The real cost of buying a home in Australia
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The costs buyers most often forget

What buying costs do people most often forget to budget for?

The most forgotten buying costs are the smaller line items buyers overlook when they focus on price and stamp duty. They include settlement adjustments for council rates and water, mortgage registration fees, building insurance from the day risk passes to you, and moving costs — small individually, meaningful together.

In our experience, buyers rarely come unstuck on the big numbers — they've planned for the price and the duty. It's the quiet line items that arrive at settlement, all at once, that catch people out. Here are the ones we see forgotten most.

Most-forgotten line items

  • LMI — and that the First Home Guarantee can wipe it. It insures the lender, not you, when your deposit is small, and buyers miss it because it's rolled into the loan rather than quoted upfront.
  • Council rates adjustment — out of pocket at settlement, not from the loan. You're reimbursing the seller for rates already paid past settlement day, and it's overlooked because it's a cash figure settled on the day.
  • Body corporate adjustment on strata — special levies can run thousands. It's your share of strata fees the seller prepaid, topped up at settlement; buyers budget the regular levy but forget the adjustment.
  • Conveyancer's disbursements — a headline fixed fee usually excludes $200–$600 of disbursements: the searches, certificates and lodgement costs paid on your behalf.
  • Insurance from the day risk passes, not move-in day. In QLD, property risk passes to you at 5pm on the first business day after the contract is signed — insure immediately. In NSW and VIC risk generally stays with the seller until settlement, but your lender will require cover in place before settlement day.
  • Title registration fees — separate from stamp duty; scale with price in QLD and VIC. They're the government charge to register the transfer and mortgage, and get missed because buyers mentally fold them into stamp duty.
  • State cliffs — $1 over can cost tens of thousands. These are the price thresholds where nudging over a bracket removes a duty concession, and buyers round their offer without checking where the line sits.
  • First Home Guarantee price caps by state and region — check Housing Australia's tool before you sign. The cap is the top price the scheme allows in your area, and because it varies by state and region a slightly higher price can quietly disqualify you.

Common questions

What costs do people most often forget when buying?

The usual blind spots are the settlement adjustments (reimbursing the seller for prepaid council rates, water and strata levies), the title and mortgage registration fees, conveyancing disbursements hidden behind a “fixed fee”, and lenders mortgage insurance if your deposit is under 20%. Building insurance from the day you're bound catches people out too.

When do you need building insurance when buying?

Earlier than most buyers expect. In some states the risk passes to you when the contract binds you — not at settlement or move-in — so arrange building cover from the day you sign, not the day you get the keys. Your lender will also want a policy in place before it releases the loan. Confirm the exact point risk passes for your state with your conveyancer.

How much should I set aside for the forgotten costs?

There's no single number — it depends on your state, property type and deposit — but the safe move is to keep a cash buffer on top of your deposit and stamp duty rather than budgeting to the last dollar. The biggest swing factors are LMI (if your deposit is under 20%) and strata special levies. Ask your conveyancer for an itemised statement of adjustments before settlement so there are no surprises.

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