Hidden Costs When Buying a House in Australia (2026 Guide)

What Are “Hidden Transaction Costs”?

These are the expenses that arise during the buying process that aren’t included in the advertised price. They include government charges, professional fees and lender protections.

They vary by state, and first-home buyer concessions can dramatically reduce them.

Stamp Duty (Transfer Duty)

Stamp duty is usually the largest cost. It’s charged by state governments and scales with property value.

Indicative 2026 costs on an $800k–$1m purchase:

• $20,000 to $50,000+ without concessions

First-home buyer relief examples:

• NSW: Full exemption up to $800,000
• VIC: Exemption up to $600,000
• QLD: Nil duty up to $700,000 (higher thresholds for new homes)

Tip: Always check your state revenue calculator early and work with an excellent broker. Concessions can save tens of thousands.

What Counts as a Hidden Transaction Cost?

Legal and Conveyancing Fees

A solicitor or conveyancer handles contracts, searches and settlement.

• Typical cost: $1,000 to $2,500 (plus GST and searches)

Tip: Experience matters. Cheap conveyancing can cost you more later.

Building and Pest Inspections

These identify structural defects, termites and major issues before settlement.

• Cost: $400 to $800 for a combined report

Tip: Skipping inspections is a false economy.

Lender Fees and Lenders Mortgage Insurance (LMI)

If your deposit is under 20%, lenders usually charge LMI.

• LMI: $10,000 to $25,000+
• Other fees: loan setup, valuation, mortgage registration ($500–$1,200 total)

Tip: The right lender and loan structure can sometimes reduce or avoid LMI.

Adjustments, Insurance and Moving Costs

At settlement, council rates, water and strata fees are adjusted. You’ll also need building insurance from day one.

• Estimate: $2,000 to $8,000

How Costs Differ by State

Each state has different rules and thresholds:

• NSW: High duty, strong first-home exemptions
• VIC: Lower exemption threshold
• QLD: Attractive concessions, especially for new builds

Always confirm current rules with your broker or the state revenue office.

How to Reduce Hidden Buying Costs

• Claim every concession you qualify for
• Aim for a 20% deposit where possible
• Speak to a broker before house hunting
• Use calculators early and budget conservatively
• Add a 10% buffer for peace of mind

The Bottom Line

Hidden transaction costs are a major reason buyers feel stretched — but they’re manageable with the right planning.

At Mortgages Plus, we help buyers structure loans, maximise concessions and avoid surprises every day.

If you want help running your numbers properly before you buy, get in touch. We work for you — not the banks.