First Home Buyer Total Costs 2026: What You Really Pay Beyond the Purchase Price
The sticker price of a home is only part of the story for first-home buyers. In 2026–27, the total upfront cost includes stamp duty (which may be partially or fully waived depending on the state), the deposit, conveyancing fees, building and pest inspections, loan application charges, and often lenders mortgage insurance (LMI) if the deposit is below 20%. Offsetting some of these costs is the First Home Owner Grant (FHOG), which varies from $0 in the ACT to $50,000 in the Northern Territory.
This article breaks down the complete cost picture for three common scenarios: buying a $600,000 new home in Queensland, New South Wales, and Victoria. These three states represent markedly different concession and grant frameworks, making them useful benchmarks for what a first-home buyer can expect to pay across Australia in 2026–27.
Scenario 1: $600,000 New Home in NSW
New South Wales offers first-home buyers a combination of stamp duty relief and a modest FHOG. Here is the cost breakdown for a $600,000 new home purchase in NSW during 2026–27:
Stamp duty: Under the NSW First Home Buyer Assistance Scheme, properties valued up to $800,000 receive a full transfer duty exemption. At $600,000, the stamp duty payable is $0. The buyer saves approximately $26,145 compared with a non-concessional purchase.
First Home Owner Grant: NSW provides a $10,000 FHOG for eligible first-home buyers purchasing or building a new home valued up to $600,000 (or land-and-build packages up to $750,000 combined). At exactly $600,000, the full grant is available.
Deposit: A 20% deposit to avoid LMI would be $120,000. Many first-home buyers use the federal First Home Guarantee, which allows a 5% deposit ($30,000) without LMI. Under the Guarantee, Housing Australia acts as guarantor for the remaining 15%.
Additional costs: Conveyancing typically runs $1,500 to $3,000 in NSW. A building and pest inspection for a new home costs approximately $400 to $800. Loan application fees range from $0 to $600, though many lenders waive these for first-home buyers. Budget approximately $2,500 to $4,000 for these combined costs.
Total upfront costs (with 20% deposit): $120,000 deposit + $0 stamp duty + ~$3,000 fees − $10,000 FHOG = approximately $113,000.
Total upfront costs (5% deposit, First Home Guarantee): $30,000 deposit + $0 stamp duty + ~$3,000 fees − $10,000 FHOG = approximately $23,000.
Scenario 2: $600,000 New Home in Victoria
Victoria also exempts first-home buyers from stamp duty at this price point but has different grant rules and regional variations.
Stamp duty: Victoria’s first-home buyer duty exemption covers properties up to $600,000. At $600,000, the stamp duty payable is $0 — a saving of roughly $31,070 compared with standard rates. If the property were $600,001, the full duty would apply (there is a concessional sliding scale up to $750,000, but at $600,000 even, the exemption is full).
First Home Owner Grant: Victoria’s FHOG is $10,000 for new homes in metropolitan Melbourne and most regional areas. However, buyers in certain regional Victoria locations may not qualify for the standard FHOG; regional incentives have varied and buyers should confirm their postcode eligibility.
Deposit: A 20% deposit is $120,000. The First Home Guarantee (5% deposit, $30,000) is available in Victoria on the same terms as NSW. Additionally, the Victorian Homebuyer Fund — a shared equity scheme — may allow an even smaller deposit by having the government take a proportional equity stake, though availability depends on program funding for 2026–27.
Additional costs: Conveyancing in Victoria ranges from $1,500 to $3,000. Building and pest inspections cost $400 to $800. Loan application fees are typically $0 to $600. Combined fees budget: approximately $2,500 to $4,000.
Total upfront costs (20% deposit): $120,000 deposit + $0 stamp duty + ~$3,000 fees − $10,000 FHOG = approximately $113,000.
Total upfront costs (5% deposit, First Home Guarantee): $30,000 deposit + $0 stamp duty + ~$3,000 fees − $10,000 FHOG = approximately $23,000.
While the deposit-and-fee numbers look identical to NSW at this price, Victoria’s higher standard stamp duty means the effective saving from the exemption is larger — roughly $31,000 in avoided duty versus approximately $26,000 in NSW.
Scenario 3: $600,000 New Home in Queensland
Queensland presents a materially different picture because the first-home stamp duty concession does not extend to $600,000.
Stamp duty: Queensland’s first-home concession provides a full exemption only for properties up to $500,000. At $600,000, the concession has fully phased out, and the first-home buyer pays the full standard transfer duty of approximately $20,025. This is a significant cost that NSW and Victorian buyers at the same price avoid entirely.
First Home Owner Grant: Queensland offers the largest mainland FHOG at $30,000 for eligible first-home buyers purchasing or building a new home valued under $750,000. This grant effectively offsets the stamp duty and provides a net benefit.
Deposit: 20% is $120,000; 5% under the First Home Guarantee is $30,000. Queensland also operates a state-level shared equity scheme but availability may vary.
Additional costs: Conveyancing in Queensland ranges from $1,500 to $3,000. Building and pest inspections cost $400 to $800. Loan application fees: $0 to $600. Combined budget: approximately $2,500 to $4,000.
Total upfront costs (20% deposit): $120,000 deposit + $20,025 stamp duty + ~$3,000 fees − $30,000 FHOG = approximately $113,025.
Total upfront costs (5% deposit, First Home Guarantee): $30,000 deposit + $20,025 stamp duty + ~$3,000 fees − $30,000 FHOG = approximately $23,025.
Interestingly, the net upfront cost across all three states ends up similar at $600,000, despite the different mechanisms. Queensland’s larger FHOG essentially cancels out its stamp duty bill, while NSW and Victoria use stamp duty exemptions to achieve a comparable outcome. The difference is that the Queensland buyer needs more cash at settlement (to pay the $20,025 duty before the $30,000 grant arrives), whereas NSW and Victorian buyers have zero duty payable at the point of settlement.
Other States at a Glance
For comparison, here is how a $600,000 new home stacks up in the remaining jurisdictions:
- South Australia: $0 stamp duty (full new-home relief), $15,000 FHOG. Net: very favourable, similar to NSW/VIC with a larger grant.
- Western Australia: ~$22,515 stamp duty (no first-home concession at $600,000), $10,000 FHOG. Net: approximately $12,500 more expensive than the eastern states at the same price.
- Tasmania: ~$22,498 stamp duty (no concession in 2026–27), $10,000 FHOG. Net: similar to WA, approximately $12,500 more than NSW/VIC/QLD.
- ACT: $0 stamp duty (HBCS, no income cap), $0 FHOG (abolished). Net: the simplest outcome — zero duty, zero grant.
- Northern Territory: ~$28,000 stamp duty, $50,000 HomeGrown grant. Net: the most favourable outcome — the grant exceeds the duty by approximately $22,000.
Additional Costs All First-Home Buyers Should Budget For
Beyond stamp duty, deposit, and grants, first-home buyers in any state should plan for these costs:
- Conveyancing or legal fees: $1,500–$3,000 for a standard residential purchase, covering contract review, title searches, settlement attendance, and transfer registration.
- Building and pest inspection: $400–$800. Essential even for new homes; construction defects can exist from day one.
- Loan application or establishment fees: $0–$600. Many lenders waive these for first-home buyers or package them into the loan.
- Lenders mortgage insurance (LMI): Only applies if the deposit is below 20% and the buyer is not using the First Home Guarantee. On a $600,000 property with a 10% deposit, LMI could add $8,000–$12,000, typically capitalised into the loan.
- Moving costs and utility connections: Budget $500–$2,000 depending on distance and service requirements.
- Home and contents insurance: Lenders require building insurance from settlement. Budget $800–$1,500 annually.
For detailed stamp duty breakdowns in each state, see our individual guides covering NSW, Victoria, Queensland, Western Australia, South Australia, Tasmania, the ACT, and the Northern Territory. For foreign buyer considerations, see our foreign buyer stamp duty guide.
Arrivau’s licensed consultants can provide personalised guidance on first-home buyer costs and eligibility within one business day.
Disclaimer: This article provides general information only and does not constitute financial, tax, or legal advice. Stamp duty rates, grants, and concessions may change. Readers should confirm current rates with the relevant state Revenue Office or a licensed professional before making property decisions. Data current as at July 2026.