Settlement Day Costs When Buying a House in Victoria: What to Have Ready

By Andrew Paterson

You have signed a contract, or you are close to it. Now the practical question arrives: how much cash do you need on settlement day, and how does it get there?

Settlement day costs are the total funds you must have ready to complete the purchase. They cover the rest of the price your loan doesn’t, plus stamp duty, registration fees and a few adjustments that often get missed.

General information only, not financial, credit, legal or tax advice. Figures are current as at September 2026 and change regularly, so confirm your own numbers with your conveyancer and the State Revenue Office.

What is the “balance of settlement”?

The balance of settlement is the amount you still owe on the day. It is what remains once your loan and any deposit already paid are taken off the price and the extra costs are added on.

The calculation looks like this:

• Purchase price minus loan amount minus deposit already paid
• Plus stamp duty (land transfer duty)
• Plus land registration fees for the transfer and your mortgage
• Plus or minus adjustments for council rates, water and owners corporation fees
• Plus conveyancing fees and disbursements, which your conveyancer may bill separately

Your conveyancer prepares a settlement statement in the days before settlement. Treat that statement as the final word on your figure.

The costs that make up your settlement figure

1. Stamp duty

For most buyers this is the largest cost after the deposit. In Victoria it is usually paid through the electronic settlement itself.

Duty is normally paid from your own funds. Borrowing for it is only possible if a lender approves a larger loan that still fits its deposit and servicing rules, so plan to have it in cash.

The general rates climb from 1.4% on the first $25,000 to 6% on the value between $130,000 and $960,000. From $960,001 to $2 million, duty is a flat 5.5% of the full value, and 6.5% applies to the portion above $2 million.

For example, general duty on a $700,000 home is $37,070.

2. First home buyer duty relief

If you qualify, Victoria’s first home buyer relief can remove or reduce this cost. The home must become your principal place of residence, and you generally need to move in within 12 months.

• Full exemption for homes valued up to $600,000
• Sliding concession between $600,001 and $750,000
• No relief above $750,000

The concession tapers quickly across that $150,000 band. Duty is about $11,357 at $650,000 and $24,713 at $700,000, before reaching full duty of $40,070 at $750,000.

That taper is worth keeping in mind when you set your price range. Our guide to first home buyer grants and duty concessions in Victoria covers eligibility in detail.

3. Land registration fees

Land Use Victoria charges fees to register the transfer into your name and to register your lender’s mortgage. These fees are indexed each year on 1 July.

For electronic lodgment in 2026-27:

• Transfer of land: $104.30 plus $2.34 for every whole $1,000 of the price, rounded up to the next dollar and capped at $3,614
• Mortgage registration: $129.20

On a $700,000 purchase the transfer fee comes to $1,743. You can check any price with the Land Use Victoria transfer fee calculator.

4. Rates, water and owners corporation adjustments

Sellers have often paid council rates, water charges or owners corporation fees in advance. You reimburse them for the part of the period after you take ownership.

Say the seller has paid $2,400 in annual council rates and three months of that period remain at settlement. You would repay them about $600.

These amounts are small next to duty, but they still change your final figure. The adjustment can also run the other way if the seller is behind on payments.

5. Conveyancing and PEXA fees

Your conveyancer’s professional fee sits alongside searches and the electronic settlement platform fees. PEXA’s published Victorian prices from 1 July 2026 include $146.30 for a single-title transfer and $74.14 for a mortgage with financial settlement.

Who ends up paying each platform fee depends on your conveyancer and lender. Ask your conveyancer for a written quote that lists disbursements early.

A worked example on a $700,000 purchase

Here is how the numbers come together. Assume a $700,000 home, a 10% deposit ($70,000) paid when you signed and an 80% loan ($560,000).

Line item	Eligible first home buyer	Other buyer
Purchase price	$700,000	$700,000
Less loan	-$560,000	-$560,000
Less deposit paid	-$70,000	-$70,000
Stamp duty	$24,713	$37,070
Transfer registration	$1,743	$1,743
Mortgage registration	$129.20	$129.20
Rates adjustment (example)	$600	$600
Approximate funds needed at settlement	$97,185	$109,542

The duty concession saves this first home buyer $12,357. The totals exclude conveyancing fees, PEXA fees and any lender costs, so add those from your own quotes.

These figures are illustrative. Your settlement statement will show the exact amount.

How much should you budget?

A lot of buyers budget for the deposit and forget the rest. Duty and fees are what usually leave people short.

If you are not eligible for duty relief, duty and government fees in Victoria typically add about 5% to 6% of the price. Eligible first home buyers under $750,000 will need less, so run your actual figures once you have a price in mind.

If you are still searching, our breakdown of the ongoing costs of owning a home helps with the budget after settlement too.

How the money moves on the day

Victoria requires most transfers and mortgages to be lodged electronically. Settlement happens online in an electronic workspace, usually through PEXA, so bank cheques are no longer part of a standard purchase.

The funds come from two places:

1. Your contribution: the money you transfer so it is available to your conveyancer or lender before settlement
2. Your loan: the amount your lender advances into the workspace on the day

Your conveyancer and lender will tell you where your contribution needs to go and by when. Follow those instructions exactly.

Why settlements get delayed: funds that aren’t ready

A common hold-up is a buyer’s contribution that hasn’t arrived in time. Money sent on the morning of settlement may not clear, especially between different banks.

If your funds are short on the day, a few things can happen:

• Settlement may be pushed back
• Your contract may allow the seller to charge penalty interest for the delay
• A longer delay can lead to a default notice under the contract

Move your funds several business days early and check your bank’s daily transfer limit. Some banks need notice to raise a limit for a large payment.

Before sending anything, call your conveyancer on a number you already know to confirm the account details. Scammers target settlements with fake emails that change bank details.

Your contract of sale sets out the settlement date and default terms. It is also worth arranging building insurance before settlement if your contract puts the risk on you.

Help that can reduce what you need for first home buyers

If you are buying your first home, a few programs may change your settlement figure. Each has its own eligibility rules.

First Home Owner Grant

Victoria’s grant is $10,000 for eligible new homes valued up to $750,000. It doesn’t apply to established homes.

If you need the grant to settle, you usually apply through your lender so it can be paid at settlement.

5% Deposit Scheme

The federal 5% Deposit Scheme, formerly the First Home Guarantee, lets eligible buyers purchase with a 5% deposit without paying lenders mortgage insurance. Since 1 October 2025 it has had no income caps and no limit on places.

Victorian price caps are $950,000 in Melbourne and Geelong and $650,000 elsewhere in the state. Check your postcode on firsthomebuyers.gov.au, as some areas close to the boundary fall under the lower cap.

The scheme reduces the deposit you need, but you still borrow the rest and pay duty and costs. Our 5% Deposit Scheme guide explains how it works.

Off-the-plan duty concession

Victoria has a temporary off-the-plan duty concession for apartments, units and townhouses in a strata subdivision. It covers eligible contracts signed before 21 April 2027 and is open to all buyers.

The concession lets you deduct construction costs incurred after the contract date from the value used for duty. Check with the SRO whether your property qualifies before relying on it.

Your settlement day checklist

Run through this list with your conveyancer before the day:

1. Balance of the price after your loan and deposit
2. Stamp duty, with your first home buyer eligibility confirmed
3. Transfer and mortgage registration fees
4. Rates, water and owners corporation adjustments
5. Conveyancing fees, PEXA fees and other disbursements
6. Account details confirmed by phone
7. Your contribution sent early enough to clear

If you’d like help working through your own numbers, send us your contract and we’ll map out what you need well before settlement.

Frequently asked questions

Can I borrow the money for stamp duty?

Only if a lender approves a loan large enough to cover it within its deposit and servicing limits. Many buyers pay duty from savings, and borrowing more can push you over 80% of the value and trigger lenders mortgage insurance.

Who pays the PEXA fee?

PEXA charges each party’s representative for the part of the workspace they use. Your conveyancer usually passes their share on as a disbursement, and some lenders pass on the mortgage fee.

Does the seller pay any of these costs?

Yes. The seller normally pays their own conveyancing costs and the fee to discharge their mortgage. Rate and water adjustments can also work in your favour if the seller hasn’t paid up to settlement.

Are bank cheques still used at settlement in Victoria?

Not for a standard purchase. Settlement is electronic, so your job is to have your contribution in the right place early, following your conveyancer’s instructions.

What if my loan isn’t ready by the settlement date?

Tell your conveyancer as soon as you know. They can ask the seller about a short extension, though the seller doesn’t have to agree and penalty interest may apply.