With 25 years in the mortgage and home‑buyer space in Queensland, I’ve seen many buyers focus on the deposit and the loan, but overlook the “extra” costs that sneak up on you. In this article, I’ll walk you through the hidden costs of buying a home so you’re fully prepared and ready to make your move with confidence.
When you’re buying your first home (or any home), you’re focused on the excitement — the location, the size, the dream. But being prepared means more than just saving for the deposit and securing the loan. There are costs that many buyers don’t budget for — and those can create stress, delay your move, or even put you off balance financially. My aim here is to shed light on those hidden costs so you can plan ahead, avoid surprises and focus on reaching your home‑buying goal.
Stamp Duty & Transfer Fees
One of the biggest “unexpected” costs is stamp duty (also called transfer duty) and other government transfer fees. For example, in Queensland you’ll pay a duty based on the purchase price — but even first‑home buyers need to check for eligibility for concessions
What to factor in:
Stamp duty or transfer duty — could be tens of thousands depending on value and state.
Mortgage registration fee, title transfer fee.
It’s critical to check state‑based concessions for first‑home buyers (which may help reduce or waive some of these costs).
Legal & Conveyancing Fees
Buying a home isn’t just “pay deposit + get keys” — you’ll need legal and conveyancing assistance to handle title searches, contract reviews and settlement.
Typical costs can range from $700 to $2,500, depending on complexity and the property. It’s wise to budget for this rather than assuming it’s covered somewhere else.
Property Inspections: Building, Pest & Specialist Checks
Once you’ve found your home, it’s tempting to rush ahead — but skipping inspections is a risk. Building and pest inspections are essential.
These typically cost $400‑$800 depending on size/location. If issues are found later — like termite damage or structural faults — the cost to rectify can far exceed the inspection fee.
Home Loan Setup Costs & Lenders Mortgage Insurance (LMI)
When you apply for a home loan, there’s more than just the interest rate. Up‑front fees, valuation, registration, and if your deposit is under 20% — Lenders Mortgage Insurance (LMI) may apply.
For example, LMI can amount to 1‑3% of the loan value, and skipping this by saving a larger deposit can make a real difference.
Ongoing Ownership Costs: Insurance, Rates & Maintenance
Once you move in, costs don’t stop. Home insurance, council rates, utility connections and ongoing maintenance add up fast.
Estimate things like:
Home + contents insurance annually.
Council and water rates.
Maintenance and repairs — budgeting a few thousand per year is wise.
Moving Costs & Setup Expenses
Labour, professional movers, packing, connection of services — all of these count. Most buyers budget the deposit and mortgage, but forget the cost of getting settled.
It’s sensible to allow $500‑$2,000 (or more depending on distance and size of home) for these costs.
How to Prepare & Stay Ahead
With my 25 years of experience, here’s how I recommend you prepare:
Create a full budget — list each of the above potential costs and build them into your plan.
Save more than just the deposit — to cover the extras without stress.
Seek expert advice early — as a mortgage broker, I can help you anticipate costs and structure your loan accordingly.
Check for concessions — for first‑home buyers, there are schemes and grants that can reduce costs.
Plan for longer‑term ownership — moving in is the start; staying in and maintaining the home is the ongoing journey.
Dig Deeper: How the October 2025 Changes Affect First Home Buyers in Rockhampton
Conclusion
Budgeting only for the deposit and mortgage repayment is only part of the story. To buy with confidence, you must consider all the hidden costs of homeownership. With proper planning and the right advice, you’ll avoid surprises and achieve your goal faster. If you want specialist guidance on your first‑home journey (especially under the new rules), give me a call at Finance First — I’m here to help.
