Home buying costs to consider.

When you're budgeting to buy a home, remember to factor in all expenses so you get a true picture of the cost. Your lender might ask for a valuation, building or engineer's report as part of your loan agreement and some homes come with extra costs that might not be obvious. 

Legal and property fees

• Legal fees will include your conveyancer's time. They will vary depending on the complexity of your purchase.
• There are also disbursement costs, which include land transfer fees and the LIM (Land Information Memorandum) report. Getting a LIM before you buy a property will give you important information about the land and building, including zoning, unconsented work, potential natural hazards (such as flooding and erosion), and rates.

Registered valuer

• You could be required to provide a full registered valuation report or a QV E-Valuer report.

Building and engineer's reports

• You might be asked to pay for either a building surveyor's report or an engineer's report as part of your home loan approval process.

Home loan repayments

• This is one of your biggest long term financial commitments. So it's important to be informed. Compare different home loans and repayment options.
• Use our online calculators to work out how much you can afford to borrow, and what your repayments might be.

Home insurance

Your home is likely to be the most valuable asset you own and home insurance is a requirement of your home loan.

• Before buying a house, it's worthwhile talking to an insurer to see if there could be any issues with obtaining insurance cover for the house you are interested in.

• You should also get a quote to understand how much it would cost you to insure the house.

• It's a good idea to organise your insurance when your offer on a house is accepted so you can relax knowing that your cover is in place when you settle. Learn more about your insurance options.

Hidden costs

• Older homes can be expensive to heat and insulate and costly to renovate. They may contain asbestos or lead-based paints which need to be removed by a specialist contractor.
• New homes often need finishing touches like carpets, curtains and landscaping and the costs can add up quickly. Do check the quality of the building materials and finish as any shortcuts during the build could cost you money in the future.
• Apartments are often part of a body corporate that all owners belong to, and you pay a levy to cover building running costs and maintenance. Ask about the levy, the rules of the complex and what you can do with your apartment, as this could affect the value of your investment. Check the soundproofing and build quality.

Real estate agent

• The seller pays the real estate agent a fee. As a buyer, you won't be charged anything by the agent.