Upfront costs involved in buying a property
There are more costs involved in buying a home than just the deposit you need. To help work out the total cost of buying a home, read through this checklist so you are prepared for the upfront costs you may need to budget for.
Lenders Mortgage Insurance: If your deposit is less than 20% of the purchase price, you may need to pay this insurance that protects lenders should you default. Westpac may allow you to include this cost as part of your mortgage.
Solicitor/Conveyancing costs: An initial review of a Contract for Sale may cost around $500, whilst the full process to settle a property, if you go ahead, is likely to be between $2000-$3000.
Stamp Duty: Use our Stamp Duty calculator – which should provide a close estimate of expected stamp duty costs within your state
Building and Pest Inspections: if you choose to complete these inspections prior to purchase, this may cost upwards of $500 (depending on the size of the property and complexity of the inspections required).
Other costs: Moving costs, selling costs for an existing property or lease-break costs in case you were renting and decide to terminate the lease early.
Bank fees/loan set up costs. Your Home Finance Manager can help you with this as this depends on the loan type.
Building & Contents Insurance: It can be a good idea to cover against loss or damage caused by flood, fire, storm, theft and more. Home and Contents Insurance helps you get back on your feet if your home or personal belongings are affected in an unforeseen event. Exclusions and limits apply. Building Insurance may also be required when you reach loan settlement as part of your home loan agreement.
For more detailed information, see The upfront costs of buying a home.
As a first home buyer, you may be eligible for the First Home Owner Grant scheme (FHOG). These are government assistance programs that offer first home buyer incentives to help you access the property market sooner. These incentives can include financial assistance such as stamp duty concessions.. For the latest state-based information and find out if you could be eligible, visit the First Home Owner Grant website.
To find out more and whether you might be eligible for a First Home Owners Grant, have a look at our Stamp duty & Upfront Costs Calculator.
Things you should know
Credit criteria, fees, charges, terms and conditions apply. This information has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information and, if necessary, seek appropriate professional advice.