What’s it going to cost?

A guide to estimating the total cost of buying a home.

When it comes to buying a home, there’s more to pay for than just the mortgage. This checklist can help you to plan ahead and avoid nasty surprises at a time when you least need them. The amounts can vary quite a bit, so make sure you shop around and take note of all your estimated costs when budgeting for your new home.

Before, during and after

Before you agree to buy the house

Once you’ve found the home you want, it’s time get it thoroughly checked out and arrange a loan from the bank. Here are some of the things you might need to pay for at this stage.

  • LIM report and other property or neighbourhood information from the local council
  • House inspection or builder’s report
  • Engineer’s report to check the land stability and drainage
  • Lawyer’s fees if you ask for their advice or help with checking the property information
  • Valuation from a registered property valuer
  • Home loan application or establishment fees

Paying for the house and moving in

If you agree to buy the house, you’ll pay a deposit straight away and on the ‘settlement date’, normally a month or more later, you’ll pay the rest and get the key. Costs during this stage can include:

  • Lawyer’s fee for ‘conveyancing’, which is the legal change-of-ownership process for property
  • Your share of rates that the previous owner might have pre-paid
  • Insurance - house and contents, loan repayment and life insurance so you can still repay your home loan if the unexpected happens, for example you become critically ill or are made redundant
  • Carpet and/or commercial cleaning while the house is empty
  • Moving costs
  • Connection and special meter reading fees (water, power, gas, phone, SKY)
  • Locksmith, if you want to change the locks
  • Additional appliances or furniture
  • Must-do immediate maintenance

After you’re in

Naturally, owning a home comes with ongoing costs and it pays to check these out before you go ahead. Even if it’s not your first home, the costs can be different once you’ve moved. Here are some examples:

  • Rates – local and regional councils
  • Insurance - house and contents, loan repayment and life
  • Regular maintenance to protect your home’s value
  • Mortgage repayments
  • Possible home loan service fees, if you:
    • Re-fix the interest rate after a fixed interest rate period ends
    • Top up, (increase) the overall amount of your loan
    • Re-document the loan when you change things like the loan product, the borrower or the type of repayment
    • Discharge of the mortgage – a legal document that says the bank is no longer holding the house as security for a loan