Your first-home budget, beyond the deposit

Your deposit is one part of the budget

Saving a deposit is a major milestone. Before turning that deposit into a purchase, allow for the costs around the property and the cash you want to keep available after settlement. What a lender may offer and what you can comfortably afford are not always the same number.

Allow for purchase and ownership costs

Depending on the property and your eligibility, purchase costs can include transfer duty, conveyancing, legal advice, building and pest inspections, strata reports, lender fees and registration costs. Insurance, moving, rates, strata levies, repairs and utilities may affect the budget too. Confirm property-specific costs with the relevant professionals.

A useful way to organise your savings

For illustration, suppose you have $120,000 saved. If you allow $18,000 for purchase and moving costs and keep a $12,000 cash buffer, $90,000 remains towards the deposit. Those cost figures are hypothetical, not a quote for a particular purchase. Your actual duty, costs and loan requirements must be checked.

Stress-test the repayments

Consider what the repayment would mean alongside your normal living costs, other debts and savings goals. Try higher-rate scenarios and think about changes in income or family circumstances. A lender’s assessment is important, but so is a budget you can live with.

Check first-home support before relying on it

Government schemes, grants and duty concessions have specific eligibility rules, price limits and other conditions. They can change. Check the current official rules with your broker, conveyancer and the relevant government agency before including assistance in your purchase budget.

Frequently asked questions

Do I always need a 20% deposit?

Not always. Some borrowers may be eligible to buy with a smaller deposit, but lender requirements, lenders mortgage insurance and scheme conditions can affect the options and overall cost.

Is pre-approval a guarantee?

No. Pre-approval is generally conditional. Your circumstances and the property still need to meet the lender’s requirements before final approval. Get legal advice before signing a contract or bidding.

Start with a realistic plan

Bring Blake an approximate deposit, income overview and preferred purchase range. We can discuss what needs to be confirmed and the next steps towards a lending assessment. This is general information, not a promise of finance or scheme eligibility.

Further reading

ASIC Moneysmart: buying a house