What are the upfront costs involved in buying a home?

Apart from saving as much of a deposit you can manage (at least 10% and preferably 20%), there are a number of upfront expenses you’ll need to allow for when buying your home. These include;

• Stamp duty – varies from zero to many thousands of dollars, depending on where you are. If you’re a first home buyer, you may be entitled to an exemption, so check the government website in your state or territory.
• Transfer fee - a state government fee for property title transfers which also varies by state. It could be hundreds or thousands of dollars, so check your government website for details.
• Mortgage registration fee – A government fee covering mortgage registrations, usually in the low hundreds, depending on which state you’re in.
• Legal fees - covers the cost of a licensed conveyancer to review your contract and title and drafting the settlement documents. This can cost anywhere from a few hundred to a few thousand, depending on complexity.
• Mortgage application fee – a fee charged by your bank to set up your mortgage. Some banks offer reduced-fee deals, so it make sense to shop around.
• Lenders Mortgage Insurance – usually only required if your deposit is less than 20%, and can cost you between 1 and 3% of the loan amount.
• Inspection fee – A building inspection to check for structural issues and pests such as termites is usually between $200 - $500.
• Other costs - Building or home insurance costs around $2000 a year and an additional ~$500 for contents. There are also utility connections and removalists fees which can vary considerably so it’s important to do some research to understand what this could cost.

Altogether, you could be looking at $30,000 on top of your deposit, so make sure you budget for this in your savings plan so you’ll be prepared at settlement time.

A more detailed breakdown of costs can be found in our Home Loan Guide.

Find out more about the fees associated with a Tiimely Own home loan.