Home prices have jumped sharply in recent years, and with them, all the “little extras” that come with buying a property. If you’re house-hunting, it’s worth double-checking that your budget can still comfortably cover the extra costs — because they can add up fast.

In the past two years alone, the average Australian house price has risen more than 30 per cent. And many of the fees attached to buying a home scale with the property’s value. That means a more expensive home often comes with higher upfront costs.

Some of the extras you may need to factor in include:

• Stamp duty (or transfer duty)
• Transfer fees
• Building and pest inspection
• Mortgage registration fees
• Conveyancing and legal costs
• Loan application or establishment fees
• Lenders Mortgage Insurance (LMI)
• Council rates adjustments

Every State and Territory calculates these charges differently and offers different concessions, especially for first-home buyers or off-the-plan purchases. Your property price can determine whether you qualify — so stretching your budget in a hot market might also mean missing out on discounts.

If you’re unsure how these fees apply to you, I’m always happy to run a quick check based on your current budget and plans.

Stamp duty

Let’s start with the big one. Stamp duty is often the largest upfront cost when buying a property.

Historically, it dates back to the 1800s when governments literally stamped title transfers to keep track of ownership. Today, it’s still a major revenue stream for State and Territory governments.

How much does it cost? It depends heavily on where you live and the price of the property. With Australia’s median home sitting at around $920,100, stamp duty could range from about $27,255 in Queensland to over $50,000 in Victoria.

First-home buyers, owner-occupiers, and off-the-plan buyers may be eligible for concessions or exemptions in some states — but these are usually capped at price points well below the current median. If you can structure your purchase to qualify, the savings can be substantial.

There’s always talk about scrapping stamp duty, but don’t hold your breath. Most discussions revolve around replacing it with an annual land tax. The ACT is halfway through a long transition, and NSW has floated an opt-in model.

Building and pest inspection

More sellers are now ordering their own building and pest reports to give buyers confidence and speed up the sale. That can save you money — but depending on the property, you might still prefer to order your own independent reports.

A standard building and pest inspection checks for structural issues, water damage, drainage problems and pests such as termites. Some buyers also arrange a pool inspection (around $200) or a plumbing camera inspection (around $300).

Mortgage registration and transfer fee

These fees are charged by the government to officially record the lender’s interest on the property title. It prevents a property from being sold while a mortgage is still attached.

A title transfer can’t go through unless the mortgage has been discharged, so the seller must either own the property outright or ensure their previous mortgage is fully repaid.

Conveyancing and legal fees

Conveyancing is the legal process behind transferring ownership. A conveyancer or solicitor reviews the contract, conducts title searches, handles the money transfer, and ensures the settlement runs smoothly.

While buyers can technically handle the paperwork themselves, most prefer to leave it to the professionals — it reduces risk and helps avoid costly mistakes.

Loan application and establishment fees

This is a one-off charge for setting up your home loan and covers things like the lender’s property valuation and administration. Some lenders waive the fee as part of a promotion, but it’s still worth budgeting for.

Lenders Mortgage Insurance (LMI)

LMI applies when your deposit is under 20 per cent. It protects the lender, not the borrower — even though the borrower pays the premium.

If you default and the property sells for less than the loan balance, LMI covers the gap for the lender. However, the insurer can still pursue the borrower for the shortfall.

The Federal Government’s Home Guarantee Scheme allows eligible first-home buyers, single parents and regional buyers to bypass LMI with a deposit as low as 2–5 per cent. Spots are limited, so speak with me if you’d like to see whether you’re eligible.

Council rates and utilities

When you buy a property, you’ll pay council rates pro-rata for the quarter you take ownership. You’ll also have connection fees for utilities such as water, electricity and gas.