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Purchasing Costs Calculator

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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 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’re 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’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 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.

  • 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.