You've saved your deposit. You know your borrowing power. So why does buying a home in Australia still cost more than you expected?

It's because the deposit is only part of the picture. There's a second layer of costs that sit underneath the purchase price: government charges, professional fees, and one-off expenses that catch a lot of buyers off guard. Knowing about the hidden costs of buying a home in Australia before you make an offer means no surprises at settlement.

Stamp duty (transfer duty)

Stamp duty is usually the biggest extra cost on top of your deposit, and it catches more buyers off guard than anything else. It's a state government tax calculated on your purchase price, and the amount varies a lot depending on where you buy.

As a guide, on a $750,000 property: NSW buyers pay around $27,990, Victorian buyers pay around $40,070, and Queensland buyers pay around $25,000. First home buyers are often eligible for concessions or exemptions, which can bring this down significantly, so it's worth checking what applies in your state before you budget.

Conveyancing and legal fees

You'll need a conveyancer or solicitor to handle contract review, property searches, and the legal transfer of ownership at settlement. Typically this runs between $1,500 and $3,500, depending on the complexity of the purchase and where you live.

This isn't a cost worth cutting corners on. A good conveyancer is the one checking the contract for problems before you're locked in, not after.

Building and pest inspections

A building and pest inspection usually costs between $400 and $800. It's optional, but skipping it is one of the most common regrets buyers mention after settlement, because issues like rising damp, faulty wiring, or termite damage are far cheaper to find out about before you buy than after.

Lenders Mortgage Insurance (LMI)

If your deposit is less than 20% of the purchase price, most lenders will require Lenders Mortgage Insurance. This protects the lender, not you, but it's still a cost you wear. It's typically calculated as 1% to 3% of your loan amount, which on an average loan can mean tens of thousands of dollars added to what you owe.

This is one of the areas where the right loan structure makes a real difference. Some lenders price LMI differently, and there are ways to reduce or avoid it depending on your situation. Our home loan team can walk you through the options.

Loan application and ongoing fees

Loan establishment or application fees can add another $500 to $1,500, depending on the lender. Some loans also carry ongoing account-keeping or package fees. None of these are dealbreakers on their own, but they add up, and they're rarely advertised front and centre when you're comparing rates.

Utility connections and insurance

Once you've settled, there are still costs to get the home running: connecting electricity, gas, water, and internet often involves connection fees or deposits. You'll also need building insurance in place from the day of settlement, since most lenders require it as a condition of the loan.

What you need to know

As a rough guide, the hidden costs of buying a home in Australia typically add up to 5% to 7% of the purchase price on top of your deposit. If you're a first home buyer eligible for stamp duty concessions, that figure usually drops to around 2% to 3%.

  • Stamp duty: varies by state, often the largest single cost
  • Conveyancing: $1,500–$3,500
  • Building and pest inspection: $400–$800
  • LMI (if deposit under 20%): 1%–3% of loan amount
  • Loan fees: $500–$1,500
  • Utility connections and insurance: ongoing, smaller amounts

None of these costs are secret. They're just rarely laid out together, which is how buyers end up under-budgeting without realising it.

Getting the full picture before you buy

The honest answer is that the right number for you depends on your state, your deposit size, and the loan structure you end up with. That's exactly the kind of thing worth checking before you commit to a purchase, not after.

If you want a clear picture of what buying will actually cost you, including stamp duty, LMI, and loan fees specific to your situation, book a free call with Swish. We'll walk you through every cost upfront, so there are no surprises at settlement.