Calculating all the different costs of buying a property can be a daunting and expensive proposition. And while you may be tempted to fast-track this initial legwork to get a foot on the real estate ladder sooner, you’d be risking a lot – not having a thorough understanding of your total costs could lead to financial or legal complications down the road.
Don’t worry though, you don’t have to do it alone. Our property buying costs calculator can help you get a much better idea of how much you’ll need ready, and the various things your money will be covering.
Calculations are provided by VisionAbacus Pty Ltd ACN 140 627 765 (VisionAbacus). Whilst every care is taken to ensure the accuracy of the information as a guide for costing, no responsibility is accepted by VisionAbacus for its accuracy. Please check with a mortgage broker, accountant, financial advisor or other suitably qualified professional for an accurate estimate. Compare the Market Pty Ltd takes no responsibility for the calculations or information provided on this website by VisionAbacus nor any liability for the accuracy of or reliance upon or use of such calculations or information. Before deciding to purchase any product you should calculate the actual costs (as the calculators contain general information only and may not suit your particular circumstances) and read the relevant product terms and conditions. Calculations are not an offer of credit and don’t include any applicable fees.
When buying a home or an investment property, you’ll typically encounter a wide range of government, lender and miscellaneous costs that need paying. So, let’s go over them briefly to make sure everyone’s on the same page.
There’s a slew of government fees and charges that must be considered when calculating the costs of purchasing a property in your state or territory. Our calculator can help you identify these charges and fees, which will typically vary based on where you live in Australia.
Stamp duty
Stamp duty, also known as a transfer fee, is a government-imposed tax that applies to the transfer of a property’s title between two owners, which is paid by the person buying the property. The amount of stamp duty you’ll pay is largely determined by the value of the property and the state or territory you live in; however, it may also be affected by:
You can use our stamp duty calculator as a starting point to work out an estimate of how much stamp duty you could pay for your home loan. We also have state- and territory-specific stamp duty calculators for:
Mortgage registration fee
A mortgage registration fee is the fee you pay to register a mortgage to assist in purchasing a property. Mortgage registration fees will differ depending on your state or territory, and the fee is collected by the Land Titles Office in each one.
Although mortgage registration fees vary across the country, they’ll typically fall somewhere between $100-200; for example, in New South Wales, the fee for registering a mortgage is $154.20 as of October 2022.¹
Most buyers don’t have the money to purchase a house outright, so they’ll generally take out a home loan from a lender to finance their property purchase. Some of the fees that generally apply when dealing with a lender include:
However, be sure to enquire about the specific fees with your lender to get a thorough idea what they charge to their home loan customers.
Lenders mortgage insurance (LMI)
LMI is a cost that lenders generally charge to borrowers whose loan amounts represent more than 80% of their home’s total value; meaning, their loan-to-value ratio (LVR) is higher than 80%. LMI can usually be avoided by either having a saved deposit worth at least 20% of the value of the property you want to buy or being approved for a scheme such as the First Home Guarantee, in which case the government guarantees part of your loan to preclude you having to pay LMI. As LMI can add thousands of dollars to your home loan repayments over time, you may want to avoid paying it if possible.
When buying a home, you’ll almost definitely need to engage the services of a solicitor and/or conveyancer, which in turn means being on the hook for conveyancing fees and your solicitor’s time.
A solicitor will be able to guide you through and help you with any and all legal aspects of the home-buying process and your mortgage, whereas conveyancers specialise in conveyancing – the area of law concerning the transfer of properties from one party to another, like sales contracts and mortgage documents.
While all solicitors are technically qualified to handle matters of conveyance, it may not be their area of specialisation, so a dedicated conveyancer may be a better choice.
However, you may want to do your own research and weigh up the pros and cons of each option, as well as their respective costs, before making a choice one way or the other.
There’s a variety of miscellaneous and auxiliary buying costs and fees that will typically apply when buying a house, which could include:
Our property buying cost calculator lets you factor in all these considerations and walk away with a final estimation of the additional charges and fees you’ll pay on top of your prospective property’s purchase price. This in turn can be invaluable in helping you draw up your budget when it comes time for you to purchase a new property.
If you’ve assessed your likely costs and are ready to start your home loan journey, we’re here to help! Whether you’re looking to buy a new property or refinance your existing mortgage to nail down a better interest rate, our new tool can help any homeowner arm themself with the knowledge they’re after.
So, what are you waiting for? Compare the Market makes comparing your home loan options simples!
¹ NSW Land Registry Services. 2022/23 Fees Update. 2022.
