Addicted to Money – Helping Aussies buy smarter, not harder.

Buying your first home in 2026 remains one of the biggest financial milestones an Aussie can achieve — but also one of the most misunderstood. Rising rates, strict lending rules, and higher living costs mean many first-home buyers underestimate how much they actually need. The deposit is only the beginning.

Here’s the real cost of buying your first home in 2026 — and how to prepare properly.

 

1. Your Deposit – The Biggest Hurdle

Traditionally, banks preferred a 20% deposit to avoid Lenders Mortgage Insurance (LMI). But in 2026, most first-home buyers don’t have that saved — and they don’t need to.

Under the First Home Guarantee, eligible buyers can purchase with:
• 5% deposit (no LMI)
• 2% deposit under the Family Home Guarantee

This massively reduces upfront costs, but borrowers still need to show strong savings history and pass strict serviceability checks.

Realistic deposit expectations:
• Units/townhouses: $20k–$35k
• Houses (metro/regional): $30k–$60k+
• High-demand suburbs: $70k+

Just remember: smaller deposit = higher loan repayments, so borrowing capacity must still be strong.

 

2. Stamp Duty – The Hidden Shock

Stamp duty is one of the biggest upfront expenses new buyers face. While each state offers concessions, the thresholds differ.

Examples:
• NSW: No stamp duty under certain thresholds via the First Home Buyer Assistance Scheme
• VIC: Concessions for homes under $600k
• QLD: Significant concessions for properties under $600k

Costs range from $5,000–$30,000+ if your home sits above concession limits.

 

3. Lenders Mortgage Insurance (LMI)

If a buyer is purchasing with less than a 20% deposit and not using a government program, they’re usually required to pay LMI — a fee that protects the bank, not the borrower.

Cost:
• Typically $4,000–$20,000+, depending on your deposit and loan size.

NEW 2026 Update: The First Home Guarantee covers this.

Under the 5% deposit government scheme, buyers do not pay LMI — the government acts as the guarantor for the remaining portion of the deposit.
This is one of the biggest money-savers available to first-home buyers right now.

 

4. Legal, Conveyancing & Building Inspections

These aren’t optional and vary by state.
• Conveyancing: $1,000–$2,500
• Building + pest: $400–$800
• Contract reviews: $200–$500 each

Skipping these can cost you far more long-term.

 

5. Moving Costs & Utility Setup

Most buyers forget to budget for the actual move.
Expect:
• Removalists: $300–$1,200
• Bond if renting overlaps
• Internet setup
• Furniture, appliances, basic repairs

Your deposit isn’t the end — settling in also costs money.

 

6. Ongoing Homeownership Expenses

Your mortgage repayment is only one part of the long-term picture.
You’ll also need to budget for:
• Council rates
• Water rates
• Home & contents insurance
• Maintenance (1–2% of home value annually)
• Body corporate fees for units/townhouses

These surprise many first-home buyers.

 

7. The Real Bottom Line

For a $550,000 home in 2026, the true upfront cost usually lands between:
$30,000–$70,000+ depending on deposit size, fees, and available concessions.

With proper preparation and government support, homeownership is still achievable — but understanding the full picture is key.