FAQs / Saving for a home loan

What are the upfront costs involved in buying a home?

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No one said saving for a home was going to be easy.

As well as the biggest deposit you can possibly manage (at least 10% and preferably 20%), there are a number of other upfront expenses you’ll have to save for when buying your home. These include;

  • Stamp duty – ranges from zero up to many thousands of dollars, depending on where you are. If you’re a first home buyer, you may be entitled to an exemption, so check the government website in your state or territory.
  • Transfer fee - a state government fee for property title transfers which also varies by state. It could be hundreds or thousands of dollars, so check your government website for details.
  • Mortgage registration fee – another government fee covering mortgage registrations, but usually only in the low hundreds, depending on which state you’re in.
  • Legal fees - covers the cost of a licensed conveyancer reviewing your contract and title and drafting the settlement documents. This can cost anywhere from a few hundred to a few thousand, depending on complexity.
  • Mortgage application fee – a fee charged by your bank to set up your mortgage. Some banks offer reduced-fee deals, so shop around.
  • Lenders Mortgage Insurance – usually only required if your deposit is less than 20%, it can cost you between 1 and 3% of the loan amount.
  • Inspection fee – you’ll need a building inspection to check for termites and structural issues. This could set you back anywhere from $200 to $500.
  • Other costs - building insurance costs around $1000 a year for home insurance and $500 for contents, utility connections can be in the hundreds of dollars and removalist fees can be anywhere from $500 to $3,500.

Altogether, you could be looking at $30,000 on top of your deposit, so make sure you budget these amounts into your savings plan so you don’t have any nasty surprises come settlement time.

If you’d like a more detailed breakdown of the costs, take a look at our 'What it costs upfront to buy a home' Home Loan Guide below.

You can get more info about the fees associated with a Tic:Toc home loan here.

Home Loan Guide

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