First home buyer guide: deposits, stamp duty, and concessions

A no-fluff walkthrough of what a first home actually costs in Australia: deposit, LMI, stamp duty by state, and the concessions worth checking.

The headline price is rarely what you pay. For a first home buyer, the gap between "listed for $750,000" and "cleared from your settlement account" usually runs $25,000 to $80,000. Here's where it goes — and where states give it back.

The deposit (and why 20% matters)

Lenders ask for a deposit of typically 5-20% of the purchase price. Below 20%, most lenders charge Lender's Mortgage Insurance (LMI) — a one-off premium that protects the lender, not you. LMI on a $700k loan with 10% deposit can run $15,000-$25,000.

Use the borrowing power estimator to see how deposit, rate, and income interact. The LMI threshold flag is built in.

Stamp duty (transfer duty)

The single biggest one-off cost after the deposit. It's a state tax, calculated as a progressive percentage of the price. On an $800,000 property:

NSW: ~$31,000 standard, $0 for first-home buyers (full exemption ≤ $800k)
VIC: ~$43,000 standard, ~$10,000 for first-home buyers (sliding $600k–$750k)
QLD: ~$22,000 standard, $0 for first-home buyers (full exemption ≤ $700k)
WA: ~$31,000 standard, $0 for first-home buyers (full exemption ≤ $450k)

Plug your numbers into the stamp duty calculator — every state and territory is modelled with current concession rules. This stuff changes most years; the calculator carries a "rates last verified" date.

First-home concessions worth checking

Beyond the stamp-duty exemption, most states layer on at least one of:

First Home Owner Grant — a one-off cash payment for new builds (typically $10k-$15k, varies by state).
First Home Guarantee — federal scheme letting eligible buyers purchase with 5% deposit, no LMI.
Shared-equity schemes — state government takes an equity stake (e.g. VIC Homebuyer Fund, NSW Shared Equity).

The line items most people forget

Conveyancing / solicitor: $1,500-$2,500
Building & pest inspection: $400-$700
Loan application fee: $0-$1,000 (often waived)
Mortgage registration: ~$200
Council rates apportionment: prorated at settlement
Moving costs: $500-$3,000

Putting numbers on it

Run a $750k purchase end-to-end:

Use the stamp duty calculator to find your state's figure.
Use the mortgage calculator to see monthly repayments at your deposit and rate.
Use the borrowing power estimator to confirm a bank would approve the loan you need.

That's the truthful affordability check. If any of those three comes back "no", the others don't matter.