Property Purchase
Full Cost Breakdown When Buying Property
6 min read- Finance Guide
- Updated 2026
Quick answer
The deposit is only one part of the total cost
80% LVR often avoids LMI
You may also need duty, legal fees, inspections, lender fees and insurance
- Largest upfront cost Deposit
- Big variable cost Transfer duty
- Potential extra cost LMI above 80% LVR
- Ongoing costs Repayments, rates, insurance, upkeep
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1300 421 044
Detailed explanation
Buying costs usually fall into three groups. First are the upfront funds needed before or at settlement, such as the deposit and due diligence costs. Second are the transaction costs connected to the loan and legal transfer of the property. Third are the ongoing holding costs that begin once you own it, including repayments, council rates, insurance, maintenance and, for some properties, strata levies. Looking at all three together gives a more realistic buying budget.
Main costs buyers should budget for
Deposit
Your cash contribution toward the purchase, often the biggest upfront amount
Transfer duty
A government charge that varies by state, property value and possible concessions
Legal and conveyancing
Professional costs for reviewing the contract and handling settlement paperwork
Inspections and reports
Building, pest, strata or other reports used to assess risk before committing
Loan and registration fees
Possible lender, valuation, mortgage registration and title transfer charges
Ongoing ownership costs
Repayments, insurance, council rates, maintenance and strata where applicable
Major upfront
buying costs
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Deposit paid from savings, equity or another accepted source
-
Transfer duty, which can be one of the largest non deposit costs
-
Conveyancing or legal fees for contract review and settlement
-
Building, pest, strata or valuation related reports
-
Mortgage registration, title registration and lender setup costs where applicable
Costs that continue after settlement
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Regular loan repayments based on the loan size, rate and structure
-
Home building insurance and, where relevant, landlord insurance
-
Council rates, water charges and utility connection or setup costs
-
Repairs, maintenance and improvements over time
-
Strata levies if the property is an apartment, townhouse or unit in a scheme
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Vacancy, management and compliance costs for investment property
Cost pressure zones
-
Below 80% LVR Usually avoids LMI and can reduce total entry cost
Lower cost entry -
80–90% LVR LMI may apply and raise the total cost of borrowing
Extra cost risk -
Small cash buffer Higher chance of stress from hidden or ongoing costs
Budget strain
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How the cost timeline usually unfolds
Buyers normally encounter costs in stages rather than all at once:
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01. Save the deposit and a separate buffer for buying costs
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02. Pay for early advice, contract review or pre purchase reports where needed
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03. Pay a deposit when contracts are exchanged or immediately at auction
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04. Complete lender checks, valuation and any loan setup costs
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05. Finalise conveyancing, duty assessment and registration amounts before settlement
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06. Pay the balance of funds needed to settle the purchase
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07. Arrange insurance and move in or prepare the property for tenants
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08. Begin ongoing ownership costs such as repayments, rates and maintenance
Common Problems
Property purchases often become stressful when buyers budget only for the deposit and ignore the rest of the cash needed before and after settlement.
Not enough cash left after the deposit
Some buyers stretch to the deposit and then discover they still need funds for duty, legal work, inspections and settlement costs.
Possible solutions include:
- Build a separate cost buffer before signing
- Estimate duty and registration costs early
- Confirm all lender and legal charges in advance
- Avoid spending the full cash balance on the deposit alone
The loan looks cheap but the total cost is higher
A lower advertised rate does not always mean a cheaper loan once fees, LMI, features and long term interest are considered.
Possible solutions include:
- Compare the rate, fees and loan features together
- Check whether LMI applies above 80 percent LVR
- Review the comparison rate as part of the assessment
- Consider the total repayment cost over time, not just entry cost
Ongoing ownership costs are underestimated
The purchase may settle smoothly, but the monthly budget can still come under pressure from rates, insurance, strata and maintenance.
Possible solutions include:
- Model repayments at higher interest rates
- Check council, water and strata costs before exchange
- Allow for repairs and move in expenses
- Keep a cash safety buffer after settlement
Steps To Budget For A Purchase
Step
01
Set a purchase budget and work out the likely deposit range.
Step
02
Estimate transfer duty, legal fees and inspection costs early.
Step
03
Check whether concessions, guarantees or exemptions may reduce upfront cost.
Step
04
Confirm lender fees, valuation costs and whether LMI may apply.
Step
05
Allow for settlement funds plus a post settlement cash buffer.
Step
06
Budget for repayments and ongoing ownership costs before committing.
Speak With A Property Loan Specialist
The cheapest looking property purchase is not always the cheapest once all transaction and ownership costs are included.
A specialist can help you look at the full picture, compare loan structures and identify where extra costs may appear before you commit.
Speak with a finance specialist about the full cost of your property purchase.
Submit the short form below and a property finance specialist will review your scenario and discuss likely costs, funding options and loan structures.
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