The deposit is only part of the budget

Your cash requirement is the part of the price you are funding yourself, plus purchase costs and money you want to keep available after settlement. A lender's deposit requirement is separate from the cash budget you calculate here.

A $600,000 purchase with 20% contributed to the price
Price contribution$120,000The remaining $480,000 is borrowed.
Buying costs$30,000Illustrative duty, legal fees, inspections and other costs.
Cash to prepare$165,000Includes a further $15,000 buffer.

This is an example, not a stamp-duty estimate or a lending offer. Enter the quotes for your property.

What belongs in the purchase budget?

ItemHow to estimate it
Contribution to the pricePrice less the amount borrowed. Do not count the contract deposit a second time.
Transfer dutyUse the revenue office calculator for the property location and your circumstances.
Legal fees and inspectionsUse quotes. Allow for any searches, reports or disbursements excluded from the headline price.
Lender and settlement costsConfirm which fees are paid in cash and which are added to the loan. Include any applicable LMI.
Initial work and moving costsKeep immediate work separate from regular maintenance.
Cash bufferMoney retained for bills and surprises; it is not a purchase fee.

Total cost and payment timing are different

The contract deposit is generally part of your contribution to the price, not an extra cost on top. Some other costs arise before settlement. Ask your conveyancer for a schedule of amounts and dates so a total budget does not hide an earlier cash shortage.

A grant expected later cannot pay a bill due today. Only subtract assistance from settlement funding when the amount and availability by settlement have been confirmed. Duty relief reduces duty; a government guarantee is not cash to subtract.

Buying your first property?

Use our first-home assistance navigator to separate grants, duty concessions and loan guarantees. Buying to rent out immediately is a different situation from buying a home to live in.

Check the ongoing budget next

Once you have enough cash to complete the purchase, calculate the weekly holding cost. Your purchase buffer should remain available rather than quietly becoming part of the deposit.

Further reading: ASIC Moneysmart: saving for a deposit.