What it costs to buy a home with only a 10% Deposit?

There are several fees buyers need to be aware of, which aren’t necessarily spelled out in glossy real estate advertisements.

Upfront and hidden costs can add as much as $40,000 to the purchase price of a property, so it’s vital buyers understand them.

Almost all the costs depend on the value of the property being purchased and where it’s located. Different state and territory governments, in charge of costs such as stamp duty and transfer fees, among others, and local councils, who are responsible for calculating rates, also charge different amounts, as do banks and lenders.

In some states, first home buyers (non-investors) can avoid stamp duties and receive other benefits

Here is an example of upfront costs for a $500,000 property in Queensland. The important thing to know is these go on top of your deposit, so for this property the buyer will need a minimum of $67,000-76,000 in funds to make it work.

Purchase price$500,000
Stamp duty (First-home buyer)$0
Stamp duty (investor / non first-home buyer)$8750
Building inspection and pest inspection (combined)$600 (essential)
Mortgage registration fee$187
Transfer fee ($35 for every $10,000 over $180,000)$1120
Loan application fee$600 (varies by lender)
LMI – Lenders mortgage insurance (with only 10% deposit)$12,000
Council and water rates$500
Conveyancing and legal fees$1,800

Hidden and total costs for buying a home

Hidden costs for first-home buyers$16,807
Hidden costs for other buyers$25,557