Home Loan Costs and Fees Australia — What You’ll Pay
Getting a home loan in Australia involves more than just the purchase price. Between stamp duty, lenders mortgage insurance, legal fees, conveyancing, building inspections and bank charges, the total cost of buying a $700,000 property can be $30,000–$60,000 above the purchase price. Understanding every cost — before you start searching — is essential for setting a realistic savings target.
This hub links to detailed guides on each cost. Here we give you the full list and approximate amounts.
The Complete List of Home Buying Costs
Upfront Costs at Purchase
| Cost | Typical Amount | Who Pays It |
|---|---|---|
| Stamp duty (transfer duty) | $0–$40,000+ depending on state and FHB status | All buyers (FHBs may be exempt) |
| Lenders mortgage insurance (LMI) | $4,000–$35,000+ | Buyers with <20% deposit |
| Conveyancing / legal fees | $1,000–$3,000 | All buyers |
| Building and pest inspection | $400–$800 | Recommended for all buyers |
| Property valuation fee | $0–$600 (often waived by lender) | Varies |
| Title insurance | $200–$500 | Optional |
| Loan application fee | $0–$800 | Charged by some lenders |
| Settlement fee | $100–$400 | All buyers |
| Registration of mortgage | $100–$300 | All buyers |
| Moving costs | $500–$5,000+ | All buyers |
Ongoing Mortgage Costs
| Cost | Typical Amount |
|---|---|
| Monthly or annual loan fee | $0–$400/year |
| Offset account fee | $0–$10/month |
| Redraw fee | $0–$30 per access (most now free) |
| Fixed rate break cost | Varies — can be significant |
| Discharge fee (at exit) | $150–$500 |
How Much Do These Costs Add Up?
For a typical $700,000 purchase in NSW (not a first home buyer, 15% deposit = LMI applies):
| Cost Item | Amount |
|---|---|
| Stamp duty (standard NSW) | ~$26,990 |
| LMI (~1.5% of loan on 85% LVR) | ~$8,925 |
| Conveyancing | ~$1,500 |
| Building and pest inspection | ~$600 |
| Loan application fee | ~$300 |
| Valuation fee | $0 (waived) |
| Title insurance | ~$350 |
| Settlement fee | ~$200 |
| Mortgage registration | ~$150 |
| Moving costs | ~$1,500 |
| Total buying costs | ~$40,515 |
Minimum savings target: Purchase price + deposit + ~$40,000 in costs.
For a first home buyer exempt from stamp duty, the same purchase has costs of ~$13,525.
Section Guides
Stamp Duty
The largest single upfront cost for most buyers. Ranges from zero (FHBs in NSW ≤$800k) to $40,000+ (standard rate, $1m properties).
→ Stamp Duty Australia — All States → How to Reduce Stamp Duty
Lenders Mortgage Insurance (LMI)
Payable when your deposit is less than 20% of the property value. Protects the lender — not you.
→ LMI Explained → LMI Providers — QBE vs Helia
Conveyancing and Legal
Your solicitor or conveyancer manages the legal transfer of ownership. Expect $1,000–$3,000.
→ Conveyancing Costs Australia
Settlement Fees
Charged at settlement for the final transfer of funds and title. Typically $100–$400.
Application and Ongoing Fees
Some lenders charge upfront application fees ($0–$800) and ongoing annual/monthly fees.
Discharge Fees
When you pay off or refinance your mortgage, your lender charges a discharge fee.
Fixed Rate Break Costs
Breaking a fixed rate loan early can be expensive — sometimes tens of thousands of dollars.
→ Early Repayment Charges on Fixed Rate Loans
Valuation Fees
Banks often require an independent valuation. Sometimes free, sometimes $300–$600.
Title Insurance
One-time premium that protects against title defects. Optional but commonly recommended.
Total Cost of Buying
All costs combined — for a realistic picture of what you need to save.
→ Total Cost of Buying a House in Australia → Hidden Costs of Buying a Home
Mortgage vs Life Insurance
Understanding the difference between lenders mortgage insurance and life insurance.
→ Mortgage Insurance vs Life Insurance
Tips for Managing Home Loan Costs
- Check FHB concessions first — if you’re a first home buyer, stamp duty exemptions can save $15,000–$31,000+
- Save a 20% deposit — avoiding LMI saves thousands upfront and thousands more in interest
- Compare lenders on total cost, not just rate — a slightly higher rate with no fees can be cheaper than a low-rate loan with large ongoing fees
- Use an offset account — reduces effective interest without extra fees in most modern loans
- Get building and pest inspection — $500 now can prevent $20,000+ in surprises after purchase
Related Guides
- Total Cost of Buying a House in Australia
- LMI Explained
- Stamp Duty Australia
- First Home Buyer Guide Australia
- Mortgage Calculator
This article provides general information only. Costs vary by lender, state and individual circumstances. For advice tailored to your situation, speak with a licensed mortgage broker or financial adviser. Find one through MoneySmart.