Fees and Charges When Buying a House | Full Breakdown

Mandatory government charges and taxes

When buying a property, a large share of your upfront costs comes from government fees and taxes. These are unavoidable expenses that vary by state and can significantly affect your total budget. In most cases, they represent the biggest outlay after your deposit, so understanding them early helps you plan realistically and avoid last-minute surprises.

• Stamp duty (transfer duty): The largest cost, calculated on the purchase price or market value (whichever is higher). It varies by state and first-home buyers may qualify for concessions or exemptions.

• Land transfer fee: A state or territory fee for registering ownership transfer.

• Mortgage registration fee: Charged to register the lender’s interest on the property title.

• FIRB fees: Apply to foreign investors or temporary residents.

Stamp duty rules differ across regions and buyer types. HeyNest brokers clarify all government costs upfront and check eligibility for available grants or concessions.

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Lending and mortgage: related costs

In addition to government charges, your lender will impose several fees and conditions tied to your mortgage. These can vary between institutions and often influence which home loan offers the best overall value. Knowing what to expect helps you make accurate comparisons and negotiate more effectively.

• Lender’s Mortgage Insurance (LMI): Required when borrowing more than 80% of the property’s value. This protects the lender and can be added to the loan balance.

• Loan application fee: Charged to establish your home loan; some lenders may waive it.

• Valuation fee: Covers the lender’s assessment of the property’s value.

• Ongoing service fees: Small monthly or annual charges that can add up over time.

Through HeyNest, you can connect with an independent mortgage expert who compares lenders nationwide, negotiates reduced fees and ensures full transparency over all borrowing costs.

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Essential professional and settlement fees

Beyond government and lender costs, you’ll also need to budget for essential professional services that protect your interests and ensure a legally sound transaction. These fees are smaller in scale but play a critical role in safeguarding your investment and ensuring a smooth settlement.

• Conveyancing/solicitor fees: Cover legal transfer, title checks, and settlement management.

• Building and pest inspections: Reveal hidden defects or infestations before purchase.

• Settlement adjustments: Reimburse the seller for prepaid rates or levies.

• Moving and utility setup: Practical but essential post-settlement costs.

HeyNest streamlines the journey, connecting you with trusted brokers and local professionals who manage every step, ensuring your move across Sydney, Melbourne, Brisbane or Perth is smooth, transparent and stress-free.

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Frequently asked questions

What is the average total cost of buying a house (excluding the price)?

It typically ranges from 4% to 8% of the property price, heavily influenced by Stamp Duty and LMI requirements.

Is Lenders Mortgage Insurance (LMI) refundable?

No. LMI is a one-off premium paid at settlement and is generally non-refundable, even if you pay off your loan early.

Can I include these fees in my home loan?

While you can often add LMI to your loan (capitalisation), most lenders require you to pay fees like Stamp Duty and conveyancing costs upfront from your savings.