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.

Qantas Money Home Loan Fees

Upfront fees from Qantas Money and partners

The following fees and charges are those you may incur as a result of the bank setting up your new loan.

Establishment fee Payable to Bendigo and Adelaide Bank Limited when you apply for a new loan.

Application fee Payable for the assessment of your home loan application. This fee is payable on the Settlement Date to Qantas Money.

Security processing fee Payable for each property used as security for your loan (excluding properties already mortgaged to us).

Settlement service fee Payable to MSA National when you settle for one security property for the preparation of mortgage documentation and settlement, and is paid on settlement. *Note: additional fees may apply in a non-standard transaction.

Upfront external fees The following fees and charges are those you may incur during the loan set up process that are charged by external parties that need to be factored into your budget.

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 (or premium) that is paid to the external provider to insure the lender (the bank) against non-payment or default on your home loan and can generally be added on top of your loan amount. If LMI is applicable, a quote will be provided during the application process.

Mortgage registration fee Payable to the relevant land registries to register our mortgage(s) over the Mortgaged Property.

Other registration fee Payable to the relevant land registries to register any other documents we lodge for registration with or prior to our mortgage(s) over the Mortgaged Property.

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

Monthly service fee Payable each calendar month, commencing from the calendar month after the day we first advance any part of the Amount of Credit, until the balance of your Loan Account is repaid in full. This amount is included in your required repayment. Where an application is for more than one loan (e.g. loan splits), this fee is payable per loan account.

Miscellaneous fees The following fees and charges may be applicable to your loan, depending on the type of loan you have set up and the requests you make of the bank over the life of the loan.

Variation fee

Payable when we agree to:

• agree to the following types of changes, at your request, after you have entered into your Contract:

  • increase the Amount of Credit under your Contract to provide for a further advance;

  • change your repayments to increase or decrease the period over which your Home Loan will be repaid (the term of your Home Loan);

  • change the Mortgaged Property that secures your Home Loan;

  • change the amount of your required repayments from Principal and Interest Repayments to Interest Only Repayments, or extend any period during which you are only required to make Interest Only Repayments; or

  • split your Home Loan into more than one Home Loan across more than one Loan Account.

• consent to a mortgage or other security interest in any Mortgaged Property in favour of another person;

• agree to enter into a deed or agreement of priority in relation to any Mortgaged Property; or

• consent to any other dealing with any Mortgaged Property for which you require our consent (including any subdivision or consolidation).

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).

Default Fee¹ Payable each time you are in default. If you are in default because you did not make a repayment when due, the fee will only become payable if the overdue amount is $100 or more. Once payable, the fee continues to be payable every 30 days until you remedy your default. Direct Debit Dishonour Fee Applies when a direct debit from your account is dishonoured due to insufficient funds.

Discharge Administration Fee Payable:

• each time we provide a partial or full discharge or release of mortgage or security interest in respect of any Mortgaged Property; and

• when you repay your Loan Account balance in full. Break Cost Fee² Payable each time any of the following Break Events occur during a Fixed Rate Period:

• at your request, we agree to change the Annual Percentage Rate under your Contract;

• you repay your Loan Account balance in full; or

• you make an additional repayment (by repaying more than your required repayments under your Contract) where the total of all additional repayments you have made since the start of the Fixed Rate Period or, if later, the anniversary of that date, exceeds $20,000.00.

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 ¹This fee will not be charged where the Bank is notified that all borrowers to the loan are deceased. ²Break Cost Fee is only charged where we estimate we have suffered a loss as a result of the break event due to differences in interest rates using the formula. The formula can be supplied upon request.