What are the costs of buying a property?

When you buy a property, you can expect to spend up to 5% 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’s 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.

Enter your details in the purchasing costs calculator and you’ll get an idea of the government fees that will apply.

If you’re a first home buyer, buying a new property or building a home, you may be eligible for additional concessions or grants. Please contact your state government office for confirmation.

If you need help with getting a home loan, call 1300 889 743 or complete our free assessment form to speak with one of our mortgage brokers.


What other costs are there?

There are a range of additional costs which aren’t included in this calculator:

  • Conveyancing costs: You’ll 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 (LMI): If you’re 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.

Note that you’ll have to pay a range of different costs when selling property too.


Why do lenders assess my "Funds to Complete"?

When you apply for a loan, the lender may ask for evidence of your deposit and won’t 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’s 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.

  • Alexander

    I am trying to obtain a mortgage from the bank, however has least savings of my own. So, I want to know whether or not I can borrow the 5% extra costs from the bank as well?

  • Hi Alexander,

    The 5% extra costs includes duties, fees and other associated costs. Usually, buyers have to spend the same in order to complete the purchase. However, if you want to borrow the extra 5% as well, you can refer to our guarantor page https://www.homeloanexperts.com.au/guarantor-home-loans/

  • Mackinolty

    Is there a way to calculate just the stamp duty through this calculator?

  • Mackinolty

    I was told to provide BAS when I first enquired with my bank. How will they assess this? I’ve prepared a deposit already but what if they reduce my borrowing power?

  • Hi there,

    The vast majority of lenders add up the “G1” figure (total sales) for the last four quarters and then include 40% of this figure in their assessment or the income that you have declared, whichever is lower. Some lenders use 50% of the total sales or use a different percentage, depending on which industry your business is in. Lenders also look at whether you have made a loss in any particular quarter, in order to see if your income fluctuates significantly. You can try out our BAS statement income calculator to check how the banks will assess your BAS statements:
    https://www.homeloanexperts.com.au/mortgage-calculators/bas-statement-income-calculator/

  • Kite

    I live in the ACT so any solicitors nearby here that you guys recommend?

  • Hey Kite,

    We recommend Paradigm Legal. They are a team of experienced legal practitioners based just outside of Canberra. You can find out more about them here:
    https://www.homeloanexperts.com.au/recommended-conveyancers/act-solicitor/

  • Mary

    This is useful info. Please can I have some tips or be directed to where there are tips for construction loan situations?

  • Hello Mary,
    We understand that construction loans are a bit complicated especially if you have not dealt with them before. We have created this guide to help you ensure that you don’t have to much hassle or frustrations with your construction mortgage. Here’s the link to our construction loan tips page that you can check out:
    https://www.homeloanexperts.com.au/home-loan-articles/construction-loan-tips/

  • Rik

    I would like to buy a 3 bedroom student accommodation unit but I’m actually a Papua New Guinea resident. Can you help me with this purchase?

  • Hi Rik, unfortunately we won’t be able to help you because banks are very conservative when it comes to lending to foreign investors to buy student accommodation units, and your currency will also not be acceptable.

  • AS

    Hi, can you please give me a rough estimation on a typical buy and sell scenario? Sell for $510k (conservatively) and a loan balance of $365k? We want to buy a house and land package of $750k. This equates to $145k after purchase. We want to pay off a personal loan of $45k. Which leaves us with $100k. Taking this into consideration, is $100k sufficient enough for upfront costs, deposit etc? Understand we need to pay stamp duty, lmi, real estate fees. And other fees.. hoping we qualify for lmi to be absorbed into loan. Can you please give me an indication if 100k is enough? Thank you!

  • Hi AS,
    Yes this should be sufficient. We can complete a full funds to complete calculation for you. Can you please let me know the estimate land purchase price and estimate construction cost? We can then email you a formal calculation.
    Yes we can go with a lender that accepts the equity in your previous home as genuine savings.

  • AS

    Thank you for your reply. Unfortunately i do not know the split between land and construction cost. I only know the house and land package. The exact figure for this package is $743,500. A guestimate of the land value is probably in the $400k-$490k mark, based on the research i have done in the location. Sorry i couldn’t give you an definitive figure. From the $100k left after sale of home, would you say we would have funds left over after deposit and upfront costs? What would be the total of our out of pocket expense? ie what would roughly be left of that 100k after all expenses? TIA

  • Hi,
    I can do a calculation on this and work out what is best. I’d say a 90% loan is best from a cost point of view (get a good rate, pay less in LMI) however if you want to have cash on standby then we can get a 95% loan. It’s just more expensive, especially for the LMI.
    I’ll complete this tomorrow and one of our brokers will email it to you at your gmail address.

  • AS

    Wow! That would be great and i really appreciate your time in looking into this. Ideally we would like to have some funds left over, as a buffer and also to furnish the new house! We have a pretty good credit score with a clean history. Paying off the credit card, is a top priority that is why we will only have 100k after the sale.. so when we do apply, there will be absolutely no debts! Our joint income is 140k with 3 dependants, both of us working in our current jobs for 12 years each. Hope the latter info helps in some way!

    Look forward to hearing from one of your brokers via email. Thank you.

  • My pleasure.
    And best of luck with your sale and build!
    We’ve got some tips on building that you may find useful https://www.homeloanexperts.com.au/home-loan-articles/construction-loan-tips/

  • We’ve emailed this to you yesterday afternoon. Please let me know if you didn’t get the figures. Our broker can explain them over the phone if you like, sometimes they’re a little confusing.

  • Hi Justine,
    Thanks for contacting us.
    You need to be in your job for a minimum of 1 day to get a preapproval. And you can still get a good rate. Before formal approval you would need to show your first payslip at the job. So it depends on how frequently you get paid as to when we can get you approved. We’ve got a page on this here https://www.homeloanexperts.com.au/unusual-employment-loans/on-probation-home-loan/
    We can help with a loan for more than the minimum so that you can have funds for renovation in an offset account / redraw facility. However if you repay the loan within the first 18 months the lender often charges us a fee known as clawback for introducing an unprofitable loan and we pass this on to you. Some lenders only charge this in the first year so if you plan to sell after one year then we’d be a good mortgage broker for you. Otherwise it would be better to go to a bank directly.

  • Jessica Hood

    We are looking at buying a 10 acre vacant bush block in rural vic outright for around $28000. What other costs would be payable on top of this price? Cheers

  • Hi Jessica,
    I’ve made some assumptions on this but as a rough guide:
    $422 stamp duty
    $152 transfer fee
    $1,500 conveyancing fees
    $500 misc (e.g. disbursements for conveyancer).
    Best of luck with your purchase.
    For Rural blocks https://www.homeloanexperts.com.au/property-types/acreage-loan/ it’s best to make sure that access is not via another property and that you are allowed to build on it later if you want to (check with council).

  • Jessica Hood

    Thank you for your quick response. That information is a great help. The property has 2 road frontage so all good there. We are not planing on buidling but it would be handy to know for the future just incase. I am on a pension, will that make much diference to the aditional fees and charges?

  • I don’t think so, but best to check with your conveyancer

  • Jessica Hood

    Thank you

  • Ben Assadour

    Hi I am looking at buying a home for $650,000 and I have a 5% deposit the only issue is I have only just started up a business 6 months ago just wondering how long does my business need to be operating before I can be approved for a loan ?

  • Hi Ben
    That depends. What does your business do? What were you doing for work before you started your business?

  • Ben Assadour

    I have a Scaffoldig business and I was doing scaffolding for 2 years beforehand.

  • Hi Ben,
    A scaffolding business would have materials, tools and expenses and so would be assessed by most lenders using their standard self employed income verification, which usually means two years tax returns.
    If it was just sub-contracting your labour with invoices for your work (e.g. IT contractors) then we can often provide other income evidence to get an approval.
    I’d recommend that you wait until July 2018, complete your tax for 2017/2018 as quickly as possible and then with that tax return we can get you approved. You’d likely be able to borrow 90% + LMI on that basis.
    If a family member can lend or gift you a deposit then we can lend you 80% of the property value without you needing to wait, although the rate will be a little higher. When you have your tax returns ready in a few years we can then refinance you to a better rate.

  • aris madriaga

    Hi We are looking to buy a house and land package worth 550k, land will be registered around January to May next year, Currently we only have savings of 4% deposit, can we get a conditional pre approval so we can pay a reservation deposit to secure and reserve the property? Based on your borrowing power calculator we can get a loan of up to 540k.

  • Hi Aris,
    We don’t recommend that people buy a house and land package with a small deposit. It’s quite risky for you as you are committing to buy a property however any pre-approval we get now will expire before the land is registered. Is it possible for you to come up with a larger deposit to reduce the risk?

  • aris madriaga

    Yes I can save more, but by that time I don’t think the property is still available. how about taking a land loan first then construction after?will I be approve if land will be released after a couple of months?

  • Hi Aris,
    It’s still a risk. I’ll email you and cc our construction specialist so that you can discuss with him in more detail.

  • Ben Assadour

    I am a sub contractor, I get paid by meter rates not hourly rate And also have my own workers I pay. My company is proprietary limited. Would I still need 90%.
    Would the 90% need to be genuine saving ?

  • Ben Assadour

    I don’t have any materials or tools.

  • Hi Ben we’d need to assess using your tax returns for up to 95%. We could use BAS if you are borrowing 80% or less.
    As for genuine savings we’d need to know your deposit source and more info to confirm. It isn’t always required.

  • Cam Edwards

    Hi, we currently have $25000 saved just wondering how much we will need for a house purchase price $490k. And include LMI.

  • Hi Cam,
    This would vary depending on many thing such as the state that you’re buying in and if you’re a first home buyer and if it’s a new property or not.
    I’ve emailed you and one of our first home buyer specialists. They can assist to do this calculation for you.
    Please note that we have some lenders that can lend 95% + LMI https://www.homeloanexperts.com.au/no-deposit-home-loans/95-percent-home-loan/ or you can borrow 100% with a guarantor loan https://www.homeloanexperts.com.au/guarantor-home-loans/