Calculating the costs of buying a property can be a daunting, expensive proposition. While most want to get their foot in the property-market door and achieve the great Australian dream of owning their own home, it isn’t always that simple. Lucky for you, our calculator can make it much easier for you.
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.
Our Property Buying Cost Calculator is a great tool to make sure you have covered the costs of buying a property. It provides an estimated property buying cost based on a summary of inputted costs and fees, in addition to the property’s sale price.
The costs of buying a home in Australia
The additional costs of buying a property (aside from the asking price) are split into three separate categories in the calculator and are calculated by adding all of the associated expenses, including:
Government charges must be considered when calculating the costs of purchasing a property. Our calculator will help you determine these charges and fees, which will vary between different states when buying a property.
Stamp duty is a government imposed tax or levy that applies to the transfer of property between two owners, which is paid by the person buying the property. The stamp duty amount is determined by the value of the property, however, there are a number of other factors which may affect the cost of stamp duty, including:
You can use Compare the Market’s Stamp Duty Calculator as a starting point to work out an estimate of how much stamp duty you could pay for your home loan.
The mortgage registration fee is a fee you pay when you register a mortgage to purchase 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 state and territory.
The mortgage registration fee varies from around $117 to $187 in 2018, depending on which state you live in. If you input your details into our stamp duty calculator, you can get an estimation of what you could pay for your mortgage registration fee.
Transfer registration fees are charged by the State Government to cover the administration of transferring the title of the land from the previous property owner to the new property owner. Transfer fee rates can greatly vary between states and territories. You can get an estimation of your transfer fee by using our stamp duty calculator.
Not many buyers have the money to purchase a house outright, so they will take out a home loan from a lender to finance the remainder of the purchase. Some of the fees that could apply are application or establishment fee, valuation fee, settlement fee and rate lock fee.
Below is an example of the fees that the lender might chargei.
|Search Processing Fee||$50 per search|
|Valuation Fee||On application|
|Document Preparation Fee||$100-$600|
|Agent Lodgement Fee||$125|
|Fixed Rate Lock Fee||$600 + 0.15% of loan amount|
|Fixed Rate Lock Late Application Fee||$250|
|Building Loan Fee||$100 – Contract Builder, $200 – Owner Builder|
|Guarantee Administration Fee||$150|
When comparing home loans, be sure to keep an eye out for your loan’s application fees (also known as loan establishment fees, up-front fees, start-up fees, or set-up fees). Loan application fees are a one-off payment when starting your loan and can vary depending on different lenders, mortgage brokers, home loan terms, rates, and deposit amounts. The total payable fee is generally made up of range of different fees, however, generally loan application fees can cost from 0.5% to 1% of the loan. Check with your lender for your particular loan application fees.
When buying a property, legal fees can include solicitor and conveyancing fees and property/title searches, and costs can vary depending on what your conveyancer or lawyer (solicitor) charges and which state you live. The following table shows average conveyancing fees in August 2018 for an existing property (not for a brand new property)ii.
|Average Conveyancing Fees For Buying An Existing Property In Australia|
|Location||Fixed professional legal fee||Standard searches||Average total estimate|
|Brisbane, QLD||$850 – $950||$350 – $500||$1200 to $1450|
|Melbourne, VIC||$600 – $700||$270 – $350||$870 – $1050|
|Sydney, NSW||$750 – $1000||$350 – $450||$1100 – $1450|
|Hobart, TAS||$700 – $800||$350 – $400||$1050 – $1200|
|Source: ThinkConveyancing.com.au. – A guide to conveyancing costs in Australia, last updated 07/08/2018|
The NSW Government’s guide to the cost of home purchase suggests conveyancing fees can range anywhere from approximately $700 to $2,500iii, while many other websites estimate legal and conveyancing fees could cost around $1,800.
The LMI premium is usually paid as an up-front, non-refundable payment as part of the settlement. Depending on how much you are borrowing, some lenders will allow you to add the premium into the loan, which you can repay over the term of your loan in your mortgage repayments, although it may cost more to spread it out over the term of the loan.
ANZ bank suggests that if your home loan is $500,000 and you have saved $50,000 for a deposit, LMI could roughly cost over $10,000iv. However, the amount does depend on your LVR and the amount of money being borrowed. Check with your lender for your particular LMI fee, if applicable.
There can be a variety of other buying costs and fees that apply when buying a house, which might include:
Our Property Buying Cost Calculator provides you with an estimated cost of additional charges and fees to add on top of your prospective property’s purchase price, helping you tailor your budget when it comes time for you to purchase a new property.
Yes, stamp duty is applicable to all property purchases or transfers within Australia, however, there are exemptions and concessions that are available, depending on the state and territory you live in.
You may be eligible for an exemption or concession to reduce the amount of stamp duty you will have to pay, if you fall within one of the concessions provided by the various states and territories. For example, some concessions apply if: