Buyers plan for the deposit and the mortgage. Settlement is where the rest arrives — and most first home buyers underestimate it by several thousand dollars.
Buyers focus on the deposit and the mortgage. Settlement is where the rest arrives, and most first home buyers underestimate it by several thousand dollars.
On a $700,000 property purchased with a 5% deposit, here is the full picture. Everything except the deposit is cash you need to have available, most of it in the week before settlement.
Indicative for a $700,000 property purchased new with a 5% deposit. Actual costs depend on state, property value and whether the home is new or established.
The costs that surprise people
Stamp duty is not always zero
The $0 line above assumes you qualify for the exemption. This is the checklist of who does not:
| Situation | Duty likely payable? |
|---|---|
| First home buyer, new build under the state grant cap | No — nil duty in QLD, SA, TAS; nil under $800K in NSW, $600K in VIC, $600K in WA |
| First home buyer, established home above the exemption ceiling | Yes, partially — concession tapers to nil at the top of the band |
| Buying with a partner who already owns property | No longer a first home buyer — full general duty applies |
| Vacant land in NSW or WA without building a home | Land has a much lower exemption ceiling than a home |
| Buying to live in after settlement (the purchaser is the trap) | No exemption — the scheme is for owner-occupiers |
Check your position with the calculator before you commit to a price, not after.
Grant timing is not the same as grant value
Most state First Home Owner Grants are paid at settlement, typically applied through your lender against the purchase price. That reduces the cash you need on the day but does not mean the money arrives early enough to pay the deposit. Several states explicitly warn that you should not count the grant as part of your deposit, because the application may be processed after you have already paid.
Do not count the grant in your deposit
Plan to fund the full deposit from your own money. Treat the grant as a reduction in what you owe at settlement. Counting it as deposit money is one of the most common causes of settlement-day cash shortages in first home purchases.
Bond and registration
Your conveyancer will itemise these in your settlement statement, but know what they are. In New South Wales, transfer registration is roughly $157 plus a duty lodgement, and mortgage registration $157 plus a registration fee. In Victoria, transfer duty is approximately $180. These are small but they arrive at the worst time — settlement day, when you cannot go and find another $300.
The unit-specific extras
If you are buying an apartment or townhouse, add:
- Owners Corporation certificate — $250–$500, ordered by the vendor's conveyancer but paid by you in NSW.
- Contribution period adjustment — if you buy mid-quarter, you may owe or be owed a proportion of the owner's corporation fees.
- Proposed works levies — if a major capital project has been approved, you can be asked to contribute a lump sum at settlement.
Settlement day itself
Bring, or confirm your conveyancer holds:
- A bank draft or electronic transfer for the balance. Confirm the method your conveyancer expects — a handwritten cheque is no longer commonly accepted.
- Photo identification for all buyers.
- Any loan documents requiring wet signature, though these are increasingly electronic.
- Insurance in place from the day you exchange, not the day you settle. Most contracts make you responsible for the property from exchange, and a mortgagee who fails to insure can breach the loan.
We publish general information, not legal or financial advice. Off-the-plan contracts, conveyancing and settlement law vary by state and by individual circumstances. Always have your own independent legal adviser review any contract before you sign — the cost is trivial against the risk. Found something wrong? Tell us.