Buying costs
Settlement costs when buying property in Australia
A breakdown of common property purchase costs, including stamp duty, LMI, registration, conveyancing, inspections, and settlement adjustments.
5 min read · Updated 30 May 2026
The purchase price is only one part of buying a property. To avoid being caught short at settlement, buyers should understand the transaction costs that can sit beside the deposit and loan approval.
Key takeaways
- The purchase price is only one part of buying property; stamp duty, legal costs, inspections and settlement adjustments can materially change funds required.
- LMI may apply when the loan-to-value ratio is above 80%, which can affect both upfront costs and borrowing strategy.
- A useful borrowing plan should show borrowing capacity and funds-to-complete together.
The big one: stamp duty
Stamp duty, also called transfer duty in some states and territories, is usually the largest upfront cost after the deposit. It is charged by state or territory governments and depends on the property value, location, buyer type, and available concessions.
First home buyer concessions can make a major difference, but eligibility and thresholds vary by jurisdiction.
Lenders Mortgage Insurance
Lenders Mortgage Insurance, or LMI, may apply when you borrow more than 80% of the property's value. It protects the lender, not the borrower, but the borrower usually pays the premium.
Some government schemes or lender policies can reduce or remove LMI for eligible buyers, so it is worth checking before assuming a smaller deposit automatically means a large LMI bill.
Government and legal costs
Beyond stamp duty, property purchases often involve government registration and professional costs.
- Mortgage registration fee: a government charge to register the mortgage.
- Transfer registration fee: a government charge to transfer title ownership.
- Solicitor or conveyancer fee: professional support for contract review, searches, settlement, and title transfer.
- PEXA or electronic settlement fees: electronic lodgement and settlement platform costs where applicable.
Other costs buyers often forget
Depending on the property and lender, buyers may also need to budget for building and pest inspections, strata reports, lender application or valuation fees, home insurance, moving costs, and settlement adjustments for rates, water, or strata levies.
The cleanest approach is to build a total funds-to-complete estimate before you bid or sign. That means purchase price, deposit, stamp duty, LMI if applicable, legal fees, registration charges, inspections, and a buffer.
Why this matters for borrowing capacity
Transaction costs reduce the cash available for deposit. That can change your loan-to-value ratio, LMI exposure, and sometimes the maximum property price you can pursue.
A good borrowing workflow should show both borrowing capacity and purchase readiness. Borro is designed to help buyers keep those two numbers clear.
Know the real cost before you bid.
Model borrowing power and buying costs together so the purchase price is not the only number in view.
Check my borrowing powerFrequently asked questions
Common costs include stamp duty, conveyancing, registration fees, inspections, insurance, lender fees, LMI where applicable, and settlement adjustments.
They can. Upfront costs reduce available cash, which can affect deposit size, loan-to-value ratio, LMI, and maximum purchase price.