What Are the Hidden Costs of Buying a Home in Australia?
Beyond the deposit: stamp duty, conveyancing, inspections, registration and loan fees, LMI and moving costs — what else buying a home actually costs.
What are the hidden costs of buying a home in Australia?
The deposit is the number most first home buyers focus on, but it isn’t the only cash you need on hand. On top of it, buyers typically budget for transfer (stamp) duty, conveyancing or legal fees, a building and pest inspection, mortgage registration fees, loan-related fees, lenders mortgage insurance (LMI) if your deposit is under 20%, and moving and insurance costs once you’ve got the keys. None of these are hidden in the sense of being secret — they’re published costs — but they’re easy to under-budget for because most of them are set by a state government, a lender or a service provider rather than by the property price itself.
This guide walks through each cost type, what drives the amount, and where to check the current figure for your situation. It doesn’t total them into one number, because the mix that applies to you depends on your state, your lender and your deposit size.
Which upfront costs come on top of the deposit?
| Cost | What it covers | What drives the amount |
|---|---|---|
| Transfer (stamp) duty | State tax on the property transfer | State, price, first home buyer eligibility |
| Conveyancing or legal fees | Contract review, title checks, settlement | State, complexity, fixed-fee vs variable |
| Building and pest inspection | Reports on the property’s condition | Property size, inspector, region |
| Mortgage registration | Registering the lender’s mortgage | State land titles/registry fee schedule |
| Loan fees | Application, valuation, settlement | Lender, loan product |
| LMI | Insures the lender, not you | Deposit size, loan amount, insurer |
| Moving and insurance | Removalist, building/contents cover | Distance, volume, cover level |
Some of these are set once, statewide, by legislation. Others are set by whichever lender or service provider you use, which is why two buyers on the same street can face different totals for the same list.
How much extra does stamp duty add?
Transfer duty (commonly called stamp duty) is a one-off state government tax charged on transferring property, generally payable within 30 days of settlement. Every state and territory sets its own rate, and most run a first home buyer concession or exemption up to a threshold that varies by jurisdiction — as at July 2026, the current settings for all eight states and territories, including which property types qualify and how each concession phases out, are covered in our guide to first home buyer stamp duty concessions by state.
It’s worth being precise about one thing: a stamp duty concession and the First Home Owner Grant are two separate mechanisms. A duty concession reduces or removes the tax you pay; a grant is a cash payment some states offer on top. Don’t assume qualifying for one means you automatically get the other — check both against your state’s own rules.
What does conveyancing or legal work cost?
A conveyancer or solicitor handles the contract review, property searches and settlement coordination for your purchase. No government source publishes a standard fee range for this work — cost depends on the state, how complex the contract is, and whether the professional charges a fixed fee or bills by the hour. The only reliable way to know your figure is to get a small number of quotes before you commit, and to ask upfront whether the quote is fixed or could grow with complications.
What does a building and pest inspection cost?
A building and pest inspection reports on the structural condition of a property and checks for termite or other pest activity before you’re locked into the purchase. As with conveyancing, no government page publishes a set fee — inspection cost typically runs to a few hundred dollars per report, but get quotes from a couple of qualified inspectors rather than assuming a figure, since the price varies with property size, region and inspector.
What fees does registering the mortgage add?
When your loan settles, the lender’s mortgage over the property needs to be registered with your state’s land titles registry, and the transfer itself is also registered. As at July 2026, NSW Land Registry Services charges $182.73 (including GST) to register a mortgage, while Land Registration Services Victoria charges $129.20 for an electronic lodgment or $139.50 on paper — every state and territory sets and reviews its own registry fee each financial year, so treat these as examples rather than a national figure, and check your own state’s land titles registry for its current schedule. This is a separate line item from stamp duty — it’s a registry fee, not a tax — and it applies regardless of which state you’re buying in, though the amount itself is state-set.
What loan fees should I expect from my lender?
Separately from government charges, your lender may charge its own fees — an application fee, a property valuation fee, or a settlement fee, depending on the loan product. These vary by lender and loan type, and no regulator publishes a typical figure across lenders, so the lender’s key facts sheet (required under responsible lending disclosure) is the right place to check before you apply, not a general average.
Do I need to budget for LMI?
Lenders mortgage insurance is usually payable when the amount you’re borrowing exceeds 80% of the property’s value — in other words, once your deposit is below 20%. LMI protects the lender if you default, not you or any guarantor. No authoritative source publishes a fixed premium range, because the cost depends on your deposit size, the loan amount and the insurer’s own pricing; our guide to lenders mortgage insurance covers how it works and where to get an actual estimate rather than an assumed figure.
What else comes with settlement day?
Once you’ve settled, moving costs and new home insurance are the next layer. No government or regulator source publishes a typical cost figure for either — get quotes from removalist companies and compare building and contents insurance policies directly, since both vary widely with distance, volume and cover level. Building insurance is generally a condition of your loan from settlement, so it’s worth arranging before the day itself rather than after.
How much should I set aside for all of this?
There’s no single figure that fits every purchase, because which of these costs apply — and how much each one is — depends on your state, your property, your lender and your deposit size. Many buyers set aside a buffer on top of the deposit specifically for this list, sized to the costs that actually apply to their purchase rather than a generic rule of thumb.
The most reliable way to size your own buffer is to get real numbers before you commit: a conveyancing quote, an inspection quote, your lender’s fee schedule, and your state revenue office’s duty position for your price point. A conveyancer or mortgage broker can help you work through which of these costs apply to your specific purchase — that’s a conversation worth having before you make an offer, not after.
