Cost of Purchase Breakdown

How We Calculate Your Buying Costs

When buying property in Australia, the headline purchase price is just the beginning. You'll face numerous additional costs that can easily reach 10-15% of the property price. Our calculator breaks down all these costs by state and buyer type.

Key Costs Included

• Stamp duty: State-based tax on property transfers (may be reduced for first home buyers)
• Conveyancing: Legal costs for property transfer ($800-1,800 depending on state)
• Bank fees: Valuation, loan application, settlement fees ($800-1,200)
• Building & pest inspection: Typically $400-600 for full inspection
• Insurance: First-year building and contents insurance premiums
• LMI: Lenders Mortgage Insurance if deposit < 20% (0.5-1.8% of loan)
• Moving costs: Removalist services ($2,000-3,000 typical)
• Lease break: If currently renting, costs to exit lease early

State-Specific Stamp Duty Rates

Stamp duty is the largest variable cost and varies significantly by state:

First Home Buyer Advantages

If you're a first home buyer, you may qualify for significant stamp duty reductions or exemptions depending on your state and property price. Our calculator automatically applies these when you check the "First home buyer" box.

LMI (Lenders Mortgage Insurance)

If your deposit is less than 20%, your lender will require LMI to protect themselves. This insurance cost is typically added to your loan balance:

• 95% LVR: ~1.8% of loan amount
• 90% LVR: ~1.2% of loan amount
• 85% LVR: ~0.8% of loan amount
• 80% LVR: ~0.5% of loan amount

Using Your Results

Now that you understand the total cost to buy, you should model your complete financial position using the full EquitySight calculator. Model your monthly repayments, rental income (if investment property), and 30-year property value growth to make an informed decision.

Australian Property Buying Resources

For official information, consult these Australian regulatory bodies:

• ASIC: Consumer guides for home loans, mortgage insurance, and buying decisions
• ATO: Tax deductions for rental properties, interest, and shared equity schemes
• RBA: Interest rates, inflation, and lending standards
• APRA: Mortgage stress testing and lending regulations
• State Revenue Offices: Stamp duty rules and first home buyer exemptions (varies by state)