Mortgage Calculator

Cost To Buy A House Calculator

Buying a home can be daunting. And one thing we often don’t think about is the additional costs associated with purchasing a home. So, our Cost to Buy a House Calculator makes it very clear how much extra money you’ll need to cover these expenses.

The fields below are the various charges you may be required to pay. Enter the dollar amount in each to get an estimate of your total property buying cost.

Important notice: All computations are for illustrative purposes and do not constitute advice or a guarantee of a loan approval.

The Property Buying Process and Cost to Buy a House Explained

Whether you’re a first-time buyer or an experienced homeowner, understanding these steps is crucial for a successful property purchase.

1. Preparation and Budgeting

Before diving into property listings, assess your financial situation. Determine your budget by considering:

Borrowing Capacity: Consult with a mortgage broker to understand how much you can borrow based on your income, expenses, and credit history.

Upfront Costs To Buy A House: Be aware of initial expenses, including:

- Stamp Duty: A state-based tax on property transactions. It varies depending on the property’s value.
- Legal Fees: Cover conveyancing, title searches, and other legal aspects.
- Inspection Costs: Building and pest inspections are essential.
- Loan Application Fees: Charged by lenders when you apply for a loan.

2. Criteria and Property Search

Define your property preferences:

Features: Consider the number of bedrooms, bathrooms, parking spaces, and any specific amenities you desire.

Location: Research neighborhoods, proximity to schools, public transport, and amenities.

3. Property Inspections

Attend open houses and private inspections. Look beyond aesthetics:

Structural Condition: Assess the property’s overall condition, including foundations, roofing, and plumbing.

Hidden Issues: Check for signs of dampness, termites, or structural damage.

4. Due Diligence

Contracts: Understand the sale contract and any special conditions.

Legal Aspects: Consult a conveyancer or solicitor to review legal documents.

Title Search: Verify property ownership and any encumbrances.

5. Making an Offer

When you find the right property:

Negotiate: Work with the seller or their agent to agree on a price.

Deposit: Pay a deposit (usually 10% of the purchase price) to secure the property.

6. Home Loan Approval

Lender Selection: Choose a lender and apply for a home loan.

Loan Approval: Await approval based on your financial situation and the property’s value.

7. Settlement

Exchange Contracts: Sign the sale contract and pay the remaining deposit.

Settlement Date: On this day, the property officially transfers to your name.

Transfer of Funds: Pay the balance of the purchase price, including stamp duty and legal fees.

Title Transfer: The property title is transferred to you.

8. Moving In

Utilities: Arrange for electricity, water, and other utilities.

Insurance: Get home insurance to protect your investment.

Remember, each step involves costs beyond the purchase price. Factor in these hidden expenses to make informed decisions. And consulting professionals, such as an award-winning MFAA mortgage broker or a conveyancer, ensure a smoother process.

Happy house hunting!

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Disclaimer

This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.