The Hidden Costs of Buying a Property
In addition to the price tag of the house, moving costs and utility services, here are some of the common extra costs associated with buying a home:
Conveyancing and legal fees
Map Lawyers offers fixed fee pricing ($895 for a purchase of a house and $495 for a sale (plus disbursements)) – see our online calculator for a full breakdown of costs (maplawyers)
Building and pest inspections
The cost of building and pest inspections range between approximately $400-$1,000. When purchasing a property for hundreds of thousands of dollars, this is a small price to pay, particularly with older homes.
Use the transfer duty estimator (https://www.qld.gov.au/housing/buying-owning-home/estimate-transfer-duty) to find out how much transfer duty you may need to pay.
The more expensive the property, the more transfer duty you will pay.
First home buyers will not pay any transfer duty on a property $500,000 or less.
Transfer and mortgage registration fees
You will need to pay to formally register your mortgage and transfer the property into your ownership. Mortgage registration fees are currently $181. Transfer registration fees are dependent upon the value of the property you are purchasing (see the online calculator https://www.business.qld.gov.au/industries/building-property-development/titles-property-surveying/titles-property/fee-calculator).
Loan application and establishment fees
Often banks and lenders will charge a loan application and/or establishment fee. It is however worth noting that some lenders will waive these fees under certain circumstances, so it is worth asking.
Low equity mortgage insurance
If you do not have a deposit of 20% or more of the purchase price, lenders will often require you to take out low equity mortgage insurance. The costs of this insurance can be substantial and is calculated on a sliding scale – the smaller the deposit, the more insurance you will pay.
Lenders may also charge you a higher interest rate if you have a low equity loan.
On settlement, you will need to pay for your share of Council rates and water rates, and in the case of purchasing a unit, your share of the body corporate insurance and levies, up until the end of the current quarter or payment period. We will calculate these costs for you during the conveyancing process.