Buying a home is one of the biggest financial commitments you’ll ever make, and while many buyers focus on the purchase price, the true cost of homeownership extends far beyond that.

From stamp duty to legal fees, inspections, and ongoing maintenance, the additional expenses can add up quickly. If you’re not well-prepared, these hidden costs can put a serious dent in your budget.

If you're looking to enter the property market, it’s essential to understand these costs upfront to avoid any nasty financial surprises down the track. The last thing you want is to move into your dream home only to realise you’ve stretched yourself too thin.

That’s why we’ve broken down the major expenses involved in buying a home, so you can plan ahead and approach homeownership with clarity and confidence.

Upfront and ongoing costs of buying a home

1. Stamp duty

Stamp duty is one of the largest additional costs when purchasing a home in Australia. This state-imposed tax varies depending on the state or territory you’re buying in, and is based on the property’s purchase price.

In some cases, first-home buyers may be eligible for concessions or exemptions, but for many, this cost can run into tens of thousands of dollars. Using an online stamp duty calculator can help you estimate how much you’ll need to budget.

Estimated cost: Anywhere from a few thousand dollars to over $50,000, depending on the property price and location.

2. Loan application and mortgage registration fees

If you’re taking out a home loan , expect to pay lender-related fees. Some banks and financial institutions charge loan application fees, which can range from a few hundred to several thousand dollars.

Additionally, mortgage registration fees apply, covering the cost of registering the lender’s interest in the property with the state or territory government.

Estimated cost: Loan application fees can range from $200 to $1,000, while mortgage registration fees can be around $150 to $300.

3. Lenders mortgage insurance (LMI)

For buyers who are borrowing more than 80% of the property’s value – in other words, buying with a deposit of less than 20% – lenders mortgage insurance (LMI) may be required. This insurance protects the lender (not the borrower) in case of default and can add tens of thousands of dollars to the cost of buying a home.

While some lenders allow this cost to be added to the loan and paid in instalments, it’s still an expense worth considering before making a purchase.

Estimated cost: Typically between 1% and 5% of the loan amount, potentially adding $5,000 to $30,000 or more.

NOTE: for more info, check out our article on how to avoid lenders mortgage insurance.

4. Conveyancing and legal fees

A conveyancer or solicitor is essential for managing the legal aspects of the property settlement . Their fees can be a few hundred or a few thousand dollars, depending on the complexity of the transaction.

They ensure that all contracts, property searches, and legal obligations are met, making the home-buying process smoother and legally sound.

Estimated cost: $800 - $3,000.

5. Pest and building inspections

Before committing to a purchase, it’s crucial to conduct a thorough building and pest inspection. No one wants to buy a home only to find out it has structural damage or a termite infestation.

These inspections can cost up to a thousand dollars (or more, in some cases), but they can save you from sinking your money into a property riddled with costly issues.

Estimated cost: $300 - $1,000.

6. Home insurance

Lenders often require home buyers to have building insurance in place from the settlement date.

The cost of home insurance varies depending on the property’s location, size, and level of coverage required. Additionally, you may choose to take out contents insurance to protect your belongings, ensuring peace of mind from day one.

Estimated cost: $1,000 - $2,500 per year.

7. Moving costs

Moving into your new home isn’t free. Whether you hire professional removalists, rent a truck, or transport items yourself, moving expenses can range from a few hundred to several thousand dollars. If you’re relocating interstate, accommodation and travel costs should also be factored in.

It’s easy to underestimate these costs, so it’s worth budgeting extra to avoid last-minute stress.

Estimated cost: $500 - $5,000, depending on distance and services required.

8. Utility connection fees

Once you’ve secured your new home, you’ll need to set up essential utilities like electricity, gas, water, and internet.

Some providers charge connection or transfer fees, which can add up to a few hundred dollars. If your new property requires a new NBN connection, additional fees may apply.

Estimated cost: $100 - $300.

9. Council rates and strata fees

Homeownership comes with ongoing costs such as council rates, which vary by local government area. If you’re buying an apartment or townhouse in a strata complex, you’ll also need to account for quarterly strata fees. These contribute to the maintenance and management of shared spaces.

These fees can add up over time, so factor them into your long-term budget.

Estimated cost: Council rates: $1,000 - $5,000 per year; Strata fees: $500 - $10,000 per year.

10. Property maintenance and repairs

When you first move in, there may be minor repairs or upgrades needed to make the home comfortable, like a fresh coat of paint or new door handles.

Every home requires ongoing maintenance, too. From minor fixes like leaky taps to major repairs such as roof replacements, these costs can be unpredictable. And, unlike renting, where landlords typically handle maintenance, you’re fully responsible for all upkeep and repair costs when you're a homeowner.

Estimated cost: $1,000 - $10,000 per year.

11. Furniture and appliances

If you're moving into your first home, you may need to invest in furniture and appliances. The costs of essentials like a refrigerator, washing machine, or couch can quickly add up, especially if you’re furnishing an entire home from scratch. Consider second-hand or sales to keep costs down.

Estimated cost: $3,000 - $20,000.

12. Home renovations or upgrades

Even if your new home is in good condition, you might want to renovate or upgrade certain areas to suit your taste. Kitchen and bathroom renovations, flooring updates, or landscaping can be costly, so it’s important to factor these expenses into your budget.

Small changes can make a big difference, but major renovations require careful financial planning.

Estimated cost: Minor upgrades: $5,000 - $30,000; Major renovations: $50,000+.

Wrapping it all up

Buying a home in Australia is an exciting milestone, but it’s also a complex financial commitment that extends beyond the property’s price tag.

By planning ahead and budgeting for these costs, you can make homeownership a smoother and more financially sustainable experience.

And if you’re unsure about any of these costs, speaking to a mortgage broker, financial adviser, or property professional can help ensure you’re fully prepared.

Happy home-buying!