The upfront costs of buying a home

This is probably one of your largest upfront costs. It’s a state or territory government tax that’s charged for your legal documents to be stamped. Depending on your circumstances and where you live, you could get stamp duty exemptions or concessions when you buy your first home. The laws on stamp duty are always subject to change, so be sure to check your state or territory government’s housing website for the most recent information.

It might be possible to add stamp duty (and other fees) to your mortgage, but keep in mind that it would depend on your product and the Loan to Value Ratio (LVR) after the added cost is factored in.

A Home Lending Specialist will be able to chat you through how it could work for your personal situation.

A state or territory government fee for transferring the ownership of title, and the cost varies from state to state.

The fee to search for information on the legal identification and ownership of the property you’re buying, as well as any legal issues concerning the property.

A state or territory government fee to register the mortgage on the property title.

These are for a lawyer or licensed conveyancer to carry out the process of transferring the property from the previous owner to you. It could include services like reviewing your contract and preparing your settlement documents.

When you borrow more than 80% of your property’s value, you usually need to pay LMI. This is insurance to protect your lender if you’re unable to make your loan repayments down the track. LMI is a cost you can pay upfront or, depending on how much LMI you need to pay, it may be added to your home loan amount.

A mortgage loan application fee is charged by your lender to process and set up your loan. It’s usually one of the bank fees and charges that come with your home loan - be sure to check what they are with your lender. Some Bankwest home loans don’t have an application fee. To see more information about the fees that come with our home loans, check out our comparison table.

Fees for bank or independent valuations of a property.

Building and pest inspections are essential to ensure the property is structurally sound, and that there are no termites or other pests.

For settlement to go through, you must have building insurance. Also consider getting contents and portable contents insurance. Find out more about home insurance.

You’ll probably need to pay for a removalist to help you move. Also allow room in your budget for the connection of utilities like electricity, gas, water and internet.

Once you’ve moved in, there are costs besides your home loan repayments that you need to consider, such as council rates, strata fees, utility bills, insurance and property maintenance.

Understanding the costs that come with buying a home in addition to the property’s purchase price helps you plan your savings accordingly. It also gives you a clear idea of what you can afford, so you can narrow down your property search and find the home that’s right for you and your budget.

We take care of all the BS (bank stuff) so you can access the knowledge you need to make informed decisions. When we write a guide or article, we take steps to make sure the information is relevant, accurate and most of all, helpful.