Purchase costs

Buying Property in Australia

Purchasing property is one of the biggest financial decisions you'll make in your life. But how much will it really cost you beyond just the sale price? This page is a guide to some of the common costs you will need to consider when buying a property. The costs are approximate only and can fluctuate based on factors such as property type, location and value of the property.

What Will It Really Cost You?

Home Loan Application Fee

This is the fee charged by a bank or other lending body when you apply for a loan. Approximate cost: $Nil – $800. There may be additional costs preparing and registering the mortgage (Settlement Costs). There are separate costs involved if constructing a home.

Valuation Fee

Your lender usually requires a formal valuation of the property you are buying. This fee may be included in the application fee charged by your lender or required to be paid separately.

Mortgage Insurance

Your lender will require you to take out mortgage insurance if you are borrowing more than a set proportion of the property’s valuation. This insurance protects the lender if you default on the loan and the property is sold for less than the outstanding loan amount. Premiums vary according to the loan amount, property price and the loan-to-value ratio. The mortgage insurance premium is a once-only payment. It’s applicable when you pay less than 20% deposit.

Conveyancing Fees

Conveyancing is the process of transferring the property from the seller to the buyer. There are no set fees charged for conveyancing. You should get a written estimate of the likely costs before engaging the solicitor or conveyancer. Approximate cost: $1,000-$3,000

Disbursements

Your solicitor/conveyancer will charge for some of these expenses paid on your behalf during the conveyancing process. For example, Title search, Council rates, Strata fees, Registration fees, Water Rates, Land Rates, etc.

Stamp Duty

Your solicitor/conveyancer will charge for some of these expenses paid on your behalf during the conveyancing process. For example, Title search, Council rates, Strata fees, Registration fees, Water Rates, Land Rates, etc.

Inspection Fees

Building Inspection – Approximate cost: $300–$700. A building inspection checks structural soundness and lists any visible defects and necessary repairs.
Pest Inspection – Approximate cost: $200–$350. A pest inspection checks for any signs of past or present pest infestation.
Strata Inspection – Approximate cost: $200–$350. A strata inspection examines and reports on the written records of the owners’ corporation. It is additional to the certificate that the seller supplies, providing relevant information about strata levies, insurances, past works and disputes etc.

Home Building Insurance

Your lender will require a certificate of currency on your building insurance before settlement. The cost of building insurance will depend on the age, size, location and type of construction of the property. This insurance is to cover any cost for repair and rebuild in case of damage and disaster.