The true cost of buying a home in 2026

Most buyers focus on two numbers: the purchase price and the mortgage repayment. But the actual cost of owning a home includes a long list of expenses that add up quickly. Here is what to budget for.

Upfront costs

Stamp duty is the biggest upfront cost after your deposit. It varies by state and is calculated as a percentage of the purchase price. In NSW, stamp duty on a $1.5M property is roughly $67,000. In Victoria, it is about $74,000. First home buyers may be eligible for concessions or exemptions depending on the state and purchase price.

Conveyancing typically costs $1,500 to $3,000. This covers the legal work involved in transferring the property title.

Building and pest inspection usually runs $500 to $1,000 for a standard house. Apartments are cheaper because you are only inspecting the unit, not the whole structure. A strata report is separate and costs around $300 to $400.

Loan establishment fees vary by lender but expect $200 to $600. Some lenders waive this entirely.

Lenders mortgage insurance (LMI) applies if your deposit is less than 20 percent of the purchase price. On a $1.5M property with a 10 percent deposit, LMI can be $30,000 or more. This is a significant cost that many first home buyers underestimate.

Ongoing costs

Mortgage repayments are the obvious one. On a $1.2M loan at 6.2 percent over 30 years, monthly repayments are about $7,350. Use the current rate from your lender, not the comparison rate, to calculate this accurately.

Council rates vary by council and property value. In Sydney, expect $1,200 to $2,500 per year for a house. In Melbourne, it is similar. Regional areas can be higher or lower depending on the council.

Water rates typically run $800 to $1,400 per year, depending on your state and usage.

Home insurance covers building and contents. For a standard house in a low risk area, expect $1,500 to $3,000 per year. In bushfire or flood prone areas, this can be significantly higher.

Strata levies apply to apartments, townhouses, and any strata titled property. They cover shared maintenance, building insurance, and a sinking fund for major repairs. Quarterly levies of $1,000 to $3,000 are common in Sydney. Check the strata report carefully. A low levy can mean deferred maintenance. A special levy can land without warning.

Maintenance is the cost most people forget. A common rule of thumb is 1 percent of the property value per year, though older homes may cost more. On a $1.5M property, that is $15,000 a year. In practice, some years are quiet and others are expensive. Roofs, plumbing, and hot water systems all have a lifespan.

Adding it up

For a $1.5M house in Sydney with a 20 percent deposit, here is a rough annual cost breakdown:

• Mortgage repayments: $88,200
• Council rates: $1,800
• Water rates: $1,100
• Insurance: $2,000
• Maintenance: $15,000

That is about $108,000 per year, or $9,000 per month. The mortgage alone is $7,350 of that. The rest adds $1,650 per month that many buyers do not factor into their budget.

How to use this

Before you bid, add up every cost. Not just the mortgage. The full monthly number. If that number makes you uncomfortable, it is better to know now than after settlement. On housematch, we calculate estimated repayments on every listing so you can compare the total cost, not just the sticker price.