The Real Cost of Buying a House in Australia

The Upfront Costs of Buying a House

These are the costs you pay before or at settlement. They're the ones that catch buyers out, because they land right when your cash is already stretched by the deposit.

1. Stamp Duty (Transfer Duty)

Stamp duty ,called transfer duty or land transfer duty in some states is usually the single largest upfront cost after your deposit. It's a state government tax calculated on the property's price, so what you pay depends heavily on where you buy.

As a guide, here's the approximate general transfer duty on a $700,000 established home for an owner-occupier who is not a first home buyer, based on 2026 rates:

Indicative general rates only, no concessions applied, as at 2026. Stamp duty changes with thresholds and your circumstances, always confirm with your state's official calculator.

First home buyers often pay far less or nothing. Concessions have become very generous: in NSW, eligible first home buyers pay no stamp duty on homes up to $800,000 (tapering to $1,000,000); Victoria waives it up to $600,000; and Queensland and South Australia offer full exemptions on eligible new builds. That means a first home buyer purchasing a $700,000 home in NSW could pay $0 in stamp duty. It's worth checking exactly where you stand, see our guide to stamp duty for first home buyers and the full stamp duty by state breakdown.

Pro tip: Use our stamp duty calculator for a precise estimate before you sign anything, don't rely on ballpark figures.

2. Lenders Mortgage Insurance (LMI)

If you borrow more than 80% of the property's value (a deposit under 20%), most lenders charge Lenders Mortgage Insurance. It's important to understand LMI protects the lender, not you, if you default.

LMI depends on your loan size and deposit, not which state you buy in. As a rough guide, on a $600,000 home you might pay around $10,000-$15,000 with a 10% deposit, rising steeply with a smaller deposit. Most lenders let you add (“capitalise”) LMI to your loan, which reduces upfront cost but means you pay interest on it over time.

You can often reduce or avoid LMI by:

• Saving a 20% deposit, the most direct way to avoid it entirely.
• Using a guarantor, a family member uses their property as partial security.
• Government schemes, the First Home Guarantee lets eligible buyers purchase with a 5% deposit and no LMI, and the Family Home Guarantee supports single parents with as little as 2%.

Our LMI explainer covers how it's calculated. Before locking in a loan, it's worth asking us for an LMI estimate and exploring the alternatives, sometimes waiting to save more, or qualifying for a scheme, wipes the cost altogether.

3. Conveyancing and Solicitor Fees

Conveyancing is the legal process of transferring ownership from the seller to you. You'll need a licensed conveyancer or property solicitor to handle contract reviews, title and property searches, and settlement.

Conveyancing and solicitor fees for buying a house typically range from $1,200 to $2,500, depending on complexity. More involved purchases, off-the-plan, large land parcels, or disputes, sit at the higher end and may warrant a solicitor over a conveyancer.

A standard package usually covers reviewing the contract of sale, conducting title and property searches (zoning, caveats, flood risk, easements), explaining your legal obligations, liaising with the lender and the seller's representative, and managing settlement. Cutting corners here is risky: a missed easement, unpaid rates, or zoning restriction can cost you well beyond the fee you saved.

4. Building and Pest Inspections

If there's one cost you should never skip, it's this. A combined building and pest inspection, typically $400 to $800 is your chance to uncover structural problems, water damage, or termites before you commit.

A building inspection assesses structural integrity (roof, walls, floors, plumbing, drainage, moisture, safety hazards). A pest inspection checks for termites, borers, and conditions that invite infestation. Depending on your state, arrange these before signing or during the cooling-off period. Skipping them can expose you to repairs running from $20,000 to well over $100,000. Our guide on how to inspect a property before you buy walks through what to look for.

5. Loan Setup and Bank Fees

Getting your mortgage approved isn't free. Loan setup and administrative fees typically total $700 to $1,200, and they're immediate out-of-pocket costs. Common ones include:

• Loan application/establishment fee ($0-$600)
• Valuation fee ($0-$500)
• Settlement fee ($100-$300)
• Mortgage registration fee (a small state government charge)

Watch also for ongoing account-keeping fees on “feature-rich” packages and rate lock fees. Many of these can be waived or reduced, lenders compete on fee-free and cashback offers, and there's often room to negotiate, especially through a broker. Although each fee seems small, together they can strain your cash flow at the worst possible time, so factor them in early.

Post-Purchase and Ongoing Costs

The costs don't stop at settlement. A second wave arrives once the property is yours, some one-off, some recurring.

Council Rates and Utility Setup

Council rates fund local services like rubbish collection, parks and roads, charged quarterly and varying by council and property value, typically $1,000-$3,000 per year. You'll also need to connect electricity, gas, water, and internet, with setup costs of roughly $500-$1,200 and ongoing bills of $150-$400+ a month. Compare providers and schedule connections before move-in to avoid delays.

Strata or Body Corporate Fees

If you buy an apartment, townhouse, or villa, you'll pay strata fees to maintain shared areas and services. These cover building insurance, repairs to common areas, management fees, and sinking-fund contributions for long-term works.

Always read the strata report before buying, high upcoming levies, poor maintenance, or legal disputes in the building can become your financial problem overnight.

Moving Costs

Moving typically costs $600-$2,000, depending on distance, volume, and whether you hire professionals. Budget too for cleaning your old place, storage, and any new furniture or appliances. Book removalists early, get multiple quotes, and move mid-week or off-peak where you can.

Home and Contents Insurance

Most lenders require home insurance before settlement, and contents insurance is strongly recommended. Premiums typically run $800-$2,000 a year, depending on cover, location and home value. In flood, bushfire or coastal areas, premiums can be much higher or cover limited, always check exclusions.

Ongoing Maintenance and Repairs

Things break. A sensible buffer is 1-2% of your property's value each year for maintenance and emergency repairs for a $700,000 home, that's $7,000-$14,000 annually for everything from gutter cleaning to a failed hot water system.

How to Reduce the Cost of Buying a House

Plenty of these costs can be trimmed with the right planning:

• Check first home buyer concessions first. Stamp duty exemptions alone can save tens of thousands, this is the single biggest lever for eligible buyers.
• Save a 20% deposit to avoid LMI, or use a government scheme or guarantor if you can't.
• Compare lenders on fees, not just rates. Application, valuation, and ongoing fees vary widely, and many are negotiable or waived.
• Get quotes for conveyancing and inspections. Prices differ, and flat-fee packages can be cheaper, just check what's included.
• Buy land and build separately where it suits you, since duty often applies only to the land value.
• Use a mortgage broker to structure your loan and surface concessions and fee waivers you might miss.

How Much Should You Budget?

As a rule of thumb, budget around 5% to 10% of the purchase price for buying costs on top of your deposit. For an owner-occupier buying a $700,000 home with a small deposit, stamp duty, LMI, legal fees, inspections, loan setup, and moving can realistically total $40,000-$50,000+, though an eligible first home buyer who avoids stamp duty and LMI could pay a fraction of that.

The wide range is exactly why it pays to map your specific numbers early. A quick conversation with a broker turns these unknowns into a clear, costed plan, and you can sanity-check your borrowing position with our borrowing capacity calculator.

How Stryve Finance Helps

Buying costs are far more manageable when someone maps them with you. At Stryve Finance we help first home buyers and upgraders budget for every cost, identify the concessions and schemes they qualify for, and structure a loan that keeps fees down. We compare 50+ lenders and walk you through the numbers from pre-approval to settlement, at no cost to you, as the lender pays us. (As credit representatives of Finsure, our remuneration is always disclosed.)

Want help budgeting for your purchase? Book a free consultation and we'll walk you through every cost.

Frequently Asked Questions

What is the total cost of buying a house in Australia?

Beyond the purchase price, expect to budget around 5-10% extra for stamp duty, lender fees, conveyancing, inspections, insurance and moving. On a $700,000 home that can mean $40,000-$50,000+ for an owner-occupier, though eligible first home buyers may pay considerably less.

What are the hidden costs of buying a house?

The most overlooked costs are stamp duty, Lenders Mortgage Insurance, conveyancing and solicitor fees, building and pest inspections, loan setup fees, council rates, strata fees and home insurance. None of these appear in the listing price.

How much are solicitor or conveyancing fees for buying a house?

Conveyancing and solicitor fees usually range from $1,200 to $2,500, depending on complexity. Off-the-plan purchases, large land parcels, or disputes sit at the higher end.

Are these costs included in the home loan?

Some are. LMI and certain lender fees can often be capitalised into your mortgage. Others, stamp duty, inspections, and conveyancing, must be paid upfront, out of pocket.

Can first home buyers avoid stamp duty?

In many cases, yes. Eligible first home buyers pay no stamp duty in NSW on homes up to $800,000, in VIC up to $600,000, and on eligible new builds in QLD and SA. Eligibility criteria apply, so check your state's rules.

What ongoing costs should I prepare for after settlement?

Council rates, strata fees (if applicable), home and contents insurance, utilities, and maintenance. Together these can add several thousand dollars a year, so build them into your long-term budget.

How can I reduce the cost of buying a house?

Check first home buyer concessions, save a 20% deposit or use a scheme to avoid LMI, compare lenders on fees, get quotes for legal and inspection services, and use a broker to find concessions and fee waivers you might miss.