The True Cost of Buying a Home in Australia: Every Fee and Expense Explained

Stamp Duty (Transfer Duty)

This is the single biggest cost outside of the property price itself. Stamp duty is a state government tax you pay when you buy property. It is called transfer duty in most states, but everyone still calls it stamp duty.

The amount depends on two things: how much the property costs and which state you are buying in. Every state has its own rates and brackets.

To give you a rough idea, here is what a general buyer (not a first home buyer) would pay on a $700,000 property in each state.

First home buyers can often pay much less or nothing at all, depending on the state and property value. Check our First Home Buyer Grants guide for details on exemptions and concessions.

You can see your exact stamp duty figure in seconds with our Stamp Duty Calculator. Just select your state, enter the price, and it does the rest.

Lenders Mortgage Insurance (LMI)

LMI is a cost that surprises a lot of buyers. It protects the lender (not you) if you cannot repay the loan. You have to pay it when your deposit is less than 20% of the property value.

The way it works is simple. Lenders see a smaller deposit as a higher risk. LMI is their safety net. But you are the one paying for it.

How much does LMI cost?

It depends on three things: the property price, the loan amount, and your loan-to-value ratio (LVR). That is the percentage of the property value you are borrowing.

As a rough guide, LMI typically costs between 1% and 5% of the loan amount. For a $640,000 loan on an $800,000 property (80% LVR), you would pay little to nothing. But drop your deposit to 10% and borrow $720,000, and LMI could be $15,000 to $25,000.

At 5% deposit, LMI can exceed $30,000 on a large loan. It is one of the biggest hidden costs in the home buying process.

How to avoid LMI

• Save a 20% deposit. This is the simplest way. If you borrow 80% or less of the property value, no LMI is required.
• Use the First Home Guarantee. The federal government guarantees part of your loan, so you can buy with a 5% deposit and skip LMI entirely. There are 35,000 places per year.
• Get a family guarantee. Some lenders let a family member use the equity in their home as security for part of your loan. This can push your effective LVR below 80% without needing a bigger deposit.
• Work in a qualifying profession. Some lenders waive LMI for doctors, lawyers, accountants, and other professionals, even with deposits under 20%.

Conveyancing and Solicitor Fees

You need a conveyancer or solicitor to handle the legal side of buying a property. They do the title search, prepare contracts, handle the exchange of documents, and make sure everything is in order before settlement.

This is not optional. You should never buy a property without legal representation. The cost for a standard purchase ranges from $700 to $2,500, depending on the complexity and where you live.

A straightforward house purchase in a metro area will usually sit around $1,000 to $1,500. If you are buying a strata property, off-the-plan, or in a rural area with complicated title issues, expect to pay more.

Your conveyancer will also handle disbursements. These are third-party costs they pay on your behalf, like title search fees and land registry charges. These are usually billed separately and add $200 to $500 on top of the base fee.

Building and Pest Inspections

A building inspection checks the structural condition of the property. The inspector looks at the foundation, walls, roof, plumbing, electrical, and anything that might be damaged or defective.

A pest inspection checks for termites and other pests. Termite damage is one of the most expensive things to fix in a house, and it is not always visible to the naked eye.

Each inspection costs around $300 to $600. Most people get a combined building and pest report for $500 to $800 total.

These inspections are not legally required in most states, but skipping them is a gamble. Finding termite damage or a cracked slab after settlement could cost you tens of thousands to fix. A $500 inspection is cheap insurance.

If you are buying an apartment or unit, you might not need a full building inspection since common areas are the body corporate's responsibility. But you should still get a pest inspection and consider a strata report (more on that below).

Loan Application and Establishment Fees

Some lenders charge a fee just to set up your loan. This is sometimes called an application fee, establishment fee, or settlement fee. It typically ranges from $0 to $1,000.

Many lenders have dropped this fee to stay competitive, especially online lenders. But some still charge it, particularly on package or professional rate products.

On top of the application fee, your lender may also charge a valuation fee. This pays for an independent property valuation, which the lender uses to confirm the property is worth what you are paying. This costs $200 to $600, but many lenders cover it for free.

You can compare loan products and their fees across dozens of lenders on our Compare page. Look at the comparison rate, not just the advertised rate. The comparison rate includes fees and gives you a more accurate picture of the true cost.

Title Search and Registration Fees

When you buy a property, the title (proof of ownership) needs to be transferred into your name. Your conveyancer handles this, but there are government fees involved.

A title search costs around $20 to $50. This confirms who currently owns the property and whether there are any caveats, easements, or other restrictions on the title.

The transfer of title (registration) fee varies by state but usually falls between $100 and $400. If you have a mortgage, there is also a mortgage registration fee of around $100 to $200.

These costs are small individually, but they add up. Your conveyancer will usually list them as disbursements on their invoice.

Strata and Body Corporate Reports

If you are buying an apartment, unit, or townhouse that is part of a strata scheme, you should get a strata inspection report before you commit.

A strata report gives you the inside story on the building. It tells you how much money is in the sinking fund (the reserve for major repairs), whether any special levies are planned, if there are any disputes or legal issues, and what the quarterly levies are.

A strata report costs $200 to $400. It is worth every cent. Without it, you could buy into a building that has a $50,000 special levy coming up to fix the roof or waterproofing. That would be your share on top of everything else you have already paid.

Some things to watch out for in a strata report: a low sinking fund balance, a history of special levies, high insurance premiums, or any mention of building defects. These are red flags that could mean big bills down the road.

Moving Costs and Utility Connections

Once settlement is done, you still need to actually move in. People often forget to budget for this.

Removalist costs

A local move with professional removalists typically costs $400 to $1,500 depending on how much furniture you have and how far you are moving. Interstate moves can run $2,000 to $8,000 or more.

Utility connections

You will need to set up electricity, gas, water, internet, and possibly pay to redirect your mail. Connection fees vary, but budget $200 to $500 for everything.

Initial home costs

New blinds, a lawn mower, cleaning supplies, minor repairs, a letterbox lock. The little things add up fast in the first few weeks. Budget $500 to $2,000 for immediate needs.

Ongoing Costs After Purchase

Buying the home is just the start. There are ongoing costs that continue for as long as you own the property. Make sure these fit comfortably in your monthly budget before you commit to a purchase price.

Council rates

Every property owner pays council rates. These fund local services like waste collection, road maintenance, and community facilities. Expect $1,200 to $3,000 per year depending on your council area and property value.

Water rates

Water bills include a fixed service charge plus usage. Budget $800 to $1,500 per year for a typical household.

Home and contents insurance

Your lender will require building insurance as a condition of your mortgage. Contents insurance is optional but highly recommended. Combined, expect $1,500 to $3,000 per year. Premiums vary based on your location, property type, and level of cover.

Strata levies (if applicable)

If you buy an apartment or townhouse in a strata scheme, you will pay quarterly strata levies. These cover building insurance, common area maintenance, and the sinking fund. Levies range from $500 to $2,000 per quarter, or even more for buildings with lifts, pools, or gyms.

Maintenance and repairs

Things break. A general rule of thumb is to set aside 1% of your property's value per year for maintenance. For an $800,000 home, that is $8,000 a year, or about $670 a month. Some years you will spend less. Some years the hot water system dies, the roof leaks, and the fence falls over all at once.

Our Loan Repayment Calculator shows your monthly mortgage payment, but remember to add these ongoing costs on top. Your true monthly housing cost is the repayment plus rates, insurance, and maintenance combined.

Worked Example: Full Cost Breakdown for an $800,000 Property

Let us put it all together. Here is what the total purchase cost might look like for an $800,000 house in New South Wales, bought by someone who is not a first home buyer, with a 10% deposit.

That is $133,550 you need to have ready. Your deposit covers $80,000 of that. The remaining $53,550 is fees and costs on top. Many people only plan for the deposit and get caught short when these extra costs hit.

If you were a first home buyer in NSW buying the same property, you would save the full $31,000 in stamp duty (exempt up to $800,000). And if you used the First Home Guarantee, you could skip the $18,000 in LMI too. That brings your extra costs down from $53,550 to just $4,550.

Use our Purchasing Power Calculator to see how much property you can afford once all these costs are factored in. And our Borrowing Capacity Calculator will show you the maximum a lender is likely to offer based on your income and expenses.