Upfront costs of buying a home: What you need to know

When purchasing a home, it’s important to investigate the costs and fees associated with the process. While government fees may be unavoidable, it’s worth noting that lenders have their own fee structures. So, it’s worth doing some research to see if you can find a lender that’ll help you save.

Breaking down the costs

Upfront expenses

• Stamp duty

  • This varies based on the state you are in and is typically linked to the purchase price of the property. You can get an estimate of your stamp duty costs with our handy upfront costs and stamp duty calculator. If you’re a first home buyer, you may be entitled to an exemption, so check the government website in your state or territory: NSW, QLD, ACT, VIC, TAS, SA, NT, WA

• Transfer fee 

  • A state government fee for property title transfers, which also varies by state. Use the links above to check your government website for details, or use our upfront costs calculator for an estimate.

• Legal fees

  • Covers the cost of a licensed conveyancer reviewing your contract and Title and drafting the settlement documents. This can cost anywhere from a few hundred to a few thousand, depending on complexity.

• Building Inspection and Pest Inspection fees

  • You may need or choose to have a building inspection and/or a pest inspection. This could cost between $200 - $1000+.

• Other costs

  • For example, home and contents insurance. Landlord insurance may also be required if you are an investment property owner. You should also consider the cost of utility connections and removalist fees.

• Bank/lender fees

  • You may incur fees and charges from your lender as a result of setting up your new loan - such as an establishment fee, application fee, settlement fee.

• Lenders Mortgage Insurance (LMI)

  • Insurance offered by an external provider that enables you to buy a home with less than a 20% deposit. This is a fee that insures the lender (the bank) against non-payment or default on your home loan and can generally be added on top of your loan amount.

Ongoing fees

The following fees and charges are those you may incur throughout the life of your loan.

• Monthly or annual service fee

• Variation fee

  • May apply when you change details of your loan, such as increasing the amount of loan, change your repayment amount or changing between ‘interest only’ and ‘principal and interest’ repayments.

• Default Fee

  • Usually a fee is payable if you default, such as if you did not make a repayment when due.

• Direct Debit Dishonour Fee

  • Applies when a direct debit from your account is dishonoured due to insufficient funds.

Exit Fees

These fees are incurred if you choose to close your Qantas Money Home Loan.

• Discharge Administration Fee

  • May be payable when you repay your loan balance in full, or if you switch your loan to another lender (including if you switch lenders within the Qantas Money Home Loans product suite).

• Break Cost Fee

  • Applicable during a Fixed Rate Period. These usually apply if you repay your loan account balance in full, or you switch from Fixed to Variable rate before the end of your Fixed Rate period

What if I’m refinancing?

If you’re refinancing, there are other fees you need to take into account. Want to know more? Learn about our refinancing options with Qantas Money Home Loans. 

Can I avoid paying fees?

Unfortunately, there’s no way you can avoid paying any fees when it comes to home loans. Remember, not all lenders charge the same fees, so make sure you do your homework to avoid paying any unnecessary ones.

Ongoing expenses

Buying a home is a significant investment, and it’s easy to assume that the costs end once the keys are handed over. However, it’s important to remember that owning a home comes with ongoing expenses that need to be factored into your budget. These expenses could include council rates, land tax, strata fees, home insurance, pest inspections, maintenance, and more.

Qantas Money Home Loans rates and fees found here.

You have to be a Qantas Frequent Flyer member to apply for a Qantas Money Home Loan. This website contains general advice only. This information has been prepared without considering your objectives, financial situation or needs. You should consider your circumstances before acting on this information.

Please be aware that this is a guide to the most common fees charged. It should not be relied upon as an exhaustive list. A full description of fees that may be incurred during your loan term will be detailed within the loan contract.