Stamp Duty & LMI: The Upfront Costs Explained
schedule5 min read
Beyond your deposit, two costs catch many buyers by surprise: stamp duty and Lenders Mortgage Insurance (LMI). Knowing them upfront helps you budget accurately.
What is stamp duty?
Stamp duty (transfer duty) is a state government tax on property purchases. In NSW the amount depends on the property price.
- First home buyers may get an exemption or concession below certain price thresholds.
- It's usually payable around settlement.
What is LMI?
Lenders Mortgage Insurance protects the lender (not you) when your deposit is below 20%. It can cost thousands and is often added to the loan.
How to reduce these costs
- Save a 20% deposit to avoid LMI entirely.
- Check first home buyer stamp duty concessions.
- Some schemes (e.g. First Home Guarantee) let you skip LMI with a smaller deposit.
lightbulbKey Takeaways
- check_circleStamp duty and LMI are the main upfront costs beyond your deposit.
- check_circleFirst home buyers often qualify for stamp duty relief.
- check_circleA 20% deposit or the right scheme can remove LMI.
This article is general information only and does not take into account your personal circumstances. Speak with a qualified mortgage broker for advice specific to you.
Have questions about your situation?
Get matched with a specialist who speaks your language — they'll call you back within 12 hours.
Get My Free Match