Upfront costs of buying a home in a capital city
We take a look at how much you’ll need to save to buy a house around Australia taking into account additional costs such as stamp duty.
When most people think about saving for a house they just think of the deposit they will need but there are plenty of additional costs that come with getting your foot on the property ladder. These can add tens of thousands to the amount you need to save.
So how much do you need? Canstar crunched the numbers based on the median house price in each capital city around Australia. One scenario assumed you were aiming for a 10% deposit while the other is based on building a 20% deposit. Of course, it may be possible to get into the property market with a deposit of just 5% – and you may not even have to pay Lenders Mortgage Insurance if you qualify for the First Home Loan Deposit Scheme (FHLDS).
The upfront costs the research team considered as part of its calculations are:
- Lenders Mortgage Insurance (LMI): LMI protects the lender (not you) in case you default on your loan. Generally, you’ll have to pay LMI if you are borrowing more than 80% of the property’s value but there may be ways to avoid the cost such as using a guarantor. In the hypothetical examples LMI only applies for budding home buyers with a 10% deposit. It is possible to add the cost of LMI to your loan but we have assumed you pay for it upfront.
- Stamp duty: One of the biggest costs of buying a home is stamp duty which is a fee imposed by state and territory governments. Concessions may apply for first home buyers but they have not been taken into account for these calculations. Other government fees that will apply are a mortgage registration fee and transfer fee.
- Loan application fee: As the name suggests this is a fee for applying for a loan. The fees vary between lenders and some may even waive these fees as part of special promotions.
- Conveyancing fee: A conveyancer can help you with the buying process. Their main role will be to review the sale contract and ensure everything is in order.
- Building and pest inspection: It’s a good idea to get a building inspection to make sure the home is structurally sound and a pest inspection to check for creepy crawlies that could potentially damage the property.
Upfront costs around Australia
It probably comes as no surprise that Sydneysiders will need to save up the most for a home as Sydney has the highest median price of all the capital cities. You’d need $197,986 for a 10% deposit plus costs or $282,252 for a 20% deposit and other upfront costs.
Melbourne isn’t far behind. Although the median house price in Melbourne is about $278,000 less than Sydney the cost of stamp duty is roughly the same.
Homebuyers in Darwin need to save the least. Not only is the median house price the lowest of all capital cities but so is the stamp duty impost. You’d need a little less than $75,000 for a 10% deposit plus costs or $118,539 for a 20% deposit and costs.
Here’s a look at what you can expect to pay in each capital city. You’ll also be able to see what your loan repayments would be for each scenario.
Brisbane
Brisbane – Median House Price $596,316 | ||
10% Deposit | 20% Deposit | |
Deposit | $59,632 | $119,263 |
Lenders Mortgage Insurance* | $14,653 |
– |
Stamp/Transfer Duty* |
$12,688 |
|
Mortgage Registration Fee |
$195 |
|
Transfer Fee |
$1,749 |
|
Loan Application Fee |
$453 |
|
Conveyancing Fee |
$1,210 |
|
Building & Pest Inspection |
$473 |
|
TOTAL UPFRONT COSTS | $91,053 | $136,031 |
Loan Amount | $536,684 | $477,053 |
Average Interest Rate | 3.51% | 3.35% |
Monthly Repayments | $2,413 | $2,102 |
Source: www.canstar.com.au – 13/11/2020. Median house price based on the September 2020 Domain House Price Report. LMI cost estimate based on the Genworth LMI Premium Estimator for a non-first home buyer with a loan term of 30 years. Stamp/Transfer Duty, Mortgage Registration and Transfer fee estimates based on the cost as laid out on the applicable State Government website, assuming the home will be the purchaser’s principal place of residence. Average Loan Application Fee based on owner occupier variable products on Canstar’s database, for a loan amount of $400,000, 80% LVR and principal & interest repayments. Average Fee includes application, legal, valuation, settlement and documentation fees. Conveyancing Fee based on the quoted price from Yellow Brick Road Conveyancing. Building & Pest Inspection cost based on the national average of quotes obtained from three providers for a 3 Bed/2 Bath House. *Concessions/discounts for LMI and Stamp/Transfer Duty may be available for first home buyers; these have not been taken into account in these calculations. Average interest rate based on owner occupier variable loans available for the applicable loan amount and LVR, and principal & interest repayments in Canstar’s database; excluding introductory and first home buyer only loans. Monthly Repayment calculations assume a total loan term of 30 years.
Sydney
Sydney – Median House Price $1,154,406 | ||
10% Deposit | 20% Deposit | |
Deposit | $115,441 | $230,881 |
Lenders Mortgage Insurance* | $31,174 |
– |
Stamp/Transfer Duty* |
$48,503 |
|
Mortgage Registration Fee |
$146 |
|
Transfer Fee |
$146 |
|
Loan Application Fee |
$453 |
|
Conveyancing Fee |
$1,650 |
|
Building & Pest Inspection |
$473 |
|
TOTAL UPFRONT COSTS | $197,986 | $282,252 |
Loan Amount | $1,038,965 | $923,525 |
Average Interest Rate | 3.50% | 3.33% |
Monthly Repayments | $4,665 | $4,060 |
Source: www.canstar.com.au – 13/11/2020. Median house price based on the September 2020 Domain House Price Report. LMI cost estimate based on the Genworth LMI Premium Estimator for a non-first home buyer with a loan term of 30 years. Stamp/Transfer Duty, Mortgage Registration and Transfer fee estimates based on the cost as laid out on the applicable State Government website, assuming the home will be the purchaser’s principal place of residence. Average Loan Application Fee based on owner occupier variable products on Canstar’s database, for a loan amount of $400,000, 80% LVR and principal & interest repayments. Average Fee includes application, legal, valuation, settlement and documentation fees. Conveyancing Fee based on the quoted price from Yellow Brick Road Conveyancing. Building & Pest Inspection cost based on the national average of quotes obtained from three providers for a 3 Bed/2 Bath House. *Concessions/discounts for LMI and Stamp/Transfer Duty may be available for first home buyers; these have not been taken into account in these calculations. Average interest rate based on owner occupier variable loans available for the applicable loan amount and LVR, and principal & interest repayments in Canstar’s database; excluding introductory and first home buyer only loans. Monthly Repayment calculations assume a total loan term of 30 years.
Canberra
Canberra – Median House Price $817,810 | ||
10% Deposit | 20% Deposit | |
Deposit | $81,781 | $163,562 |
Lenders Mortgage Insurance* | $20,095 |
– |
Stamp/Transfer Duty* |
$26,206 |
|
Mortgage Registration Fee |
$153 |
|
Transfer Fee |
$409 |
|
Loan Application Fee |
$453 |
|
Conveyancing Fee |
$1,650 |
|
Building & Pest Inspection |
$473 |
|
TOTAL UPFRONT COSTS | $131,220 | $192,906 |
Loan Amount | $736,029 | $654,248 |
Average Interest Rate | 3.51% | 3.34% |
Monthly Repayments | $3,309 | $2,880 |
Source: www.canstar.com.au – 13/11/2020. Median house price based on the September 2020 Domain House Price Report. LMI cost estimate based on the Genworth LMI Premium Estimator for a non-first home buyer with a loan term of 30 years. Stamp/Transfer Duty, Mortgage Registration and Transfer fee estimates based on the cost as laid out on the applicable State Government website, assuming the home will be the purchaser’s principal place of residence. Average Loan Application Fee based on owner occupier variable products on Canstar’s database, for a loan amount of $400,000, 80% LVR and principal & interest repayments. Average Fee includes application, legal, valuation, settlement and documentation fees. Conveyancing Fee based on the quoted price from Yellow Brick Road Conveyancing. Building & Pest Inspection cost based on the national average of quotes obtained from three providers for a 3 Bed/2 Bath House. *Concessions/discounts for LMI and Stamp/Transfer Duty may be available for first home buyers; these have not been taken into account in these calculations. Average interest rate based on owner occupier variable loans available for the applicable loan amount and LVR, and principal & interest repayments in Canstar’s database; excluding introductory and first home buyer only loans. Monthly Repayment calculations assume a total loan term of 30 years.
Melbourne
Melbourne – Median House Price $875,980 | ||
10% Deposit | 20% Deposit | |
Deposit | $87,598 | $175,196 |
Lenders Mortgage Insurance* | $21,525 |
– |
Stamp/Transfer Duty* |
$47,629 |
|
Mortgage Registration Fee |
$111 |
|
Transfer Fee |
$2,137 |
|
Loan Application Fee |
$453 |
|
Conveyancing Fee |
$1,210 |
|
Building & Pest Inspection |
$473 |
|
TOTAL UPFRONT COSTS | $161,136 | $227,209 |
Loan Amount | $788,382 | $700,784 |
Average Interest Rate | 3.51% | 3.34% |
Monthly Repayments | $3,545 | $3,085 |
Source: www.canstar.com.au – 13/11/2020. Median house price based on the September 2020 Domain House Price Report. LMI cost estimate based on the Genworth LMI Premium Estimator for a non-first home buyer with a loan term of 30 years. Stamp/Transfer Duty, Mortgage Registration and Transfer fee estimates based on the cost as laid out on the applicable State Government website, assuming the home will be the purchaser’s principal place of residence. Average Loan Application Fee based on owner occupier variable products on Canstar’s database, for a loan amount of $400,000, 80% LVR and principal & interest repayments. Average Fee includes application, legal, valuation, settlement and documentation fees. Conveyancing Fee based on the quoted price from Yellow Brick Road Conveyancing. Building & Pest Inspection cost based on the national average of quotes obtained from three providers for a 3 Bed/2 Bath House. *Concessions/discounts for LMI and Stamp/Transfer Duty may be available for first home buyers; these have not been taken into account in these calculations. Average interest rate based on owner occupier variable loans available for the applicable loan amount and LVR, and principal & interest repayments in Canstar’s database; excluding introductory and first home buyer only loans. Monthly Repayment calculations assume a total loan term of 30 years.
Hobart
Hobart – Median House Price $555,754 | ||
10% Deposit | 20% Deposit | |
Deposit | $55,575 | $111,151 |
Lenders Mortgage Insurance* | $13,656 |
– |
Stamp/Transfer Duty* |
$20,619 |
|
Mortgage Registration Fee |
$139 |
|
Transfer Fee |
$212 |
|
Loan Application Fee |
$453 |
|
Conveyancing Fee |
$1,210 |
|
Building & Pest Inspection |
$473 |
|
TOTAL UPFRONT COSTS | $92,337 | $134,257 |
Loan Amount | $500,179 | $444,603 |
Average Interest Rate | 3.51% | 3.35% |
Monthly Repayments | $2,249 | $1,959 |
Source: www.canstar.com.au – 13/11/2020. Median house price based on the September 2020 Domain House Price Report. LMI cost estimate based on the Genworth LMI Premium Estimator for a non-first home buyer with a loan term of 30 years. Stamp/Transfer Duty, Mortgage Registration and Transfer fee estimates based on the cost as laid out on the applicable State Government website, assuming the home will be the purchaser’s principal place of residence. Average Loan Application Fee based on owner occupier variable products on Canstar’s database, for a loan amount of $400,000, 80% LVR and principal & interest repayments. Average Fee includes application, legal, valuation, settlement and documentation fees. Conveyancing Fee based on the quoted price from Yellow Brick Road Conveyancing. Building & Pest Inspection cost based on the national average of quotes obtained from three providers for a 3 Bed/2 Bath House. *Concessions/discounts for LMI and Stamp/Transfer Duty may be available for first home buyers; these have not been taken into account in these calculations. Average interest rate based on owner occupier variable loans available for the applicable loan amount and LVR, and principal & interest repayments in Canstar’s database; excluding introductory and first home buyer only loans. Monthly Repayment calculations assume a total loan term of 30 years.
Adelaide
Adelaide – Median House Price $564,927 | ||
10% Deposit | 20% Deposit | |
Deposit | $56,493 | $112,985 |
Lenders Mortgage Insurance* | $13,881 |
– |
Stamp/Transfer Duty* |
$24,905 |
|
Mortgage Registration Fee |
$173 |
|
Transfer Fee |
$4,874 |
|
Loan Application Fee |
$453 |
|
Conveyancing Fee |
$1,210 |
|
Building & Pest Inspection |
$473 |
|
TOTAL UPFRONT COSTS | $102,462 | $145,073 |
Loan Amount | $508,434 | $451,942 |
Average Interest Rate | 3.51% | 3.35% |
Monthly Repayments | $2,286 | $1,992 |
Source: www.canstar.com.au – 13/11/2020. Median house price based on the September 2020 Domain House Price Report. LMI cost estimate based on the Genworth LMI Premium Estimator for a non-first home buyer with a loan term of 30 years. Stamp/Transfer Duty, Mortgage Registration and Transfer fee estimates based on the cost as laid out on the applicable State Government website, assuming the home will be the purchaser’s principal place of residence. Average Loan Application Fee based on owner occupier variable products on Canstar’s database, for a loan amount of $400,000, 80% LVR and principal & interest repayments. Average Fee includes application, legal, valuation, settlement and documentation fees. Conveyancing Fee based on the quoted price from Yellow Brick Road Conveyancing. Building & Pest Inspection cost based on the national average of quotes obtained from three providers for a 3 Bed/2 Bath House. *Concessions/discounts for LMI and Stamp/Transfer Duty may be available for first home buyers; these have not been taken into account in these calculations. Average interest rate based on owner occupier variable loans available for the applicable loan amount and LVR, and principal & interest repayments in Canstar’s database; excluding introductory and first home buyer only loans. Monthly Repayment calculations assume a total loan term of 30 years.
Perth
Perth – Median House Price $534,336 | ||
10% Deposit | 20% Deposit | |
Deposit | $53,434 | $106,867 |
Lenders Mortgage Insurance* | $10,307 |
– |
Stamp/Transfer Duty* |
$19,399 |
|
Mortgage Registration Fee |
$178 |
|
Transfer Fee |
$288 |
|
Loan Application Fee |
$453 |
|
Conveyancing Fee |
$1,650 |
|
Building & Pest Inspection |
$473 |
|
TOTAL UPFRONT COSTS | $86,182 | $129,308 |
Loan Amount | $480,902 | $427,469 |
Average Interest Rate | 3.52% | 3.35% |
Monthly Repayments | $2,165 | $1,884 |
Source: www.canstar.com.au – 13/11/2020. Median house price based on the September 2020 Domain House Price Report. LMI cost estimate based on the Genworth LMI Premium Estimator for a non-first home buyer with a loan term of 30 years. Stamp/Transfer Duty, Mortgage Registration and Transfer fee estimates based on the cost as laid out on the applicable State Government website, assuming the home will be the purchaser’s principal place of residence. Average Loan Application Fee based on owner occupier variable products on Canstar’s database, for a loan amount of $400,000, 80% LVR and principal & interest repayments. Average Fee includes application, legal, valuation, settlement and documentation fees. Conveyancing Fee based on the quoted price from Yellow Brick Road Conveyancing. Building & Pest Inspection cost based on the national average of quotes obtained from three providers for a 3 Bed/2 Bath House. *Concessions/discounts for LMI and Stamp/Transfer Duty may be available for first home buyers; these have not been taken into account in these calculations. Average interest rate based on owner occupier variable loans available for the applicable loan amount and LVR, and principal & interest repayments in Canstar’s database; excluding introductory and first home buyer only loans. Monthly Repayment calculations assume a total loan term of 30 years.
Darwin
Darwin – Median House Price $539,463 | ||
10% Deposit | 20% Deposit | |
Deposit | $53,946 | $107,893 |
Lenders Mortgage Insurance* | $10,406 |
– |
Stamp/Transfer Duty* |
$8,102 |
|
Mortgage Registration Fee |
$149 |
|
Transfer Fee |
$149 |
|
Loan Application Fee |
$453 |
|
Conveyancing Fee |
$1,320 |
|
Building & Pest Inspection |
$473 |
|
TOTAL UPFRONT COSTS | $74,998 | $118,539 |
Loan Amount | $485,517 | $431,570 |
Average Interest Rate | 3.52% | 3.35% |
Monthly Repayments | $2,186 | $1,902 |
Source: www.canstar.com.au – 13/11/2020. Median house price based on the September 2020 Domain House Price Report. LMI cost estimate based on the Genworth LMI Premium Estimator for a non-first home buyer with a loan term of 30 years. Stamp/Transfer Duty, Mortgage Registration and Transfer fee estimates based on the cost as laid out on the applicable State Government website, assuming the home will be the purchaser’s principal place of residence. Average Loan Application Fee based on owner occupier variable products on Canstar’s database, for a loan amount of $400,000, 80% LVR and principal & interest repayments. Average Fee includes application, legal, valuation, settlement and documentation fees. Conveyancing Fee based on the quoted price from Yellow Brick Road Conveyancing. Building & Pest Inspection cost based on the national average of quotes obtained from three providers for a 3 Bed/2 Bath House. *Concessions/discounts for LMI and Stamp/Transfer Duty may be available for first home buyers; these have not been taken into account in these calculations. Average interest rate based on owner occupier variable loans available for the applicable loan amount and LVR, and principal & interest repayments in Canstar’s database; excluding introductory and first home buyer only loans. Monthly Repayment calculations assume a total loan term of 30 years.
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