Property Buying Cost Calculator
How much will your property purchase cost you? You know you will need to put down a hefty deposit. You understand loan repayments will be made monthly.
But what about the other costs involved in buying a home in Australia? Have you considered these costs? To add to your confusion, costs vary according to the state or territory you are buying in, as well as other mitigating factors.
When buying a property in Australia, you must consider the stamp duty payable as well as legal and conveyancing fees. You may need a building inspection and a pest inspection, in addition to paying a mortgage registration fee.
As an Australian Expat who still possesses Aussie citizenship or permanent residency, you have no extra costs than a resident Australian. However, as a foreign national purchasing a home in Australia, there are greater costs!
Firstly, you need to apply for permission to buy Australian property from the Foreign Investment Review Board. You will also need to pay a foreign stamp duty surcharge of around 7% to 8% of the property value. This is in addition to standard stamp duty.
Odin Mortgage’s Property Purchase Costs Calculator tells you all the costs you need to pay when buying Aussie property!
What Costs Are Involved When Buying a Home In Australia?
There are several costs involved in buying a home including several upfront costs and government fees. Review our checklist of the costs you need to factor into your property purchase:
Property Buying Costs
Additionally, Australian Expats will have additional costs when relocating back to Australia. You should factor in your flight costs and the cost of transporting your belongings Downunder.
How Much Should I Budget For Property Buying Costs?
Costs involved in buying an Australian property can soon turn into thousands of dollars. But, which costs will you need to pay?
Here are the top 5 property buying costs for you to consider!
Your deposit is the highest property buying cost, by far! You will typically need a 20% deposit when securing a home loan, although an even higher deposit will open up better interest rates. Your borrowing power calculation is instrumental in determining how much you can borrow and the value of a 20% deposit.
Therefore, if you are buying a home in Australia for $600,000, your 20% deposit will total $120,000. That is an astonishing amount of cash to save, by anyone’s standards!
Saving a deposit of that size may take you several years. By which time, you will buy much less property for your money!
You can pay a smaller deposit, although some lenders may charge a higher interest rate AND ask you to pay lenders mortgage insurance.
Lender’s mortgage insurance is an insurance fee that you will need to pay each month. It covers the risk that the lender perceives from your home loan application. You will usually need to pay this LMI cost until your equity in the home reaches 20% of the value.
2. Stamp Duty
The second biggest cost when buying a home in Oz is stamp duty. Check out Odin Mortgage’s Stamp Duty Calculator to find out how much stamp duty you need to pay in Australia.
The amount of stamp duty you will need to pay varies according to the property value and the state or territory you are buying in.
Being a first home buyer or investor also impacts the amount of stamp duty you need to pay. Some states allow stamp duty exemptions for first home buyers or heavy discounts.
In addition, your status as an Australian citizen, permanent resident, or foreign buyer is important.
For example, let’s say you are a first home buyer purchasing an established home as your primary residence in Victoria. You will pay zero stamp duty. However, if you are not a first home buyer, you will pay $21,970 in stamp duty!
Stamp duty is usually payable between 30 days – 60 days after the settlement date. However, this varies according to the state or territory you are buying a property in.
Although, if you are buying in South Australia, you must pay stamp duty on the day you complete the sale.
Expats with Australian citizenship or permanent residency will not need to pay any additional costs. You are at no disadvantage to a resident Aussie! We can help guide your every step of the way from your application to loan approval, so get in touch with Odin Mortgage today!
You may need to pay the lender’s mortgage insurance if you are placing a deposit on your home loan under 20% of the property value. Most homebuyers try to pay a high enough deposit to avoid paying LMI.
LMI is an insurance cost that covers your lender’s interests in case you default repayments. It is an additional expense for you to pay each month and does not reduce your home loan balance.
Some lenders may view Expats as a higher risk and require you to pay LMI, even if you have a high enough deposit. However, Odin Mortgage brokers are Expat experts who will negotiate your home loan with lenders to remove the need for LMI payments.
4. Foreign Buyers
If you are not an Australian citizen or permanent resident but you want an Australian home loan, we can still help you! However, it is often a much more expensive process to buy an Aussie house as a foreign buyer.
On top of the standard stamp duty fee, you will need to pay the foreign stamp duty surcharge. This is typically 7% to 8% of the property value. In addition, your status as a first home buyer will not grant you any exemptions or discounts.
For example, let’s say you are buying a $500,000 home in Victoria. Whilst the standard homebuyer would pay $21,970 in stamp duty, a foreign buyer will pay $61,970. That is a significant cost to factor into your budget!
In addition, you will need to spend several thousand dollars on an application fee for the Foreign Investment Review Board. All foreign buyers must be permitted to buy a home in Australia, designed to create a fair property market for Aussie residents.
Whilst several thousand dollars may seem expensive, buying a home without permission may result in a fine of $3,300,000! You could also be at risk of up to ten years in prison.
5. Other Costs
Other costs involved in buying a property include conveyancing costs to transfer the property into your name. You will also need to pay legal fees, lender fees, registration fees, and a building and pest inspection.
Furthermore, your lender may ask you to pay a valuer fee to determine the worth of the property you are buying. Overall, these extra costs may total around $6,000.
You will also need to consider ongoing costs such as mortgage repayments and home and contents insurance when budgeting for your home loan.
In addition to these costs, Expats need to consider moving costs and the total amount of relocating to Australia.
How Can I Easily Calculate Property Buying Costs?
Use Odin Mortgage’s Property Buying Cost Calculator today and discover the total costs involved in buying your property.
You will need to enter the following information, where applicable, into the calculator for a reliable result:
- Stamp duty total
- Mortgage registration fee
- Transfer fee
- Loan application fee
- Legal Fees
- Lender mortgage insurance
- Other costs
You will discover a total cost of buying your property and getting your Australian home loan approved.
Contact Odin Mortgage Now!
Odin Mortgage is a leader in securing home loan approval in Australia for Expats! We understand the complexities of proving overseas income and the need to negotiate a great deal with lenders!
We are Australian Credit Licence holders, offering a free service to secure home loans matching your needs! Check out our range of mortgage calculators online!
Frequently Asked Questions
Will my property buying costs be higher with a low credit score?
Property buying costs are not dependent on your credit score and so will not rise due to this factor.
However, a good credit score for Expats in Australia will open up a great set of interest rates and will save you money on your monthly repayments! Check out our latest home loan interest rates for Expats!
Can I purchase an investment property in Australia?
What is my borrowing power?
Your borrowing power is the amount you can borrow from a lender towards your property purchase price. Borrowing power is calculated by adding together all income streams and deducting all expenses and ongoing debts.
Discover your borrowing power with our Borrowing Power Calculator today! Odin Mortgage is a home lending specialist for Expats with a range of home loans available!
Can I refinance an existing property?
Yes, Odin Mortgage also specialises in refinance for your existing home loan. The equity of your existing property can be unlocked helping your financial situation!
Simply seek a valuation and deduct any loan amount relevant to your home. How much equity can you access in your home?
What are the ongoing costs of buying a property in Australia?
As well as paying mortgage instalments when buying a house, you will also need to pay building insurance, council rates, and other fees and costs.