Buying a house is one of the biggest financial moves you’ll ever make and it’s not as simple as saving up a deposit and signing on the dotted line.
There are a host of upfront and ongoing costs, government incentives and legal hoops to jump through, many that catch buyers off guard.
Here’s what you need to know before you take the plunge that could save you from nasty surprises at settlement.
1. UNDERSTAND ALL THE UPFRONT AND HIDDEN COSTS
The sticker price on a property is just the beginning. On top of your deposit, you’ll need to budget for a range of extra costs that can add tens of thousands to your outlay.
These include:
Stamp duty
This is a state government tax and it’s often the largest extra cost. For example, on a $500,000 property, stamp duty can range from $0 for eligible first home buyers in Queensland to over $18,000 in Tasmania or $23,000 in the Northern Territory.
Each state and territory has its own rules and concessions, so always check the latest thresholds and use a calculator to estimate your liability.
Conveyancing and legal fees
Expect to pay around $1,200 to $1,800 for a professional to handle the legal side of your purchase, including title transfers and searches.
Building and pest inspections
Don’t skip these. A combined inspection costs around $600 but could save you thousands by uncovering hidden issues before you buy.
Loan application and mortgage registration fees
These can add another $600 or more, plus a mortgage registration fee (about $150–$200 depending on your state).
Lenders’ mortgage insurance (LMI)
If your deposit is less than 20%, you may need to pay LMI. This can be upwards of $12,000 on a $500,000 property.
Transfer fees
These are state based and can range from a few hundred to a few thousand dollars.
Council and water rates
You’ll need to cover a share of these from settlement day and could be $500 to $1,600 depending on your location.
2. ONGOING AND ‘ESSENTIALS’ COSTS
Once the keys are in your hands, the costs don’t stop!
Home and contents insurance
Building insurance is compulsory if you have a mortgage and you should budget at least $2,000+ a year plus contents cover.
Utilities and connections
Setting up electricity, gas, internet and water can cost several hundred dollars. Some providers may waive initial fees as an incentive, so shop around.
Moving costs
Removalists can charge anywhere from $550 to $3,500 depending on distance and how much you’re moving.
Strata fees (for apartments or townhouses)
These cover building maintenance and shared facilities and can be a significant ongoing cost.
3. CHECK YOUR BORROWING POWER
Before you even start house hunting, check your credit score and speak to our finance team about your borrowing capacity. This will give you a clear idea of your budget.
4. GOVERNMENT GRANTS AND INCENTIVES
The landscape for first home buyers is constantly changing.
In 2025, you may be eligible for:
- First Home Owner Grant
- Stamp duty concessions or exemptions
- Home Guarantee Schemes (including the First
- Home Guarantee, Family Home Guarantee and Regional First Home Buyer Guarantee). These grants can help you buy with a smaller deposit and avoid LMI.
Always check the latest government websites for up to date eligibility and application details.
5. REMEMBER THE FINE PRINT
Conveyancing searches may reveal planned developments or zoning issues.
Pre-settlement inspections ensure the property is in the agreed condition.
6. BUDGET FOR A BUFFER
Unexpected repairs or rate rises can catch new owners off guard.
Buying a house is a marathon, not a sprint. The more you know about the true costs and the steps involved, the more confident and less stressed you’ll be on auction day or when making an offer.
If you want a personalised breakdown of what you need to budget for your dream home, please reach out.