A couple saves a 10% deposit for an $800,000 home in Preston. They plan for $80,000 plus bank fees. At settlement, stamp duty alone adds a bill they didn’t fully factor in. After legal fees, inspections and insurance, the cash needed jumps well beyond what they expected.
Many buyers focus on the deposit and sale price. The purchase price is only part of the equation.
Stamp duty alone can add tens of thousands. Legal fees, inspections, lender charges, insurance and moving costs follow. If your deposit is under 20%, Lenders Mortgage Insurance (LMI) may apply.
This guide breaks down the true upfront cost range by price band across VIC. It shows what you’re likely to pay above the purchase price, so you can budget with confidence before making an offer.
Table of Contents
Melbourne Buying Costs: Quick Summary (2026)
What most buyers miss:
The purchase price is only the starting point. Stamp duty, legal fees, inspections, and lender charges must be paid before or at settlement.
How much extra to budget:
Plan for roughly 6–8% above the purchase price, or around $42,000 to $163,000, depending on the property value and your deposit size.
Biggest cost driver:
Stamp duty is usually the largest upfront expense. If your deposit is under 20%, LMI may also apply.
What varies most:
Your deposit size, lender fees, property type (house vs apartment), and whether you buy at auction or private sale.
Safe buffer:
Allow an extra 1–2% buffer to avoid settlement shortfalls.
Next step:
Review the cost table below and confirm your total cash position before making an offer or bidding.
Need clarity before making an offer? Speak with our Buyers Advocate team before you commit.
Media Insight: What Buyers Get Wrong
- “Most buyers plan for the deposit without planning for the six-figure cash gap that appears between offer and settlement.”
- “In Melbourne, stamp duty alone can wipe out years of savings if buyers haven’t factored it in early.”
- “The biggest shock isn’t the purchase price. It’s how many separate payments hit before you get the keys.”
True Upfront Cost Range by Price Band (Melbourne & Victoria, 2026)
The table below shows typical upfront costs in Melbourne and Victoria by price band.
Key Cost Snapshot (Melbourne 2026)
- Buyers typically need 6–8% above the purchase price in cash, excluding the deposit.
- Stamp duty ranges from $31,070 on $600k to $110,000 on $2.0M.
- LMI can range from roughly $10,000 to $15,000 on a $600k purchase with a 10% deposit.
- First-year insurance typically ranges from $1,600 to $3,000, depending on property value and rebuild cost.
- Total upfront costs can exceed $160,000 at higher price bands.
| $600k | $800k | $1.0M | $1.2M | $1.5M | $2.0M | |
| Stamp Duty (VIC) | $31,070 | $43,070 | $55,000 | $66,000 | $82,500 | $110,000 |
| Conveyancing/ Disbursements | $1,200- $2,200 | $1,200- $2,300 | $1,300- $2,400 | $1,300- $2,500 | $1,400- $2,600 | $1,500- $2,800 |
| Building & Pest Inspection | $400- $800 | $400- $850 | $450- $900 | $500- $950 | $600- $1,000 | $700- $1,200 |
| Loan Fees + Valuation | $0- $1,200 | $0- $1,300 | $0- $1,400 | $0- $1,500 | $0- $1,700 | $0- $2,000 |
| LMI (if <20% deposit) | Varies (applies if <20% deposit) | |||||
| Insurance (first year premium) | $1,600- $2,200 | $1,700- $2,300 | $1,800- $2,400 | $1,900- $2,500 | $2,000- $2,700 | $2,200- $3,000 |
| Moving + Cleaning | $800- $1,500 | $900- $1,600 | $1,000- $1,700 | $1,100- $1,800 | $1,200- $2,000 | $1,400- $2,200 |
| Settlement Adjustments | $500- $1,500 | $600- $1,600 | $700- $1,700 | $800- $1,800 | $900- $1,900 | $1,000- $2,200 |
| Recommended Buffer (1-2%) | $6,000- $12,000 | $8,000- $16,000 | $10,000-$20,000 | $12,000-$24,000 | $15,000-$30,000 | $20,000-$40,000 |
| Estimated Upfront Total Range (Excl. Buffer) | $35,570- $40,470 | $47,870- $53,020 | $60,250- $65,500 | $71,600- $77,050 | $88,600- $94,400 | $116,800- $123,400 |
| Estimated Upfront Total (Incl. 1-2% Buffer) | $41,570- $52,470 | $55,870- $69,020 | $70,250- $85,500 | $83,600- $101,050 | $103,600- $124,400 | $136,800- $163,400 |
Breaking Down Each Upfront Cost
Stamp Duty (Victoria)
Stamp duty is a state tax paid when property changes ownership. It is calculated on the purchase price and is usually the highest upfront cost after the deposit.
Victoria uses a progressive scale, so duty increases as the price rises. The figures in the table are based on the State Revenue Office calculator.
If you’re a first-home buyer, you may qualify for exemptions or reductions. Victorian eligible first-home buyers pay no duty on homes valued up to $600,000, with a concession applying to homes valued between $600,001 and $750,000. Other buyers pay full duty.
Example: On a $1,000,000 established home in Melbourne with no concessions, stamp duty is $55,000.
Conveyancing / Solicitor + Disbursements
Conveyancing is the legal process of transferring ownership. A solicitor reviews the contract and manages the settlement.
The total conveyancing costs, including disbursements, for a standard residential transaction in Victoria typically range from $1,200 to $2,500, covering professional fees, title searches, council and water certificates, and settlement administration.
Costs increase for apartments, off-the-plan purchases, urgent settlements or complex contracts.
Example: A standard Melbourne house purchase would typically fall within the $1,200 to $2,500 range for legal and disbursement costs.
Building & Pest Inspection / Due Diligence
A building and pest inspection is a check of the property’s condition before you commit to buying it. For apartments, buyers may also order a strata or owners corporation report to review building finances and past repairs.
In Melbourne and across Victoria, a standard pre-purchase inspection for a house usually costs between $400 and $900. Smaller apartments often sit at the lower end of the range. Larger or older homes tend to cost more to inspect. If you are buying at auction, you must organise and pay for the inspection before you bid.
Costs rise for larger or older homes, short-notice auction inspections, or added strata reports.
Example: A buyer inspecting a three-bedroom house before auction may pay around $600 to $800 for a combined building and pest report.
Loan Fees + Valuation
Lenders may charge setup fees, including application, valuation and legal costs. Some bundle these into an annual package fee.
In Australia, upfront loan setup costs usually range from $0 to $1,500. Some lenders waive application or valuation fees as part of a package deal. Others charge each item separately. The total depends on the lender you choose and the structure of your loan.
Example: A buyer choosing a package loan may pay only a few hundred dollars upfront, while another lender could charge over $1,000 in combined setup and valuation fees.
LMI
LMI applies when your deposit is under 20%, meaning you borrow more than 80% of the property value.
The smaller your deposit and the larger your loan, the higher the premium.
To put it into context, on a $600,000 purchase with a 10% deposit, the LMI premium typically ranges from around $10,000 to $15,000, depending on the lender. At higher purchase prices, premiums increase accordingly. If the deposit is 20% or more, LMI generally does not apply.
Eligible first home buyers may avoid LMI under the Australian Government’s First Home Guarantee scheme. The program allows purchases with as little as a 5% deposit, subject to property price caps (currently $950,000 in Melbourne metro) and lender participation. Not all buyers qualify, so it should not be assumed.
Example: A buyer purchasing at $600,000 with only $60,000 saved for a deposit may need to budget an additional $14,000 or more in LMI before settlement.
Insurance (Building & Contents)
Lenders require building insurance before settlement. Many buyers add contents cover at the same time.
In Victoria, the first year of combined building and contents insurance typically ranges between $1,600 and $3,000, depending on property value and rebuild cost. The exact figure depends on where the property is located, how much it would cost to rebuild, and the excess you choose on the policy. Older homes and higher rebuild values generally mean higher premiums.
This is not a long-term cost for your table. For budgeting purposes, you only need to allow for the first annual premium, since it must be arranged before or at settlement.
Example: For a standard Melbourne home, a buyer might pay around $2,000 for the first year of building and contents insurance before settlement.
Moving + Cleaning
Once contracts are signed and settlement is approaching, the practical side of moving kicks in. This usually means hiring removalists and arranging a clean, especially if you are leaving a rental or preparing the property for immediate move-in.
In Melbourne, removalists typically charge an hourly rate for two movers and a truck. Based on current metro pricing from Hipages and removalist cost guides, plus examples from Melbourne removalist pricing pages, most standard moves cost between $800 and $1,800 when removalist and cleaning costs are combined.
The final cost depends on the home’s size, access to the property, and timing. Weekend bookings, stairs, tight driveways, and larger homes will push costs higher. Smaller apartments with easy access usually sit at the lower end.
Example: A three-bedroom move within Melbourne, including removalists and a basic end-of-lease clean, can easily exceed $1,000.
Utilities + Settlement Adjustments
At settlement, buyers reimburse sellers for prepaid rates and levies.
In Victoria, these adjustments usually include council rates, water service charges, and, for apartments, owners corporation levies. If the seller has already paid these bills in advance, you reimburse them for the portion that applies after settlement.
For budgeting purposes, settlement adjustments in Melbourne typically range from $500 to $2,000. The final amount depends on when the settlement occurs in the billing cycle and whether the rates were paid annually or quarterly. Apartments with higher strata levies may sit toward the upper end of the range.
It is important to note that electricity, gas, and internet accounts are arranged separately by the buyer and are not part of formal settlement adjustments.
Example: If annual council rates were prepaid and settlement occurs halfway through the year, a buyer may reimburse around half of the yearly amount at settlement.
Auction vs Private Sale: What Changes?
| Factor | Auction | Private Sale |
| Cooling-off period | No cooling-off | 3 business days (with exceptions) |
| Deposit timing | Typically paid on the day of the auction, as specified in the contract | Paid after contract signing |
| Building & pest | Must be done before bidding | Often can be subject to inspection |
| Finance clause | Usually unconditional | Often subject to finance |
| Risk of sunk costs | Higher if you miss out | Lower if conditions apply |
At auction, once the hammer falls, the contract is unconditional. The deposit is usually paid that day. There is no opportunity to renegotiate. That means inspections, contract review, and finance checks must be done beforehand. The auction process is regulated by Consumer Affairs Victoria.
For auctions, inspections and contract reviews must be completed before auction day. There is no cooling-off period. Finance should be formally pre-approved, not just conditionally assessed. Once bidding begins, you are committing unconditionally.
In a private sale, buyers typically have a short cooling-off period and may negotiate conditions. This allows some protection if the financing falls through or the inspections uncover major issues.
The overall costs may end up similar. What changes is when the money leaves your account, and how much risk you carry before settlement.
Example: A buyer attending multiple auctions may pay for several inspections before securing a property, while a private sale buyer can often include inspection conditions in the contract.
Two Buyer Scenarios
Scenario A: First Home Buyer – $800,000 Purchase (10% Deposit)
A buyer purchases at $800,000 with an $80,000 deposit (10%). Unless they qualify for the First Home Guarantee and meet the price cap, LMI will likely apply.
Mini Budget Summary
| Cost Item | Estimate |
| Stamp duty | $43,070 |
| Conveyancing | $1,200–$2,300 |
| Building & pest | $400–$850 |
| Loan fees | $0–$1,500 |
| LMI (90% LVR) | ~$15,000–$18,000 (depending on lender) |
| Insurance | $1,700–$2,300 |
| Moving | $900–$1,600 |
| Settlement adjustments | $600–$1,600 |
| Recommended buffer | 1–2% ($8,000–$16,000) |
Estimated Upfront Costs (incl. Buffer, excluding LMI): Approximately $55,870 – $69,020
Total Cash Required (Deposit + Costs): Approximately $150,000 – $170,000
Top 3 Surprise Costs
- LMI – often underestimated at 90% LVR
- Stamp duty – $43,070 is due before settlement
- Settlement adjustments – often forgotten
Recommended Buffer
Allow at least 1–2% of the purchase price. More if your savings are tight.
Scenario B: Upsizer – $1,500,000 Purchase (20% Deposit)
An upsizer purchases at $1.5 million with a $300,000 deposit (20%). LMI does not apply at this level.
Mini Budget Summary
| Cost Item | Estimate |
| Stamp duty | $82,500 |
| Conveyancing | $1,400–$2,600 |
| Building & pest | $600–$1,000 |
| Loan fees | $0–$1,500 |
| LMI | Not applicable |
| Insurance | $2,000–$2,700 |
| Moving | $1,200–$2,000 |
| Settlement adjustments | $900–$1,900 |
| Recommended buffer | 1–2% ($15,000–$30,000) |
Estimated Upfront Costs (incl. buffer): Approximately $103,600 – $124,400
Total Cash Required (Deposit + Costs): Approximately $404,000 – $424,000
Top 3 Surprise Costs
- Stamp duty – $82,500 payable before settlement
- Larger buffer required at higher price point
- Moving and staging costs for family homes
Recommended Buffer
1–2% remains appropriate, though higher-value homes often justify a larger cash reserve.
Upfront Cost Checklist
Buying property moves quickly. Costs appear at different stages. Use this checklist to avoid last-minute stress.
Before Inspections
- Confirm your budget includes stamp duty, not just the deposit.
- Check whether LMI applies based on your deposit amount.
- Set aside funds for building and pest inspections.
- Speak with your lender or broker about upfront loan fees.
Before You Bid or Make an Offer
- Have finance pre-approval in place.
- Arrange a contract review with your solicitor or conveyancer.
- Complete inspections when buying at auction.
- Confirm how much cash you will need before settlement.
Before Settlement
- Pay stamp duty.
- Finalise building insurance.
- Prepare funds for legal fees and settlement adjustments.
- Confirm the timing for the deposit and remaining balance.
First Week After Settlement
- Organise utilities and internet connections.
- Complete moving and cleaning arrangements.
- Review any minor repairs identified in inspections.
- Keep a small contingency buffer available.
Methodology and Assumptions
This guide estimates the upfront costs of buying established residential property in Melbourne and across Victoria in 2026. “Upfront costs” refer to expenses paid before or at settlement, excluding the deposit.
Figures are informed by:
- Stamp duty calculations from the State Revenue Office Victoria land transfer duty calculator
- Conveyancing and inspection costs are drawn from the current Victorian pricing guides
- Loan setup fees from major lender schedules and comparison data from Canstar
- LMI examples from the Helia LMI premium estimator. Examples reflect conservative estimates based on 90% LVR owner-occupier loans using major lender benchmarks.
- Moving cost estimates from Melbourne removalist pricing guides
- Settlement adjustment guidance from Consumer Affairs Victoria
- Insurance premium data informed by industry reports and insurer pricing pages
The recommended 1-2% buffer is a planning allowance, not a mandatory charge. It reflects minor repairs and short-term contingencies that commonly arise when purchasing established properties.
This guide is general information only and does not constitute legal or financial advice.
Sources
- State Revenue Office Victoria – Land Transfer Duty Calculator
- Consumer Affairs Victoria – Buying Property and Auction Rules
- Helia – LMI Premium Estimator
- Commonwealth Bank – Home Loan Fees and Charges
- Canstar – Home Loan Fee Comparison Data
- Finder – Average Home Insurance Premium Data
- Insurance Council of Australia – Industry Insurance Reports
- Hipages – Melbourne Removalist Cost Guide
- Victorian Conveyancing Firm Pricing Pages (AI4Convey, TNS Conveyancing)
FAQs
How much should I budget above the purchase price in Melbourne?
Plan for roughly 6–8% above the purchase price, excluding your deposit. This covers stamp duty, legal fees, inspections, loan setup costs, insurance, moving, settlement adjustments, and a small buffer. If your deposit is under 20%, allow more for LMI.
Do first home buyers pay stamp duty in Victoria?
Eligible first home buyers may pay no duty up to $600,000, with a concession between $600,001 and $750,000 under the State Revenue Office Victoria rules. Above that, full duty usually applies. Eligible buyers may also avoid LMI under the First Home Guarantee scheme, subject to property price caps and lender participation.
What costs happen before settlement?
Inspections and contract reviews are paid early. Stamp duty, insurance, and settlement adjustments are paid before or at settlement. Moving and utilities are arranged around the settlement date.
What buffer is considered safe?
A 1-2% buffer of the purchase price is a practical allowance for minor repairs and short-term surprises. It is not a mandatory fee.
Are building inspections worth it?
Yes. They help uncover structural or safety issues before you commit, especially at auction, where there is no cooling-off period.
Do apartments need extra checks?
Yes. Buyers should review the owners’ corporation records and building finances to avoid unexpected levies after settlement.
Ready to Plan Your Purchase Properly?
Upfront costs in Melbourne can reach six figures faster than most buyers expect. The difference between a smooth settlement and last-minute stress often comes down to planning.
At Buyers Advocate, we help you budget clearly before you commit. That means understanding your true costs, managing risk at auction, and avoiding expensive surprises.
If you want clarity before making your next move, book a confidential consultation with our team today.