Total Cost of Building a New Home

Why most "build cost" estimates are wrong

Builder quotes cover the construction contract only. The hidden costs add up fast:

• Stamp duty on land — typically $10,000–$40,000 depending on state and land price. When building, you pay stamp duty on the land purchase price only (not the build), saving tens of thousands vs buying established.
• LMI premium — if your deposit is below 20% of total project value, expect to add $5,000–$40,000+ in LMI. Often capitalised into the loan.
• Interest during construction — 6–12 months of interest-only payments on drawn funds while you're also paying rent. Budget 1.5–3% of the build cost.
• Progress payment fees — banks charge $150–$300 per drawdown inspection (typically 5 stages). Around $750–$1,500 total.
• Valuation + application fees — $300–$800 upfront, depending on lender.

First Home Owner Grant offset

If you're a first home buyer building a new home, you may be eligible for FHOG: $10,000–$30,000 depending on state. QLD, TAS and ACT currently have the highest grants. This calculator deducts your applicable FHOG from the total.