Purchasing Costs Calculator

Estimate the government fees involved in buying a property, then budget for the expenses outside the calculator. Your deposit is only part of the money you’ll need. Legal fees, inspections, loan costs and settlement adjustments also affect how much you need available before you collect the keys.

Use the result as a starting estimate. Check which expenses appear in the breakdown before adding separate quotes, so you don’t count a fee twice.

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 Are The Costs Of Buying A Property?

Your purchase costs depend on the property’s location, price and your eligibility for concessions. A flat percentage of the purchase price won’t account for these differences.

The main government charges are – Transfer duty (stamp duty), which is the amount that depends on your state or territory’s rules and any exemptions or concessions. Transfer registration fees, which covers registering the change of ownership and Mortgage registration fees, that covers registering the lender’s mortgage against the title.

Check duty eligibility before setting your maximum purchase price. For example, NSW offers eligible first-home buyers full or partial transfer duty relief on both new and existing homes. Buying an established property doesn’t automatically rule out assistance.

A discounted purchase price also doesn’t always mean a lower duty bill. In NSW, transfer duty generally uses the higher of the purchase price or market value. This matters if you’re buying from a family member below market value.

8 Costly Home-Buying Mistakes To Avoid

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What Are The Other Hidden Costs Of Buying A House?

Allow for the following expenses separately unless they already appear in your calculator result.

Conveyancing and legal work

Ask for an itemised quote covering professional fees, searches, disbursements and settlement charges. Check what attracts an extra charge, particularly if the contract needs further negotiation.

Building, pest and strata reports

The reports you need depend on the property. Ask your conveyancer which checks to arrange before you commit. Keep money available for these early expenses, including inspections on properties you don’t end up buying.

Loan fees

Check your proposed loan’s fee schedule for application, valuation, settlement and ongoing charges. Use the lender’s quote when building your budget.

Lenders Mortgage Insurance

Lenders Mortgage Insurance, or LMI, generally applies when borrowing more than 80% of the property’s value, unless an exemption or eligible arrangement applies. It protects the lender if you default. Ask whether any premium is payable upfront or added to the loan. Adding it to the loan increases the amount you owe and the interest payable.

Settlement adjustments

Your settlement statement accounts for expenses shared between you and the seller, such as rates and other property charges. If the seller has paid an expense covering a period after settlement, an adjustment allocates the relevant share to you. Ask your conveyancer for the estimated adjustments before transferring your settlement funds. These amounts depend on the property and settlement date.

Moving and insurance

Budget for removalists, utility connections and any immediate work the property needs. Check with your conveyancer and insurer when your building cover should start.

The True Cost Of Buying And Owning A House

Separate your budget into money needed to complete the purchase and money needed after you move in.

The following example illustrates the calculation. These are assumed figures, not fee estimates or an HLE customer case.

• Purchase price: $800,000
• Loan funds available towards the purchase: $720,000
• Buyer’s contribution towards the price: $80,000
• Assumed purchase costs paid from savings: $25,000
• Total buyer funds required: $105,000

If you have already paid a $40,000 deposit to the seller, that payment forms part of your $80,000 contribution. It isn’t another expense on top. Assuming no other costs have been paid, you would need a further $65,000 to complete this example purchase.The calculation uses loan funds available towards the purchase. Ask your lender to confirm that amount after accounting for any fees or insurance premiums funded through the loan.

Keep your post-purchase budget separate. Mortgage repayments, insurance, rates, maintenance and any strata levies continue after settlement. Money reserved for these bills isn’t available to cover a settlement shortfall.

Get An Overview Of Your Home Loan, Fast!

Use our 360° Home Loan Assessor to explore your deposit, estimated costs and loan options.

For help checking the figures, speak with Home Loan Experts. Bring your calculator result and any lender or conveyancing quotes so we have the details of your proposed purchase.