“I’ve saved my 5%. I’m ready to buy.”
I hear this a lot. And I genuinely don’t want to be the one to dampen the excitement — but I’d be doing you a disservice if I didn’t tell you the truth:
The 5% deposit is just the beginning of what you need at settlement.
Here’s what actually gets spent getting the keys in your hand:
Conveyancing / Legal Fees — ~$3,000
You need a solicitor or conveyancer to handle the legal transfer of the property. This isn’t optional. And the cheaper end can cost you more in mistakes.
Building & Pest Inspection — ~$750
Before you exchange contracts, you need to know what you’re buying. A building and pest inspection protects you from expensive surprises hiding in the walls — or under the floor.
(Buying a strata property? Add a strata report to that — another $200–$300.)
Utilities Adjustment at Settlement — ~$500
Councils and water authorities charge in advance. At settlement, you reimburse the vendor for any rates or water charges they’ve pre-paid beyond your settlement date. Small — but it still needs to be in your budget.
Home Insurance — From ~$150/month
Your lender will require you to have building insurance in place from the day of settlement. Not the day you move in. The day the property legally becomes yours.
Moving Costs — $500–$2,000+
Depending on how much you own, how far you’re moving, and whether you hire professionals or rope in friends with a ute. Don’t underestimate this — especially for a house.
Loan Setup & Government Fees
Mortgage registration, title transfer fees — these vary but are typically $500–$1,500 in NSW depending on your purchase price.
So what does that actually add up to?
On top of your 5% deposit — you’re looking at roughly $6,000–$8,000 in additional costs before you’ve bought a stick of furniture or paid your first mortgage repayment.
And that’s before stamp duty — which in NSW, if you’re not eligible for the first home buyer exemption, can add tens of thousands more.
The buyers who get caught out are the ones who saved exactly 5% and thought they were done.
The buyers who get through smoothly are the ones who planned for the full picture from the start.
That’s what I help with — not just the loan, but the whole roadmap to settlement.
If you’re saving toward your first home right now, let’s build your real number — not just the deposit figure.
