Buying your first home is a great achievement but the upfront costs can make it difficult to get started.
What costs do I have to pay upfront?
  • Lenders Mortgage Insurance
  • Deposit
  • Government charges like stamp duty
  • Loan establishment fees
  • Legal and conveyancing fees
  • Property inspection fees
  • Building and contents insurance
  • Council fees and rates
You can learn more about the upfront fees by attending a free home buyers seminar that HomeStart offers.
How much deposit do I need to get started?

Deposit requirements vary depending on the institution and are calculated based on a percentage of the purchase price. HomeStart has the following options:

  • 3% for an established home or 6% to build with our Graduate Loan
  • 5% for an established home and 8% to build with our standard Home Loan
  • 3% for an established home with our Low Deposit Loan.
What should I aim for in savings? Let's look at a scenario.

Matthew has a Certificate III in Commercial Cookery and works as a full-time chef. His wife Lucy, is no longer working in order to stay at home with their newborn baby. Their net household income is $65,000 p.a. In order to remain in the city-fringe suburb that they are renting in, Matt and Lucy are looking to purchase a property for $450,000.

In this scenario, Matt and Lucy are eligible for the HomeStart Graduate Loan, and can borrow up to $436,500 with a $13,500 deposit.

Alternatively if they wanted to build a home, they could access the 6% deposit with a Graduate Loan, and take advantage of the First Home Owners Grant to be put toward their deposit, fees and charges.

Keep in mind this amount is just an estimate, and it’s best to use an online calculator or talk to a lender to find out what your start up costs could be.
You can calculate how much stamp duty will cost based on the purchase price by using an online calculator.
Is there help available?

First home buyers who meet the eligibily criteria may qualify to receive a one-off grant of $15,000 for new homes or construction.

Start saving

Getting enough money together to cover these upfront costs can be a challenge, particularly when you’re paying rent. That’s why it’s a good idea to start a budget and get saving as soon as you can.
It’s also worth finding out exactly how much you’d need in your situation, as there are many factors which influence the final number. 
Check out our savings section for more tips and examples.