Buying a home in Australia is often the largest financial commitment most people will make.
While many buyers focus on the big-ticket items — the deposit, purchase price and monthly mortgage repayments — it’s the lesser-known or often overlooked expenses that can create unexpected pressure on your budget. These additional costs can be the difference between a smooth property purchase and a stressful financial experience.
Bridget Bowman, Senior Mortgage Specialist at Specialist Mortgage, has broken down both the obvious and hidden costs to help buyers understand what they should realistically budget for when purchasing a $750,000 property across different states.
The obvious costs you’ll expect:
- Deposit – Most lenders require a deposit of 10 to 20 per cent of the purchase price. On a $750,000 property, that equates to $75,000 to $150,000. While some first home buyer programs allow smaller deposits, these usually come with extra conditions such as higher interest rates or additional fees.
- Stamp duty and transfer costs – One of the largest additional expenses, stamp duty varies by state, property value and buyer type. Even with concessions, buyers can expect to pay anywhere from $20,000 to $40,000 on a $750,000 home, depending on location.
- Lenders’ Mortgage Insurance (LMI) – If your deposit is under 20 per cent, most lenders will charge LMI. Although it protects the lender, the cost is passed on to the borrower. For a $750,000 purchase, this can range from around $1,000 to $25,000, depending on the loan structure and lender.
- Legal, conveyancing and registration fees – A conveyancer or solicitor manages contracts and settlement, while government registration and mortgage documentation fees also apply. These costs generally total around $2,000 to $3,000.
- For a $750,000 property, buyers should allow a realistic buffer of $30,000 to $70,000 in upfront costs, depending on deposit size and eligibility for first-home buyer incentives.
Hidden Costs That Also Add Up
While the costs above often dominate early conversations, it’s the smaller, ongoing or one-off expenses that can quietly stretch your budget. According to Ms Bowman, these are the key ones buyers should not ignore:
- Building and pest inspections – Essential for houses, these inspections usually cost between $400 and $800 but can prevent far more expensive surprises later. Apartment buyers should also budget for a strata report or building condition assessment.
- Moving and set-up expenses – Removalists, truck hire, temporary accommodation between settlements and utility connections can quickly add $2,000 to $5,000 depending on timing and distance.
- Insurance premiums – Building insurance is mandatory for financed properties, and premiums are increasing, particularly in flood- or bushfire-prone areas. In higher-risk regions, annual costs can easily exceed $2,000 to $3,000.
- Council and water rates – These vary by local government area but usually range from $2,000 to $3,500 per year.
- Strata or body corporate fees – Buyers of apartments and town houses will face regular strata fees that cover shared maintenance, insurance and sinking funds. These typically start from around $3,000 and can exceed $10,000 annually for buildings with extensive facilities.
- Maintenance and repairs – Even newer homes need ongoing upkeep. Industry guidelines suggest budgeting around 1 per cent of the property value each year — roughly $7,500 annually on a $750,000 home.
- Loan and bank fees – In addition to interest, some lenders charge application, settlement, annual package or redraw fees. These vary significantly, which is why regular loan reviews are important.
- Utilities and connection costs – Setting up electricity, water, gas and internet can cost between $300 and $700, particularly for newly built homes.
- Opportunity and servicing costs – Increases in interest rates or higher repayments can place a strain on household cash flow. Building in a buffer of 1 to 2 per cent on your interest rate helps protect affordability if market conditions change.
State-by-state stamp duty differences
Stamp duty can vary widely across Australia. On a $750,000 property, buyers can expect approximately:
- New South Wales: $28,000 to $30,000 (with eligible first home buyer concessions)
- Victoria: $40,000 to $42,000
- Queensland: $18,000 to $22,000
- South Australia: $35,000 to $38,000
- Western Australia: $28,000 to $30,000, with some first-home buyer rebates available
These differences alone can change your total entry costs by tens of thousands of dollars, which is an important consideration for anyone comparing markets between states.
Why Accounting for Hidden Costs Is Essential
Understanding the full cost of buying property helps prevent financial stress at settlement and beyond. Buyers who only plan for their deposit and loan repayments may be caught short when inspections, legal fees and insurance premiums fall due, or later if interest rates rise.
For investors, underestimating holding and maintenance costs can significantly reduce rental returns. For owner-occupiers, these extra costs can affect monthly cash flow and delay plans such as renovations or upgrades.
Tips to Help Manage the Full Cost of Buying
- Plan beyond your deposit: Create a full cost breakdown that includes stamp duty, legal and conveyancing fees, inspections, insurance and moving expenses.
- Compare your options: Fees can vary widely between lenders, insurers and conveyancers—getting multiple quotes could save you thousands.
- Understand your state-based costs: Stamp duty rules, first home buyer grants and concessions differ by state and change regularly, so always confirm expected costs with the State Revenue Office or a qualified conveyancer.
- Allow for a financial buffer: Setting aside an extra 10 to 15 per cent on top of your purchase budget helps protect you from surprise costs or early repairs.
- Never skip inspections: A building and pest inspection is essential to avoid costly issues after settlement.
- Factor in ongoing ownership expenses: Council rates, insurance premiums, strata fees and maintenance should all be built into your long-term affordability planning.
- Get expert guidance: Mortgage specialists, financial advisers and conveyancers can provide valuable advice to help you make confident, informed decisions.
Real Price of Your Dream Home
The true cost of buying a home in Australia extends well beyond the advertised price.
“While deposits and stamp duty usually dominate early discussions, it’s the smaller, ongoing expenses — like inspections, insurance, strata fees and maintenance — that often catch buyers off guard,” Ms Bowman said.
“By preparing for both the visible and hidden costs and building flexibility into your budget, you’ll protect your finances and enjoy your new home with far fewer surprises.”
Article Q&A
What hidden costs should I expect when buying a home in Australia?
In addition to your deposit and stamp duty, buyers should budget for inspections, insurance premiums, council and water rates, strata fees for apartments, moving costs, lender fees and ongoing maintenance. These extra expenses can add thousands to the total purchase cost.
How much should I budget for upfront costs on a $750,000 property?
Upfront costs typically range from $30,000 to $70,000 on top of your deposit. This includes stamp duty, legal fees, inspections, LMI (if applicable) and government registration charges.
Why do property purchase costs differ between Australian states?
Stamp duty rates, government fees and first home buyer concessions vary by state. On a $750,000 property, stamp duty may be around $18,000 in Queensland but exceed $40,000 in Victoria, significantly changing the total entry cost.