Real Estate
First home buyers are facing significant expenses even before they receive their keys, new data has revealed.
Finder’s First Home Buyer Report 2025 – based on a survey of 1006 first home buyers in Australia – revealed 2 in 5 (40 per cent) had to pay for unexpected fees when buying a home.
From stamp duty to lender’s mortgage insurance and conveyancing fees, the average first-time buyer had to fork out $5,290 in unforeseen costs.
Graham Cooke, head of consumer research at Finder, said the total costs of buying a property for the first time can be incredibly overwhelming.
“Many are stretched to breaking point and hidden costs can quickly create a financial nightmare,” he said.
“We’re seeing people drain their savings just to get over the line, which leaves no buffer for hidden fees.”
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Finder.com.au head of consumer research Graham Cooke.
The report found 1 in 3 (33 per cent) who bought their home in the past 12 months have less than $10,000 remaining in savings.
Meanwhile, a whopping 14 per cent of Australians have no savings left whatsoever.
Cooke said the deposit was only the beginning.
“Too often, first home buyers focus solely on the deposit and forget about the thousands in upfront extras,” he said.
“Stamp duty, solicitor fees, insurance, building and pest inspections – they all add up fast. If you don’t factor them in, you’ll be scrambling.”
Cooke urged prospective buyers to take the time to understand all the costs involved in a property purchase.
“When you’re fully informed, unexpected expenses become expected – and nothing takes you by surprise.”
THE UNEXPECTED COSTS TO LOOK OUT FOR WHEN BUYING A HOME
Stamp duty:
This is a significant tax levied by state and territory governments on property transactions, and it can amount to tens of thousands of dollars on top of your deposit. While first homebuyer concessions or exemptions may apply in some states, it’s a major cost that can easily be underestimated.
Conveyancing and legal fees:
The process of “conveyancing” is the legal transfer of property ownership, and it is a standard part of real estate transactions across Australia. You will need a solicitor or licensed conveyancer to manage this.
Building and pest inspections:
It is essential to get a professional inspection to uncover any structural issues, maintenance problems, or pest infestations (like termites) that could cost you a fortune in repairs down the track. These inspections typically range from a few hundred to over a thousand dollars, depending on the property’s size and complexity.
Lenders Mortgage Insurance (LMI):
If you have a deposit of less than 20 per cent of the property’s value, your lender will likely require you to pay LMI. This is a one-off fee that protects the lender, not you, in case you can’t repay the loan. It can add thousands to your loan amount, but it can also get you into a property sooner, so you’ll have to decide if the trade off is worth it.
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