Home buying costs

First home buyers can be overwhelmed by the additional costs involved with buying a property and getting a Home Loan. To help you prepare your finances for the purchase of your first home, it's a good idea to read our summary of the additional costs you should bear in mind.

Stamp Duty

This is a tax based on the purchase price of the property, and will generally be your biggest expense. Some first home buyers may be entitled to a concession on Stamp Duty so speak to your solicitor to see if you qualify. The cost of Stamp Duty varies between States and Territories.

Find out more about Stamp Duty.

Registration fees

These are paid to the Land Titles Office when you register any document relating to your property. You will need to talk to your solicitor or the Land Titles Office in the State or Territory in which the property is situated to work out how much these fees will be.

Goods & Services Tax (GST)

This tax is not payable on bank charges and fees, or if you're buying an established property. However, if you're buying a new property, GST may apply. GST will apply to many other costs of sale including valuation and inspection, real estate agent fees and auctioneers fees, irrespective of whether it is a new or established property.

Lenders Mortgage Insurance or Low Deposit Premium

All financial institutions have limits on how much they will lend you. This will depend on the size of your deposit, the value of the property, and your servicing capacity (based on your income, how much you are able to repay). If we lend you more than 80% of the value of the property (60% if you’re self-employed and seeking a Low Doc loan), we require you to pay a one-off charge which allows you to purchase a property with a smaller deposit.

This one-off charge may be Lenders Mortgage Insurance or a Low Deposit Premium, which we add to your loan amount so it doesn’t cost you anything upfront.

Find out more about Lenders Mortgage Insurance.

Find out more about Low Deposit Premium.

Capital Gains Tax

If you are looking to buy an investment property, you will need to consider the implications of Capital Gains Tax (CGT) should you ever sell. Gains made from the sale of investment properties are generally subject to this tax.

The amount of tax will depend upon a number of factors including whether you have lived in the property and the period of time for which you held it. For instance, the purchase and sale of a property within a short period of time may mean any profit you make would be included in your ordinary assessable income and taxed at marginal rates. You should consult with your tax adviser or accountant for more details.

Calculate your costs

Now that you’re aware of the main costs incurred when purchasing a home, you can use our Additional buying cost calculator to help work out exactly how much you'll need to buy your home.

Guarantor Support

Guarantor Support allows the guarantor to mortgage their own property as additional security for your home loan, helping you to secure the loan needed to buy your first home or enter the market as a property investor

Find out more about Guarantor Support.

Property Share

Property Share lets you co-own a property with friends and family, while retaining individual control of your finances. This would allow you to borrow more funds than you would have been able to alone or purchase the property you want rather than settling for a cheaper alternative.

To find our more about Property Share.

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