What are the extra costs when buying a house?

Building inspections, borrowing costs, insurance, and legal fees are just a few of the unwanted extra costs when buying a house. 

According to research from Finder, the average Australian buying a home may pay more than $6,000 in unexpected up-front costs.

To ensure you’re not surprised by any charges, we take a look at the costs outside your house purchase price.

Stamp duty

Stamp duty is a one-off government tax based on the purchase price of the property. This tax will differ depending on the state but can be well over $10,000. 

First home buyers, however, can be exempt from paying stamp duty or may be entitled to a rebate or concession.

Borrowing costs

This cost is mainly the fees your bank will charge when establishing a new mortgage loan/conduct a property valuation.

This cost differs between each bank and by each loan, with Finder stating you should factor between $200-$700.

Pest and building inspections

A building and pest inspection is a critical check you need to arrange before buying a house to ensure it is structurally sound and free from any damage/pests. 

This inspection will generally set you back around $400 but can be an insignificant cost compared to the potential cost of dealing with a major building or pest control issue.

Conveyancing 

A conveyancer will manage the transfer of documents, ensuring the property is rightfully and legally transferred and complete appropriate searches. 

Conveyancing will cost around $1000 or more, depending on the complexity of the transaction.

Insurance

As a requirement of your mortgage loan, you will need evidence of building insurance. 

A recurring cost, Home and Contents Insurance is something you’ll be responsible for as a homeowner, with the cost all depending on the insurance provider and property valuation. 

How QPF can help you manage these costs

QPF partners with Australia’s largest lenders and insurers, so our Brokers can help you find the right products for your needs as well as help you budget for these upfront costs so as not to be caught off guard.

Purchasing a house is an exciting time, so why not get in touch with our Team today.