Find out how much you need to save with our property purchase costs calculator
There are more costs to account for when purchasing a home than just the price of the property itself. Rateseeker’s calculator is an easy-to-use tool to help you estimate the total costs of buying a home. Aside from the deposit, you also need to consider the government registration fees, lender’s fees and other buying and moving costs associated with a home purchase.
Whether you’re a first-time home buyer or looking for an investment home, the Property Buying Cost Calculator helps you determine how much you need to save when you buy a house. The calculator tallies the stamp duty costs, mortgage registration fee, transfer fee, loan application fees, legal fees, lender mortgage insurance, home insurance fee, conveyancing fee, strata fees, building and pest inspection, land taxes, and moving fees. If you are unsure, it’s okay to provide an estimate or leave it blank.
If you’re ready to buy a new home, our qualified mortgage specialists will remove all the guesswork from home loans so you can move into your dream home faster. You can also use our free and easy-to-use mortgage tools such as the home buying cost calculator so you can get a clearer picture of the estimated costs, your borrowing power, and other fees to consider when buying a new home.
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After setting a budget for how much you want to spend on a new home, the Property Buying Cost Calculator helps you work out where you need to be financially before buying a house. To get the total cost of buying a property, use the calculator and add the estimated amount to your deposit amount. This will help you minimise surprise expenses when buying a home in Australia. You may also call our mortgage advisors to walk you through the full cost of buying a house, from major expenses to the smallest outgoing costs.
Whether you need an extra space for your growing family or looking for an investment home, Rateseeker can make your next purchase the best move yet. We take the time to understand your situation and find the right mortgage that fits your needs. Let us help you compare the best mortgage products you are eligible for, fill out our form below and an affiliated broker will get in touch within the next 24 hours.
How do I calculate how much I need to save to buy a property?
Our property buying calculator is quite detailed but you are not required to complete all the fields as it depends on the type of property you are buying so your best guesstimate is ok.
Below is an example of buying a $500,000 investment house in NSW. Please note that this is an estimate only.
Government charges (Mandatory)
- Stamp duty: $17,990
- Mortgage registration fee: $142
- Transfer fee: $142
- Loan application fees: $600
- Legal fees: $330
- Lenders mortgage insurance: –
Other buying costs
- Solicitor and conveyancing: $1,000
- Strata search: $0
- Home and contents insurance: $400
- Pest inspection report: $200
- Moving costs: $700
- Building/council inspection: $0
- Connecting utilities: $50
- Land tax/council rates: $375
Total property buying cost estimate = $21,929
Total deposit required if you are borrowing 80% of the purchase price is:
Deposit: 20% x $500,000: $100,000
Total property buying cost: $21,929
Total savings required: $100,000 + $21,929: $129,929
- Stamp duty
Stamp duty fee varies between states and territories. Most states offer exemptions and concessions for first home buyers
- Mortgage Registration fees
This fee is to registers your property as the physical security for your home loan. The registration fee typically costs between $116 and $187
- Title transfer fees
This fee also varies from state to state, but usually runs between $100 and $140
- Loan Application Fee
Lenders also have their own fees associated with home loans which they may charge at the start of the loan. This is typically called application or establishment fee
- Legal Fees
This refers to fees charged by the lender to draft up loan contract and attend settlement. The legal fee can range from $200 -$500 pending on the lender
- Lenders Mortgage Insurance
This is a premium paid to the lender by the borrower that is borrowing more than 80% of the property purchase price. Lenders mortgage insurance can be capitalised (added on) to the loan. Some lenders may apply an exemption (condition applies) to certain professions such as doctors, lawyers, accountant etc. where borrowers can borrow up to 90% with no lenders mortgage insurance.
- Home and contents insurance
Some lenders require the buyer to have building insurance in place prior to settlement. The building insurance is design to protect the bank in the event that the property is substantially damaged and requires a replacement.
- Solicitor & Conveyancing
Buyers is likely to engage a solicitor or conveyancer to help with reviewing contract of sale and with the settlement process. The legal fees vary significantly ranging from $600 to $1500 plus disbursement.
- Building and Pest Inspection
Buyers generally order a building and pest report to check on the integrity of the building structure and if it is free from damaging pests like termites. These inspections typically cost around $300-600 for both building and pest inspection.
- Moving Expenses
These are costs you need to consider if you are moving into the property. This cost is discretionary because you can save money by doing it yourself or with the help from friends and family. If you do choose to hire removalists, the cost will vary depending on where you are moving from and to. For example, Sydney removalists charges around $90 -150 per hour and can take anywhere between 4 to 6 hours to finish. This cost is generally not applicable if you are buying an investment property.
This refers to utilities such as electricity & gas.
- Land Tax
Government applies land tax which is paid annual by homeowners which like stamp duty, differs from state to state. It is likely you will not be able to obtain this information, so you can either leave it blank or put down your best guesstimate.
This refer to council rates which is paid to the local council to provide essential services. Just like land tax, it can be difficult to obtain council rate fees, so you can either leave it blank or put down your best guesstimate.
This field is for other expenses that you may wish to consider such as buying new furniture, non-structural renovation etc. You can leave this blank if you can’t think of any other expenses.
All the above cost is in addition to the deposit you have saved up for your property purchase.
Why is this important?
Let’s use the above example to demonstrate this.
You have saved 20% deposit ($100,000) to purchase an established investment property.
Your total cost: $21,929
Amount available for deposit: ($100,000 – $21,929): $78,071
This means you no longer have 20% deposit after accounting for the cost and you will need to borrow more to make up the difference.
In this example, you will need to increase your loan amount from $400,000 to 421,929 which is 84% of the purchase price. Please note, borrowing more than 80% of the purchase price will trigger lenders mortgage insurance which is paid by the buyer.