First Home Buyer Total Upfront Cost 2026: Stamp Duty, Deposit, LMI and FHOG in One Calculation

The upfront cost of buying a first home in Australia is not one number. It is a stack: stamp duty (minus any first home buyer exemption), your deposit, LMI if you are borrowing more than 80%, conveyancing and inspection fees, and government registration charges — offset only by the First Home Owner Grant if you qualify. Depending on state, property type, and purchase price, the total cash you need at settlement can vary by $30,000, $50,000, or more for the same purchase price. Every component changes by state. Every first home concession has its own price cap and phase-out. Running all of them manually means opening six different state revenue office calculators and hoping you have not missed a threshold.

This guide walks through each component of the upfront cost stack and shows you how to use a calculator to get your real number in seconds, with one worked example per state so you can see how the pieces fit together.

The upfront cost stack: what you actually pay at settlement

When you buy a first home, your cash requirement at settlement includes six components. Only two of them — the deposit and stamp duty — are large. But the smaller ones add up, and the FHOG can offset some or all of them.

Deposit. This is the portion of the purchase price you pay from your own funds. The minimum is typically 5% under the Home Guarantee Scheme, 10%–15% for a standard low-deposit loan with LMI, or 20% to avoid LMI entirely. The deposit is not a fee — it becomes your equity in the property.

Stamp duty (transfer duty). A state government tax on the transfer of property, calculated on the higher of the purchase price or market value. For first home buyers, every state offers a concession or exemption, but the price caps and eligibility rules differ. This is the largest variable in the stack.

First Home Owner Grant (FHOG). A cash grant from the state government, paid at settlement, that reduces your net upfront cost. It is not a duty offset — it is real money you receive. The amount and eligibility (new vs established home, price cap) vary by state.

Lenders Mortgage Insurance (LMI). If your deposit is less than 20% of the purchase price, the lender will require LMI. The premium rises sharply as your deposit shrinks — at 95% LVR it can exceed $30,000 on a median-priced Sydney home. LMI is usually capitalised into the loan (you pay interest on it for the life of the loan), so it may not add to your cash requirement at settlement but it adds to your total cost.

Conveyancing and legal fees. A solicitor or licensed conveyancer handles the legal transfer. Budget $1,500–$2,500 for a standard residential purchase. Government registration fees (transfer registration and mortgage registration) add roughly $250–$400 depending on the state.

Inspections and miscellaneous. Building and pest inspections cost approximately $500–$800 combined. Loan application or establishment fees range from $0 to $600 depending on the lender. Strata inspection reports for apartments add roughly $300–$400.

Calculator inputs: the five variables that determine your total

The whole upfront cost calculation can be reduced to five inputs. Plug these into the calculator and it resolves the stack automatically.

• Property price. The purchase price, or the market value if higher. Every component scales with this.
• State. Determines stamp duty rates, first home buyer concession thresholds, FHOG amount, and foreign surcharge rate.
• First home buyer status. If yes, the calculator applies the relevant stamp duty exemption or concession for that state and subtracts the FHOG.
• Deposit percentage. Determines whether LMI applies (above 80% LVR) and at what premium rate. At 5%, 10%, 15%, and 20%, the LMI cost changes dramatically.
• Property type. New versus established. In Queensland and South Australia, the first home stamp duty concession is only available for new homes. In NSW and Victoria, it covers both. The FHOG is universally for new homes only.

How the calculation works: step by step

The calculator resolves these inputs in sequence. Here is the logic it runs, so you can verify any result manually.

Step 1: Calculate stamp duty. Apply the state’s tiered marginal rate schedule to the purchase price. The tiers are:

NSW: 1.25% up to $18,000; then 1.5% to $38,000; 1.75% to $103,000; 3.5% to $387,000; 4.5% to $1,290,000; 5.5% to $3,870,000; 7% above.

VIC: 1.4% up to $25,000; 2.4% to $130,000; 6% to $960,000; 5.5% flat to $2,000,000; 6.5% above.

QLD: nil up to $5,000; 1.5% to $75,000; 3.5% to $540,000; 4.5% to $1,000,000; 5.75% above.

WA: 1.9% up to $120,000; 2.85% to $150,000; 3.8% to $360,000; 4.75% to $725,000; 5.15% above.

SA: 1% up to $12,000; 2% to $30,000; 3% to $50,000; 3.5% to $100,000; 4% to $200,000; 4.25% to $250,000; 4.75% to $300,000; 5% to $500,000; 5.5% above.

TAS: $50 up to $3,000; 1.75% to $25,000; 2.25% to $75,000; 3.5% to $200,000; 4% to $375,000; 4.25% to $725,000; 4.5% above.

ACT: owner-occupier concessional scale (lower than the investor scale). First home buyers get full exemption under the Home Buyer Concession Scheme up to $1,020,000, with the income test removed from 1 July 2026.

NT: quadratic formula D = (0.06571441 × V²) + 15V for value up to $525,000 (where V = value ÷ 1,000); tiered rates approximately 4.95%–5.95% above.

Step 2: Apply first home buyer stamp duty concession. Reduce the duty from Step 1 according to the state’s FHB rules:

NSW: full exemption on new and existing homes up to $800,000, phasing out to $1,000,000. No relief above $1,000,000.

VIC: full exemption up to $600,000, phasing out to $750,000. New or existing.

QLD: full exemption on new homes and vacant land with no price cap (from 1 May 2025). For existing homes, full exemption up to $700,000, phasing to $800,000.

WA: full exemption up to $500,000 (from 21 March 2025), phasing to $700,000 (metro) or $750,000 (regional).

SA: full exemption on new homes, off-the-plan, and vacant land to build on, with no price cap (from 13 February 2025). Existing homes are not eligible for FHB relief.

TAS: the 100% exemption on established homes up to $750,000 applied only for settlements to 30 June 2026. From 1 July 2026, that established-home relief has lapsed. New homes are supported through the FHOG. Verify the current position with SRO Tasmania before relying on any exemption.

ACT: full exemption under HBCS up to $1,020,000. No income cap from 1 July 2026.

NT: the old $10,000 FHOG has been replaced by the HomeGrown Territory Grant of $50,000. Stamp duty is charged at standard NT rates. NT has no separate FHB stamp duty exemption — the grant is the primary support mechanism.

Step 3: Subtract FHOG cash grant. If the property is new (or a substantially renovated home treated as new) and meets the state’s price cap, subtract the FHOG from your upfront cash requirement:

NSW: $10,000 for new homes up to $600,000.

VIC: $10,000 for new homes up to $750,000.

QLD: $30,000 for new homes under $750,000.

WA: $10,000 for new homes (covers the whole state).

SA: up to $15,000 for new homes.

TAS: $10,000 for new homes.

ACT: no FHOG (abolished July 2019).

NT: $50,000 HomeGrown Territory Grant (replaced the old $10,000 FHOG; no price cap).

Step 4: Calculate deposit amount. Multiply the purchase price by your deposit percentage. At 20%, this is straightforward — 20% of the price. Under the Home Guarantee Scheme, it can be as low as 5%, and the government guarantees the remaining 15% so no LMI is payable. For standard low-deposit loans, LMI will apply in Step 5.

Step 5: Add LMI if applicable. If your LVR exceeds 80% and you are not covered by the Home Guarantee Scheme or a professional LMI waiver, LMI applies. The premium is calculated as a percentage of the loan amount and increases with LVR. At 90% LVR on a $500,000 property, expect approximately $8,500–$11,000. At 95% LVR, approximately $17,000–$21,000. If you capitalise LMI into the loan, it does not add to your upfront cash but increases your total borrowing cost. If you pay it upfront, add it to your cash requirement.

Step 6: Add conveyancing, inspections, and government fees. Approximately $2,500–$4,000. This is the smallest component in the stack but is real cash required at settlement.

Step 7: Total upfront cash required. Add deposit (Step 4) + stamp duty after FHB concession (Step 2) + conveyancing and fees (Step 6) + LMI if paid upfront (Step 5) − FHOG (Step 3). This is the cash you need in your bank account at settlement.

Worked example: $650,000 first home in NSW

A first home buyer purchases an established apartment in Sydney for $650,000 with a 10% deposit and no professional LMI waiver.

• Stamp duty: The dutiable value falls in the $387,001–$1,290,000 bracket. Base duty = $11,602 + 4.5% of ($650,000 − $387,000) = $11,602 + $11,835 = $23,437. First home buyer FHBAS: full exemption applies (under $800,000). Stamp duty payable: $0.
• FHOG: Not applicable — this is an established home, not new. FHOG: $0.
• Deposit: 10% of $650,000 = $65,000.
• LMI: 90% LVR on a $650,000 property with a $585,000 loan. Approximate premium $12,000–$16,000. If capitalised, no upfront cash impact. If paid upfront, add to cash requirement. For this example, we capitalise it.
• Conveyancing and fees: ~$3,000.
• Total upfront cash: $65,000 (deposit) + $0 (stamp duty) + $3,000 (fees) − $0 (FHOG) = approximately $68,000.

If this same buyer purchased in Queensland instead — a new home for $650,000 — the numbers shift dramatically: stamp duty $0 (full exemption with no price cap on new builds), FHOG $30,000 cash grant received at settlement, deposit $65,000, fees ~$3,000. Net upfront cash: approximately $38,000. Same purchase price, $30,000 less cash required because of the FHOG and structural differences in the state concessions.

Worked example: $500,000 first home in Victoria

A first home buyer purchases a new townhouse in Melbourne’s west for $500,000 with a 5% deposit under the Home Guarantee Scheme.

• Stamp duty: VIC duty on $500,000 as PPR (principal place of residence). The concessional PPR scale applies for values up to $550,000, giving a lower effective rate. For standard rates: $2,870 + 6% of ($500,000 − $130,000) = $2,870 + $22,200 = $25,070. First home buyer exemption: full exemption up to $600,000. Stamp duty payable: $0.
• FHOG: $10,000 for new homes up to $750,000. FHOG: $10,000 cash received.
• Deposit: 5% of $500,000 = $25,000. Under the Home Guarantee Scheme, no LMI payable.
• LMI: $0 (Home Guarantee Scheme).
• Conveyancing and fees: ~$3,000.
• Total upfront cash: $25,000 + $0 + $3,000 − $10,000 = approximately $18,000.

This is the power of stacking concessions: a first home buyer in Victoria purchasing a new $500,000 property under the Home Guarantee Scheme with the FHOG can enter the market with less than $20,000 in upfront cash.

Common mistakes that inflate your calculated cost

Forgetting the stamp duty phase-out. In NSW, a first home buyer purchasing at $850,000 does not pay zero stamp duty — they pay a partial amount because the exemption phases out between $800,000 and $1,000,000. At $850,000, the concession is roughly halfway through the phase-out range. The stamp duty bill is not the full $30,000-plus, but it is not zero either.

Assuming the FHOG applies to established homes. It does not, in any state. The FHOG is for new or substantially renovated homes only. If you are buying an existing apartment or house, you do not receive the grant.

Ignoring LMI when borrowing above 80%. At 95% LVR, LMI can exceed $30,000 on a median-priced property. First home buyers sometimes budget for the 5% deposit and stamp duty, then discover at loan approval that LMI adds another $20,000 to the loan — or requires an upfront payment they have not saved for.

Confusing the FHOG with stamp duty exemption. They are separate. The stamp duty exemption reduces what you owe to the state revenue office. The FHOG is cash paid to you at settlement. They stack — receiving the FHOG does not disqualify you from a stamp duty concession, and vice versa.

Not checking whether existing-home concessions still apply. Tasmania’s 100% established-home exemption expired on 30 June 2026. A buyer who relied on last year’s information would be blindsided by a full stamp duty bill. Always check the current rules for your state and settlement date.

Use the calculator to get your real number

The six steps above illustrate the logic, but the exact calculation depends on crossing a specific purchase price against the precise tiers, concession phase-outs, and grant thresholds for your state. A $5,000 difference in purchase price can push you past a threshold and change the stamp duty by thousands.

Enter your property price, state, deposit percentage, and buyer profile into the stamp duty calculator to get a line-by-line breakdown of every component in the stack: stamp duty before and after concessions, FHOG, deposit required, and the net cash you need at settlement.

Once you have your upfront cost number, the borrowing power calculator shows how much you can borrow at your income level — the other half of the affordability equation.

Related guides

• Stamp Duty States Compared 2026: see the stamp duty bill for the same purchase price across all five mainland states.
• How Much Deposit Do I Need to Buy a House in 2026: 20% versus low-deposit scenarios, LMI costs, and the Home Guarantee Scheme.
• LMI Lenders Mortgage Insurance Explained 2026: what LMI costs at different LVR levels and how to avoid it.
• First Home Buyer Guide Australia 2026: every grant, scheme, and concession available to first home buyers.

Data sources and as-at date

All stamp duty rates, FHOG amounts, and concession thresholds are sourced from state revenue offices: Revenue NSW, State Revenue Office Victoria, Queensland Revenue Office, RevenueWA, RevenueSA, SRO Tasmania, ACT Revenue Office, and NT Territory Revenue Office. FHSSS details from the ATO. Home Guarantee Scheme details from Housing Australia. Data current as at: July 2026.

Run your numbers, then talk to a broker

The upfront cost is one piece. Your loan structure, eligibility for the Home Guarantee Scheme, and overall borrowing capacity determine whether the purchase actually works. After running your numbers through the calculator, an Arrivau licensed mortgage broker can assess your full situation and provide guidance within one business day.

Disclaimer: This article provides general information only and does not constitute financial, legal, or tax advice. Stamp duty rates, concession thresholds, grant amounts, and scheme eligibility criteria are set by state and Commonwealth governments and are subject to change. LMI premiums vary by lender and LVR. You should verify all figures with the relevant state revenue office, your lender, and a qualified solicitor or conveyancer before making any property purchase decision. This information does not account for your personal financial circumstances.