When people think about buying a home, the focus is usually on the purchase price.
But in reality, there are a number of additional costs that come with the process — some upfront, and some ongoing.
Understanding these early can help you plan more effectively and avoid surprises along the way.
What upfront costs should you expect?
In addition to your deposit, you may need to allow for the following:
Stamp Duty
This is often one of the largest additional costs when purchasing a property.
The amount varies depending on the property value and the state you’re buying in.
Some first home buyers may be eligible for concessions or exemptions, depending on their circumstances.
Legal and Conveyancing Fees
A solicitor or conveyancer will handle the legal side of the purchase, including contracts and settlement.
Transfer and Registration Fees
These are government charges associated with transferring the property into your name and registering the mortgage.
Building and Pest Inspections
These inspections help identify any structural issues or hidden problems with the property before you commit.
Loan Application Costs
Some lenders may charge application or establishment fees as part of setting up your loan.
Lenders Mortgage Insurance (LMI)
If your deposit is less than 20%, LMI may apply. This can be a significant cost and is often added to your loan.
What ongoing or practical costs are often overlooked?
There are also a number of costs that arise around the time of purchase:
- Council rates and utilities
- Home and contents insurance
- Moving costs
These may seem smaller individually, but together they can add up.
The bigger picture
Buying a home is not just about getting a loan approved — it’s about understanding the full financial picture.
When these costs are accounted for early, the process tends to feel more manageable and far less stressful.
If you’re thinking about buying a property and want to understand what costs might apply in your situation, it can help to talk it through before making any decisions.
If you’d like clarity around what to expect, we’re always happy to have a conversation.
NB: The content in this blog was accurate as at October 2020