Buying your first home
Hidden costs of buying a home in Australia
The purchase price is only part of what buying a home costs. There are upfront costs at settlement, and then a steady stream of ongoing costs that begin almost immediately afterwards.
Knowing both before you buy means fewer surprises after the keys are handed over.
Upfront costs at purchase
These are the one-off costs that land around settlement:
- Stamp duty (transfer duty) - varies by state and purchase price; first-home buyers may be eligible for concessions or exemptions
- Conveyancing or legal fees - for handling the transfer of ownership
- Building and pest inspections - strongly recommended before purchase
- Lender fees - application fees, mortgage registration, and sometimes Lenders Mortgage Insurance (LMI) if your deposit is under 20%
- Moving costs and connection fees for utilities
The costs that arrive after settlement
Once you own the home, the recurring costs begin. These are the ones people most often underestimate because they arrive piecemeal:
- Council rates - quarterly
- Water and sewerage - quarterly or monthly
- Home and contents insurance - annual or monthly
- Strata or owners corporation fees - quarterly, if applicable
- Electricity, gas and internet - monthly
- Maintenance and repairs - irregular but inevitable
Why these feel hidden
Most of these costs are not hidden in a legal sense - they are just spread across different providers and billing cycles, which makes the total hard to hold in your head. HOLD exists to bring them into one place.
Frequently asked questions
What are the extra costs when buying a home in Australia?
Beyond the purchase price, expect stamp duty (unless exempt), conveyancing, inspections, lender fees and possibly LMI. Then ongoing council rates, water, insurance, utilities and strata where applicable.
How much are upfront buying costs?
A common rule of thumb is to budget roughly 5% of the purchase price on top for stamp duty and fees, but it varies significantly by state and price. Check your state revenue office for current stamp duty and any first-home concessions.
Last reviewed: 19 August 2026
