You’ve saved your deposit. You know your borrowing capacity. But have you budgeted for everything else? The hidden costs of buying a home in Victoria can add $25,000-$60,000 to your purchase — and many buyers are caught off guard.
Here is every cost you need to factor in before you sign on the dotted line.
Stamp Duty — The Big One
Stamp duty (officially called land transfer duty in Victoria) is typically the largest upfront cost after your deposit. The amount depends on the property value and whether you qualify for first home buyer concessions.
| Property Value | Standard Stamp Duty | First Home Buyer (New Build) | First Home Buyer (Established) |
|---|---|---|---|
| $500,000 | ~$21,970 | $0 (full exemption) | $0 (full exemption) |
| $600,000 | ~$31,070 | $0 (full exemption) | $0 (full exemption) |
| $700,000 | ~$37,070 | Partial concession | Full stamp duty applies |
| $800,000 | ~$43,070 | Full stamp duty | Full stamp duty |
| $900,000 | ~$49,070 | Full stamp duty | Full stamp duty |
Use our Stamp Duty Estimator to calculate your exact stamp duty based on property value and buyer type.
Conveyancing and Legal Fees
A conveyancer or solicitor handles the legal transfer of property ownership. In Victoria, conveyancing fees typically range from $1,200 to $2,500 for a standard residential purchase. Complex transactions (off-the-plan, unique title arrangements) may cost more.
Do not try to save money here — a good conveyancer can identify issues with the Section 32 vendor’s statement that could save you from a costly mistake.
Building and Pest Inspection
A pre-purchase building and pest inspection is essential for established properties. In Melbourne, inspections typically cost $400-$800 depending on property size and location. This covers:
Structural integrity assessment
Roof and subfloor inspection
Moisture and water damage detection
Pest and termite assessment
At auction, you must complete inspections before bidding — auction contracts are unconditional. Budget for at least 2-3 inspections as you shortlist properties.
Loan Application and Establishment Fees
Some lenders charge fees to set up your home loan:
| Fee Type | Typical Range | Notes |
|---|---|---|
| Application/establishment fee | $0 – $600 | Many lenders waive this to attract borrowers |
| Valuation fee | $0 – $300 | Often covered by the lender |
| Legal/settlement fee | $200 – $500 | Charged by lenders solicitor |
| Mortgage registration fee | ~$120 | Victorian government fee |
| Title search fee | ~$50 | Usually included in conveyancing |
Lenders Mortgage Insurance (LMI)
If your deposit is less than 20% of the property value, most lenders will charge LMI. This can be substantial:
5% deposit on $700,000 purchase: LMI approximately $22,000-$28,000
10% deposit on $700,000 purchase: LMI approximately $10,000-$15,000
LMI can usually be capitalised onto your loan — you do not pay it upfront, but you do pay interest on it for the life of the loan.
Estimate your LMI with our LMI Estimator.
Moving Costs
The cost of physically moving your belongings is easy to underestimate. In Melbourne:
Small local move (1-2 bedroom): $500-$1,200
Medium move (3 bedroom): $1,200-$2,500
Large or interstate move: $3,000-$8,000+
Immediate Property Costs After Settlement
Once you own the property, there are immediate costs many buyers fail to budget for:
Council rates:often due shortly after settlement; $1,200-$2,500 per year
Water rates:$800-$1,500 per year depending on usage
Building insurance:essential from day one; $1,200-$2,500 per year
Contents insurance:$600-$1,200 per year
Urgent repairs:budget $2,000-$5,000 for issues that emerge in the first 6 months
The Full Cost Summary
Here is a realistic total cost estimate for a $650,000 established property purchase in Victoria as a non-first-home buyer:
| Cost Item | Estimated Amount |
|---|---|
| Deposit (10%) | $65,000 |
| Stamp duty | ~$34,000 |
| LMI (at 90% LVR) | ~$12,000 |
| Conveyancing | ~$1,800 |
| Building and pest inspection | ~$600 |
| Loan fees | ~$500 |
| Moving costs | ~$1,500 |
| TOTAL upfront | ~$115,400 |
| 💡 First Home Buyer tip: If you qualify for the stamp duty exemption on a new build under $600,000, you could save $25,000-$31,000 from the above total. |
|---|
Frequently Asked Questions
No — stamp duty must be paid from your own funds at settlement. It cannot be borrowed or included in your home loan. This is why it is critical to budget for it separately from your deposit.
The First Home Owner Grant ($10,000 in metropolitan Victoria, $20,000 regional) helps with upfront costs but is paid at settlement — it cannot be used before that point. The First Home Guarantee eliminates LMI costs for eligible buyers.
Yes — a new construction inspection (also called a practical completion inspection) is highly recommended even for new builds. Builder defects are common and much easier to address before you take possession.
A Section 32 (vendor’s statement) is a legal document the seller must provide disclosing key information about the property — title, zoning, outgoings, restrictions. Always have a conveyancer or solicitor review it before signing a contract.
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