How much money do I need to buy a house in Australia?

Requirements to buy a house in Australia

1. Deposit: A standard guideline is to have a deposit of at least 20% of the property's purchase price to avoid paying Lenders Mortgage Insurance (LMI). For instance, if you want to buy a house in Australia for $500,000, a 20% deposit would be $100,000.
2. Purchase Price: The cost of the property itself varies widely across Australia and depends on the location and type of property you're buying.
3. Stamp Duty: Stamp duty is a state-based tax on the purchase price of the property. The rates and exemptions vary by state or territory. Be prepared to pay thousands of dollars in stamp duty. Check the specific rates for your property's location.
4. Lenders Mortgage Insurance (LMI): If your deposit is less than 20% of the property's value, you may be required to pay LMI. The cost varies but is generally between 1% and 3% of the loan amount. For example, for a $400,000 loan, LMI could be between $4,000 and $12,000, depending on your deposit size.
5. Legal and Conveyancing Fees: You'll need to hire a solicitor or conveyancer to manage the legal aspects of the purchase. Legal fees can vary but might range from $1,000 to $3,000 or more. Our Loans and Mortgage professionals will handle the transfer of property ownership and ensure all legal documents are in order. Legal and conveyancing fees typically range, depending on the complexity of the transaction and the professional you choose.
6. Property Inspection Costs: Consider investing in building and pest inspections to identify any issues with the property. These inspections can cost several hundred to over a thousand dollars.
7. Loan Application Fees: Some lenders charge application fees when you apply for a home loan. These fees can vary but may be around $500 to $1,000. When you take out a mortgage, there are various fees you may need to pay, such as application fees, valuation fees, and ongoing service fees. It’s essential to discuss these with your lender and factor them into your budget.
8. Home Loan Costs: Depending on your chosen home loan, you may need to cover costs like loan establishment fees, valuation fees, and ongoing fees. These costs can vary but may add up to several hundred to over a thousand dollars.
9. Moving Costs: You'll also need to budget for the cost of physically moving your belongings to your new property. The cost will depend on whether you choose to move yourself or hire professional movers. These can include hiring a removalist, which can cost between $500 and $3,000 depending on the distance and the amount of belongings you have. If you're moving interstate, the costs could be even higher.
10. Home Insurance: It's important to have home insurance in place when you buy a house. Budget for the annual premium. Protecting your new home and belongings is crucial. Home and contents insurance provides coverage in case of damage, theft, or natural disasters. The cost of insurance varies depending on the value of your home and possessions.
11. Utilities and Council Rates: You'll be responsible for paying utilities like gas, water, electricity, as well as council rates (property taxes).
12. Maintenance and Renovations: Depending on the property's condition, you may need to budget for immediate maintenance or renovations.