Property Purchase Simulator – Australia 🇦🇺

Q: What is stamp duty and can it be avoided?

Stamp duty (transfer duty) is a state tax on property transfers. It is calculated on a progressive scale that varies by state. In NSW, it ranges from 1.25% to 5.5%, and 7% above AUD 3,870,000. First home buyers may qualify for exemptions: in NSW, stamp duty is fully exempt for new or existing homes up to AUD 800,000 and reduced up to AUD 1,000,000. The First Home Buyer Choice option (annual property tax) closed on 1 July 2023. In the ACT, stamp duty is being progressively abolished in favor of higher land tax.

Q: How does LMI (Lenders Mortgage Insurance) work?

LMI is insurance that protects the lender (not you) if you cannot repay your loan. It is mandatory when your deposit is less than 20% of the purchase price (LVR > 80%). The cost depends on the LVR and loan amount: for an LVR of 85%, expect about 1% of the loan; for 90%, about 2%; and for 95%, up to 3%. LMI can be paid as a lump sum or added to the loan.

Q: What is an offset account?

An offset account is a transaction account linked to your home loan. The balance of this account is deducted from your loan balance for interest calculation. For example, if your loan is AUD 500,000 and your offset account holds AUD 50,000, you only pay interest on AUD 450,000. It is a powerful tool for reducing the total cost of your loan. A 100% offset account is the most beneficial. It is generally available with variable rate loans and some fixed rate loans.

Q: Can a foreigner buy in Australia?

Yes, but with significant restrictions. Non-residents must obtain FIRB (Foreign Investment Review Board) approval and can generally only buy new properties or vacant land. Temporary residents (work visa) can buy an established property as their main residence but must sell it when leaving Australia. Stamp duty surcharges (8-9%) and additional land tax surcharges (2-4%/year) apply to foreign buyers in most states. Getting a home loan as a foreigner is possible but conditions are stricter.

Q: Buying at auction: how does it work?

Auction is a very common sale method in Australia, especially in Sydney and Melbourne. On auction day, potential buyers bid publicly. If the price reaches the reserve price (minimum set by the seller), the property is sold to the highest bidder. Note: an auction sale is unconditional with no cooling-off period. You must have completed all inspections and obtained pre-approval before participating. A 10% deposit is required immediately after the sale. Tip: set a limit and do not get carried away.

Q: What are the recurring costs of owning property in Australia?

Beyond the home loan, Australian homeowners pay: council rates (municipal tax, AUD 1,000-3,000/year), water rates (AUD 500-1,000/year), home insurance (building & contents, AUD 1,000-3,000/year), strata levies if in a strata scheme (AUD 1,000-5,000+/quarter), and land tax if the land value exceeds a threshold (varies by state). For investment properties, expenses are tax-deductible via negative gearing. Also budget 1% of the property value/year for maintenance.

Calculate stamp duty (NSW), conveyancing fees, LMI and your home loan monthly payment for established or new build properties.

Your project established

Rates 2026

Property priceA$700,000.00

DepositA$140,000.00 (20%)

Agency feesNo agency

Loan duration30 years (360 months)

Interest rate6.0 %

Insurance0.34 %

Total monthly payment

A$3,695.43

≈ 2k €

incl. A$166.76 insurance

Acquisition fees

A$28,552.46

≈ 17k €

4.1% of price – Established

Credit cost

A$741,800.86

≈ 445k €

interest + insurance

Total cost

A$1,470,353.32

≈ 882k €

price + fees + credit

Acquisition summary

Acquisition cost

Property priceA$700,000.00

Acquisition feesA$28,552.46

Total acquisition costA$728,552.46≈ 437k €

Financing

DepositA$140,000.00

Amount borrowedA$588,552.46

Loan interestA$681,768.51

Total insuranceA$60,032.35

All-inclusive total costA$1,470,353.32≈ 882k €

Key indicators

Fees / Price

4.1%

Deposit / Price

20.0%

Loan / Price

84%

Total surcharge

A$770,353.32

Chart analysis

Breakdown of the total cost of your real estate project: price, fees and credit.

A$1.5M

total cost

Property price (A$700k)

Acquisition fees (A$29k)

Loan interest (A$682k)

Insurance (A$60k)

Detailed acquisition fees

Established

For a established property in Australia, Progressive property transfer tax – NSW scale

Item	Rate / Type	Amount
Stamp Duty (NSW) Progressive property transfer tax – NSW scale	progressive 1.25-7%	A$25,687.00
Conveyancing Fees Conveyancer or solicitor fees for the legal transfer	flat fee	A$2,000.00
Registration Fee Title registration fee at the Land Registry	flat fee	A$365.46
Building & Pest Inspection Professional building and pest inspection	flat fee	A$500.00
LMI (Lenders Mortgage Insurance) Required mortgage insurance when deposit is less than 20%	0%	A$0.00
Total acquisition fees	4.08%	A$28,552.46

Amortization schedule

Year-by-year repayment breakdown

30 years

Year	Principal repaid	Interest paid	Total paid	Remaining balance
1 Year 1	A$7,227.49	A$35,116.54	A$42,344.03	A$581,324.97
2 Year 2	A$7,673.27	A$34,670.76	A$42,344.03	A$573,651.70
3 Year 3	A$8,146.54	A$34,197.49	A$42,344.03	A$565,505.16
4 Year 4	A$8,649.00	A$33,695.03	A$42,344.03	A$556,856.16
5 Year 5	A$9,182.45	A$33,161.58	A$42,344.03	A$547,673.71

New Build vs Established Comparison

Impact of property type on acquisition fees for a price of A$700k.

Established

A$28,552.46

4.08% of price

New Build

A$28,552.46

4.08% of price

New build savings

A$0.00

0% savings

The asking price is not what a purchase in Australia actually costs: on a property of A$700,000.00, acquisition costs come to A$28,552.46, or 4.1 % of the price. They break down into Stamp Duty, Conveyancing Fees, Registration Fee. These are paid in cash on top of the deposit and cannot be borrowed, which is the usual surprise for a first-time buyer and often runs into tens of thousands. On the financing side, at a rate of 6.00 %, borrowing over 30 years after a deposit of A$140,000.00 gives a monthly payment of A$3,695.43 including insurance. The calculator below recalculates all of it on your own price, deposit and term, and the table breaks out every fee line by line, because that is where most of the difference between one country and another sits, far more than in the interest rate itself.

Everything you need to know about buying property in Australia

Buying property in Australia involves specific fees: stamp duty, conveyancing fees, LMI (Lenders Mortgage Insurance) and other costs. Understanding these fees helps you better prepare your budget, whether you are an Australian resident, a first home buyer eligible for the First Home Owner Grant, or a foreign buyer requiring FIRB approval.

Stamp Duty in Australia: how does it work?

The stamp duty (transfer duty) is the main tax when purchasing property in Australia. The amount varies by state or territory and property price. In NSW, the scale is progressive: from 1.25% on the first AUD 18,000 up to 5.5% above AUD 1,290,000, then 7% above AUD 3,870,000 (premium property duty, thresholds from 1 July 2026). In Victoria, rates are similar but with different thresholds. Queensland offers concessions for first home buyers. Stamp duty typically represents the largest acquisition cost, reaching 4 to 5.5% of the purchase price.

First Home Owner Grant (FHOG): help for first-time buyers

The First Home Owner Grant (FHOG) is a government subsidy for Australian first home buyers. The amount varies by state: AUD 10,000 in NSW (for new properties under AUD 600,000), AUD 10,000 in Victoria (new properties under AUD 750,000), and up to AUD 30,000 in Tasmania. States also often offer stamp duty concessions or exemptions for first home buyers. In NSW, the First Home Buyers Assistance Scheme fully exempts new or existing homes up to AUD 800,000 from stamp duty, with a concession up to AUD 1,000,000. The FHOG generally applies only to new properties or land with construction.

LMI: Australian lenders mortgage insurance

The Lenders Mortgage Insurance (LMI) is required by Australian banks when the deposit is less than 20% of the purchase price (LVR above 80%). Its cost ranges from 1% to 3% of the loan amount depending on the LVR and loan size. For a loan of AUD 560,000 with a 10% deposit, LMI can cost between AUD 8,000 and 15,000. LMI protects the lender (not the borrower) in case of default. It can be paid as a lump sum at settlement or added to the loan. To avoid it, aim for a 20% deposit or explore government programs like the First Home Guarantee.

Conveyancing: the legal property transfer

Conveyancing is the legal process of transferring property ownership in Australia. You can engage a conveyancer (property transfer specialist) or a solicitor (lawyer). Conveyancing fees range from AUD 1,500 to 3,000 depending on transaction complexity. The conveyancer conducts title searches, checks easements and restrictions, prepares transfer documents, coordinates settlement and ensures all contract conditions are met. In Australia, settlement typically occurs 6 weeks after exchange of contracts.

FIRB: approval for foreign buyers

The Foreign Investment Review Board (FIRB) regulates foreign investment in Australian property. Every foreign buyer (non-resident or temporary resident) must obtain FIRB approval before purchasing property. Application fees range from AUD 14,100 (properties under AUD 1M) to over AUD 1,045,400 (properties over AUD 40M). Foreigners can generally only buy new properties or vacant land. Stamp duty surcharges also apply: 9% in NSW (since 1 January 2025), 8% in Victoria, 8% in Queensland (since 1 July 2024). An additional annual land tax surcharge of 2-4% applies to foreign owners.

Negative gearing: the Australian tax strategy

Negative gearing is a very popular investment strategy in Australia. It allows investors to deduct rental losses from their taxable income. If investment property expenses (loan interest, insurance, maintenance, depreciation) exceed rental income, the net loss can be deducted from overall income, reducing income tax. Combined with a 50% capital gains tax discount for properties held over 12 months, negative gearing makes Australian property investment particularly attractive from a tax perspective.

Variations by state: stamp duty and concessions

Acquisition fees vary significantly between Australian states and territories. The ACT (Canberra) has progressively abolished stamp duty in favor of higher land tax rates. In NSW, the "First Home Buyer Choice" option (an annual property tax instead of stamp duty) closed on 1 July 2023 and was replaced by a broader first home buyer exemption. Victoria has among the highest stamp duty rates, with a surcharge for properties over AUD 960,000. Queensland offers generous concessions for first home buyers but has added a surcharge for foreign buyers. Research the specific rates for your target state.

Home loans: types of Australian mortgages

In Australia, several types of home loans are available. The variable rate loan offers a rate that fluctuates with the market, the fixed rate loan locks the rate for 1 to 5 years, and the split loan combines both. Offset accounts reduce interest by offsetting the loan balance with your savings. Redraw facilities let you withdraw additional repayments made. The average variable rate home loan sits around 6% in 2024. The standard term is 30 years. Comparison rates include ancillary fees and provide a better basis for comparison.

Summary table of Australian acquisition fees

Detailed comparison of each cost component between established and new build purchases in Australia.

Component	Established	New Build	Detail
Stamp Duty (NSW)	1.25-7%	1.25-7%	Progressive scale, varies by state. First home buyer exemptions may apply
Conveyancing Fees	~A$2,000	~A$2,500	Conveyancer or solicitor fees
Registration Fee	A$365.46	A$365.46	NSW Land Registry Services 2026-27: transfer (A$182.73) and mortgage (A$182.73)
Building & Pest Inspection	~A$500	-	Building and pest inspection (established only)
LMI	0-3%	0-3%	Lenders Mortgage Insurance if deposit < 20% (LVR > 80%)
FIRB Fee (foreigners)	A$14,100+	A$14,100+	FIRB application fee for foreign buyers only
Estimated total	~4-6%	~4-6%	Percentage of property price (excl. LMI and FIRB)

Key steps for buying property in Australia

Home loan pre-approval

Obtain a pre-approval (conditional approval) from a bank or mortgage broker. This determines your borrowing capacity and shows agents you are a serious buyer. Pre-approval is typically valid for 3 to 6 months. The lender will assess your income, expenses, credit history and deposit. A mortgage broker can compare offers from multiple lenders to get you the best rate.

Offer and exchange of contracts

Depending on the state, purchase is done via auction or private treaty (private negotiation). After agreement, you sign the contract of sale and pay a deposit of 10% of the price. In NSW, a 5 business day cooling-off period applies (except at auction). During this time, arrange inspections (building & pest) and the strata report if it is an apartment.

Settlement

Settlement typically occurs 6 weeks after exchange of contracts (sometimes 4 to 8 weeks depending on conditions). This is when the property transfer is finalized: your conveyancer and the bank coordinate payment, stamp duty is paid, and the title is registered in your name at the Land Registry. Settlement is now largely done electronically via the PEXA system. You receive the keys after settlement.

Frequently asked questions about buying property in Australia

What is stamp duty and can it be avoided?

Stamp duty (transfer duty) is a state tax on property transfers. It is calculated on a progressive scale that varies by state. In NSW, it ranges from 1.25% to 5.5%, and 7% above AUD 3,870,000. First home buyers may qualify for exemptions: in NSW, stamp duty is fully exempt for new or existing homes up to AUD 800,000 and reduced up to AUD 1,000,000. The First Home Buyer Choice option (annual property tax) closed on 1 July 2023. In the ACT, stamp duty is being progressively abolished in favor of higher land tax.

How does LMI (Lenders Mortgage Insurance) work?

LMI is insurance that protects the lender (not you) if you cannot repay your loan. It is mandatory when your deposit is less than 20% of the purchase price (LVR > 80%). The cost depends on the LVR and loan amount: for an LVR of 85%, expect about 1% of the loan; for 90%, about 2%; and for 95%, up to 3%. LMI can be paid as a lump sum or added to the loan.

What is an offset account?

An offset account is a transaction account linked to your home loan. The balance of this account is deducted from your loan balance for interest calculation. For example, if your loan is AUD 500,000 and your offset account holds AUD 50,000, you only pay interest on AUD 450,000. It is a powerful tool for reducing the total cost of your loan. A 100% offset account is the most beneficial. It is generally available with variable rate loans and some fixed rate loans.

Can a foreigner buy in Australia?

Yes, but with significant restrictions. Non-residents must obtain FIRB (Foreign Investment Review Board) approval and can generally only buy new properties or vacant land. Temporary residents (work visa) can buy an established property as their main residence but must sell it when leaving Australia. Stamp duty surcharges (8-9%) and additional land tax surcharges (2-4%/year) apply to foreign buyers in most states. Getting a home loan as a foreigner is possible but conditions are stricter.

Buying at auction: how does it work?

Auction is a very common sale method in Australia, especially in Sydney and Melbourne. On auction day, potential buyers bid publicly. If the price reaches the reserve price (minimum set by the seller), the property is sold to the highest bidder. Note: an auction sale is unconditional with no cooling-off period. You must have completed all inspections and obtained pre-approval before participating. A 10% deposit is required immediately after the sale. Tip: set a limit and do not get carried away.

What are the recurring costs of owning property in Australia?

Beyond the home loan, Australian homeowners pay: council rates (municipal tax, AUD 1,000-3,000/year), water rates (AUD 500-1,000/year), home insurance (building & contents, AUD 1,000-3,000/year), strata levies if in a strata scheme (AUD 1,000-5,000+/quarter), and land tax if the land value exceeds a threshold (varies by state). For investment properties, expenses are tax-deductible via negative gearing. Also budget 1% of the property value/year for maintenance.

Australian real estate glossary

Stamp Duty

State or territory property transfer tax levied on property purchases. Progressive scale varying by state. First home buyer exemptions may be available.

LMI (Lenders Mortgage Insurance)

Mortgage insurance required when the deposit is less than 20%. Protects the lender in case of default. Costs 1 to 3% of the loan amount depending on LVR.

Conveyancing

Legal process of transferring property ownership. Performed by a conveyancer or solicitor. Includes title searches, document preparation and settlement coordination.

FIRB (Foreign Investment Review Board)

Federal body regulating foreign investment in property. Approval required for all non-resident or temporary resident buyers.

Negative Gearing

Tax strategy allowing deduction of investment property losses from overall taxable income. Very common in Australia for property investment.

Offset Account

Transaction account whose balance is deducted from the outstanding loan principal for interest calculation. Effectively reduces total loan cost without locking up funds.

Settlement

The day property transfer is finalized. The balance is paid, stamp duty is settled, and the title is registered in the new owner's name. Typically 6 weeks after exchange of contracts.

Strata Levies

Body corporate fees covering common area maintenance, building insurance and a sinking fund. Mandatory for apartments and some townhouses.

FHOG (First Home Owner Grant)

Government grant for first home buyers purchasing or building a new property. Amount varies by state: AUD 10,000 to 30,000. Specific price and eligibility conditions apply.