The Hidden Costs of Buying a Home

Buying a home remains a major financial commitment, and while many buyers save diligently for a deposit, they can still be surprised by additional costs. These hidden fees, however, don’t have to be a shock if you’re well-prepared. Here’s what you need to know about the costs involved:

Stamp Duty

Stamp duty remains one of the largest costs for buyers, but South Australia now offers stamp duty relief for eligible first-home buyers. If you meet certain criteria, such as being an Australian citizen or permanent resident and purchasing a new home, you may qualify for this relief. Use an online stamp duty calculator to estimate your payment, as the amount varies depending on whether you’re a first-time buyer, an owner-occupier, or purchasing a newly built home.

Conveyancing and legal fees

Navigating legal requirements and documentation during a property purchase is complex, making a conveyancer essential. They help manage everything from contract reviews to ensuring a smooth settlement. In 2023, conveyancing services in Adelaide typically cost between $1,800 and $2,000.

Mortgage registration and transfer fees

When registering your mortgage and transferring property ownership, additional fees apply. Expect to pay around $200 for mortgage registration and potentially several thousand dollars for transfer fees, depending on your property’s value.

Loan establishment fees

The fees associated with establishing your loan will vary depending on the lender you choose for your mortgage. It is worth investigating the application, valuation or other fees prior to finalising your lender, as these all add to the total cost of your loan. It may also be worth trying your luck and asking if your lender can waive the fees altogether!
Lenders Mortgage Insurance (LMI)

If you’re borrowing more than 80% of the property value, you’ll likely need LMI to protect the lender in case of default. The cost increases on a sliding scale based on your deposit size, so it’s essential to plan for this expense.

Building and Pest Inspections

Building and pest inspections are critical for identifying issues such as structural damage or infestations. They typically cost around $800, but they are a worthwhile investment, potentially saving you from unexpected repair costs.

For further assistance or recommendations on conveyancers and managing property costs, contact us. We’re here to guide you every step of the way in making your dream home a reality.

Disclaimer: Information in this blog is accurate at the time of publication. Ouwens Casserly has relied upon information from external sources in compiling this publication and does not warrant its accuracy or completeness. Please verify details and consult your agent before making any decisions.