Most buyers start with the deposit. That makes sense, because it is the big number everyone talks about. But the deposit is only one part of the money you need ready before settlement.

The costs that catch people out are usually smaller on their own, but together they can move the budget by thousands. Some happen before you buy. Some are due at settlement. Some arrive in the first few weeks after you get the keys.

The real mistake: only budgeting for the deposit

A first home buyer can feel ready once they have saved a deposit and received a borrowing estimate. The problem is that buying a property also brings government charges, legal costs, inspection costs, moving costs, insurance, settlement adjustments and ongoing ownership expenses.

A useful way to think about it is this: your deposit helps you buy the property, but your cash buffer helps you actually complete the purchase and live in the property without stress.

Costs before you settle

Stamp duty and government charges

Stamp duty is often the biggest extra cost outside the deposit. For example, a buyer may have saved enough for a 10% deposit, then realise they also need to allow for a large government duty bill before settlement.

First home buyer concessions can reduce the amount, but the rules change and are different across Australia. Do not assume you qualify. Check the current state calculator before you make an offer and before you decide how much cash you have available.

Contract review, conveyancing and searches

Conveyancing is the legal work needed to review the contract, check title and property information, deal with the other side, prepare settlement documents and help complete the transfer.

Professional fees are one part of the cost. Disbursements are separate third-party costs for searches, certificates, settlement platform fees, registration and property information. For example, a house purchase may need council and water searches, while an apartment may also need owners corporation or strata information.

Building, pest and strata checks

For a standalone home, buyers often budget for a building and pest inspection. A report might reveal termites, drainage issues, roof leaks, unsafe wiring or repairs that could cost thousands after settlement.

For an apartment or townhouse, the risk is different. A strata report may show high levies, special levies, building defects, insurance issues or major works planned for the next year.

Loan, valuation and mortgage fees

Some lenders may charge application, package, settlement, valuation or registration-related fees. If your deposit is under 20%, lenders mortgage insurance may also apply, unless you qualify for a scheme or exemption.

Do not just ask what the rate is. Ask what you need to pay before settlement, what can be added to the loan, and what needs to be paid in cash.

Costs that appear at settlement

Settlement adjustments

This is one of the least discussed costs for buyers. At settlement, expenses like council rates, water rates and strata levies may be adjusted between the buyer and seller. For example, if the seller has already paid rates for the quarter, you may need to reimburse your share from settlement day.

The amount depends on the settlement date and what has already been paid. It can surprise first home buyers because it is not part of the deposit and it is not always front of mind when comparing properties.

Moving, storage and connection costs

Moving costs depend on how much you own, how far you are moving and whether you use friends, a van or professional movers. Add utility connections, mail redirection, internet, cleaning, storage and time off work, and the first week can cost more than expected.

Costs after you get the keys

Insurance, rates and strata

If you buy a standalone home, building insurance is usually needed before settlement. You may also need contents cover and extra cover for risks like flood, fire or storm depending on the property.

Council rates and water charges continue after settlement. For apartments and townhouses, strata or body corporate levies can be a major ongoing cost. A building with lifts, pools, gyms or unresolved defects can cost far more to hold than a simple low-rise block.

Repairs, locks and the first-month surprise

Many buyers discover small problems after moving in: a tap that leaks, a dishwasher that stops working, a rangehood that barely works, a blocked drain, a hot water issue or an air conditioner that needs attention.

Changing locks is also worth budgeting for, especially if the property was previously rented or you do not know how many keys are floating around. It is not a glamorous cost, but it is a practical one.

A simple buffer to plan around

Every purchase is different, but a safer budget usually separates the costs into three buckets: upfront, settlement and after-settlement.

• Upfront: contract review, inspections, loan application costs and any valuation or pre-purchase reports.
• Settlement: stamp duty, conveyancing, disbursements, registration costs and settlement adjustments.
• After settlement: moving, furniture, insurance, rates, strata, locks and first repairs.

If you are buying a house

Focus on building and pest risks, insurance, council rates, water charges, maintenance, locks, gardens, gutters and the cost of fixing things the previous owner lived with but you may want repaired quickly.

If you are buying an apartment

Focus on strata levies, special levies, owners corporation records, building insurance, defects, upcoming works, by-laws and what the sinking or capital works fund looks like.

Example cost breakdown

Example only: for a buyer purchasing a $750,000 property, the extra costs outside the deposit could look something like this. Stamp duty is excluded here because it changes by state and buyer eligibility.

• Conveyancing professional fee: around $1,500, plus third-party disbursements.
• Searches, certificates and settlement costs: roughly $300 to $800, depending on the property.
• Building and pest, or strata report: roughly $300 to $700.
• Settlement adjustments for rates, water or strata: roughly $500 to $2,000.
• Moving, connections, locks and first repairs: roughly $1,500 to $5,000.

In this simple example, the buyer may need an extra $3,800 to $10,000+ outside the deposit and stamp duty. That is why a buffer matters.

Final thought

The best buyers are not the ones who know the exact cost of every item on day one. They are the ones who ask early, leave room in the budget and do not treat the deposit as the whole picture.

Before you sign, ask your broker, conveyancing team and solicitor what costs are likely for your specific property. A little clarity before settlement is usually cheaper than a surprise after it.