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 & 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 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 to $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.

Qantas Money Home Loan Establishment Fees

These fees are all deducted from the loan amount at settlement.

• Application Fee - $345

  • Payable for the assessment of your home loan application.

• Loan processing fee - $150

  • Payable for processing of your home loan application and preparing loan documentation.

• Settlement service fee - $345.50*

  • This is a fee payable to the Solicitor acting for the bank to cover the cost they incur in establishing your loan, including attending the registration of a new mortgage where applicable *Note: additional fees may apply in a non-standard transaction.

• Mortgage security registration/discharge fee - Varies

  • Payable to the land titles office to register the mortgage or discharge existing securities.

• Other legal fees for establishing the loan - Varies

  • Payable for transaction fees that are not covered by the standard settlement fee

Other fees that may be incurred during the life of your loan

Please review the fee schedule in your home loan contract for a full list of potential fees. 

• Monthly offset fee - $10

  • Payable each month for each loan with an offset - $10

• Simple loan variation fee - $150

  • Payable when we agree to:

    • convert your home loan from one product to another

    • vary your existing contract or;

    • a request to a consent or change of borrower details or;

    • convert to another annual percentage rate or;

    • release or substitute a security (Discharge administration fee may 
also be applicable)

• Complex loan variation fee - $300

  • Payable when we agree to:

    • increase your amount of credit (new loan split)

    • a transfer subject to mortgage or subsequent mortgage or;

    • a sub division.

• Manual Redraw fee $50- Free per internet or phone banking withdrawal

  • Payable when you redraw all or part of any repayments made on your loan (minimum $1). Redraws can be made at a Bendigo Bank branch (manual withdrawal), as well as via internet or phone banking.

• Repayment recalculation fee - $50

  • If you pay extra funds into your home loan, you may be able to recalculate your repayments in order to reduce what you need to pay each month. Please note, once you recalculate your home loan you will no longer have access to redraw the extra funds paid prior to the recalculation. 

• Valuation fee - Varies

  • The cost of having the security valued by a third party (this can vary depending on several factors including the location, property value and access available to the property).

• Subsequent Valuation fee - Varies

  • Payable for a valuation performed as the result of your request for us to deal with a security after settlement.

• Additional Lending - Loan Processing Fee - $150

  • These fees and product offerings are only applicable to existing customers who are making changes to their lending that cannot be offered directly through Qantas Money.

• Arrears administration fee - $35

  • This fee is debited to your Home Loan Account when you are in arrears. This fee is debited to your Home Loan Account every 28 days thereafter for as long as you remain 
in arrears.

• Direct debit dishonour fee - $10

  • When there are insufficient funds in your account to cover a direct debit, this fee is charged.

Exit Fees

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

• Break Costs - Varies

  • Break costs may be payable in certain circumstances during a fixed loan term, such as:

    • Breaking your fixed rate term to convert to another percentage rate or to discharge your loan.

    • Prepaying more than the allowed amount per annum on a fixed rate.

• Discharge administration fee - $325

  • Payable for each security attached to a home loan that we partially or fully discharge at your request. Note: A Loan Variation fee may be charged.

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.

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. 

^* You have to be a Qantas Frequent Flyer member to apply for the Qantas Home Loan. This information has been prepared without considering your objectives, financial situation or needs. You should consider your circumstances before acting on this information.