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 about $65,000. In Victoria, it is about $82,500 (including the premium rate above $960,000). First home buyers may be eligible for concessions or exemptions depending on the state and purchase price. Use our stamp duty calculator to see the exact figure for your state and 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 actual interest rate from your lender to calculate repayments. The comparison rate is useful when choosing between lenders, but the actual rate determines your monthly payment.

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.

Emergency services levy is collected through your insurance premium in some states (the Fire Services Property Levy in Victoria, the Emergency Services Levy in NSW and SA, and equivalents in TAS and the NT). It is usually $200 to $600 per year for a house and is often bundled into the home insurance line item rather than billed separately. WA and QLD collect their version through council rates instead.

Home insurance covers building and contents. The price varies a lot by region. In low-risk inland areas of VIC, SA, ACT and TAS, expect $1,500 to $3,000 per year. Coastal NSW, QLD and WA premiums are typically higher (often $3,000 to $6,000) due to cyclone and storm exposure, even though the federal Cyclone Reinsurance Pool now covers parts of northern Australia. In bushfire-prone areas, premiums of $5,000 to $10,000+ are common, and some flood-prone properties can be even higher. Get a quote from at least two insurers before you commit, not after.

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 be voted in by the owners corporation at any time, so always check the strata minutes for any planned or upcoming levies.

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 additional $1,650 per month is worth planning for so your budget reflects the full picture.

How to use this

Before you bid, add up every cost. Not just the mortgage. The full monthly number. Knowing the full monthly number before you bid gives you the confidence to set a budget that works for your life. The first home cost calculator does this in about 60 seconds. If you are a first home buyer, check the eligibility checker to see which grants and concessions apply in your state. On housematch, we calculate estimated repayments on every listing so you can compare the total cost, not just the sticker price.