Property Purchase Costs Calculator
What are the costs of buying a property?
When you buy a property, you can expect to spend up to five percent of the contract price on fees, duties and charges. So for a purchase of $500,000, there may be up to $25,000 of costs involved in order to complete the purchase.
The main government fees associated with buying a home are:
- Purchase stamp duty: This is the largest expense. It is a tax levied by your state government on all property purchases.
- Mortgage stamp duty: This is a tax levied by the state government based on the size of your mortgage. It has now been abolished in most states.
- Transfer fee: This is a government fee for registering your name on the title of the property and removing the vendor’s name.
- Registration fees: This is a government fee for registering your lender’s mortgage on the title of your property. If the vendor has a mortgage on the property then you may be charged to remove their mortgage, the cost of which will be reimbursed by the vendor at settlement.
If you are a first home buyer, are buying a new property or are building a home then you may be eligible for additional concessions or grants. Please contact your state government office for confirmation.
What other costs are there?
There are a range of additional costs which are not included in this calculator:
- Conveyancing costs: You will need to hire a conveyancer or solicitor to handle the transfer of the property into your name. This will cost approximately $800 to $1,500.
- Inspections / Reports: You may need a building inspection, pest inspection and a strata report. These can cost up to $600 in total. Please discuss these reports with your conveyancer to see if they are required.
- Loan fees: Some lenders charge an application fee, settlement fee or valuation fee. These fees vary from $0 to $900.
- Lenders Mortgage Insurance: If you are borrowing over 80% of the property value then you may pay LMI. Please use our LMI Calculator to get a quote.
There may be other costs such as repairs to the property, renovations, hiring a removalist and council / water rates adjustments. You should discuss the costs of buying a property with your conveyancer.
Why do lenders assess my “Funds to Complete”?
When you apply for a loan, the lender may ask for evidence of your deposit and will not approve your loan unless you can prove that you have enough funds to cover the costs, as well as the difference between the purchase price and loan amount. This is known as a Funds to Complete Calculation.
They do this check because if there is a shortfall of funds, some people end up taking out a short term loan or credit card to make up the difference. This additional loan can then impact their ability to repay their mortgage.
Access more calculators
Please take a look at the other mortgage calculators on our website.