Know exactly how much buying a property will cost so you can budget accurately and save more.
If you've saved an adequate deposit and you're ready to buy a home, you may think you've calculated all your costs. However, while a deposit might be the most significant cost associated with purchasing a property, it's far from the only one. From government charges to lender fees, insurance to inspections, there are a whole host of secondary costs associated with buying a house. Adding these up will give you a full picture of the price of your home.
Property buying cost estimates
Here's a simple breakdown of what buying a property could cost you. Keep in mind that this is just an estimate.
- Stamp duty: $10,000
- Mortgage registration fee: $150
- Transfer fee: $300
- Loan application fees: $600
- Legal fees: $330
- Lenders mortgage insurance: $4,000
Other buying costs
- Solicitor and conveyancing: $1,000
- Strata search: $0
- Home and contents insurance: $580
- Pest inspection: $200
- Moving costs: $700
- Building/council inspection: $0
- Connecting utilities: $50
- Land tax/council rates: $25
Total property buying cost estimate = $17,935
What are the costs of buying a property?
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:
- 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 the calculator below to work out how much you're likely to pay in stamp duty, title transfer and registration fees.
- Lender fees. Lenders also have their own fees associated with home loans. Depending upon the loan you decide on, you could find yourself paying application, legal and settlement fees. This 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 property’s value, you’ll also have to pay for lenders mortgage insurance (LMI) 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. You can learn more about the different types of inspections here.
- Home and contents insurance. Before your lender will unconditionally approve your home loan, you'll need building insurance. It's also a good idea to insure the contents in your new home. You can compare home and contents insurance policies here.
- 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, this can cost anywhere from a few hundred to a few thousand dollars. Make sure you compare removalist services and get several quotes.
Frequently asked questions about property buying costs
Do I have to pay ongoing fees when I get a loan?
While some home loans attract monthly or annual account keeping fees, not all do. If you have to pay a seemingly insignificant $10 monthly fee over a course of 30 years, you end up paying $3,600 in all.
Why do I have to pay for lenders mortgage insurance?
Lenders require borrowers to pay for lenders mortgage insurance if they wish to borrow in excess of 80% of the property’s value. This insurance policy allows lenders to recoup their costs in the event you default on your home loan.
Should I pay for property inspections?
A building and pest inspection safeguards your interests. An inspection establishes if the house in question is structurally sound and free of pests.