When purchasing a property, it’s important to budget for additional costs such as government fees, duties, and charges. These expenses can be up to 5% of the property’s purchase price. For example, on a property purchase of $800,000, you could expect to pay up to $40,000 in associated costs to complete the transaction.

The main government fees associated with buying a home include:

• Stamp Duty (Transfer Duty): This is typically the largest upfront cost and is a tax charged by the state or territory government on property purchases.
• Mortgage Duty: A tax previously charged on the mortgage amount by some state governments. This duty has now been abolished in most Australian states and territories.
• Transfer Fee: A government fee for transferring ownership of the property title from the seller to the buyer.
• Registration Fees: Fees charged for registering your lender’s mortgage against the property title. If the seller has an existing mortgage on the property, there may also be a fee to remove it, which is generally reimbursed by the seller at settlement.

Understanding these costs in advance can help you better prepare your budget and avoid surprises during the property purchase process.