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# Costs of buying a house or unit

## Your guide to the costs and fees associated with buying a house or unit, plus a budgeting spreadsheet to help you calculate them.

The costs involved in buying a house can quickly add up. In fact, it can be a surprise to people who have saved an adequate deposit and think they're ready to buy a home, only to discover there's more to pay!

Recent research from Finder shows that property buyers are paying upwards of \$6,000 in upfront costs. The deposit is only one of your upfront costs. Using an upfront cost calculator or spreadsheet, you can work out how much you'll need to pay, from government charges to lender fees, insurance to inspections.

### How to estimate your property buying costs

Here's a simple breakdown of what buying a property could cost you. Keep in mind that these are just example figures, not a representation of anyone's actual costs.

#### Property costs

You buy a property for \$600,000. This means your property value is \$600,000, which you can divide into the deposit and loan amount.

• Deposit: \$60,000
• Loan amount: \$540,000

In this scenario, with a 10% deposit you also have to pay lenders mortgage insurance (LMI).

#### Government charges

• Stamp duty: \$20,000
• Mortgage registration fee: \$150
• Transfer fee: \$300

#### Lender fees and charges

• Loan application fees: \$600
• Legal fees: \$330
• Lenders mortgage insurance: \$11,700

#### Other buying costs

• Conveyancing: \$1,000
• Pest and building inspection: \$500
• Moving costs: \$1,000
• Settlement adjustments*: \$700

#### Total property buying cost estimate = \$36,280

*Settlement adjustments refers to your share of council rates, water rates and strata fees for the current quarter. If you are taking ownership of the property in the middle of a quarter and these costs have already been paid by the previous owner, you'll have to pay an adjusted share of the costs based on settlement day. Your conveyancer will work out these costs.

### What are the upfront fees and costs of buying a house?

Beyond the cost of your deposit and home loan, there are a number of costs associated with buying a home. To get a true idea of how much your property purchase will cost, you'll need to add these up:

#### Government charges

• Stamp duty. Stamp duty varies from state to state, and most states offer exemptions and concessions for first home buyers.
• Title transfer fees. This fee also varies from state to state, but usually runs between \$100 and \$140.
• Registration fees. This fee registers your property as the physical security for your home loan. It typically costs between \$115 and \$140, though in some states it can be close to \$200.

You can use our free stamp duty calculator to estimate how much you're likely to pay in stamp duty, title transfer and registration fees.

#### Fees and other upfront costs

• Lender fees. Lenders also have their own fees, which might include application, legal and settlement fees. Mortgage fees can cost several hundred dollars, so make sure you check the fees when you're comparing mortgages. If you plan to borrow more than 80% of the propertyâ€™s value, youâ€™ll also have to pay for lenders mortgage insurance which can add thousands to your total cost.
• Inspection fees. Before signing a contract for a home, it's wise to have building and pest inspections carried out. This will ensure the home you're buying is structurally sound and free from damaging pests. These inspections typically cost around \$300-400.
• Moving costs. Unless you have a large vehicle and some very understanding friends, you'll likely have to pay a removalist service to help you move home. Depending upon the size of your move, a removalist can cost anywhere from a few hundred to a few thousand dollars.

Finder home loans expert Sarah Megginson speaks to The Daily Mail about the hidden costs of home buying â€“ and why first-time home buyers are being blindsided by more than \$6,300 in hidden costs as they try to get a foothold on the property ladder.

### Don't forget about the ongoing costs of buying a property

We've listed the main upfront costs, but there are also ongoing costs that come with owning a home. We might not consider some of these to be upfront costs, because you have to pay them regularly. But some of these costs are payable shortly after you take possession of your home, if not before. So you need to factor them in.

• Home and contents insurance. Lenders expect you to have a home insurance policy in place before settlement. You can usually pay this in instalments or upfront.
• Strata fees. If you're buying a unit or townhouse that is part of a complex, you'll probably be on a strata title. This means paying strata or body corporate fees. These fees are typically charged quarterly, and cost you several thousand dollars a year.
• Council rates. You pay a tax to your local council every quarter, which can run to around \$2,000 a year.

### Start comparing mortgages right now

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Name Interest Rate p.a. Comparison Rate p.a. Fees Monthly Payment
Finder AwardPrincipal & Interest10% min. depositOwner-occupier
Interest Rate
5.94%
Comparison Rate
5.95%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$895
Principal & Interest40% min. depositOwner-occupier
Interest Rate
5.99%
Comparison Rate
5.99%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$900
Principal & Interest10% min. depositOwner-occupierOffset account
Interest Rate
6.15%
Comparison Rate
6.15%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$915
Principal & Interest20% min. depositOwner-occupierRefinance
Interest Rate
5.74%
Comparison Rate
5.65%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$876
Principal & Interest10% min. depositOwner-occupier
Interest Rate
6.04%
Comparison Rate
6.06%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$905
Principal & Interest40% min. depositOwner-occupier
Interest Rate
6.24%
Comparison Rate
6.26%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$924
Principal & Interest5% min. depositOwner-occupierOffset account
Interest Rate
6.04%
Comparison Rate
6.07%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$905
Principal & Interest50% min. depositOwner-occupierOffset account
Interest Rate
5.99%
Comparison Rate
6.03%
Fees
Application: \$600
Ongoing: \$395 p.a.
Monthly Payment
\$900
Principal & Interest10% min. depositOwner-occupierOffset account
Interest Rate
5.97%
Comparison Rate
6.12%
Fees
Application: \$250
Ongoing: \$10 per month
Monthly Payment
\$898
Principal & Interest20% min. depositOwner-occupierOffset account
Interest Rate
6.04%
Comparison Rate
6.08%
Fees
Application: \$595
Ongoing: \$0 p.a.
Monthly Payment
\$905
\$2,000 refinance cashback offer
Eligible refinancers who apply online and borrow \$250K+ (LVR 80% or lower) can get a \$2,000 cashback. Terms and conditions apply.
Principal & Interest30% min. depositOwner-occupierOffset account
Interest Rate
5.98%
Comparison Rate
5.98%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$899
Principal & Interest30% min. depositOwner-occupier
Interest Rate
6.04%
Comparison Rate
6.04%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$905
Principal & Interest20% min. depositInvestmentRefinance
Interest Rate
6.04%
Comparison Rate
5.95%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$905
Principal & Interest20% min. depositInvestment
Interest Rate
7.49%
Comparison Rate
7.50%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$1,049
Finder AwardPrincipal & Interest40% min. depositOwner-occupierOffset account
Interest Rate
6.24%
Comparison Rate
6.49%
Fees
Application: \$0
Ongoing: \$248 p.a.
Monthly Payment
\$924
Principal & Interest 2Y Fixed20% min. depositOwner-occupier
Interest Rate
5.99%
Comparison Rate
7.76%
Fees
Application: \$0
Ongoing: \$395 p.a.
Monthly Payment
\$900
Finder AwardPrincipal & Interest20% min. depositOwner-occupierOffset account
Interest Rate
6.30%
Comparison Rate
6.55%
Fees
Application: \$0
Ongoing: \$248 p.a.
Monthly Payment
\$930
Principal & Interest5% min. depositOwner-occupierOffset accountSpecial Offer
Interest Rate
6.19%
Comparison Rate
6.22%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$919
Principal & Interest 5Y Fixed10% min. depositOwner-occupierOffset account
Interest Rate
6.45%
Comparison Rate
6.28%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$945
Principal & Interest20% min. depositOwner-occupier
Interest Rate
6.30%
Comparison Rate
6.32%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$930
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