Home buying costs

Cost Considerations When Purchasing a Home with OzBroker

Embarking on the journey to homeownership can be filled with excitement and dreams of making a space your own. But remember: the listed price of your dream home isn’t the only cost to anticipate. Typically, consider setting aside an extra 5% of the home’s value for additional expenses. Let’s delve into these often-overlooked costs.

Government-Related Costs

  • Purchase Stamp Duty: This is a state tax, applicable to all property buyers, and it’s determined by the property’s purchase price. However, first-time buyers might qualify for some reductions or exemptions.
  • Property Transfer Fee: Imposed by the state government to formalize the change of ownership. The fee structure can either be fixed or variable, depending on the location.
  • Mortgage Registration Fee: This admin fee is necessary for logging the lender’s mortgage details onto the property’s title record. Although it varies, anticipate somewhere between $115 and $181.

Navigating Loan-Related Costs with OzBroker

  • Loan Application Fee: This covers the initial costs related to processing your loan application and usually includes the price for the first property valuation.
  • Lender’s Property Valuation: Your lender will want to confirm that the property’s value is appropriate relative to your loan amount. Costs for this valuation can range from $300 up to $1,000.
  • Lender’s Mortgage Insurance (LMI): LMI protects the lender (not you!) should you default on the loan. This might be added to your overall loan amount, but it’s crucial to distinguish it from Mortgage Protection Insurance, which is designed to protect you.

Finalizing the Purchase

  • Conveyancing/Solicitor’s Fees: These professionals assist with the legal aspects of acquiring property. Charges will cover various administrative tasks, searches, and settlements.
  • Pest and Building Inspections: A vital step to assure your future home is pest-free and structurally sound. It’s commonly required by lenders if there are concerns about the property’s condition.

Building Your New Home? Consider These

  • Construction Loans and Related Fees: Sometimes lenders impose extra fees due to the additional work involved in managing progressive funding during construction.
  • Site and Service Connection Costs: Be vigilant with your building contract details. Ensure that site costs and service connections (power, water, phone) are clearly outlined to avoid unexpected expenses.

Insuring Your Investment

  • Home and Contents Insurance: This shields you financially against potential damages to your home or belongings due to various unforeseen events.
  • Mortgage Protection Insurance: A safeguard to manage some or all of your mortgage payments under certain unfortunate circumstances.
  • Income Protection Insurance: This can cover up to 75% of your income if you’re unable to work due to illness or injury.
  • Building Insurance: Mandatory for loan settlement, this ensures that the property is insured for its full insurable value.


Aside from the purchase price, expect various additional costs such as purchase stamp duty, property transfer fee, mortgage registration fee, loan application fee, lender’s property valuation, lender’s mortgage insurance (LMI), conveyancing/solicitor’s fees, pest/building inspections, various construction-related costs, and several types of insurance (e.g., home and contents, mortgage protection, and income protection insurance). Typically, it’s advisable to set aside an extra 5% of the property’s purchase price to cover these.

Purchase Stamp Duty is a tax imposed by the state government, payable by the buyer. It’s calculated based on the property’s purchase price and applies whether or not the purchase is financed with a mortgage. Some first-time buyers may qualify for rebates or exemptions.

Absolutely! OzBroker can guide you through the various loan application costs, including the application fee, understanding lender’s property valuation, and navigating the intricacies of Lender’s Mortgage Insurance (LMI), ensuring that you’re well-informed and prepared for every financial step in your home-buying journey.

LMI is an insurance that safeguards the lender, not the borrower, against potential losses if the borrower defaults on the loan. It may be added to your final loan amount, depending on the lender, and it is distinct from Mortgage Protection Insurance, which provides cover for the borrower under various circumstances.

Conducting pest and building inspections before finalizing your purchase ensures that the property is free from harmful infestations and structural issues, adhering to building regulations. These inspections, while an added cost, can prevent potential future expenses and are sometimes a condition for loan approval from lenders.

During new home construction, you may encounter additional costs such as construction loan fees, site costs (like hitting rock or needing retaining walls), and service connection costs if power, water, and phone connections exceed standard distances from the street to the house. These can potentially add thousands to your initial budget.

Commonly considered insurances when purchasing a home include home and contents insurance, mortgage protection insurance, income protection insurance, and building insurance. Each type of insurance provides different coverages, such as protection against damage to the home, covering mortgage payments under specific circumstances, and ensuring your income in case of injury or illness.

OzBroker provides expert guidance through each step of your home-buying journey, ensuring clarity and confidence in each decision you make. From helping you understand potential costs, facilitating loan processes, assisting with insurance options, and offering professional advice, we’re here to ensure your path to homeownership is smooth and transparent.

Conveyancing/solicitor’s fees are charged for the legal work involved in the purchase of real estate. This includes handling contractual aspects, conducting property searches, managing settlements, and organizing disbursements, ensuring that all legalities are adequately managed and the property transfer is legitimate and binding.

Starting your home buying journey with OzBroker is simple! Get in touch with our dedicated team today. We’re committed to guiding you confidently through every step of your homeownership path, ensuring every question is answered and every detail is clarified, making your dream home a reality.

Let OzBroker Guide Your Home Buying Journey!

Navigating through the myriad costs and considerations of home buying can be challenging. That’s where OzBroker steps in! Our seasoned team is here to support you through each step, ensuring clarity and confidence as you make one of life’s most significant investments. From identifying potential costs, facilitating loan processes, to assisting with insurance options, we’ve got your back. Begin your hassle-free home buying journey with OzBroker and step into a future where your dream home awaits!

Let’s turn your dreams into reality. Get in touch with OzBroker today and step confidently onto the path of homeownership!

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