Buying a home involves more than just the deposit. Upfront costs can add up fast.
Learn what you’ll need to pay before, during, and after settlement.
See examples of typical costs and how to plan your home-buying budget.
Find out how an Aussie Broker can help you estimate and prepare your total costs.
When saving for a property, most buyers focus on the deposit, but it’s not the only major expense.
There are several upfront and hidden costs that come with buying a home, from stamp duty and conveyancing to inspections and insurance.
When planning your purchase, it’s important to remember that upfront costs can add up quickly, often running into tens of thousands of dollars depending on the property’s value and location.
Planning ahead for these costs can help you avoid last-minute stress and ensure you’re financially ready when the right home comes along.
When you’ll need to pay these costs
Understanding when each cost is due can help you manage cash flow more easily.
Before exchange
Deposit: Usually 5-10% of the purchase price.
Inspections: Building, pest, or strata reports.
Legal checks: Title searches, contract reviews.
Before settlement
Stamp duty (transfer duty): Paid before or on settlement, depending on the state.
Insurance: Lenders generally require home insurance before settlement.
Some lender fees: Application or valuation fees may apply early.
At settlement
Registration and transfer fees
Balance of purchase price
Conveyancer/solicitor fees
After settlement
Moving and connection costs
Cleaning or repairs
Council and water rate adjustments
Use our Home Value Calculator to estimate your property’s value and plan your budget for upfront costs.
Key upfront costs to budget for
1. Lenders Mortgage Insurance (LMI)
LMI is charged when your deposit is less than 20% of the property’s value. It protects the lender if you’re unable to meet loan repayments, not the borrower.
The amount depends on your loan-to-value ratio (LVR), loan size, and lender.
Some buyers may be eligible for government schemes like the First Home Guarantee or Help to Buy, which can reduce or remove the need for LMI.
2. Stamp Duty (transfer duty)
Stamp duty is a government tax on property purchases, and it can be one of the biggest upfront costs. Rates vary by state, property price, and buyer type.
For a $700,000 home in NSW, a non–first home buyer may pay around $25,000.
State | Approx. rate range | Notes |
NSW | 1.25-5.5% | Concessions for first home buyers |
VIC | 1.4-5.5% | Varies by property type and value |
Stamp duty concessions and exemptions differ across states and territories. Always check the latest local rules before committing.
Use our Stamp Duty Calculator to estimate your cost.
3. Government registration and transfer fees
These small but essential costs cover the registration of your mortgage and the legal transfer of property ownership. They’re often overlooked but can add up, typically between $100-$200 each.
Example: NSW registration fee ~$150, transfer fee ~$180.
These fees are indexed annually, so always check your state’s current fee schedule before budgeting.
4. Conveyancing and legal fees
A licensed conveyancer or solicitor handles your property’s legal transfer and settlement process.
Typical costs range from $800 to $2,000, depending on complexity and location. Electronic conveyancing has been mandatory in most states since 2018, making the process faster and more transparent.
It’s a good idea to get a written quote that covers searches, disbursements, and professional fees.
5. Property inspections (building, pest, strata)
Inspections help you understand a property’s condition before purchasing.
Typical costs range from $400-$800 per inspection, depending on the property type and region. If you’re bidding on multiple homes, you may need several reports.
Read our Property Inspection guide to learn what to look for.
6. Loan application, establishment, and valuation fees
Most lenders charge setup fees when you apply for a home loan.
Application or setup fees: $0-$700 (varies by lender, some may waive these fees entirely)
Valuation fees: $100-$600 (often waived or rebated, depending on the property type and lender)
Annual package or ongoing fees: may apply to bundled loan products
These figures are indicative only and can vary across lenders and loan products.
7. Home and contents insurance
Lenders usually require building insurance to be in place before settlement for houses.
For strata properties, the owners corporation’s building policy generally applies, but your lender may ask for a certificate of currency as confirmation.
Home insurance covers the property structure, while contents insurance protects your belongings.
You can choose between “sum insured” (a fixed amount) and “replacement cover” (rebuilding equivalent).
Compare quotes early to find a policy that fits your needs but avoid underinsuring your home.
8. Moving and connection costs
Moving costs can vary widely based on distance and services.
Removalist or truck hire: $300-$2,000
Utility connections: gas, electricity, water, internet
Cleaning or disconnection fees: from previous residence
Quick checklist:
- Compare removalist quotes
- Schedule utility connections in advance
- Allow a buffer for deposits or call-out fees
9. Renovations and repairs
Even if your new home is move-in ready, small repairs or updates can quickly add up. It’s smart to plan ahead for cosmetic updates or early maintenance.
Read our Renovation Loans guide for ways to finance future improvements.
10. Council and water rates adjustments
During settlement, your solicitor or conveyancer will calculate rate adjustments, ensuring each party pays their share for the period.
While council and water rates are ongoing, expect an initial adjustment cost at settlement.
Other costs that can catch you out
In addition to the major expenses, a few extra costs can surprise buyers:
Bridging finance: if you’re buying before selling an existing home
Loan package or annual fees: for offset or rewards bundles
Exit or discharge fees: if closing an old loan
Strata levies due on settlement: for units or townhouses
Contingency buffer: set aside 5-10% extra for unexpected costs
Example: How upfront costs can add up
Here’s an example showing how costs can accumulate for a $700,000 property purchase.
Cost item | Example amount | Notes |
Stamp duty | $20,000 | NSW, non-first home buyer |
LMI | $8,000 | Based on 10% deposit |
Conveyancing | $1,500 | Mid-range fee |
Inspections | $800 | Building + pest |
Insurance | $1,000 | Annual premium |
Moving & connections | $1,000 | Average setup cost |
Total estimate | $32,300 (~5%) | Example only, varies by state, lender, and property |
Example only. Figures vary depending on property value, state or territory, and lender policies.
How to prepare and budget for upfront costs
Being ready for upfront costs can make your home-buying experience smoother and less stressful.
Practical tips:
Use Aussie’s tools early to map out total costs
Check eligibility for government schemes or concessions
Compare quotes for conveyancers and inspections
Speak to an Aussie Broker to estimate total upfront and ongoing costs
Book a free^ chat with an Aussie Broker to understand your upfront costs and find home loan options that fit your budget.
