the state revenue office page before you bake it into your max purchase price.
Sample buyer profiles: same income, different state
Three FHB couples on similar household incomes, buying a first home in each state. Numbers are illustrative — use them to see how the cost stack changes, not as a quote.
| Line item | NSW (Sydney outer ring) | VIC (Melbourne outer ring) | QLD (Brisbane / SEQ) |
|---|---|---|---|
| Target purchase price | $820,000 | $680,000 | $650,000 |
| Deposit (10%) | $82,000 | $68,000 | $65,000 |
| Transfer/stamp duty (FHB concession applied) | Reduced / nil depending on price band | Reduced / nil depending on price band | Nil to $700K, tapered to $800K |
| Conveyancing + B&P + lender fees | ~$3–5K | ~$3–5K | ~$3–5K |
| LMI (if under 20% deposit, no guarantee) | ~$15–25K | ~$12–20K | ~$12–18K |
| Safety buffer (recommended) | ~$45K | ~$40K | ~$40K |
Check your exact transfer/stamp duty with the Revenue NSW calculator, SRO Victoria calculator, or the QRO transfer duty estimator.