Buying a house isn’t just about paying the price that you have agreed with the agent. There are some extra costs that all buyers should be aware of.

The cost of these hidden expenses will actually depend on the value of the property you are purchasing and where it is located.

As an example, if you want to buy a home in NSW that’s valued at $500,000, you can expect to pay the following:

Stamp duty

ESTIMATED COSTS: USE THIS STAMP DUTY CALCULATOR TO WORK OUT THE LIKELY COST FOR YOU.

Stamp duty can cost tens of thousands of dollars; the exact amount depends on the value of the property and the state in which you buy it.

The more expensive the home, the more you’ll pay, with a $1 million purchase attracting stamp duty as high as $40,000.

Fortunately, NSW is currently offering a First Home Buyer Assistance Scheme, which applies stamp duty exemptions and concessions to first-home buyers.

On a home valued up to $650,000, first home buyers may be entitled to a concessional rate of stamp duty, or even an exemption from paying it all together!

There is more information available on the NSW Revenue website.

Conveyancing & legal fees

ESTIMATED COSTS: AROUND $1800

While it is possible to complete the legal aspects of buying a property yourself, it’s generally recommended that you engage a conveyancer or solicitor to prepare the documents for you and provide advice.

Pest & building inspections

ESTIMATED COSTS: AROUND $600

Before you purchase any property it is important that you receive a copy of a Pest and Building Report from a qualified inspector.

Even if the property appears to be structurally sound and there is no visible indication that termites are present, there could be hidden problems lurking in the foundations, roof, plumbing or walls that only a professional can identify.

Loan application or establishment fee

ESTIMATED COSTS: $500-600

When you take out a home loan, most lenders will also charge a fee for setting up the loan. These fees are generally around $500-600 and will vary from lender to lender.>

It’s worth noting, however, that some lenders will waive this fee under certain circumstances, so it’s worth asking.

Lenders Mortgage Insurance (LMI)

With a deposit of less than 20% most lenders will require you to pay lenders mortgage insurance. This fee is calculated on a sliding scale, so the smaller your deposit, the higher the insurance premium. With our earlier example, on a $500,000 purchase price with a 10% deposit ($50,000), you’ll be asked to a pay lenders mortgage insurance premium of around $8000.

This may seem like a lot, but it allows buyers to purchase a home with as little as 5% of the purchase price as a deposit, helping them to get a foot on the property ladder sooner rather than later.

To avoid LMI on our sample purchase of $500,000, you will need to following funds available to purchase:

Mortgage registration & transfer fees

ESTIMATED COSTS: $283.20

You’ll need to pay for the privilege of formally registering your mortgage. And, as the new owner, the cost of transferring the property into your ownership will fall to you, too.

Mortgage registration and transfer fees are fixed in NSW, at $141.60 each.

Council and utility rates

After purchasing the property, you’ll need to pay the vendor for council or water rates.

The vendor will have paid any rates owing to the council – generally to the end of the quarter – and they’ll simply add your portion of that amount to the purchase price. Rates in Coffs Harbour are some of the highest in the country. Expect to be paying at least $600 per quarter.