🗓️ Life event guide
Buying Your First Home in Australia
From saving a deposit to settlement day — what to expect, what it costs, and what government help is available in 2026.
🏠 Life event guide·12 min read·Updated March 2026
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The real costs of buying
Most first home buyers budget for the deposit and forget everything else. The additional purchase costs typically add 4–6% on top of the purchase price.
| Cost | Typical amount | Notes |
|---|---|---|
| Stamp duty | $0–$35,000+ | First home buyers often exempt or reduced |
| Conveyancer / solicitor | $800–$2,500 | Required for all purchases |
| Building & pest inspection | $400–$700 | Strongly recommended before purchase |
| Mortgage registration | $150–$200 | Government fee |
| Lenders Mortgage Insurance | $5,000–$20,000+ | Only if deposit < 20% |
| Removalist | $800–$3,000 | Varies by distance and volume |
| Council & water rates adjustment | $200–$800 | Paid at settlement |
Government help available
🛡️First Home Guarantee
Buy with 5% deposit, no LMI. Government guarantees 15%. Income and price caps apply.
💰First Home Owner Grant
$10,000–$30,000 depending on state. New builds only in most states.
📄Stamp duty exemptions
Most states offer full or partial exemptions for first home buyers below a price threshold.
🏦First Home Super Saver
Contribute to super and withdraw up to $50,000 for a deposit. Tax advantages apply.
The buying process — step by step
1
Get pre-approval
Know your borrowing capacity before you start searching. Valid for 3 months typically.
2
Find a property
Attend inspections, research comparable sales, engage a buyer's agent if budget allows.
3
Make an offer / bid at auction
Auction purchase is unconditional — no cooling-off period. Private treaty gives 2–5 business days.
4
Exchange contracts
Pay 10% deposit (or 5% if negotiated). Contract becomes legally binding.
5
Unconditional approval
Your lender formally approves the loan after valuation and final checks.
6
Settlement
Balance paid, title transferred. You get the keys. Usually 42 days after exchange.
Frequently asked questions
How much deposit do I need to buy a home in Australia?
The standard minimum deposit is 20% of the purchase price to avoid Lenders Mortgage Insurance (LMI). However, many lenders will approve loans with as little as 5% deposit, with LMI added to the loan. The First Home Guarantee scheme allows eligible buyers to purchase with just 5% deposit and no LMI, with the government guaranteeing the remaining 15%.
What is stamp duty and how much will I pay?
Stamp duty (also called transfer duty) is a state government tax on property purchases. It varies significantly by state and purchase price. In NSW, a $700,000 property incurs around $26,000 in stamp duty. First home buyers receive full or partial exemptions in most states — check your state revenue office for current thresholds. NSW, VIC, and ACT have also introduced optional land tax schemes as an alternative.
What is the First Home Owner Grant?
The First Home Owner Grant (FHOG) is a one-off payment from state governments for eligible first home buyers building or buying a newly built home. Amounts vary by state — typically $10,000–$30,000. The grant is only available on new builds in most states, not established properties. Eligibility requires you to live in the home for at least 12 months.
How long does the home buying process take?
From offer accepted to settlement typically takes 4–12 weeks. The pre-approval process adds 1–2 weeks before that. Finding the right property can take weeks to months. Budget at least 3–6 months from starting your search to getting keys.
Do I need a conveyancer or solicitor?
Yes — you need either a licensed conveyancer or a solicitor to handle the legal transfer of property. They review contracts, conduct searches, liaise with the vendor's representative, and manage settlement. Conveyancers are generally cheaper ($800–$1,500) and sufficient for standard purchases. Solicitors ($1,500–$3,000+) are recommended for complex purchases or off-the-plan contracts.