Cost of Purchasing a Property

Loan Application Fee

This is a fee which is charged by a lending body when a formal loan application is made.
Approximate cost: $Nil - $750

Settlement/Legal Fees

This is the fee which is charged by the lenders solicitors for preparation and registration of the mortgage. This is usually incorporated as part of the application fee.
Approximate cost: $Nil - $500

Valuation Fee

Your lender will usually require a formal valuation of the property for lending purposes. This fee may be included in the application fee charged by your lender.
Approximate cost: $Nil - $300

Mortgage Insurance

This type of insurance is required when the buyer is borrowing more than a set proportion of the valuation as specified by the lender (usually 80%). This insurance protects the lender against loss should the borrower default and the property be sold for less than the outstanding loan amount. Premiums vary according to the amount borrowed and the loan-to-value ratio (LVR). The mortgage insurance premium is a once-only payment.
Approximate cost: 0.40% - 3.00% of the amount borrowed.
On a $350,000 loan at 95% LVR the premium would be approximately $7,600

Survey Report

A survey shows where the property is in relation to the boundaries of the land. Lenders often require a survey report.
Approximate cost: $350 - $450

Conveyancing Fees

Conveyancing means the process of transferring the ownership of property from the seller to the buyer. You can engage a solicitor or conveyancer to do this or you can do it yourself. There are no set fees charged by solicitors or conveyancers for conveyancing. You should negotiate with the solicitor or conveyancer and obtain a written estimate of the likely costs before engaging them to act on your behalf.
Approximate cost: $400 - $1,500

Disbursements

Your solicitor/conveyancer will charge for expenses incurred on your behalf during the conveyancing of the property. Some of these documents may be included in the Contract of Sale.

Title Search $20 - $60
Local Council, Section 149 $40-$100
Local Council, Building Certificate (S149D) $50
Water Board (S66) $20
Drainage Diagram $20
Environmental Protection Authority (S5) $10
Department of Education and Training $11
Land Tax (S47) $15
Roads and Traffic Authority $20
Transgrid (Electricity/Power Stations) $21

Stamp Duty

Contract Duty is payable on the purchase price of the property (or valuation in certain circumstances). Duty must be paid within three months of the date of exchanging contracts, unless buying "Off the Plan" or a house and land package.

Mortgage Duty is payable on the mortgage. A fee applies to register the mortgage and a further fee applies to register the transfer document or discharge of an existing mortgage. Stamp Duty rates and registration fees vary from state to state. To work out the stamp duty applicable in your state use our Stamp Duty Calculator

Inspection Fees

Building Inspection
A building inspection checks structural soundness, indicating visible quality defects and necessary repairs.
Approximate cost: $275 - $440

Pest Inspection
A pest inspection checks for any signs of past or present pest infestation.
Approximate cost: $140 - $220

Strata Inspection
A strata inspection examines and reports on the written records of the owners corporation. It is additional to the certificate supplied to the buyer by the seller providing relevant information about strata levies, insurances etc.
Approximate cost: $165 - $220

Home Building Insurance

It is suggested the buyer arrange home building insurance prior to completion of the purchase.
Two types of insurance cover are available:

Replacement Cover: This type of cover pays to reinstate your property to its former condition. It means, simply, new for old.

Indemnity Cover: This type of cover pays to repair or reinstate your property taking into account depreciation on the dwelling.
Approximate cost: $220 - $330

Council and Water Rates Adjustment

The buyer and seller share these costs in proportion to the length of time each party owns the property during the rating period.

Electricity Reconnection

The electricity is usually disconnected upon change of property ownership.
Approximate cost to reconnect: $Nil (normal working hours) or $95.50 (outside normal working hours)

Telephone Reconnection

Telephone lines are usually disconnected upon change of property ownership.
Approximate cost to reconnect: $55 (where phone connected previously) or $191 (where phone not connected previously)

Removalist Costs

Removalist costs vary considerably due to factors such as location, amount and quality of furniture; and type of packing (by owner or removalist).
Approximate cost: $550 - $3,000

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