True Cost of Owning a Home in Australia (2026)
The purchase price is only part of what you pay when you buy a home in Australia. Between stamp duty, legal fees, lenders mortgage insurance, ongoing rates, insurance, maintenance and body corporate fees, the true cost of homeownership is significantly higher than most buyers anticipate.
For a $750,000 property with a 10% deposit, the total upfront costs beyond the deposit are typically $30,000–$55,000. Ongoing ownership costs add a further $15,000–$35,000 per year depending on property type, location and loan size.
Upfront Costs When Buying
1. Stamp Duty
Stamp duty (transfer duty) is one of the largest upfront costs and varies significantly by state, property value and buyer type.
| State | Stamp Duty on $750,000 Purchase (No Concessions) | FHB Exemption? |
|---|---|---|
| NSW | ~$29,120 | Exempt below $800,000 |
| VIC | ~$40,070 | Exempt below $600,000; concession to $750,000 |
| QLD | ~$22,588 | Concession below $700,000 (new builds) |
| WA | ~$28,435 | Concession below $430,000 |
| SA | ~$35,080 | No full exemption; limited relief |
| TAS | ~$27,279 | Concession below $600,000 |
| ACT | ~$22,200 | Land tax system; different structure |
| NT | ~$31,125 | FHB grant available |
Stamp duty figures are estimates only and depend on the exact purchase price and buyer eligibility. Use the stamp duty calculator for your specific situation.
2. Legal and Conveyancing Fees
| Cost | Typical Range |
|---|---|
| Conveyancer / solicitor | $1,500–$3,500 |
| Building and pest inspection | $400–$900 |
| Title search and registration | $200–$500 |
| Mortgage registration | $150–$250 |
Allow at least $2,500–$5,000 for legal and conveyancing costs.
3. Lenders Mortgage Insurance (LMI)
If you borrow more than 80% of the property’s value (less than 20% deposit), LMI is charged by the lender. LMI is not insurance for the borrower — it protects the lender in the event of default.
| LVR | Approximate LMI (on $750,000 property) |
|---|---|
| 90% LVR ($75,000 deposit) | ~$15,000–$25,000 |
| 95% LVR ($37,500 deposit) | ~$25,000–$40,000 |
| 80% LVR ($150,000 deposit) | $0 (no LMI) |
LMI is usually capitalised into the loan, meaning you pay interest on it over the entire loan term. See the LMI calculator for an estimate.
4. Loan Establishment Fees
| Fee | Typical Range |
|---|---|
| Application / establishment fee | $0–$600 |
| Valuation fee | $200–$600 |
| Settlement fee | $100–$300 |
Many lenders waive these fees, particularly for refinancing or large loans. Always ask for a full fee schedule before committing.
5. Moving Costs
| Item | Typical Range |
|---|---|
| Removalist (local metro move) | $800–$2,500 |
| Cleaning (outgoing property) | $200–$600 |
| Connection fees (electricity, internet, etc.) | $100–$300 |
Total Upfront Costs — Example Scenario
$750,000 property, 10% deposit ($75,000), first home buyer in NSW:
| Cost Item | Amount |
|---|---|
| Stamp duty (FHB exempt in NSW below $800,000) | $0 |
| Conveyancing and legal | ~$2,500 |
| Building and pest inspection | ~$600 |
| LMI (at 90% LVR) | ~$18,000 |
| Loan establishment and valuation | ~$500 |
| Moving costs | ~$1,200 |
| Total upfront costs (excl. deposit) | ~$22,800 |
For a non-FHB purchaser in VIC at the same price, stamp duty of $40,070 would add significantly to this total — bringing upfront costs to approximately $63,000 beyond the deposit.
Ongoing Costs of Homeownership
Once the purchase is complete, the costs continue. The monthly mortgage repayment is the largest, but far from the only expense.
Annual Ongoing Costs (Owner-Occupier, Freestanding House)
| Cost | Typical Annual Range |
|---|---|
| Mortgage repayments (interest component, $600k at 6%) | ~$35,000–$36,000 |
| Council rates | $1,200–$3,500 |
| Water rates and usage | $800–$2,000 |
| Home and contents insurance | $1,500–$3,500 |
| Landlord insurance (if investment) | $1,500–$2,500 |
| Building maintenance and repairs | $3,000–$10,000 |
| Pest control | $200–$500 |
| Strata / body corporate (apartments, townhouses) | $3,000–$15,000+ |
| Garden and landscaping | $500–$3,000 |
| Total (excluding mortgage principal) | ~$7,200–$38,500 |
Building maintenance is highly variable. Older properties typically incur higher costs. The commonly cited rule is to budget 1–2% of the property’s value per year for maintenance — for a $750,000 home, that’s $7,500–$15,000.
Strata vs Freestanding House: Cost Comparison
| Cost Category | Freestanding House | Apartment / Townhouse |
|---|---|---|
| Council rates | $1,200–$3,500 | $800–$1,500 |
| Building insurance | $1,500–$3,500 | Included in strata |
| Body corporate / strata | $0 | $3,000–$15,000+ |
| Exterior maintenance | Owner’s responsibility | Shared via strata |
| Pest and building inspections | More frequent | Less frequent |
Strata fees in established apartment buildings can be very high, particularly where major capital works are pending. Always review the strata report and sinking fund balance before purchasing an apartment.
True Cost Over 10 Years — Illustrative Example
Assumptions: $750,000 property, $600,000 loan, 6.00% rate, 30-year P&I, no refinancing. Owner-occupier, freestanding house in a major capital city. All figures are estimates.
| Cost Category | 10-Year Total |
|---|---|
| Mortgage repayments (P&I) | ~$431,700 |
| Of which: interest component | ~$335,000 |
| Of which: principal repaid | ~$96,700 |
| Council rates | ~$20,000 |
| Water rates | ~$12,000 |
| Home and contents insurance | ~$20,000 |
| Building maintenance and repairs | ~$75,000 |
| Strata (if applicable) | ~$40,000–$80,000 |
| Total cost of ownership (10 years, excl. strata) | ~$558,700 |
After 10 years of mortgage repayments, approximately $96,700 of principal has been repaid on a $600,000 loan at 6.00%. The remaining balance would be approximately $503,300.
Property equity after 10 years:
- Loan repaid: ~$96,700
- Property value appreciation: unknown — depends on market conditions
This illustrates that in the early years of a mortgage, the majority of repayments cover interest rather than building equity.
Hidden and Often Overlooked Costs
Opportunity cost of the deposit: A $150,000 deposit invested elsewhere (e.g., in a diversified share portfolio) may have generated returns over the period. This is not a reason to avoid buying, but it should be factored into any rent-vs-buy comparison.
Refinancing costs: Most homeowners refinance every 3–5 years. Each refinance incurs discharge fees ($150–$500), application fees (potentially waived), and conveyancing costs ($500–$1,000).
Emergency repairs: A failed hot water system, roof leak or plumbing issue can cost $2,000–$20,000 with little warning. An emergency fund of 2–3 months’ mortgage repayments is advisable.
Land tax (investors): Investment property owners in most states pay annual land tax on holdings above the land value threshold. Land tax is not applicable to your principal place of residence in most states.
Frequently Asked Questions
What are the hidden costs of buying a home in Australia? Beyond the purchase price, significant costs include stamp duty ($0–$45,000+ depending on state and value), conveyancing ($2,500–$5,000), LMI if deposit is under 20% ($15,000–$40,000), and ongoing costs such as council rates, insurance and maintenance ($7,000–$20,000+ per year).
How much should I budget for home maintenance per year? A commonly used rule of thumb is 1–2% of the property’s value per year. For a $750,000 property, this suggests $7,500–$15,000/year for maintenance. Older properties and those requiring deferred maintenance may cost more.
Do stamp duty costs vary significantly between states? Yes, dramatically. On a $750,000 purchase, stamp duty ranges from $0 (eligible NSW first home buyers) to approximately $40,000 (Victoria). This difference alone can amount to a year or more of mortgage repayments.
Is homeownership always cheaper than renting in Australia? Not necessarily on a month-to-month basis. Mortgage repayments, council rates, insurance and maintenance often exceed the cost of renting an equivalent property — particularly in Sydney and Melbourne. The financial advantage of buying comes over time through equity accumulation and capital growth. See the city-specific rent-vs-buy guides for a detailed comparison.
Related Guides
- Average Mortgage Repayment in Australia
- What Does a 0.5% Rate Difference Cost Over 30 Years?
- LMI Calculator Australia
- Stamp Duty Calculator Australia
- Mortgage Repayment Amounts — All Loan Sizes
This article provides general information only. Cost estimates are indicative and vary significantly by location, property type and individual circumstances. For advice tailored to your situation, speak with a licensed mortgage broker or financial adviser. Find one through MoneySmart.