The True Costs of Buying a Home for First Home Buyers

Buying a property is one of life’s most exciting milestones—especially for first-home buyers. But amidst the excitement, many buyers forget to look beyond the purchase price and deposit. The true cost of buying a property involves a number of additional expenses that are crucial to factor into your budget.

Here’s a breakdown of the key costs you should plan for:

1. Stamp Duty

In Victoria, if you're a first-home buyer and the purchase price is $600,000 or below, you may be eligible for a full stamp duty exemption. If your purchase price is between $600,000 and $750,000, you might receive a concessional discount. Anything above $750,000 typically requires you to pay full stamp duty, unless you're purchasing off-the-plan or qualify for other exemptions.

2. Government Transfer Fees & Registration Fees

These are mandatory fees paid to the government for transferring the property title into your name. The exact amount depends on your purchase price and the state or territory you’re buying in.

3. Title Search & PEXA Fees

Property Exchange Australia (PEXA) facilitates the online settlement process. Combined with title searches, these fees typically range between $400 to $500.

4. Conveyancing Fees

Your conveyancer handles the legal side of the property purchase, including contract reviews and settlement. Fees range from $990 to $1,500, depending on the provider.

5. Settlement Adjustments

Often overlooked, settlement adjustments are reimbursements for costs the seller has already paid, such as council rates, water charges, and body corporate fees (if applicable). You should budget between:

• $1,000–$2,000 for standard properties

• $2,000–$3,000 if it’s a strata-titled property with body corporate fees

6. Insurance

Most lenders require you to take out building insurance from the date of settlement. If you're buying a strata-titled property, this may already be covered by the body corporate, but it's still important to confirm.

7. Building & Pest Inspections (Optional)

While not mandatory, having a professional inspection done can save you from future surprises. Expect to pay $800 to $1,000, depending on the size and location of the property.

8. Bank Fees & Charges

Some lenders may charge a loan settlement fee, application fee, or other administrative charges. These can typically range from $250 to $500, and might be added to your loan or deducted at settlement.

Total Additional Costs: Approximately $5,940 to $9,000

This estimate gives you a guide on what to expect in addition to your deposit. The total can vary depending on your property type, purchase price, and whether you choose optional services like inspections.

Final Thoughts

At Ascot Mortgage, we help first-home buyers prepare for every step of their journey—not just getting the loan, but understanding the real cost of owning a home.

Want to know exactly what your home buying journey will look like?Let’s chat about creating your Home Buying Plan today.

Book your free consultation today.