Total Upfront Cost: Beyond the Deposit
ADS Team
Author
August 21, 2026
about 1 month ago
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In short: The deposit is the largest upfront cost but rarely more than three quarters of the cash you need. On a $750,000 purchase in NSW with a 20% deposit, total cash required is around $181,000 - the $150,000 deposit plus roughly $31,000 of duty, legal, inspection and registration costs.
Key takeaways
- Allow 5-6% of the purchase price for costs on top of the deposit where no concession applies.
- Stamp duty is the largest single cost after the deposit.
- LMI applies above 80% LVR and is usually capitalised.
- Budget for moving, connections and initial repairs as well.
The full list
$750,000 established purchase, NSW, 20% deposit, no concession:
| Cost | Amount |
|---|---|
| Deposit (20%) | $150,000 |
| Stamp duty | ~$28,161 |
| Transfer and mortgage registration | ~$350 |
| Conveyancing / legal | ~$1,800 |
| Building and pest inspection | ~$600 |
| Loan application / settlement fees | $0-$600 |
| Total cash required | ~$181,500 |
What people forget
- Council and water rate adjustments at settlement - you reimburse the seller for the period after settlement.
- Strata levies adjusted the same way.
- Home and contents insurance, required from exchange in some states.
- Moving costs, typically $500-$3,000.
- Immediate repairs the inspection identified.
Reducing the cash needed
- First home buyer duty concessions - frequently the largest single saving available.
- A guarantor, which removes LMI and can reduce the deposit needed.
- Government guarantee schemes for eligible first home buyers.
- Negotiating a longer settlement to keep saving.
Frequently asked questions
Can I borrow the stamp duty?
Not directly against the property being purchased, since lenders size the loan against value. Borrowers sometimes use equity in another property, which is a separate application.
When is stamp duty payable?
It varies by state - usually within a set period after exchange or at settlement. Your conveyancer will confirm the deadline, and penalties apply for late payment.
Is the deposit the same as the deposit paid at exchange?
No, and this confuses people. The exchange deposit (often 10%) is paid to the agent's trust account at contract; the "deposit" in lending terms is your total equity contribution at settlement.
Related reading
- LMI in 2026: What It Costs by Deposit Size
- Loan Term: What 30 Years vs 25 vs 20 Really Costs
- Negative Gearing: After-Tax Cash Flow Worked Through
Sources
- Buying a home - costs — ASIC Moneysmart
- Transfer duty — Revenue NSW
Information current as at 2 September 2026.
General advice warning: This article contains general information only. It does not take into account your objectives, financial situation or needs, and it is not personal credit or financial advice. Consider whether it is appropriate for you and seek advice from a licensed credit representative before acting.
Any interest rate shown is an example only and is not an offer of credit. Where a rate is quoted, the applicable comparison rate is available from the relevant lender and should be considered alongside it.
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