When buying a home, there are a lot of extra costs to consider before making a purchase. There can be some upfront costs, or on-going monthly costs that may not have thought about.

This article covers the main extras, that may pop up when buying or building.

Stamp Duty

Stamp Duty is a Government Fee charged for the purchase of a property. Stamp is calculated on the total cost of the house. If you are buying land, and then building later, Stamp is only calculated on the price of the land. Some first home buyers may be eligible for first home buyer grants, to avoid paying stamp duty. Usually it is between 3-4% of the property price, depending on state.

Conveyancing & Legal Fees

When buying property, or land, the services of a Conveyancer need to be enlisted. They help with the transfer of ownership, and funds, when making a purchase.

Pest and Building Inspection

If you have an offer accepted on a property, it is important to get a pest inspection completed, and a building inspection done too. This helps to confirm if there are any nasties living in the walls, like termites. The building inspection checks for any deterioration or defects within the property.

Bank Application Fees

These fees are only applicable if you get finance, and the loan begins. They are factored into the loan amount, and should be listed within your loan contracts.

Mortgage Registration & Transfer Fees

These will also be listed in your loan contracts.

Lenders Mortgage Insurance

Sometimes, if your deposit is less than 20% of the property price, the bank will have you pay an insurance called Lenders Mortgage Insurance. Otherwise known as LMI. If you are a first home buyer, or work in certain industries, you may be eligible to not pay LMI.

Council & Water Rates

These will become an annual cost that comes with home ownership. Your local council should have a council rates calculator on their website.

Utilities, power, and Communication Connections

Just like renting and you move house, you will need to set up gas, water and electricity. The usage is then calculated and charged to your account.

Building Insurance

One condition for getting finance approved, you must get building insurance for your property. This protects your asset and the banks risk, in case anything was to happen to the property. For example, if the house were to burn down, you would still owe the full mortgage. Building insurance helps to cove the cost of the house, to pay off any debts.

Income Protection

In case you anything happens to you whilst holding a mortgage, income protection helps to protect and cover the repayments. If you became injured, or passed away, the mortgage is still there. If you bought a house with a partner, family member, or friend, they would become responsible for the mortgage repayments. Without income protection, they may be left in financial stress.

Moving Costs

Moving your stuff into the new house will cost time and money. Be sure to budget for this additional cost, when moving into your new place.