The Real Cost of Buying a House: 7 Hidden Fees That Trap First-Time Buyers

Saving up a deposit and getting conditional approval from the bank feels like you’ve reached the finish line. But talk to anyone who’s bought a house recently, and they’ll tell you the same thing: the price tag on the listing is just the starting point. When you buy a property in Australia, the upfront costs extend way beyond your 10% or 20% deposit. If you empty your bank account down to the last dollar just to hit that initial deposit goal, settlement week is going to be a stressful wake-up call. To help you figure out what you actually need to save, here are seven extra costs that trip up first-time buyers—and how to plan for them. ## 1. Stamp Duty (Transfer Duty) Unless you qualify for a full exemption, state government stamp duty is easily the biggest check you’ll write outside of the property price itself. * What it costs: Depending on which state or territory you’re in, duty usually adds anywhere from 3% to 5% to the purchase price. On a $750,000 place, that can mean coughing up another $20,000 to $35,000. * Where buyers get caught: Most states offer first-home buyer concessions, but they come with strict price caps. If you bid just a few thousand dollars over the state threshold, your concession scales back or disappears entirely—meaning you have to pay full stamp duty out of pocket on settlement day. ## 2. Conveyancers and Solicitors You can't buy property in Australia without a conveyancer or solicitor handling the title searches, checking contracts, and coordinating settlement with the bank. * What it costs: A straightforward conveyancing service usually sits between $1,000 and $2,500. * Where buyers get caught: People assume they only pay legal fees when they actually buy a home. But if you have your conveyancer review four different contracts for places you miss out on at auction, those individual review fees add up fast before you’ve even bought anything. ## 3. Lenders Mortgage Insurance (LMI) If you don't have a 20% deposit saved, your bank will almost certainly charge you Lender's Mortgage Insurance before handing over the funds. * What it costs: LMI exists purely to protect the bank if you default—it offers zero coverage for you. Depending on your loan size and deposit, it can cost anywhere from $5,000 to well over $15,000. * Where buyers get caught: Banks often offer to tack the LMI cost onto your total loan balance so you don't pay it upfront. That gets you through the door, but it means you'll be paying compound interest on that insurance bill for the next 30 years. ## 4. Building, Pest, and Strata Inspections Before you hand over non-refundable money or bid at an auction, you need to know if the building has major structural issues or pests. * What it costs: A basic combined building and pest inspection runs about $400 to $800. If you’re looking at an apartment or townhouse, getting a specialist to inspect the strata records costs roughly $200 to $300. * Where buyers get caught: When money gets tight, it’s tempting to skip these checks—especially if the place looks tidy on inspection day. But missing active termites, leaking roofs, or an apartment complex with an empty sinking fund can cost you tens of thousands later on. ## 5. Deep Cleaning and Move-In Prep One of the most disappointing surprises on key-handover day is walking into a house that hasn't been cleaned properly by the previous owner. * What it costs: Standard state property contracts generally only require sellers to leave the property "broom-clean." They aren't required to scrub oven grease, clean inside cupboards, or steam the carpets for you. * Where buyers get caught: The last thing you want to do after packing up your entire life is spend your first weekend scrubbing grime left behind by strangers. Hiring a professional cleaning team to do a thorough move-in clean right after settlement—before you unload your furniture—is a lifesaver. Budgeting $300 to $700 to have the bathrooms disinfected, ovens detailed, and carpets steam cleaned gives you a clean slate and saves you days of exhausting work. ## 6. Settlement Adjustments and Council Rates On settlement day, your conveyancer and the seller’s lawyer calculate "adjustments" for ongoing bills tied to the property. * What it costs: These adjustments split council rates, water access charges, and quarterly body corporate/strata fees so each party only pays for the exact days they owned the home. * Where buyers get caught: If the previous owner prepaid the upcoming quarter of council rates or strata levies, you have to reimburse them for your share on settlement day. You'll usually need an extra $500 to $2,000 sitting in your settlement account to cover these adjustments. ## 7. Moving Expenses and Re-keying Locks The keys are a big step, but there is a whole set of costs associated with moving your stuff in and locking the place up. * How much it will cost: Hiring removalists can cost anywhere from $600 for a small unit to $2,000-plus for a multi-bedroom house. * Where buyers get caught: Security is often forgotten in the rush. You never know how many spare keys the previous owners, tenants, or tradespeople still have floating around. Calling a locksmith to rekey the locks on day one, setting up utilities, and buying basic immediate repairs can quickly bleed your remaining cash balance. ## How to Stay Out of Trouble The safest strategy is to treat your deposit as a completely separate pile of money from your "purchase costs." Once you set aside your 10% or 20% deposit, build a secondary buffer of around $10,000 to $15,000 to cover stamp duty gaps, legal fees, inspections, move-in cleaning, and settlement day rates. That way, when key handover finally happens, you can actually enjoy stepping into your new place instead of worrying about unexpected bank charges.