15 Hidden Costs of Buying a House That Most Buyers Miss

Buying a house in Australia involves far more than the purchase price. Hidden costs including inspections, insurance, government fees, and moving expenses can add $15,000 to $40,000 or more to your total outlay. Here are the 15 costs that catch most buyers off guard.

The 15 Hidden Costs

Building Inspection — $400–$600

A pre-purchase building inspection checks for structural defects, water damage, and safety issues. It is not legally required in most states but is strongly recommended. Skipping this can lead to tens of thousands in unexpected repair costs.
Pest Inspection — $250–$350

One in three Australian homes is affected by termites, and termite damage repairs can cost $30,000 to $100,000+. A pest inspection checks for termites, borers, and other wood-destroying insects. Many inspectors offer combined building and pest packages for $500–$800.
Strata/Body Corporate Reports — $200–$400

If buying an apartment or townhouse, a strata report reveals the financial health of the building's owners corporation, upcoming special levies, building defects, and any disputes. Essential reading before committing.
Loan Application Fees — $0–$600

Some lenders charge upfront fees to process your mortgage application. Many have waived these in recent years, but they still exist — always check the Product Disclosure Statement.
Lenders Mortgage Insurance (LMI) — $5,000–$30,000+

If your deposit is less than 20% of the purchase price, most lenders require LMI. This protects the lender (not you) if you default. On a $700,000 property with a 10% deposit, LMI can cost $12,000–$15,000. The federal First Home Guarantee scheme lets eligible buyers avoid LMI with just a 5% deposit.
Mortgage Registration Fee — $150–$200

A government fee to register your mortgage against the property title. Varies by state but is a mandatory cost of any financed purchase.
Title Transfer Fee — $200–$500

Also called a transfer registration fee, this is the government charge to register the property in your name. The amount varies by state and property value.
Council Rates Adjustment — $500–$2,000

At settlement, council rates are adjusted between buyer and seller based on the settlement date. You may need to reimburse the seller for rates they have prepaid for the remainder of the rating period.
Water Rates Adjustment — $200–$600

Similar to council rates, water charges are adjusted at settlement. If the seller has prepaid, you will reimburse the portion covering your ownership period.
Body Corporate/Strata Fees — $500–$10,000+ per Quarter

Ongoing quarterly fees for apartments and townhouses. These cover building insurance, maintenance of common areas, and a sinking fund for major repairs. High-rise buildings with lifts, pools, and gyms can have strata fees exceeding $10,000 per quarter.
Home and Contents Insurance — $1,200–$3,000 per Year

Most lenders require building insurance as a condition of your loan. You should have this in place from settlement day. Costs vary based on location, property type, and cover level.
Utility Connections — $200–$500

Connecting or transferring electricity, gas, water, internet, and phone services typically costs $200–$500 in connection fees. Some providers offer bundled deals for new homes.
Moving Costs — $800–$8,000

Professional removalists for a local move (3-bedroom house) cost $800–$2,000. Interstate moves range from $3,000–$8,000 depending on distance and volume. Read our full guide to moving costs.
Mortgage Discharge Fee (If Selling to Buy) — $160–$1,000

If you are selling an existing property to fund your purchase, your current lender charges a discharge fee averaging $307 to release the existing mortgage.
Stamp Duty — Often Underestimated

Stamp duty is not technically hidden — but many buyers underestimate just how much it costs. At 3–5% of the purchase price, stamp duty on a $800,000 property can range from $24,000 to $40,000 depending on your state. Check our stamp duty calculator for your exact figure.

Total Hidden Costs Summary

For a typical $800,000 property purchase (excluding stamp duty and LMI), hidden costs can add up to $15,000–$25,000+. Including stamp duty and potential LMI, the total additional costs can reach $40,000–$70,000 on top of your deposit.

Know Your True Costs Before You Buy

The LookingToSell moving costs calculator covers 25+ individual cost items, giving you a complete picture of every fee involved in buying or selling — not just the ones you expect. It is free, instant, and requires no registration.

The 15 Hidden Costs

Building Inspection — $400–$600

A pre-purchase building inspection checks for structural defects, water damage, and safety issues. It is not legally required in most states but is strongly recommended. Skipping this can lead to tens of thousands in unexpected repair costs.

Pest Inspection — $250–$350

One in three Australian homes is affected by termites, and termite damage repairs can cost $30,000 to $100,000+. A pest inspection checks for termites, borers, and other wood-destroying insects. Many inspectors offer combined building and pest packages for $500–$800.

Strata/Body Corporate Reports — $200–$400

If buying an apartment or townhouse, a strata report reveals the financial health of the building's owners corporation, upcoming special levies, building defects, and any disputes. Essential reading before committing.

Loan Application Fees — $0–$600

Some lenders charge upfront fees to process your mortgage application. Many have waived these in recent years, but they still exist — always check the Product Disclosure Statement.

Lenders Mortgage Insurance (LMI) — $5,000–$30,000+

If your deposit is less than 20% of the purchase price, most lenders require LMI. This protects the lender (not you) if you default. On a $700,000 property with a 10% deposit, LMI can cost $12,000–$15,000. The federal First Home Guarantee scheme lets eligible buyers avoid LMI with just a 5% deposit.

Mortgage Registration Fee — $150–$200

A government fee to register your mortgage against the property title. Varies by state but is a mandatory cost of any financed purchase.

Title Transfer Fee — $200–$500

Also called a transfer registration fee, this is the government charge to register the property in your name. The amount varies by state and property value.

Council Rates Adjustment — $500–$2,000

At settlement, council rates are adjusted between buyer and seller based on the settlement date. You may need to reimburse the seller for rates they have prepaid for the remainder of the rating period.

Water Rates Adjustment — $200–$600

Similar to council rates, water charges are adjusted at settlement. If the seller has prepaid, you will reimburse the portion covering your ownership period.

Body Corporate/Strata Fees — $500–$10,000+ per Quarter

Ongoing quarterly fees for apartments and townhouses. These cover building insurance, maintenance of common areas, and a sinking fund for major repairs. High-rise buildings with lifts, pools, and gyms can have strata fees exceeding $10,000 per quarter.

Home and Contents Insurance — $1,200–$3,000 per Year

Most lenders require building insurance as a condition of your loan. You should have this in place from settlement day. Costs vary based on location, property type, and cover level.

Utility Connections — $200–$500

Connecting or transferring electricity, gas, water, internet, and phone services typically costs $200–$500 in connection fees. Some providers offer bundled deals for new homes.

Moving Costs — $800–$8,000

Professional removalists for a local move (3-bedroom house) cost $800–$2,000. Interstate moves range from $3,000–$8,000 depending on distance and volume. Read our full guide to moving costs.

Mortgage Discharge Fee (If Selling to Buy) — $160–$1,000

If you are selling an existing property to fund your purchase, your current lender charges a discharge fee averaging $307 to release the existing mortgage.

Stamp Duty — Often Underestimated

Stamp duty is not technically hidden — but many buyers underestimate just how much it costs. At 3–5% of the purchase price, stamp duty on a $800,000 property can range from $24,000 to $40,000 depending on your state. Check our stamp duty calculator for your exact figure.