The extra costs of buying a home


What might you be forgetting in your budget?

Don’t get caught off guard with the jumble of extra expenses involved in buying a home. To help you avoid unpleasant surprises, we’ve put together a list of items that may need to be factored into your budget. If you’re a first home buyer, check to see if any of these concessions are available to you.

Registration/transfer fees

The registration fee is a state government fee for the registration of the loan. Since a property acts as a security for a home loan, registering the loan allows future buyers to search and see if there are any claims on it.

Stamp duty

The tax levied on the purchase of your new property. Duty rates vary from state to state, but this is likely to be your single biggest additional cost.

Valuation fee

Before buying, you may be required to get a formal valuation of the property. Valuations are different from appraisals, which are carried out by real estate agents. Licensed valuers base their assessments on hard evidence to assess the security value of the property.

Loan application fee

Macquarie does not charge application fees for any of our home loans, but be aware that other lenders may.

Inspection reports

One of the most important reports before you buy, yet something that is too often overlooked, is a building inspection report, which is a detailed listing of any structural defects and necessary repairs. A pest inspection checks for any signs of past or present damage due to pest infestation.

Strata report fee

Only applicable for strata properties, the strata inspection reports on the records of the owners corporation and provides necessary information about levies and insurance.


  • If you need to borrow more than 80% of the cost of your home, you’ll need to factor in Lenders Mortgage Insurance (LMI)
  • If you’re not buying a strata property, you will need to purchase Building Insurance
  • Contents Insurance protects the fixtures and contents of your home
  • Mortgage Protection Insurance will cover you if you find yourself suddenly unable to work.

Service fees

  • A solicitor or conveyancer can be engaged to look after the process of transferring the property from the seller to the buyer. The solicitor or conveyancer may charge for costs such as a Title Search, Drainage Diagram, etc. Solicitors costs can add up to a couple of thousand dollars
  • If you are selling a property as well as buying, you should take into account the real estate agent’s fees, which is usually a percentage of the property being sold

Settling in costs

  • Think about any furniture and repairs you will need. Will you need to purchase white goods? Does the property need painting or new flooring or plumbing? Do you have all the furniture you need to live comfortably?
  • Don’t forget to factor in the cost of packing materials and professional removalist
  • If you are moving out of a rental, you will be expected to have that property thoroughly cleaned and you will likely want your new home cleaned before you unpack your things
  • A phone line and internet connection are the first things you’ll want to set up when you move in, so it makes sense to factor them into the purchase costs.
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Unless stated otherwise, this information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL and Australian Credit Licence 237502 and does not take into account your objectives, financial situation or needs. You should consider whether it is appropriate for you. All applications are subject to Macquarie's standard credit approval criteria.