> What are the associated costs in purchasing a home? | Better Choice

What are the associated costs in purchasing a home?

June 29, 2015

There are a myriad of associated cost in purchasing a home! Outlined below are some of the costs that a borrower may need to pay.

  1. Stamp duty on the transfer of the title of the home or block of land into your name.  In a number of Australian States, First Home Buyers and or/owner occupiers may get some stamp duty relief. For example, in West Australia, First home buyers may qualify for the following stamp duty relief, i.e.
    • House up to $430,000 purchase price the purchaser pays $0 stamp duty
    • Land up to $300,000 purchase price the purchaser pays $0 stamp duty.
  2. Settlement Agent Fees are another fee that the borrower will encounter. Settlement agents will manage the conveyancing of the property through to settlement. There is a standard schedule of fees depending on the price of the property, but the fees are negotiable due to the competitive nature of the industry. 
  3. Transfer Registration Fees is a Government fee a borrower must pay to register the “Transfer of Land”.
  4. Water and Shire rates are payable in advance and they generally come due July/August each year. Hence, you are paying rates for the forthcoming year. Depending upon what time of the year you buy will dictate how much you reimburse the vendor of the property.
  5. You should always leave a little aside for miscellaneous expenses such as insurance (home and contents), moving expenses (if required), getting the telephone connected (if required) plus any other little expenses that may pop up.
  6. Lender Application Fee may be charged to you. If the lender of your choice does charge a fee it would cover such expenses as:
    • Lender Establishment Fee
    • Valuation Fees
    • Documentation Preparation Fee

Due to the competitive nature of the industry, many lenders do not have an application fee

  1. Mortgage insurance is another fee that you may pay. Generally, insurance is required on your loan if the lender advances you greater than 80% of the purchase price. The insurance policy protects the bank should the borrower default on the loan and the lender cannot recoup enough from the sale to payout the loan. The insurer will payout the shortfall from the sale of the property to lender and then attempt to recoup that shortfall from you the borrower.


Better Choice Mortgage Services is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this website. While the information contained within this website is periodically updated, no guarantee is given that the information provided in this website is correct, complete, and up-to-date. Although the Better Choice Mortgage Services website may include links providing direct access to other internet resources, including websites, Better Choice Mortgage Services is not responsible for the accuracy or content of information contained in these websites. Links from Better Choice Mortgage Services to third-party sites do not constitute an endorsement by Better Choice Mortgage Services of the parties or their products and services. The appearance on the website of advertisements and product or service information does not constitute an endorsement by Better Choice Mortgage Services, and Better Choice Mortgage Services has not investigated the claims made by any advertiser. Product information is based solely on material received from suppliers. Advanced Finance (Pty) Ltd t/a Better Choice Mortgage Services are not financial planners or accountants and we would encourage our clients to seek professional advice before acting on any a financial or taxation information in this news post.

Contact Us

1300 805 221

Better Choice