What are the fees that you need to prepare for when buying a property?

When diving into the property market, it’s crucial to recognise that purchasing a property involves more than just a deposit. Beyond the initial financial commitment, pre-purchase costs can tack on an additional 10 per cent to the price of an average family home.

Certain costs, like conveyancing, stamp duty, and mortgage expenses, are one-time occurrences. However, inspections and valuations might be necessary for more than one property. Here’s a guide to managing these costs wisely.

Make sure you prepare and include these fees in your budget:

Property Stamp Duty. A state or territory government tax on the property’s value, varying across regions

Mortgage Stamp Duty. A sliding scale on the mortgage amount, also varying by legislation.

Mortgage Insurance. Typically paid if the mortgage exceeds 80 per cent of the property value

Application Fees. Paid to the lender to cover legal, valuation, and administration costs of loan establishment

Inspections. This includes pest inspection, council building certificate, building inspection, and land surveys

Contract Examination. Involves solicitor’s fees for inspecting the property contract

Conveyancing. The legal process facilitating the transfer of property ownership

Insurance. Covering both building and contents

Relocation. Including moving costs and utility deposits

Repair. The cost of essential property repairs

Beyond these, pre-purchasing costs extend to other areas:


Buildings over a decade old often have defects, ranging from minor leaks to major issues like subsidence. A pre-purchase building inspection is crucial, though it can become expensive when considering multiple properties. Knowing the signs of problems can help cut costs.


Illegal modifications can lead to complications. Lenders may require a council building certificate for compliance. Understanding local planning codes can aid in spotting unauthorised changes.


Termites and cockroaches pose threats, and inspections can be costly. Familiarising yourself with signs of infestations can help decide when inspections are necessary.


Lenders demand a satisfactory valuation before approving a loan. While this can be expensive for those bidding on multiple properties, tapping into a real estate agent’s expertise for an informed assessment can save unnecessary costs.

Navigating the property market involves financial considerations at every step. Being aware of potential costs and understanding when to seek professional advice can contribute to a more informed and cost-effective purchasing process.