What are the upfront costs when buying a home?
Discover the hidden upfront costs of buying a home — stamp duty, fees, inspections, moving expenses and more — so you can budget with confidence.
Aside from the home’s sale price and the total cost of your home loan, you need to consider the upfront costs of buying a home.
Most buyers know about the deposit and possible lender’s mortgage insurance if you don’t meet a minimum 20% deposit but many forget to include additional upfront fees, which could lead them to go over their budgets. Save yourself and your bank account from expensive surprises by knowing what fees to expect when purchasing a home.
Stamp duty costs
Stamp duty costs can be quite hefty, so it’s best to know how much it is and prepare accordingly. The total cost varies based on your state and territory, as well as the value of your property.
You can use our handy stamp duty calculator to get an estimate of how much you’ll likely need to pay. To see an overview of the stamp duty fees for your state or territory, check out the state-by-state guide to stamp duty.
There are certain concessions to stamp duty depending on where you’re buying the property. For example, many states offer first home buyers an exemption on stamp duty fees.
Transfer and mortgage registration fees
Transfer fees cover the cost of transferring the title, while mortgage registration fees are charged by the state or territory government when registering a physical property as security on the home loan. Both fees vary depending on where the property is located.
Mortgage registration fees are paid when the loan is established or discharged (or, in Tasmania’s case, both!)
Check out the mortgage registration fee and transfer fee for each state and territory in the table below.
| State/territory | Mortgage registration fee* | Transfer fee | Total |
|---|---|---|---|
| New South Wales | $175.50 | $175.50 | $346.20 |
| Queensland | $238.14 | $238.14 | $476.28 |
| Victoria |
$135.80 via paper $125.70 via PEXA |
$135.80 via paper $125.70 via PEXA |
$271.6 via paper $251.4 via PEXA |
| South Australia | $198.00 | $198.00 | $396 |
| Tasmania | $163.30 | $202.46 | $365.76 |
| Western Australia | $216.60 | $216.60 | $433.2 |
| ACT | $178.00 | $178.00 | $356 |
| Northern Territory | $176.00, add $69 for each additional title | $176.00, add $69 for each additional title | $352, add $138 for each additional title |
Legal and conveyancing fees
When it comes to buying property, there are a range of legal fees associated with it. Sale contracts, completing property and title searches, mortgage paperwork, and other legal documents will be done by your solicitor or conveyancer. Conveyancing fees in particular can range between $1,000 and $2,200, or more, based on where the property is.
Pest and building inspection
Nobody wants to live in a home where pests or defects exist, so ensuring you get a building and pest inspection is essential when buying a property. The cost varies based on your location and the size of the property. In many cases, these inspections can be combined to help keep costs low. Costs for pest and building inspections can be up to $1000 or more.
Moving-in expenses
With so many costs and fees to think about, many forget to consider the moving costs involved in buying a new house. Removalists can cost around $300 to $3,500 for moves within the state, while interstate moves could cost $2,000 to $6,000.
It’s best to shop around and talk to various moving companies. Compare costs and get a quote to ensure you get the best deal possible.
Quick repairs or maintenance costs
There might be some minor repairs and maintenance needed after you have moved into your new home. You might have overlooked some things, so it’s best to have some money set aside in case some quick repairs are required.
Similarly, landscaping costs can be substantial depending on the size of your property. If you’ve gotten used to having a property owner taking care of your lawn expenses, then you’ll be surprised at how much equipment is required to maintain your lawn and other landscaping. The cost of landscaping will vary depending on the size of your lawn and the services required to maintain it.
Loan application fees
Some lenders impose an application fee when you apply for a loan. This is in addition to other fees such as the valuation fee, establishment fee, and loan approval fee.
When shopping around for a home loan, check if the lender imposes loan application fees and other additional fees. These miscellaneous fees may seem small at first glance, but because there are a lot of them, they add up quickly and can overextend your budget.
If you’re looking for a home loan without any application fees or ongoing fees, check out the range of home finance options at loans.com.au! Speak with our friendly lending experts today to learn more about how you can save money on your home loan. Call 13 10 90 or schedule a call at your convenience.
Disclaimer: The information provided in this article is general in nature and does not constitute financial or legal advice. Please seek professional advice tailored to your circumstances before making any financial decisions.
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About the article
As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.
