First Home Buyer Costs in Australia 2026: Stamp Duty, FHOG, Deposit & Every Upfront Expense

First Home Buyer Costs in Australia 2026: Stamp Duty, FHOG, Deposit & Every Upfront Expense HEHomeLoanAI Editorial·5 July 2026 How much does it really cost to buy your first home in Australia in 2026? The purchase price is only the starting point. By the time you add stamp duty, conveyancing, building and pest inspections, loan application fees, and lenders mortgage insurance (if your deposit is below 20%), the total upfront cost of buying a first home can be $30,000 to $60,000 more than the advertised price — or much less if you qualify for first-home concessions and grants. Here is a complete data-driven breakdown of every upfront cost a first home buyer faces in Australia in 2026, with state-by-state stamp duty and grant comparisons for a $600,000 purchase. The five cost categories every first home buyer must budget for Buying a home involves five categories of upfront costs. Here they are ranked by typical magnitude: 1. Deposit: Typically 10% to 20% of the purchase price. For a $600,000 home, that means $60,000 to $120,000 in cash upfront. The minimum deposit allowed depends on the product. Under the federal First Home Guarantee (FHBG) scheme — which, from July 2026, has no income cap — eligible first home buyers can purchase with a 5% deposit ($30,000 on a $600,000 home) and pay no LMI. Outside the FHBG, deposits below 20% typically require LMI. 2. Stamp duty: The single largest government cost, ranging from $0 (with first-home concessions) to over $30,000 (full rate). The amount depends entirely on the state, the property value, and whether you qualify for first-home concessions. See the state comparison below. 3. Lenders Mortgage Insurance (LMI): If your deposit is below 20% and you are not covered by the FHBG or a professional LMI waiver, LMI is a one-time premium added to your loan. On a $540,000 loan (90% LVR on a $600,000 home), LMI can cost $6,000 to $10,000 depending on the insurer and the lender. LMI protects the lender, not you, but you pay for it. 4. Conveyancing and legal fees: A solicitor or conveyancer handles the contract review, title search, and settlement. Budget $1,200 to $2,500 depending on the complexity and the state. Additional disbursements such as title search fees, certificate costs, and registration fees add approximately $300 to $600. 5. Inspections and reports: A building inspection and a pest inspection are strongly recommended for any property more than a few years old. Combined cost is approximately $600 to $1,200. For strata-titled properties (apartments, townhouses), a strata report is an additional $300 to $500. Additional smaller costs: loan application or establishment fees ($0–$600, depending on the lender and product), home and contents insurance (first year premium, approximately $800–$1,500), and moving costs ($500–$2,000 depending on distance and volume). Stamp duty by state on a $600,000 first home: the numbers Assuming you are a first home buyer purchasing a home to live in, here is your stamp duty bill at $600,000 in each state, factoring in all first-home concessions: NSW (new or existing home): $0 — full FHBAS exemption applies up to $800,000 VIC (new or existing home): $0 — full exemption up to $600,000 QLD (new home): $0 — unlimited exemption on new homes. Existing home: $0 up to $700,000. Standard rate for the purpose of comparison is $20,025 WA (metro, new or existing): $0 on first $500,000; partial on $500K–$600K. Approximate duty $4,500–$5,500 in concessional range SA (new home): $0 — unlimited exemption. Existing home: no first-home concession, so $21,330 TAS (new home): no first-home exemption from 1 July 2026, standard duty $18,308. FHOG $10,000 for new homes only ACT (new or existing): $0 — HBCS exemption applies up to $1,020,000 NT: no first-home stamp duty exemption. Duty approximately $18,000–$22,000 depending on formula output. HomeGrown Territory Grant $50,000 for new homes The largest variance is between new and existing home purchases in SA (a $21,330 difference) and between new and existing in TAS (full duty applies across the board from July 2026). The FHOG and grant landscape: what you can receive Most states offer a First Home Owner Grant (or equivalent) on top of stamp duty relief. Here is what a first home buyer purchasing a new $600,000 home receives by state: QLD: $30,000 FHOG (new home, value < $750,000) NSW: $10,000 FHOG (new home, value ≤ $600,000) VIC: $10,000 FHOG (new home, value ≤ $750,000) WA: $10,000 FHOG (new home) SA: $15,000 FHOG (new home) TAS: $10,000 FHOG (new home) ACT: no FHOG (abolished July 2019) NT: $50,000 HomeGrown Territory Grant (new home, no price cap) A Queensland first home buyer purchasing a new $600,000 home pays zero stamp duty and receives $30,000 — the strongest combined position in the country at this price point. An NT first home buyer pays full stamp duty (approximately $18,000–$22,000) but receives $50,000, leaving a net gain of approximately $28,000–$32,000 — also a strong position. An SA first home buyer purchasing new pays zero stamp duty and receives $15,000. Total cost worked example: first home buyer purchasing a $600,000 existing home in NSW Assume a first home buyer in Sydney purchasing an established $600,000 apartment with a 15% deposit ($90,000): Stamp duty: $0 (FHBAS exemption) Deposit: $90,000 LMI: loan is $510,000 at 85% LVR. LMI approximately $5,500–$7,000 (capitalised into loan or paid upfront) Conveyancing: $1,800 Building and pest: $900 Loan application fee: $400 Total cash required: $90,000 (deposit) + $1,800 + $900 + $400 = $93,100 (plus LMI if paid upfront, or approximately $98,600 total) Without the FHBAS exemption, the buyer would also need $21,187 for stamp duty, bringing the total cash required to approximately $114,300 — a $21,000 difference. Total cost worked example: first home buyer purchasing a $600,000 new home in Queensland Assume a first home buyer in Brisbane purchasing a new $600,000 house and land package with a 10% deposit ($60,000): Stamp duty: $0 (unlimited exemption on new homes) Deposit: $60,000 LMI: loan is $540,000 at 90% LVR. LMI approximately $7,000–$9,000 Conveyancing: $1,500 Building inspection: $700 FHOG received: $30,000 (paid to you, can be used for deposit or costs) Total cash required: $60,000 + $7,000 + $1,500 + $700 = $69,200 (LMI capitalised) minus $30,000 FHOG = net outlay of $39,200 This is the least cash-intensive first-home purchase scenario in Australia: zero stamp duty, $30,000 cash grant, and a $60,000 deposit. Data sources All stamp duty rates, FHOG amounts, and state-specific concessions above are verified against the respective state and territory revenue offices as at July 2026. LMI estimates are indicative and vary by lender, insurer, and borrower profile. FHBG details reflect the July 2026 removal of the income cap. Deposit requirements are subject to lender policy and the borrower's credit profile. Frequently Asked Questions Q: Can I use the FHOG as part of my deposit? A: Yes, in most cases. The FHOG is paid to you at settlement and can be used toward your deposit, stamp duty, or other costs. Some lenders will count the FHOG toward your genuine savings requirement; others will not. Confirm with your mortgage adviser. Q: What is the minimum deposit I need as a first home buyer in 2026? A: Under the First Home Guarantee (FHBG), you can purchase with a 5% deposit and no LMI. Outside the FHBG, most lenders require a minimum of 5% to 10%, with LMI applying below 20%. The FHBG from July 2026 has no income cap — eligibility is based on the property's price and your first-home buyer status. Q: Are building and pest inspections really necessary for a new home? A: Even new homes can have defects. A building inspection on a new home typically costs less than on an existing home and is focused on structural and finish defects rather than deterioration. For existing homes, a building and pest inspection is non-negotiable — it costs $600–$1,200 and can save you tens of thousands in unexpected repairs. Q: What happens if I qualify for the FHBG? Does that eliminate LMI? A: Yes. The FHBG (and similar state-based schemes) effectively acts as a government guarantee, removing the need for LMI on loans up to 95% LVR. This can save $7,000–$12,000 on a typical first-home purchase compared to a standard 95% LVR loan with LMI. Next steps Your exact upfront costs depend on the state, the property value, whether the home is new or existing, your deposit size, and the specific concessions and grants you qualify for. An Arrivau licensed adviser can prepare a detailed upfront cost breakdown for your specific scenario, including a borrowing capacity estimate that accounts for all these costs. An adviser will respond within one business day. Disclaimer: This article provides general information only and does not constitute financial, legal, or tax advice. All costs, grants, and concessions vary by jurisdiction and individual circumstances. LMI estimates are indicative only. Consult a licensed mortgage adviser and solicitor for advice specific to your purchase. #first-home-buyer#buying-costs#deposit#2026 Not sure what rate you'd get? Ask the AI — free, unbiased, and no sign-up required. It knows current Australian lending rules and can run the numbers for you. Ask the AI assistant → Keep reading First Home Buyers Buying your first home with a 5% deposit in 2026: costs, caps and catches