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MORTGAGE KNOWLEDGE CENTRE · BUYING COSTS
A Smarter Home Deposit & Buying Costs Calculator
Know what it really takes to buy, not just what the deposit looks like. See the money needed at settlement, the effect of LMI and valuations, and what you'll still have left for life after moving in.
Start with your purchase
Get a clear picture of the deposit, cash to settle and potential funding gap. More detailed choices are optional.
Your deposit and buying-cost breakdown will appear here.
What does it really cost to buy a house in Australia?
The advertised purchase price tells you only what the seller receives. Your funding plan also needs to account for the cash deposit, transfer duty, inspections, legal work, registration charges, finance costs and the liquid cash you want left after settlement. You may have enough to exchange contracts but not enough to complete the purchase. The calculator separates cash needed from mortgage required.
Why the 20% deposit rule is not the whole answer
A 20% deposit often avoids lenders mortgage insurance, but the best decision isn't always to wait until you reach that mark. Some borrowers can buy sooner with a smaller deposit and accept a quoted LMI premium; others prefer a larger deposit and lower ongoing debt. The correct comparison includes home-price changes while saving, interest on the extra amount borrowed, the LMI premium and the time horizon. This tool lets you enter an actual LMI estimate rather than pretending all lenders quote the same premium.
Worked example: an $850,000 property
With a planned $85,000 deposit, the base mortgage is $765,000 before any financed LMI—an indicative 90% LVR if the lender valuation equals the purchase price. On top of that $85,000 deposit, the buyer needs transfer duty, professional costs and whatever cash reserve they choose to keep. Having $120,000 saved does not automatically mean the whole transaction is affordable.
Why can a lower bank valuation create a settlement shortfall?
Imagine agreeing to pay $850,000 when the lender's accepted value is only $820,000. The loan-to-value ratio may be assessed against the lower $820,000 security value, reducing the amount supported by a particular LVR cap. A lower valuation doesn't itself change the agreed purchase price. The buyer may need additional cash, a different loan structure or a different lender assessment. The advanced bank-valuation input lets you see the resulting LVR; it does not automatically assume a fixed lender LVR cap.
How transfer duty changes the cash required
Transfer duty is set by the state or territory, property value, contract date and possible exemptions or concessions. NSW's general rate for 2026–27 is built into this calculator. Eligible NSW first-home buyers can be exempt for homes valued up to $800,000; higher-value concessions require a separate precise calculation, so the tool avoids promising one. For other jurisdictions or complex situations, enter the figure from the official revenue authority calculator into Advanced settings. The cash waterfall will include it.
Should you preserve a cash buffer or maximise the deposit?
Using every available dollar as a deposit can reduce the mortgage but leave you exposed to moving costs, essential repairs and other expenses just after settlement. Model a deliberate reserve. The calculator includes that reserve in its cash-to-settle plan, so a positive result really means you have enough to meet costs while keeping your nominated buffer.
Frequently asked home-buying questions
Can I buy with a 5% or 10% deposit?
Depending on your eligibility, lender and any available programme, a smaller deposit may be workable. The model shows LVR and the amount of cash required; LMI must be entered as a verified estimate.
Does LMI protect me?
Lenders mortgage insurance principally protects the lender, not the borrower. It can allow some smaller-deposit purchases while increasing transaction or loan costs.
Can I add lenders mortgage insurance to my loan?
Some lenders allow capitalisation subject to product and LVR limits. The Advanced setting models the mechanical effect on loan size and cash required but not a lender's individual approval rule.
Are stamp duty concessions automatic?
No. Eligibility can depend on buyer history, ownership, property type and contract conditions. The calculator uses an assumed NSW full exemption only for the published qualifying price band and otherwise lets you enter an official estimate.
Why can the property's valuation matter more than the contract price?
Lenders calculate security ratios using their accepted security value. When it is lower than your price, your LVR and equity contribution may be different from what you expected.
Does this calculator tell me how much a bank will lend?
No. Purchase funding and debt serviceability are different constraints. Use the borrowing power calculator to examine income and repayment commitments.
Explore the next decision
Calculate the duty separately: open the stamp duty and first-home buyer calculator for state rules, concession scenarios and an official-duty input. Then return here to see how duty changes your cash-to-settle budget.
Sources and calculation methodology
Revenue NSW general duty schedule (2026–27); NSW first-home eligibility bands; ASIC Moneysmart buying a house; deposit and LMI guidance. For other jurisdictions use your state revenue authority's official duty calculator. The calculation uses purchase price less the proposed loan as deposit cash, plus duty, entered fees, cash-paid LMI and retained reserve, then subtracts available savings and eligible grant cash. The LVR uses the lower of purchase price and nominated lender valuation.
Explore the Home Loans Knowledge Centre — borrowing power, buying costs, transfer duty, mortgage repayments and refinancing.